More than 3.4 million US families claimed over $8 billion in tax credits for residential clean energy and home energy efficiency upgrades under the Inflation Reduction Act in 2023, according to a new report from the Internal Revenue Service (IRS) released last week.

The Inflation Reduction Act (IRA) of 2022 is the most significant federal law ever passed in the United States, and maybe the whole world, to address climate change and clean energy. (Even though it’s mainly a climate bill, it’s called the Inflation Reduction Act for political reasons.)

2023 was the first full year in which tax credits were available to US families for residential clean energy like solar panels and batteries, and for home energy efficiency upgrades like heat pumps and insulation.

The report shows higher than expected participation in IRA programs. More than 1.2 million families claimed over $6 billion in 2023 tax credits for residential clean energy. That’s an average of just over $5,000 per family. In addition, 2.3 million American families claimed over $2 billion in tax credits for energy efficiency upgrades in their homes, averaging about $880 per household.

Rooftop solar accounted for the largest number of claims with 750,000 US families getting tax credits.

It’s not often you see a good news story from the IRS, but this is indeed great news for American families and our climate. And it shows the real impacts of the IRA are just getting started.

Get Yours

Washington State residents (like me) can check this list of federal and state rebate and incentive programs to find out which clean energy tax credits and other benefits you may be eligible for. Prepared by Washington Climate Action.

For everyone in the US, please see the US Department of Energy’s Energy Savings Hub.

Also check out Rewiring America for lots more information and helpful guidance including a handy incentive calculator.

Related Links

Where (and How) Americans Are Taking Advantage of Clean Energy Tax Credits
Nadja Popovich, The New York Times, Aug. 8, 2024.

Clean energy tax breaks more popular than expected, as U.S. households claimed $8.4 billion in Inflation Reduction Act credits for 2023, officials say
Greg Iacurci, CNBC, Aug. 7, 2024.