Lowering Energy Costs

Thanks to the Inflation Reduction Act, a new law I helped get signed into law last year, families are eligible for hundreds of dollars a year in energy savings. The Inflation Reduction Act also includes direct savings for households to make crucial, cost-saving energy efficiency improvements to their home.

To get the most out of these savings, households can take advantage of various tax credits and rebates to help make their homes more efficient, power their homes with clean energy, and lower the cost of purchasing electric and hybrid cars.

The Inflation Reduction Act makes household savings available to our constituents, including:

• Up to 30 percent (generally capped at $1,200 per year) in tax credits for energy efficient home improvements, including heat pumps;
  
• Rebates for residential efficiency retrofits, electrification projects including heat pumps, cooktops, and other appliances—as well as associated electrical upgrades;
• Up to 30 percent in tax credits for rooftop solar, batteries, geothermal heat pumps, and other property; and
• Up to $7,500 in tax credits for new clean vehicles, and up to $4,000 for used clean vehicles, depending on taxpayer income and other factors.

Low Income Home Energy Assistance Program (LIHEAP)

The Low Income Home Energy Assistance Program (LIHEAP) provides assistance to eligible low-income households with the goal of managing and meeting their immediate home heating and/or cooling needs.

Find the 2023 LIHEAP income eligibility requirements HERE.

Apply directly for LIHEAP benefits HERE.

Find more information and your local LIHEAP provider HERE.


Tax Credits for Residental Energy Efficiency Improvements

As a result of the Inflation Reduction Act, homeowners will have access to expanded tax credits for energy efficiency improvements, including certain onsite installation costs.

Learn more by visiting the Department of Energy's Savings Hub: energy.gov/save

Homeowners can receive up to 30 percent back through tax credits for making energy efficiency improvements to their home – generally up to a maximum of $1,200 per year but potentially up to $3,200 if improvements include heat pumps, heat pump water heaters, or biomass stoves.

Find out more about what is eligible, and additional limits, below:

Tax Credits for Residental Energy Property

Individuals can receive a tax credit of 30 percent of the cost of property for rooftop solar and other residential clean energy systems installed on their homes.

Eligible property includes:

• Small wind
• Residential solar and solar water heaters
• Geothermal heat pumps
• Battery storage
• Fuel cells