The Inflation Reduction Act (IRA) was signed into law on August 16, 2022, by President Biden. With the passage of this historic bill, the American people will be able to address a number of issues impacting lives today, but it is anchored by investments relating to clean energy and climate change totaling nearly $370 billion.
In the 730-page document, there is a lot to unpack, ranging from corporate tax law to drug price mandates to rebates related to renewable energy. Many people became confused by the intricacies as well as the sheer volume of information, and wondered, “What is in it for me? ”
The good news? Rather than you having to read the bill yourself, we have already done it for you! A few of the amazing benefits of having solar panels on your home are that they will save you money on your electricity bills, make your home energy more reliable, or reduce your carbon footprint as a result of reducing your energy costs.
The fact that there are extra benefits and some limitations depending on your level of income, your location, or other personal factors is probably not surprising to you. Over the next few weeks, we will be showcasing real-world scenarios of people planning their own tax breaks, rebates, and incentives in order to help illustrate how you can take advantage of them in the best way possible.
Here are the top 10 things you should know:
30% Tax Credit On Solar Systems
The solar Investment Tax Credit (ITC) means you could get back nearly a third of the cost of your system if purchased between 2022 and 2032.
30% Tax Credit On Energy Storage Technologies
This credit covers batteries that run on solar energy that can be used to power your home during a grid outage.
Tax Credits For Home Builders
With these credits for builders, we can expect to see more clean-energy homes on the market.
Up To $7,500 Tax Credit on Electric Vehicles
Qualified taxpayers who purchase a car that meets certain conditions could receive the credit.
30% Tax Credit on EV Chargers
For qualified taxpayers, this credit is great news – especially since EV drivers charge their cars at home 80% of the time.
$8,000 Rebate On Heat Pumps
If you meet certain income requirements, you could be eligible for a rebate when installing a heat pump which, contrary to its name, can be used to both heat and cool your home.
$1,750 Rebate On Heat Pump Water Heaters
Changing the way you heat water in your home could get you this rebate, provided you meet certain income requirements.
$840 Rebate On Electric Stoves, Cooktops, Ranges, and Ovens
If you qualify for these rebates, this could be the perfect time to make your kitchen more energy efficient.
Up To $4,000 Rebate On Breaker Box Upgrades And $2500 Rebate On Electrical Wiring
Need to make some home repairs before switching to renewable energy? You could be eligible for rebates on these upgrades that might be required before adding a solar system.
With all these incentives in place, the White House expects a 40% cut in greenhouse gas emissions from 2005 levels by the end of the decade.
Contact Michigan Solar and Roofing For Sunpower Solar Panels
If you’re interested in going solar, contact Michigan Solar and Roofing.
Our main goal is to help people lead more environmentally friendly lifestyles. We do this by making solar more accessible through our friendly customer service by walking our customers through the best solar panels for their homes or business.
To get started, call 833-693-5779 or complete our inquiry form. One of our solar specialists will be in touch!