Tax Credits & Rebates

Passed in 2022, the Inflation Reduction Act provides significant tax credits and rebates for energy efficiency upgrades for your home and/or the purchase of a new or used electric vehicle. 

Tax credits are claimed when you file your federal income tax return; tax credits are deducted, dollar for dollar, from the income taxes you owe. States will be administering the rebate programs created by the Inflation Reduction Act and are expected to begin rolling those out later in 2024.  These later rebates will be largely directed to lower-income residents. Hopefully our experience in publicizing and promoting the current first phase of IRA benefits will help to streamline the second phase.   

For more detail, download this PDF, which details the tax credits and rebates available to U.S. consumers in the Inflation Reduction Act. These programs can save you thousands per year depending on the project and are an excellent way to help make your home more energy efficient.

For more expensive items, especially those which greatly reduce your energy usage (e.g. heat pump heating & cooling, heat pump water heater), consider one of the low interest loans available to qualified Shaker residents.  

In the end, there should be a program for everyone including income-qualified programs from the utilities and local organizations such as the Cleveland Housing Network (which administers the FirstEnergy Community Connections program). There may also be a combination of rebates and incentives, as the Dominion Energy program is offering through 2024, that could reduce costs by a third or more. As with any program that entails tax credits and income guidelines, familiarize yourself with the official websites (such as the White House’s Inflation Reduction Act Guidebook) and consult a tax professional if you have questions.

Benefits for Renters, Too

Many of the IRA tax credits available to home owners are also available to renters.  Examples include a portable window-mounted heat pump, a heat pump water heater, stove top cooking, and Electric Vehicles.  Click on Renters (at the top of this web page) and also download “Electrify Everything: Renter Checklist” for more information.

Projects That Qualify

Learn more about specific energy efficiency upgrades that qualify for tax credits and rebates in the Inflation Reduction Act by selecting a topic below. Where available, we have also included information about other local incentive programs, like rebates from utility companies. Remember that most rebates do not go into effect until individual states set up rules and infrastructure. Also remember that tax credits renew annually. And finally, be sure your contractor is registered with Shaker’s Building Department before beginning work.

An energy audit is a great first step when it comes to making energy efficiency upgrades to your home. That's because the audit will show you what improvements your home needs -- and what will get you the most bang for your buck so to speak. 

The good news: Under the Inflation Reduction Act, you can claim up to $150 tax credit on your federal return for an energy audit. Click here to learn how to set up an energy audit and what to expect.