Tax Credits and Rebates
Introduction to the IRA Credits and Rebates
Watch this video to learn about the available incentives and rebates from the Inflation Reduction Act. Viewers may follow along with captions in English or with the ASL interpreter.
Tax Credits and Rebates
Take Advantage of the Inflation Reduction Act
From making home weatherization and efficiency upgrades, to installing new electric appliances, to purchasing an electric vehicle or rooftop solar system – learn how the Inflation Reduction Act will help cover the costs and save you money each month on your bills.
Learn more about the White House's Inflation Reduction Act by visiting the Clean Energy for All page at the official whitehouse.gov site.
Tax Credits and Rebates
What's New in 2024
As of 2024, there is a change in how the tax credits are applied for electric and hybrid electric vehicles. Rather than purchase a vehicle full price and then apply for the tax rebate in the following year at tax time, you can now purchase the vehicle with the tax rebate taken off the sale price. This means a lower sale price, lower principal for financing, and less work for you as the consumer!
Note: Make sure to check with your dealer before purchasing your vehicle to confirm the quoted price already includes the rebate.
For more information about Electric Vehicle Tax Credits, scroll down the page to the Electric Vehicles section.
Tax Credits and Rebates
Home Energy Audit
It's important to know how your home uses energy. Before making any efficiency upgrades consider an energy audit.
A home energy auditor will:
- analyze your utility bills to determine your energy consumption
- conduct interior, exterior, health, and safety inspections of your home
- assess your electrical system
- inspect appliances
- conduct a blower door test
When all this is done, they will provide you with your personalized energy report including suggestions for making your home more energy efficient.
The Inflation Reduction Act can get you up to $150 off the cost of your audit when you file your 2023 taxes. See page 107 of the Inflation Reduction Act Guidebook.
Incentive Type: Tax Credit
Incentive Amount: 30% of the cost paid by the consumer, up to $150
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
Tax Credits and Rebates
Appliances
The Inflation Reduction Act provides rebates that can cover up to 100% of the costs of new electric heat pump clothes dryers, electric stoves, cooktops, ranges, and ovens, depending on household eligibility.
Learn more at the whitehouse.gov Clean Energy site.
Incentive Type: Tax Credit & Rebate
Incentive Amount: Varies based on the appliance. For a list of the incentives, review the Incentives for Homeowners page on Energy.gov.
Tax Credits and Rebates
Heat Pumps
A heat pump provides both heating and cooling for homes, as a super-efficient alternative to furnaces and air conditioners. Installing a heat pump can save a family hundreds of dollars each year on energy bills. The Inflation Reduction Act includes tax credits and rebates that can cover up to 100% of the costs, depending on household eligibility.
Learn more about heat pump eligibility and rebates at whitehouse.gov.
Incentive Type: Tax Credit & Rebate
Incentive Amount: 30% of the cost paid by the consumer, up to $2,000/year, is available through a tax credit. Additional income-based incentives will be announced through the Home Energy Rebates program (for households below 150% area median income).
How to Access: For the tax credit, submit IRS Form 5695 when filing your taxes. if you meet the requirements detailed on IRS.gov. Rebates are not yet available. Stay tuned as the Home Energy Rebates programs are deployed nationwide and administered through your State Energy Offices.
Tax Credits and Rebates
Electric Vehicles
The Inflation Reduction Act will help more families never pay at the pump again, with tax credits up to $7,500 for new electric vehicles and $4,000 for used electric vehicles – saving families an average of $950 a year on fuel costs. Learn which vehicles qualify for the vehicle tax credit.
Note: This link will take you to the "Search for Eligible Vehicles" section where you must first enter an anticipated or known delivery date range before entering your make/model/etc.
For more information on the Inflation Reduction Act's rebates regarding Electric Vehicles, see the EV section of the Clean Energy for All page on whitehouse.gov
Find more resources at the Office of Sustainability’s ‘EVSA: Electric Vehicles San Antonio’ webpage. #Makepowermoves #EVSA
Incentive Type: Tax Credit Deduction Upon Purchase
Incentive Amount: Up to $7,500 for eligible buyers of qualified clean vehicles
How to Access: Submit IRS Form 8936 when filing your taxes if you meet the requirements detailed on IRS.gov.
Tax Credits and Rebates
Heat Pump Water Heaters
Support is available to install heat pump water heaters, which can be two to three times more energy efficient than conventional water heaters. The Inflation Reduction Act includes tax credits and rebates that can cover up to 100% of the costs, depending on household eligibility.
Incentive Type: Tax Credit & Rebate
Incentive Amount: 30% of the cost paid by the consumer, up to $2,000/year, is available through a tax credit. Additional income-based incentives will be announced through the Home Energy Rebates program (for households below 150% area median income).
How to Access: For the tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov. Rebates are not yet available. Stay tuned as the Home Energy Rebates programs are deployed nationwide and administered through your State Energy Offices.
Tax Credits and Rebates
Rooftop Solar
The Inflation Reduction Act will help more Americans harness the sun’s energy to power their homes with clean electricity and save big on utility bills. Tax credits are available now to cover up to 30% of the installation costs – and this federal credit can be paired with additional incentives available in many states. The average family will save $300 per year, or $9,000 over the life of the system.
Incentive Type: Tax Credit
Incentive Amount: 30% of the cost paid by the consumer
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
Tax Credits and Rebates
Insulation and Air Sealing
Save on a range of home improvements that reduce energy leakage – keeping homes warmer in the winter, cooler in the summer, and saving money on utility bills. Insulation material can lower heating and cooling costs by up to 20%, and air sealing (like caulking and weather-stripping) save energy and improve air quality by keeping moisture out. In addition to supporting the upgrades themselves, the Inflation Reduction Act can also cover the costs of home energy audits so that an inspector can identify the best improvement options.
Incentive Type: Tax Credit
Incentive Amount: 30% off cost
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
Tax Credits and Rebates
Weatherized Windows & Doors
Save on a range of home improvements that reduce energy leakage – keeping homes warmer in the winter, cooler in the summer, and saving money on utility bills. Windows can be responsible for 25-30% of heating and cooling energy use, and doors can leak significant amounts of energy as well. In addition to supporting upgrades of exterior windows and doors, the Inflation Reduction Act can also cover the costs of home energy audits so that an inspector can identify the best improvement options.
Incentive Type: Tax Credit
Incentive Amount: 30% of the cost paid by the consumer, up to $600/year
How to Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
Inflation Reduction Act Guidebook
Find out more about which tax rebates and incentives you are eligible for.
What You Can Do
Sign Up for Updates
Interested in knowing when there are new credits and rebates available? Sign up for updates at whitehouse.gov!
Stay Informed
Take Action and Save!
You've reviewed all of the amazing rebates and tax credits available and now you're ready to take action, right? Great! Here are some more resources to help you weatherize your home, install solar panels, and more!