Thank you to everyone who contacted their senators helping this historic bill to pass! Here are the highlights of the Inflation Reduction Act pertaining to the energy field:
- 30% Investment Tax Credit (ITC) on residential and commercial solar from 2022 until 2032, stepping down to 26% in 2033.
- Stand-alone energy storage systems like Tesla Power Walls also are now eligible for the 30% ITC.
- Up to $7,500 tax credit for income-qualified electric vehicle and plug-in hybrid customers.
- Up to $4,000 used electric vehicle tax credit.
- $8.5 billion in funding for energy efficiency and electrification in single-family and multi-family homes.
- Large-scale solar arrays are now eligible for the Production Tax Credit (PTC), previously only for wind projects.
- Solar components manufacturing investment credits or production credits for facilities based in former coal communities.
- Direct pay is available for commercial projects for entities without a tax appetite, e.g. nonprofits and governments.
- The transferability of commercial tax credits will facilitate smaller project development, which previously would have been difficult to finance.