Data Show Impact of Inflation Reduction Act on Clean Energy Upgrades
A report from the Treasury Department details how households are taking advantage of tax incentives offered through the IRA
Aug. 8, 2024
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Households are taking advantage of clean energy incentives offered through the Inflation Reduction Act.
In 2022, the Biden administration passed the Inflation Reduction Act (IRA), and now a report from the U.S. Department of the Treasury highlights how households are benefiting from the IRA's clean-energy tax incentives. According to analysis of the report by Pro Builder's sister site Custom Builder Online, 3.4 million households benefited from $8.4 billion in IRA tax incentives for clean-energy home improvements last year. The IRA expanded tax credits, allowing homeowners to receive up to $1,200 annually, with special credits up to $2,000, and 30% off the cost of installation for certain clean energy systems. Compared with 2021, the number of households taking advantage of these incentives grew by one-third, and this number could increase as more tax returns are processed.
The Biden Administration said its incentives would help working families and small businesses save money on their monthly utility bills. The Treasury Department’s report found nearly half of the 3.4 million households—1.6 million—that benefitted from the IRA had incomes less than $100,000.
The household income range with the most returns at 35% were households with incomes between $100,000 and $200,000, totaling about 1.2 million households.
