President Biden’s Investing in America Agenda is Helping American Families Across the Country Save Money
Through President Biden’s historic Investing in America agenda, the Biden-Harris Administration is cutting costs for hardworking American families in every corner of the country. President Biden’s Inflation Reduction Act, the largest-ever investment in clean energy and climate action, is already helping lower both the upfront cost of installing clean energy technologies and reducing housing costs by lowering monthly energy bills and increasing efficiency after installation. Tax credits that save families up to 30% off home energy technologies like heat pumps, rooftop solar, and energy efficiency improvements like insulation are currently available—and Americans were able to claim those enhanced tax credits for the first time on Tax Day in April:
- Families who install an efficient electric heat pump for heating and cooling can receive a tax credit of up to $2,000 and save an average of $500 per year on energy bills.
- Families who make other energy efficiency improvements can receive tax credits worth up to $500 for doors, $600 for windows, $150 for a home energy audit, and up to 30 percent off the cost of new insulation—a total of up to $1,200 per year in tax credits.
- Families who install rooftop solar, geothermal or battery storage at home can save up to 30 percent of the cost of the installation via a tax credit. For rooftop solar, that can save Americans an average of $7,500 off the cost of installation and nearly $400 per year on their energy bills.
In addition, several states are expected to launch their home energy rebate programs, funded by the Inflation Reduction Act, this summer. These rebate programs will help low- and middle-income families buy and install cost-saving electric appliances and make energy efficiency improvements to save money on their home energy bills. These rebates can be paired with the existing tax credits to further lower costs for Americans. Already, 14 states have submitted applications to the Department of Energy (DOE) for their rebate programs, and DOE has approved New York’s application. You can track your state’s progress toward setting up its rebate program here.
Today, the Biden-Harris Administration is convening federal partners, nonprofits, consumer lending organizations, and philanthropies for the second timeto drive consumer education and outreach efforts on the Inflation Reduction Act’s consumer home energy savings tax credits and rebates. Today’s convening specifically focuses on bridging gaps in financing to ensure that more low- and middle-income families can afford to install cost-saving clean energy at home.