Tax credits that could help you save on energy costs

Clean energy credits are available in full through 2032, then decrease over time
Published: Jul. 20, 2023 at 1:21 PM CDT
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(InvestigateTV) — The Inflation Reduction Act, which was signed into law in 2022, can save money for individuals looking to make their home more energy efficient, experts say.

The act, among other things, creates tax credits for clean vehicles and some home energy investments.

Those credits can help homeowners with the cost of replacing hot water heaters, a heat pump, windows, doors or even installation.

Cherry Dale, a financial coach with the Virginia Credit Union, said these credits are in place until 2032, giving consumers plenty of time to plan purchases and upgrades.

“So, if you’re planning on doing it now or later, you’re going to want to look at the tax credits surroundings that,” Dale said. “I think believe it’s the $3,200 tax credit they could get if they went and replaced that heat pump or windows or doors for their home.”

Investment in solar technology is also eligible for tax credit for both homeowners and businesses.

“There’s a 30% income tax incentive around installing solar panels, and solar energy, clean energy into your home. So, if you’re going down that path you want to make sure you’re take advantage of those tax incentives as well,” Dale said.

That credit not only includes rooftop solar panels, but also wind energy, geo-thermal heat pumps and battery storage.

The current credits will begin to decrease in value in 2033 and 2034.