This year, taxpayers claimed more than $8 billion in climate-related tax credits. This was made possible by the Inflation Reduction Act, which encourages home improvements that use less energy, such as solar panels and heat pumps, which save users a lot of money on their energy bills.
Over $8 Billion Claimed in Climate-Related Tax Credits This Year Thanks to Inflation Reduction Act
According to The Cool Down, Inflation Reduction Act (IRA) from the Biden administration is said to have helped people get over $8 billion in climate-related tax credits this year.
People are more likely to put energy-saving technology in their homes because this law offers tax credits and rebates for doing so. It was thought that the IRA would give $2.4 billion in its first year. In the next two years, that amount will rise to $4 billion a year.
The tax credits can be used to pay for many improvements, like solar panels, heat pumps, and better insulation. As an example, homes have gotten back an average of $5,000 through a credit for solar panels and batteries.
These claims add up to $6 billion. States like Maine, New Hampshire, and Vermont have had the most people sign up, while Oklahoma and West Virginia have had the least.
Climate-Related Tax Credits Save Money and Boost Green Upgrades: How to Get Started
These changes are good for the earth and save people money. People who use heat pumps can save up to $3,000 a year and people who use solar panels can save about $2,000.
There are a lot of claims, which means that these benefits are getting more people to go green. People who are interested in these perks might want to start by getting in touch with groups like Rewiring America.