Inflation Reduction Act Energy Rebates and Tax Credits
HOW will you save energy, save money, and cut pollution with the Inflation Reduction Act?
Looking to save money; make your home more comfortable, resilient, and energy efficient; or reduce air pollution? Energy.gov/save has resources for renters, drivers, and homeowners. These include DIY tips and tricks and incentives for clean energy appliances and weatherization for your home that were passed as part of the Inflation Reduction Act (IRA).
Thanks to the IRA, there are now tax credits and rebates on appliances that will help you save money, enhance your home’s comfort and resilience, and reduce indoor air pollution.
WHY GO ELECTRIC?
ENHANCE COMFORT & RESILIENCE:
Weatherizing your home prevents energy leakage, making your home more resilient to extreme temperature.
And heat pumps are also one of the quietest and most comfortable ways to heat and cool your home.
SAVE MONEY
Households that take advantage of the IRA’s home energy programs can save an average of $1,800 a year.
- REDUCE INDOOR AIR POLLUTION
- Nearly 13% of childhood asthma in the United States is caused by pollution from gas stoves.
- Highly efficient electric and induction stoves are a much safer and more efficient option.
- Nearly 13% of childhood asthma in the United States is caused by pollution from gas stoves.
As beneficial as the IRA is for you, it is also the largest investment in climate action ever! The IRA is an economy-wide investment in climate smart agriculture, coastal restoration, clean energy, advanced manufacturing, and transportation. This puts the United States on track to slash emissions 40% by 2030.
The IRA’s clean energy tax credits and rebates are one of many ways that households in Virginia will benefit.
The use of fossil fueled stoves, water heaters, clothes dryers, and furnaces currently account for 95% of residential building emissions. By replacing these appliances with electric ones, your household can reduce the heat-trapping pollution that causes climate change while saving money, keeping comfortable, and reducing dangerous indoor air pollution.
WHERE TO BEGIN: A HOME ENERGY AUDIT
For many homeowners and renters looking to take advantage of these incentives, a home energy audit may be an ideal place to begin taking advantage of the IRA’s tax credits and rebates. There is an annual cap of $1,200 for many IRA clean energy programs, so it makes sense to plan for upgrades for your home in advance and to understanding what upgrades will be most beneficial for you.
A Home Energy Audit
Incentive Type: Tax Credit
Incentive Amount: 30% of the cost paid by the consumer, up to $150
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
🗓️ Subject to a cumulative, annual cap of $1,200.
⚠️ We highly recommend taking advantage of this credit at the start of your clean energy transition. A trusted professional can help you identify where your home is losing energy and which home improvements or upgrades will deliver the most bang for your buck.
Tools for Your Next Steps
- Energy.gov/save is a great place for homeowners, renters, and drivers to learn more about how to save. The U.S. Department of Energy also has a video series to walk you through the basics of clean energy technologies included in the IRA's clean energy tax credit and rebate programs.
For more information on what clean energy tax credits are available, visit the Department of Energy’s Clean Energy Tax Credits for Consumers page.
The Virginia Department of Energy is working to implement consumer rebates which will be available at the point of sale. More information is available on the Virginia Department of Energy’s Inflation Reduction Act Tax Credits and Rebates page.
You can also sign up for email updates on home energy rebate programs from the U.S. Department of Energy online here.
The House Sustainable Energy & Environment Coalition, of which Congressman Scott is member, also has a page on the IRA’s home energy and electric vehicle tax credits that are currently available.
Finally, Rewiring America has a guide to the IRA that includes information on incentives, overviews of appliances, and planning tools to help you go electric. Please note, Rewiring America is a nonprofit and not a government entity.