The Inflation Reduction Act, or IRA, is a federal law that was enacted on August 18, 2022. The law includes billions of dollars for tax credits, rebates and federal programs to invest in healthcare, domestic energy production and manufacturing, and climate change-mitigation, to name a few.
The IRA contains several new tax credits and rebates for 2023 to help households pay for energy efficiency upgrades, electric vehicles, electric heating and cooling systems, and certain electric appliances. If you are considering buying any of the following items or services, you may be eligible for tax credits and/or rebates that can help you pay for them:
Tax credits are available for:
New or used electric vehicle
Home weatherization upgrades (for example: improved insulation, better insulating exterior doors and windows)
Home heating and cooling systems (Heat pumps, air conditioners, water heaters)
Residential battery storage
Rebates are available for some customers for:
Heat pump water heaters, electric stoves, heat pump dryers, circuit panels, insulation, air sealing, wiring
Home energy efficiency retrofits
The IRA tax credits only apply to expenditures made on January 1, 2023 and after. The rebates are not yet available. Please refer to the IRA Tax Credit FAQs and IRA Rebates FAQs, below, for more details.
IRA Tax Credits FAQs