With the passage of the Inflation Reduction Act has come increased incentives for solar panels, batteries, electric vehicles, and more. These incentives including a 30% solar tax credit, are a strong boost to the renewable energy industry. They make solar panels, batteries, and EVs even more accessible and affordable for Americans across the country.
Here is a look at the updated incentives for solar panels, batteries, and electric vehicles.
In This Article:
- Solar Tax Credit Increased to 30%, Extended to 2032
- Battery Backup Tax Credit Increased and Updated
- Electric Vehicle Tax Credit Increased and Updated
30% SOLAR TAX CREDIT INCREASES BENEFIT, EXTENDS TO 2032
One of the most important parts of the Inflation Reduction Act is an increase and extension of the solar tax credit (aka Investment Tax Credit, or ITC).
The solar tax credit was increased from 26% to 30%, and the 30% tax credit was extended to 2032. The 30% solar tax credit will then step down to 26% in 2033 and 22% in 2034.
The 30% solar tax credit also applies to solar installations completed in
The solar tax credit covers the entire cost of your solar installation, including labor and materials. It can also be combined with other generous incentives provided by state, local, and utility authorities.
Read more about Oregon solar incentives in our Oregon Solar Incentive Guide.
This is the highest the solar tax credit has ever been, and it means significant savings for your solar installation. On top of saving money on your solar installation, you can also reduce your monthly energy bill and put that money where you want.
Use our Solar Calculator to estimate your solar savings. It’s quick and easy, and show just how much you could save with solar.
Estimate your total savings, payments, and total energy usage with our FREE solar calculator.
BATTERY TAX CREDITS INCREASED AND UPDATED
Another big incentive update with the Inflation Reduction Act is an increase in battery incentives. These battery incentives have also been extended to standalone battery installations.
The battery backup tax credit has been increased from 26% to 30%, along with the solar tax credit increase. The 30% battery tax credit has been extended to 2032, and will then step down to 26% in 2033 and 22% in 2034.
Even better, the battery tax credit now applies to battery backup systems not installed alongside solar. Standalone battery systems now qualify for the 30% tax credit, just like batteries installed alongside solar panels.
Just like the solar tax credit, this is the highest the battery tax credit has ever been. And it is the first time that batteries have been eligible for tax incentives without being installed alongside solar panels.
Learn more about battery backup on our home battery backup page.
If you would like a quote for a battery backup system, contact us today!
ELECTRIC VEHICLE TAX CREDITS INCREASED AND UPDATED
The Inflation Reduction Act also gave a huge boost to electric vehicles, increasing the electric vehicle tax credit and extending it to used EVs.
On January 1, 2023, the electric vehicle tax credit will increase to $7,500 for new EVs and now includes used EVs, which qualify for a $4,000 tax credit. These credits do not apply to EV chargers.
There are some limitations, however. Starting January 1, 2023, in order to qualify for the $7,500 tax credit, EVs must be assembled in North America. There will also be limits on which EVs qualify for the credit based on their manufacturer suggested retail price, or MSRP: $55,000 for new cars and $80,000 for pickup trucks, SUVs, and vans.
See the full list of new EVs that qualify for the $7,500 EV tax credit.
Also starting January 1, 2023, the credits will be capped to an income level of $150,000 for a single filing taxpayer and $300,000 for joint filers.
With increases in gas prices, interest in EVs has skyrocketed, and these tax credits make them even more attractive. And when you charge your EV with solar energy, it’s essentially free fuel!
Learn more about electric vehicles and how to fuel them with solar panels. Contact us today.
Estimate your total savings, payments, and total energy usage with our FREE solar calculator.
