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Millions Claimed Energy Credits in 2023


More than 3.4 million households received $8 billion in tax credits in 2023, thanks to energy-efficiency upgrades (E&E News).

What’s going on: Data out this week from the Treasury Department “provides the first look at how Americans are using tax incentives expanded under the 2022 Inflation Reduction Act. In many cases, Americans are saving up to 30% of the upfront cost of switching to greener options.”

Where it went: Many of the credits were claimed by homeowners offsetting their rooftop solar-power purchases.

  • Some 750,000 households began using solar energy with help from IRA credits.
  • Households in all 50 states and Washington, D.C., got credits, with California claiming the most using the incentive. (Texas and Florida are next on the list.)
  • Fewer than 300,000 households used the credit for electric or natural gas heat pumps.

Not just the wealthy: Almost half of those who claimed credits had incomes of less than $100,000 annually, “fulfilling a key Biden administration commitment to include lower-income families in the clean energy transition.”

The NAM says: “The significant number of households that claimed energy credits under the IRA demonstrates the strong consumer interest in the energy-efficient products manufacturers make,” said NAM Vice President of Domestic Policy Chris Phalen.

  • “This demand underscores the importance of preserving these credits to bolster manufacturing competitiveness.”
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