Taxpayers claimed over $8 billion in climate-related tax credits this year, driven by the Inflation Reduction Act, which supports energy-saving home upgrades like solar panels and heat pumps, saving users significant amounts 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, taxpayers have claimed over $8 billion in climate-related tax credits this year thanks to the Inflation Reduction Act (IRA) from the Biden administration. This law offers various tax credits and rebates, encouraging people to install energy-saving technology in their homes. The IRA was expected to provide $2.4 billion in its first year, but that amount is set to increase to $4 billion annually in the next two years.
The tax credits cover many upgrades, such as solar panels, heat pumps, and better insulation. For example, a credit for solar panels and batteries has given an average of $5,000 back to homeowners, totaling $6 billion in claims. States like Maine, New Hampshire, and Vermont have seen the most participation, while states like Oklahoma and West Virginia have seen less.
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$8 Billion in Climate-Related Tax Credits: How the Inflation Reduction Act is Spurring a Green Revolution in the US (PHOTO: slate.com)
Climate-Related Tax Credits Save Money and Boost Green Upgrades: How to Get Started
These upgrades help people save money and are good for the environment. Solar panel users can save about $2,000 a year on energy, and heat pump users can save up to $3,000. The high number of claims shows that these incentives are encouraging more people to go green. For those interested in these benefits, checking with organizations like Rewiring America can be a useful first step.
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