This Guide Can Help You Save Money and Fight Climate Change
The new climate and tax law can bring big savings for anyone looking to buy an electric car or make their home more energy efficient. Many American consumers are now eligible to save thousands of dollars when they buy an electric car, heat pump, solar panels or energy-efficient appliances. Those savings kicked in this year as part of the Inflation Reduction Act, major legislation that . The law tackles two major sources of those emissions, and , in part by helping Americans electrify their cars and homes, and by making the most energy efficient choices more affordable through tax credits and rebates. Taking advantage of the new law will require some planning, experts said, especially when it comes to major purchases and renovations. It helps that many of the benefits will be around for a decade or more, though not all of them are available just yet: Federal tax credits took effect on Jan. 1, but , which will offer billions of dollars in up-front discounts or partial refunds to consumers through state and tribal governments, wont roll out until later this year. Heres how to access the savings: If you own your home, there are plenty of opportunities to save money through the new law when you make energy-saving renovations or upgrade to more efficient, electric appliances. Technically, many of the laws provisions could apply to renters, too, but experts said theres still some uncertainty about what is covered for example, it isnt clear right now whether the tax credits for heat pumps will apply to window units. A renewed tax credit can help lower the cost of a new electric car, pickup truck or SUV for many buyers. And, for the first time, used electric automobiles qualify for a credit, too. But if youre looking for savings on other types of vehicles, or , youre out of luck. More information on the Inflation Reduction Acts consumer savings can be found through , and the . Other federal, state, local and utility savings for energy-efficiency projects and electric vehicle purchases. Other sources consulted for this guide: , , and interviews with Sage Briscoe, a senior policy manager at Rewiring America, and with Stephen Walls, a building decarbonization advocate at the Natural Resources Defense Council