The Inflation Reduction Act | Sonoma Clean Power

The Inflation Reduction Act

Federal rebates & tax credits

The Inflation Reduction Act provides rebates and tax credits to financially support residents and small businesses with the following:

  • Home weatherization and energy efficiency upgrades
  • Installation of new electric appliances
  • Purchase of electric vehicles
  • Installation of rooftop solar systems

These financial incentives aim to accelerate the U.S. transition to clean energy, lower household electricity bills, promote equitable access to the benefits of electrification, reduce nationwide carbon pollution, and support domestic manufacturing of technologies.

Incentives provided by Sonoma Clean Power can be combined with rebates and tax credits available through the Inflation Reduction Act. View SCP’s customer offerings here.

SCP does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and SCP encourages you to seek assistance from a qualified professional.

Find incentives for you.

Visit The White House’s Clean Energy For All webpage to learn what incentives are available for you.

Credits you can claim on your 2022 taxes:

If you installed solar last year (with or without a battery), added home insulation, installed new energy efficient windows, bought efficient heating or cooling equipment, or purchased an electric vehicle, you may be able to claim a tax credit when you file your taxes. Check Clean Energy for All to find out.

Credits you can claim on your 2023 taxes:

  • A tax credit to cover 30% of the costs of installing rooftop solar (including systems paired with battery storage).
  • A tax credit to cover up to 30% of the costs for certain efficiency improvements, including:
    • Up to $1,200 in credit each year for adding insulation or installing efficient windows and doors.
    • A special credit of as much as $2,000 for electric heat pumps that provide super-efficient heating and cooling.
    • Up to $150 for a home energy audit conducted by an inspector.
  • A tax credit for 30% of the costs of buying and installing a heat pump.
    • Up to $2,000 including support for any electric system upgrades needed to make the home heat-pump-ready.
  • A tax credit of up to $7,500 for purchasing a new electric vehicle (eligibility requirements apply).
  • A tax credit of up to $4,000 for a previously owned electric vehicle (eligibility requirements apply).

Rebates coming later in 2023:

  • Rebates of up to $4,000 for electric appliances and associated home electrical upgrades.
    • Low-income households can receive up to $8,000.
  • Rebates covering up to 100% of the costs of installing electric appliances, such as heat pump water heaters, induction stoves, heat pumps for heating and cooling, and electric heat pump clothes dryers, will be available to low- and moderate-income households.