The Inflation Reduction Act (IRA), which Congress passed and President Biden signed into law in August 2022, commits billions of dollars through 2032 to building a clean energy economy in the United States. A good chunk of that money, in the form of federal tax credits and state-level rebates, will go to individuals who make energy-efficiency improvements in their own home.
You can take advantage of the IRA to significantly lower your costs for a wide variety of energy efficiency projects, such as installing an energy-efficient heating and cooling system, water heater, battery system, solar panels, insulation and air sealing, electrical system upgrades, and more in your home. Also, clean vehicles! These kinds of projects can:
- Make your home safer and more comfortable
- Provide long-term savings on energy costs
- Contribute to addressing the climate crisis
Many benefits apply to renters as well as homeowners.
Third Act SoCal analyzed the provisions of the IRA that pertain to individuals and has compiled a set of easy-to-understand information sheets to help you begin your energy efficiency journey. We will add more information as the California Energy Commission develops its guidelines for the state’s rebate rules.
Federal tax credits are available now for:
- Building infrastructure upgrades
- Heating and cooling
- Energy generation and storage
- Water heaters
- Clean vehicles
Federal tax credits are also available for other products. The IRS has a complete list of Inflation Reduction Act tax credits now available to individuals.
– The Third Act SoCal IRA Task Force