Inflation Reduction Act Incentives

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The Inflation Reduction Act of 2022 takes a significant step to address climate change by lowering the costs for consumers to implement clean energy measures.  Many of the current benefits are in the form of income tax credits – that means that you need to owe taxes to access them and also need to have cash or loans to front the payments until you get reimbursed at tax time.  But rebates that reduce the cost of measures upfront are still rolling out.

New York State was the first state to offer rebates for energy efficiency.  Rebates are currently offered through the EmPower+ Program, and just recently for Heat Pump Clothes Dryers.   If you’re contemplating installing heat pumps, there’s an additional incentive you can access through the NYS Clean Heat program.  

A helpful website to guide you through the various incentives is https://www.energy.gov/save You may want to complete your energy upgrades over several years as there is a maximum tax credit that you can take each year.

Also available are federal and state tax credits for solar projects.  What’s different about IRA tax credits for solar, battery storage or geothermal heating is that you can carry forward unused tax credits to the next year – up to a total of 30% of the cost to purchase and install.

All these incentives can get complicated.  Not all installers participate in all incentive programs, be sure to ask.  Our Energy Advisors can help guide you.  More information is also available at Rewiring America.