Inflation Reduction Act Offers Rebates, Credits for Clean Energy

With President Biden's signature on Aug. 16, the Inflation Reduction Act is now law, bringing with it several incentives to help Americans transition to more clean and sustainable sources of energy.

One of the biggest changes affecting homeowners who want to help the environment is the extension and expansion of the solar tax credit, more formally known as Residential Clean Energy credit on federal income tax. Originally set to be reduced this year and next before being eliminated, the Inflation Reduction Act increases this tax credit to 30 percent and extends it for another decade.

You can read more about the benefits of going solar here.

The new law also offers subsidies to homeowners who upgrade to more efficient appliances, including replacing older heating systems with heat pumps and switching to electric water heaters and kitchen stoves. These rebates could cover up to $14,000 of each household's transition costs, and making the switch to efficient technologies can save homeowners as much as $1,840 each year in reduced energy costs.