Investing in America – CleanEnergy.gov
The Inflation Reduction Act lowers energy costs for consumers and small businesses while creating good-paying jobs as America’s clean energy economy and manufacturing sectors grow. Learn more below on how you or your family can save on utility bills, get support to purchase electric vehicles and energy-saving appliances, and access the economic opportunities of the clean energy future.
Find out which programs are available to you so that you can benefit from American made clean energy as soon as today, and sign up below to be the first to receive updates and take advantage of these opportunities.
How You Can Save Money
From making home weatherization and efficiency upgrades, to installing new electric appliances, to purchasing an electric vehicle or rooftop solar system – learn how the Inflation Reduction Act will help cover the costs and save you money each month on your bills.
Hover over each circle to learn about the upgrades available, and scroll down for details on how these rebates and tax credits can be applied during each tax year.
Rooftop Solar
The Inflation Reduction Act will help more Americans harness the sun’s energy to power their homes with clean electricity and save big on utility bills. Tax credits are available now to cover up to 30% of the installation costs – and this federal credit can be paired with additional incentives available in many states. The average family will save $300 per year, or $9,000 over the life of the system.
Insulation and Air Sealing
The Inflation Reduction Act provides tax credits and rebates for a range of home improvements that reduce energy leakage – keeping homes warmer in the winter, cooler in the summer, and saving money on utility bills. Insulation material can lower heating and cooling costs by up to 20%, and air sealing (like caulking and weather-stripping) save energy and improve air quality by keeping moisture out. In addition to supporting the upgrades themselves, the Inflation Reduction Act can also cover the costs of home energy audits so that an inspector can identify the best improvement options.
Clothes Dryer
Electric heat pump clothes dryers are more efficient than conventional electric dryers and gas dryers, helping families save money on each load of laundry. The Inflation Reduction Act provides rebates that can cover up to 100% of the costs of purchasing and installing a new electric heat pump clothes dryer, depending on household eligibility.
Electric Stove or Oven
Electric stoves, including induction ranges, provide better energy efficiency and indoor air quality than gas stoves, helping families save money and keep unhealthy pollution out of their homes. The Inflation Reduction Act provides rebates that can cover up to 100% of the costs of electric stoves, cooktops, ranges, and ovens, depending on household eligibility.
Weatherized Windows & Doors
The Inflation Reduction Act provides tax credits and rebates for a range of home improvements that reduce energy leakage – keeping homes warmer in the winter, cooler in the summer, and saving money on utility bills. Windows can be responsible for 25-30% of heating and cooling energy use, and doors can leak significant amounts of energy as well. In addition to supporting upgrades of exterior windows and doors, the Inflation Reduction Act can also cover the costs of home energy audits so that an inspector can identify the best improvement options.
Breaker Box
To help a home handle the load from new electric appliances, the Inflation Reduction Act also includes tax credits and rebates to upgrade a home’s breaker box or electrical wiring.
Electric Vehicle
The Inflation Reduction Act will help more families never pay at the pump again, with tax credits up to $7,500 for new electric vehicles and $4,000 for used electric vehicles – saving families an average of $950 a year on fuel costs.
Heat Pump
A heat pump provides both heating and cooling for homes, as a super-efficient alternative to furnaces and air conditioners. Installing a heat pump can save a family hundreds of dollars each year on energy bills. The Inflation Reduction Act includes tax credits and rebates that can cover up to 100% of the costs, depending on household eligibility.
Heat Pump Water Heater
Support is available to install heat pump water heaters, which can be two to three times more energy efficient than conventional water heaters. The Inflation Reduction Act includes tax credits and rebates that can cover up to 100% of the costs, depending on household eligibility.
Tax Credits and Rebates for Families
I want to install rooftop solar on my home
Installing rooftop solar will help families save hundreds of dollars per year on their energy bills.
Households can receive a tax credit to cover 30% of the costs of installing rooftop solar.
- This credit also applies to solar systems that are paired with battery storage
Households can receive a tax credit to cover 30% of the costs of installing rooftop solar.
- This credit applies to solar systems that are paired with battery storage as well as standalone battery storage installed without solar.
Learn more about how to install solar on your home and access other solar resources
I want to make my home and appliances more energy efficient
When households need to replace appliances or make home repairs, they can use tax credits for energy efficient improvements that save them money in the long run. These efficiency improvements include upgraded windows, doors, insulation, and other home weatherization services; or highly-efficient heating and cooling appliances like heat pumps, central air conditioners, and water heaters.
Households can receive a tax credit to cover up to 10% of the cost of insulation materials and other energy efficient improvements, like energy-saving windows and doors. They can also receive a $300 tax credit for purchasing efficient heating and cooling equipment, like a heat pump or central air conditioner.
Households can access a tax credit to cover up to 30% of the costs for certain efficiency improvements.
- Families can claim up to $1,200 in credit each year for adding insulation or installing efficient windows and doors, with a special credit of as much as $2,000 for electric heat pumps that provide super-efficient heating and cooling.
- To help determine the best home improvement options, families can claim a credit of up to $150 for a home energy audit conducted by an inspector. State programs will begin to offer rebates for electric appliances and home retrofits, which will reduce household energy bills each month.
- All households can access rebates of up to $4,000, while low- income households could receive up to $8,000 for home efficiency.
- Low- and moderate-income households can access rebates covering up to 100% of the costs of installing electric appliances like heat pump water heaters and clothes dryers.
Learn how to weatherize your home
Learn how to make energy efficiency improvements to your home
I need to replace my furnace or air conditioner
When homes need to replace their heating or cooling systems, families can get tax credits for efficient heat pumps that ensure comfortable home temperatures. By doing the job of both a furnace and air conditioner, heat pumps work to keep homes warm in the winter and cool in the summer.
Households can receive a $300 tax credit for purchasing a heat pump. The total of current and previous years credits, including those for energy efficiency improvements, high efficiency furnace and air conditioners cannot exceed $500.
Households can claim a tax credit for 30% of the costs of buying and installing a heat pump, up to $2,000 including support for any electric system upgrades needed to make the home heat-pump-ready.
Beginning in 2023 state programs offer low- and moderate-income households rebates for heat pumps at the point-of-sale, cutting costs of purchase and installation up to $8,000. If home electrical upgrades are needed to integrate new heat pumps, rebates of up to $4,000 are available to households.
More information about heat pump products and local rebates from the Energy Star Program
I want to buy an electric vehicle
Working families will be able to use tax credits that make electric vehicles more affordable. Purchasing an electric vehicle (EV) can save families thousands of dollars on fuel costs over the life of their car.
Americans can receive a tax credit of up to $7,500 for purchasing a new electric vehicle by timely filing their 2022 taxes. Visit this website to see which EVs are eligible.
For new vehicles, qualified households can receive a tax credit of up to $7,500.
- Your annual income must not exceed $300,000 if married, $225,000 if filing as head of household, or $150,000 for all other taxpayers. You can look to the lower of your prior year’s income or current year income to meet the income limit.
- The vehicle must be assembled in North America.
- The vehicle must have a manufacturer’s suggested retail price of $80,000 or less for pickup trucks, vans, and sport utility vehicles (SUVs) and $55,000 or less for other vehicles, including sedans.
- Vehicles must meet other criteria to be eligible. You can view a full list of eligible EVs at this website. On April 18, the eligibility criteria will change and the list will be updated. The list will grow as more eligible EV models come on the market.
For previously-owned electric vehicles, income-qualified households can access a tax credit of up to $4,000.
- Your annual income must not exceed $150,000 if married, $112,500 if filing as head of household, or $75,000 for all other taxpayers. You can look to the lower of your prior year’s income or current year income to meet the income limit.
- The vehicle must be at least two years old, cost $25,000 or less, and be purchased from a dealer.
- You can view a full list of EVs eligible for the previously owned clean vehicle tax credit at this website.
Learn which vehicles qualify for the 2023 electric vehicle tax credit in 2023. Note: this list is based on information provided by vehicle manufacturers and will continue to be updated through January 2023.
See how these tax credits work for families like yours
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Suzy
Occupation: Teacher
Income level: $40k/year
Homeowner vs renter: Renter
Single vs family: Single
Suzy
Suzy is starting her third year as a science teacher at a local elementary school. She has been saving money to buy a new car, and is looking for an electric vehicle. Thanks to President Biden’s Inflation Reduction Act she can receive a credit up to $7,500 for a new, electric vehicle purchase.
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Mark and Lisa
Occupation: Construction Worker & Bank Teller
Income level: $60k/year
Homeowner vs renter: Homeowner
Single vs family: No dependents
Mark and Lisa
Mark and Lisa just bought their first home. They wanted to install energy efficient appliances, but couldn’t afford to before the Inflation Reduction Act. Now, since they make below 80% of their area-median income – they are eligible for rebates that cover up to 100% of the project costs.
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Janet
Occupation: Nurse Practitioner
Income level: $100k/year
Homeowner vs renter: Homeowner
Single vs family: Single with dependents
Janet
Janet is a single, working mom who lives in a home with her son and daughter. She wants her children to grow up in a green home. She has been researching the costs of installing a heat pump, and after reading more on the Inflation Reduction Act learned she can receive up to $2,000 to buy and install a heat pump to more efficiently heat and cool her home.
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Garett and Sarah
Occupation: Engineer and Dentist
Income level: $250k/year
Homeowner vs renter: Homeowner
Single vs family: Family
Garett and Sarah
Garett and Sarah live in a suburb with their 4 children. They want to install solar panels on their home, but with 4 children were considering how to budget for the added expenses. Due to the Inflation Reduction Act, they learned they can receive tax credits to cover up to 30% of the costs towards installation of solar panels.
Sign Up for Updates
Tax credits are already available to help you save money on your energy bills. Sign up below to ensure you know about future programs to save money at home.
