The recently passed Inflation Reduction Act (IRA) now offers a number of tax credits for people switching to clean energy sources, including electric vehicles and rooftop solar panels.
The bill includes $370 billion in spending for renewable energy and climate measures. As written, the tax credit will begin at 30% and step down to 26% in 2033 and 22% in 2034. [1]Read the official bill here.Rural areas and constituencies that have traditionally used coal will soon be paying for the switch to wind and solar as well, as the US plans to retire its last 172 coal plants within the decade. This is massive news for the solar industry.Additionally, leased or purchased battery storage systems will likewise qualify for a 30% credit. Buyers who meet the income requirements and select an electric vehicle that satisfies the battery and price restrictions are eligible to receive up to $7,500 from the government in the form of a tax credit. The new legislation also targets used electric vehicles, which for the first time qualify for a credit of up to $4,000 if the pre-owned vehicle costs $25,000 or less and is more than two years old.