In 2023 households can access a tax credit to cover up to 30% of the costs for certain efficiency improvements.
Families can claim up to $1,200 in credit each year for adding insulation or installing efficient windows and doors, with a special credit of as much as $2,000 for electric heat pumps that provide super-efficient heating and cooling.
To help determine the best home improvement options, families can claim a credit of up to $150 for a home energy audit conducted by an inspector. State programs will begin to offer rebates for electric appliances and home retrofits, which will reduce household energy bills each month.
All households can access rebates of up to $4,000, while low- income households could receive up to $8,000 for home efficiency.
Heating or Cooling Systems In 2023 households can claim a tax credit for 30% of the costs of buying and installing a heat pump, up to $2,000 including support for any electric system upgrades needed to make the home heat-pump-ready.
Beginning in 2023 state programs offer low- and moderate-income households rebates for heat pumps at the point-of-sale, cutting costs of purchase and installation up to $8,000. If home electrical upgrades are needed to integrate new heat pumps, rebates of up to $4,000 are available to households.
Electric Vehicles In 2023 for new vehicles, income-qualified households can receive a tax credit of up to $7,500.
The vehicle must be assembled in North America.
The vehicle must have a manufacturer’s suggested retail price of $80,000 or less for pickup trucks, vans, and sport utility vehicles (SUVs) and $55,000 or less for other vehicles, including sedans.
For previously-owned electric vehicles, income-qualified households can access a tax credit of up to $4,000.
The vehicle must be at least two years old and cost $25,000 or less.