New Electric-Vehicle and Home-Energy Tax Incentives
Recent changes to the law can mean upfront tax savings and lower energy bills going forward for many home and vehicle owners
By Ashlea Ebeling, The Wall Street Journal, Updated March 31, 2023
The sweeping energy law Congress passed in August 2022 includes major changes to tax incentives for consumers to electrify their homes and vehicles.
These measures are separate from about $9 billion of home-energy rebates aimed mostly at lower-income households, which state officials will distribute beginning in mid-to-late 2023…
For tax year 2023 through 2032, the new law provides both more flexibility and more restrictions [than earlier laws for EV rebates]…
For green remodeling or energy-efficient home improvements in 2023 through 2032, a revamped credit jumps to 30% of costs, and the limit rises to $1,200 annually. This means someone could claim a 30% credit on the first $4,000 spent on energy-efficient home improvements each year…
New tax credits for residential solar, wind, or geothermal systems…Starting in 2023, the credit also applies to stand-alone battery storage systems…
For more information on energy-efficient home improvements and solar/wind power installations, the U.S. Department of Energy has details on the standards for the clean energy tax credits for consumers, with a link to the IRS’s FAQ page. [end quote]
There are way too many details to list in a TMF post. Anyone considering a project should check out their state as well as federal tax rebates.
Wendy