All tax credits are available now, and you can read the IRS’ guidance on 25C and 25D here. The rebates should start to become available by the end of 2023. We don't know exactly when the rebates marked “2024” will be available, because it will depend on how each state rolls out its incentive program.

All tax credits were available starting January 1, 2023, so save your receipts for filing season! If you installed rooftop solar in 2022, it is eligible for the new, 30% 25D tax credit. If you installed a heat pump in 2022, it is eligible for the old 25C tax credit: 10% of costs up to $300. The Electrification Rebates and Efficiency Rebates will likely not be retroactive.

You should include anyone that you claim as a dependent on your taxes. That could be children, grandparents, or other relatives who you support financially. You should also include your spouse or domestic partner if you file taxes together.

If you are married, you should include your spouse's income. If you claim any dependents with income on your taxes, you should include their income, too. If you receive child support, social security income, or other types of non-taxable income, include those too.

Some incentives, like the Electrification Rebates and the electric vehicle tax credits, are income-limited, so our calculator uses your income and zip code to figure out if you qualify.

The IRS will continue to publish guidance on the tax credits, so stay tuned for more information. If you’re planning to claim a 25C tax credit (for heat pumps, heat pump water heaters, electrical panels, or weatherization) or 25D tax credit (for rooftop solar, geothermal, or battery storage), you should:

• Check out the IRS FAQ on 25C and 25D and our fact sheet on 25C and 25D.
• Make sure your household will owe enough federal income tax to be offset by the value of the credit.
• Make sure your purchase meets the tax credit’s relevant efficiency and/or product standards. For 25C, heat pumps and heat pump water heaters must meet the Consortium for Energy Efficiency’s highest “non-advanced” tier. For more information on 25C and 25D product standards (i.e., panel capacity, battery size, etc.) see the IRS FAQ on 25C and 25D.
• Save your receipts.
• Get ready to fill out a form! The IRS will release updated forms that you’ll submit come next tax season.

If you’re planning to claim a tax credit for new or used EVs, or for an EV charger, you should:

• Check out the IRS pages for the new EV credit and the used EV credit, and keep an eye out for guidance on the EV charger credit.
• Make sure your household will owe enough federal income tax to be offset by the value of the credit. For the EV credits, this will only be necessary for 2023. Starting in 2024, you’ll be able to access the EV credits as an upfront discount from your dealer, so your federal tax liability won’t matter.
• Make sure your household qualifies for the tax credit. Everyone qualifies for 25C and 25D, but not everyone qualifies for the EV credits (by income) or the EV charging credit (by geography). For more information on income limits, see the IRS pages on the new EV credit and the used EV credit.
• Make sure your purchase meets the new EV tax credit’s relevant production/content requirements.
• Save your receipts.
• Get ready to fill out a form! The IRS will release updated forms that you’ll submit come next tax season.

Yes! The rebates and tax credits all cover purchase and installation costs. There’s one exception: for weatherization, the 25C tax credit covers only purchase costs (25C covers purchase and installation costs for everything else).

The IRA’s new 25D tax credit is a carryforward credit, meaning that you will be able to carry unused credit over to future years. The 25C tax credit is not a carryforward credit, so you will not be able to carry it forward.

A wood stove tax credit of $2,000 is included in the new 25C tax credit. Wood stoves are no longer eligible for the 25D tax credit.

Yes. The Electrification Rebates apply only to ENERGY STAR-certified appliances (where such categories exist), including heat pumps, heat pump water heaters, heat pump clothes dryers, and weatherization products. The 25C tax credit applies only to heat pumps and heat pump water heaters in the Consortium for Energy Efficiency’s highest “non-advanced” tier, ENERGY STAR-certified doors, and ENERGY STAR Most Efficient-certified windows.

It depends! The Electrification Rebates and Efficiency Rebates can both be combined with the tax credits. So, for example, a moderate-income family could receive an Electrification Rebate for 50% of the cost of a new heat pump, and then claim a tax credit against the remaining cost. The rebate programs cannot be combined for the same single upgrade (i.e., the same heat pump), but the two programs can be stacked for different upgrades within the same project. The rebates and tax credits will likely be stackable with state, local, and utility incentives, but that’ll be up to local rulemakers.

No, we do not. As of November 1st, we are now collecting the calculator inputs, including zip code and household information. We will aggregate and anonymize this data to better understand who is interested in the IRA incentives and to build lists of qualified contractors for certain zip codes. We also store the inputs in local storage inside your web browser to improve the user experience.

The United States taxes income progressively, meaning that how much you make will place you within one of seven federal tax brackets. It also takes into account whether you are single, jointly file as a married couple, or are considered a head of household. Once we have calculated federal taxes owed, we apply the non-itemized standard deduction that all Americans are eligible for regardless of filing status or income.

For renters, we’re highlighting incentives for portable appliances, so you won’t have to leave the appliances or any potential savings behind. These portable appliances include window-unit heat pumps (which should qualify by 2024/2025), electric stoves, heat pump clothes dryers, and electric vehicles.

The Department of Housing and Human Development (HUD) calculates the Area Median Income (AMI) for every census tract and is available here. Eligibility for the Electrification Rebates is based on your household income in relation to your AMI. If you are household income is below 80% of AMI, you are eligible for the maximum point-of-sale rebates. If you are between 80% and 150% of AMI, you are eligible for up to 50% of appliance and installation costs through point-of-sale rebates, and you can use tax credits to cover some of the remaining gap. In both cases, the maximum discount is $14,000.

HUD calculates the 80% AMI for households of 1-8 people. HUD applies exceptions and adjustments for many geographic areas, which makes the math pretty confusing! Depending on your inputted household size, we will look up the appropriate 80% AMI for your zip code. HUD does not yet calculate 150% AMI, so we have calculated that number ourselves based on the 80% AMI numbers.

The term Area Median Income (AMI) is the term used more generally in the affordable housing industry. If AMI is used in an unqualified manner, this reference is synonymous with HUD's Median Family Income (MFI). However, if the term AMI is qualified in some way — generally percentages of AMI or AMI adjusted for family size — then this is a reference to HUD's income limits, which are calculated as percentages of median incomes and include adjustments for families of different sizes.

• HUD Tables (Data for Section 8 Income Limits)
• HUD State Median Incomes
• Estimated Cost per watt for rooftop solar by state
• NREL Geothermal equipment and installation estimates (national)
• NREL Battery storage equipment and installation estimates (national)
• 2023 Tax year rate tables and standard deductions brackets

We created a handy guide with all the steps to electrify your home and everything you need to know about electric appliances. You can download it here.

We created a “Go Electric Guide to the IRA” with more information about the IRA’s incentives and case studies that map the incentives onto real-life electrification journeys. You can download it here.

A tax credit is a provision that reduces a taxpayer's final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer's actual, final bill.

A tax deduction is a provision that reduces taxable income.

A carryforward tax credit allows you to “carry forward” the value of a tax credit to future years if you cannot use the full tax credit value in one year.