Taxpayers in Delaware, New Jersey, and Pennsylvania claimed nearly $500 million in home energy tax credits last year, mainly for insulation and appliances, but many low-income households struggle to access these benefits due to the need for upfront costs.
Philadelphia Region Leads in Home Energy Tax Credit Claims: $500 Million Saved on Upgrades
According to WHYY, taxpayers in Delaware, New Jersey, and Pennsylvania claimed nearly $500 million in home energy tax credits last year, federal data shows. These credits, part of President Biden’s 2022 climate law, help cover costs for heat pumps, air conditioners, insulation, and solar panels. The Philadelphia region had high use of these credits, with over 3% of Delaware households claiming them and just under 3% in New Jersey and Pennsylvania.
People in these states mostly used the credits for home improvements like insulation and appliances, rather than for clean energy items like solar panels. The credit for electric heat pumps increased from $500 to $2,000 in 2023. However, many low-income households struggle to use these credits because they need to pay the full cost upfront before getting the tax break.
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$495 Million in Home Energy Tax Credits Claimed in Delaware, New Jersey, and Pennsylvania: Boosting Energy Efficiency and Addressing Affordability Concerns (PHOTO: Delmarva Insulation)
New Energy-Efficient Appliance Rebates Aim to Assist Low-Income Families in Pennsylvania
Advocates hope that new rebates for energy-efficient appliances, which will be available in Pennsylvania next year, will help more low-income families. Direct support is still needed for those who cannot afford the upfront costs of energy-saving upgrades. The home energy tax credits, which can be claimed yearly through the early 2030s, cover many energy-efficient and clean energy improvements.
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