Nearly $500 million in home energy tax credits were claimed in the Philly region last year, with most credits used for home improvements, though low-income families struggle with upfront costs, despite new rebates expected to help.
Millions in Home Energy Tax Credits Claimed in the Philly Region
According to WHHY, people in Delaware, New Jersey, and Pennsylvania claimed nearly $500 million in tax credits for clean energy and home improvements last year. These credits, expanded under President Biden’s 2022 climate law, help cover the costs of heat pumps, air conditioners, insulation, and solar panels. The new law makes these credits more valuable, encouraging homeowners to make their homes more energy-efficient.
Data shows that more people in the Delaware Valley used these credits compared to the national average. In Delaware, over 3% of households claimed the credits, and just under 3% in New Jersey and Pennsylvania did the same. Most people used the credits for home improvements like insulation and new appliances, rather than for solar panels or geothermal systems. Experts say spreading awareness about these credits is crucial for more people to benefit from them.
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Nearly $500 Million in Home Energy Tax Credits Claimed in Philly Region: Delving into the Benefits and Challenges of Energy-Efficient Upgrades (PHOTO: Wisconsin Home Improvement)
Challenges for Low-Income Families in Accessing Home Energy Tax Credits and Upcoming Relief Measures
Low-income families face challenges in using these home energy tax credits because they need to pay upfront costs before getting the credit back. For example, Alon Abramson said his $2,000 credit only covered part of the cost of a new heat pump. Community Legal Services attorney Joline Price added that many of her clients, who don’t file taxes or struggle with monthly bills, cannot take advantage of these credits. There is hope that new point-of-sale rebates for energy-efficient appliances, coming soon in Pennsylvania, will help these families with immediate financial relief.
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