*DISCLAIMER: While this blog post discusses tax credits, you should ALWAYS consult your tax professional for your specific situation. We do not assume responsibility for your tax situation or credits.
The Inflation Reduction Act of 2022 (IRA) is the most significant climate legislation the United States has ever passed. It aims to reduce greenhouse gas emissions and fossil fuel consumption by transitioning the US to a clean energy economy.
Keep reading to learn more about what the Inflation Reduction Act means for environmental justice and climate action.
The Inflation Reduction Act’s climate provisions will bring the US significantly closer to its clean energy goals. Its investments will put the US on a path toward a 50-52% reduction in greenhouse gas emissions below 2005 levels by 2030.
The Inflation Reduction Act allocates roughly $369 billion dollars toward climate action. This investment will fund a number of incentive programs, grants, and tax credits to help individuals and organizations improve their energy efficiency and transition to clean energy sources. The Inflation Reduction Act climate funding will also support domestic manufacturing. It includes over $60 billion dollars to on-shore clean energy manufacturing for solar panels, wind turbines, electric vehicles, and more.
The United States has ambitious climate goals. In order to achieve them, it will need to improve energy efficiency and transition to clean energy sources, like rooftop solar. The Inflation Reduction Act’s climate provisions make it easier for households and organizations to make clean energy upgrades by allocating funding toward incentives and tax credits for:
Among these is the new Inflation Reduction Act solar tax credit, an expanded version of the solar Investment Tax Credit. The IRA solar tax credit reduces your federal tax liability by 30% of your solar panel and battery installation costs. Residential and commercial solar projects are eligible! Call Boston Solar today to find out how you can take advantage of the solar tax credit.
Check out our guide to solar and energy efficiency tax credits to learn more.
Transportation is the number one source of greenhouse gas emissions in the US. The Inflation Reduction Act aims to clean up the transportation sector by making tax credits available for electric vehicle purchases.
Through the Inflation Reduction Act, consumers can qualify for a $4,000 tax credit for used electric vehicles and a $7,500 tax credit for new electric vehicles.
The Inflation Reduction Act also takes aim at trucks and buses by creating tax credits for commercial zero-emission vehicles and grants for clean heavy-duty vehicles like school and transit buses.
The investments in the Inflation Reduction Act will reduce carbon emissions across all sectors of the economy, including electricity production, transportation, industrial manufacturing, buildings, and agriculture. The Inflation Reduction Act will accelerate the transition to clean energy and lead to greater environmental justice throughout the US.
Installing solar panels is one of the best ways to reduce your own carbon footprint and take action in the fight against climate change. At Boston Solar, we are committed to a clean energy future and we’re proud to help our customers make the switch to renewable solar energy.
If you’re interested in cleaner, more affordable power for your home or business, give us a call. We are the leading solar installer in Massachusetts and we can help you save on installation costs with the Inflation Reduction Act federal solar tax credit.
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