Inflation Reduction Act
For Individuals and Homeowners
Tax Credits
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Residential Clean Energy Tax Credit (25D)
Description: Tax credit for residential solar, solar water heating property, fuel cells, geothermal heat pump property, small wind energy property, qualified biomass fuel property, and adds qualified battery storage technology
Amount: 30% credit
Resources:
IRS Residential Clean Energy Tax Credit homepage
Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics - Department of Energy
Fact Sheet on Residential Energy Efficiency Tax Credit and the Nonbusiness Energy Property Credit - Rewiring America
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Nonbusiness Energy Property Credit (25C)
Description: Tax credit on qualified energy property including but not limited to: water heaters, heat pumps, central air conditioners, hot water boilers, biomass stoves, oil furnaces, air sealing materials and systems, electrical panels, and the cost of home energy audits
Amount: 30% credit with a $1,200 annual limit
Resources:
Fact Sheet on Residential Energy Efficiency Tax Credit and the Nonbusiness Energy Property Credit - Rewiring America
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Previously Owned Clean Vehicle Credit
Description: A credit for the purchase of a used electric vehicle at least 2 years old from a dealership
Amount: $4,000 credit per vehicle or 30% of the sale price, whichever is less
Resources:
Official guidance from the IRS on the Used Clean Vehicle Credit
List of qualifying vehicles:
More info on electric vehicle credits - from Rewiring America
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Clean Vehicle Tax Credit
Description: A credit for the purchase of a new electric vehicle
Amount: Up to $7,500 credit per vehicle
Resources:
List of qualifying vehicles:
More info on electric vehicle credits - Rewiring America
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§30C Alternative Fuel Refueling Property Credit
Description: A tax credit for electric vehicle charging infrastructure in low income or rural census tracts
Amount: 30% tax credit up to $1,000 per station for residential property and $100,000 for commercial property
Resources:
EV Charging Station Credits Article - National Law Review
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§48E Clean Electricity Investment Credit
Description: Technology-neutral tax credit for investment in facilities that generate clean electricity and qualified energy storage technologies.
Amount: 6% of qualified investment (basis); 30% if PWA requirements met
Resources:
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§45Y Clean Electricity Production Credit
Description: Provides a technology-neutral tax credit for production of clean electricity.
Amount: $0.03 cents/kW
Resources:
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HOMES Rebate Program
Description: A rebate program for the costs of energy efficiency retrofits that are modeled to achieve or have achieved certain energy savings levels
Amount: The Hawai’i State Energy Office has been allocated $34,293,520 for this program
Funding Source: Hawai’i State Energy Office
Resources:
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High Efficiency Electric Home Rebate Program (HEEHR)
Description: To provide rebates for qualified home electrification upgrades
$8,000 for heat pump heating, ventilation and air conditioning (HVAC)
$1,750 for heat pump water heater
$840 for an electric stove/cooktop
$2,500 for electric wiring
$4,000 for breaker boxes
$1,600 for weatherization (insulation, air sealing, ventilation)
Amount: The Hawai’i State Energy Office has been allocated $34,093,900 for this program
Funding Source: Hawai’i State Energy Office
Resources:
Key Resources
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Check out this calculator to determine how much money you could save with the Inflation Reduction Act, from Rewiring America
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For a more in depth look into how to maximize IRA savings and start building your electrification plan today, take a look at this “Go Electric” Guide to the IRA, from Rewiring America
Please note, the Inflation Reduction Act is new and information is constantly evolving. This page will be continuously updated as more information is released.