MAINE PUBLIC • September 6, 2022
The Inflation Reduction Act approved by Congress last month includes $369 billion for energy security and climate change. A lot of it is geared toward industrial policy–providing incentives for companies that build electric vehicles, and heat pumps and solar panels, that sort of thing. But there is also a lot in here for the consumer. The bill raises the tax credit for rooftop solar from 26 percent to 30 percent locked in for 10 years. Tax credits for homeowners who want to install heat pumps, or invest in energy efficiency for their homes, will kick in next year. The bill also provides incentives for renters to get discounts for subscriptions to community solar projects. Basically, you can get up to a $7,500 tax credit for the purchase of an EV. That tax credit is really split in two: $3,750 for the vehicle, and an equal amount for the battery. Over time, these credits will become more strict, to apply only to cars built in North America, and batteries sourced from friendly nations. But even with the tax credits, electric vehicles can still be pricey. So there is also $4,000 tax credit for buying used electric vehicles.