2022 Solar Tax Credit Calculator – Inflation Reduction Act

Wondering which credits and rebates you qualify for? Use our IRA clean energy and solar tax credit calculator to get an estimate of how much you can save.

Inflation Reduction Act Calculator
Choose your incentives:
Select as many as you’d like.

What’s your federal tax filing status this year?
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You must select a filing status to calculate incentives!

What’s your household income?
Estimate for this year.

You must enter your household income to calculate incentives!
Many incentives depend on your income. Don’t worry – we don’t track or store any data!

Where’s Your Primary Residence?
Rebate eligibility depend on your income relative to the average of where you live.
Credits:
Rebates:
Note: Generally only $14,000 in rebates can be claimed per year, but there is no lifetime limit to claim more following years.
Click any row to view more details.
Improvement Details Incentive Available Your Value
Solar System Installation Must install a new system for a residence you live in. Can be claimed by condominium owners if building adds solar panels. Credits can be carried forward to future years. Credit: 30% of cost Now – 2035
Other Renewable Energy Home Systems (Wind, Geothermal, etc) Must install a new system for a residence you live in. Credits can be forward to future years. Credit: 30% of cost Now – 2035
Home Battery Storage Installation Must install a new system on a residence you live in and needs to have at least 3 KWh of storage capacity. Credit: 30% of cost 2023 – 2035
Energy Efficient Windows and Doors Can be applied to 30% of the cost of exterior windows, exterior doors, and skylights. Maximum credit of $1,200 allowed per year. Maximum credit of $600 for windows/skylights. Maximum credit of $250 for any single exterior door, and $500 for all doors combined. Confirm with your installer whether windows and doors meet standards for energy efficiency. Credit: 30% of cost, up to $1,200 2023 – 2033
Heat Pump Heating and Cooling Credit: Eligible for a credit of 30% of cost up to $2,000 for a natural gas or electric heat pump/furnace. Check with installer to ensure it meets or exceeds efficiency criteria to qualify.
Rebate: Electric only.
Credit: 30% of cost, up to $2,000
Rebate1: up to $8,000
2023 – 2033
Heat Pump Water Heater Credit: Gas or Electric eligible. Check with installer to ensure it meets or exceeds efficiency criteria to qualify.
Rebate: Electric only. Amount of rebate depends on your household income and the average income in your area.
Credit: 30% of cost, up to $2,000
Rebate1: up to $1,750
2023 – 2033
Biomass Stove or Boiler Eligible for a credit of 30% of cost up to $2,000. Speak with a qualified installer to ensure your appliance will meet efficiency standards to qualify. After 2024, all products must have a registered product ID number. Credit: 30% of cost, up to $2,000 2023 – 2033
Insulation, Ventilation, and Air Sealing Covers improvements to increase energy efficiency of your home. Amount of rebate depends on your household income and the average income in your area. Rebate1: up to $1,600 2023 – 2033
Electric Stove Can be used on a electric stove/oven/cooktop/range. Amount of rebate depends on your household income and the average income in your area. After 2024, all new products must have a registered product ID number. Rebate1: up to $840 2023 – 2033
Electric Water Heater Amount of rebate depends on your household income and the average income in your area. After 2024, all new products must have a registered product ID number. Rebate1: up to $1,750 2023 – 2033
Electric Clothes Dryer Amount of rebate depends on your household income and the average income in your area. After 2024, all new products must have a registered product ID number. Rebate1: up to $840 2023 – 2033
Electrical Panel Credit: Eligibile for 30% of cost if the new panel has a capacity of 200 amps or more, and the panel upgrade was required to enable the use of other qualified energy efficiency improvements.
Rebate: Amount of rebate depends on your household income and the average income in your area.
Credit: 30% of cost, up to $600
Rebate1: up to $4,000
2023 – 2033
Electrical Rewiring Amount of rebate depends on your household income and the average income in your area. Rebate1: up to $2,500 2023 – 2033
New Electric Vehicle Price must no greater than $55,000 for sedans or $80,000 for SUVs, trucks, and vans. Income limitations apply. Vehicles must meet certain standards in terms of being assembled in America, and sourcing materials and components from America. The price should be taken off at the time of the sale, so check with a dealership for eligibility in 2023. Credit2: 30% of sale price, up to $7,500 2023 – 2033
Used Electric Vehicle Vehicles must be at least two model years old and not cost more than $25,000. Income limitations apply. Credit2: 30% of sale price, up to $4,000 2023 – 2033
Home Energy Audit Eligible to all homeowners and renters to get an inspection and report on how to make cost-effective energy efficiency improvements in the home. Rebate: up to $150 2023 – 2033
1 – Rebate depends on your household income relative to the average income in your area. See more details below.
2 – Vehicle tax credits are subject to your household income, not compared with the average around you. See more details below.

Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.

The Inflation Reduction Act (IRA), passed in August 2022, extends and increases incentives for homeowners and corporations to make the switch to clean energy sources. For the average American, the benefits of the Inflation Reduction Act include improved tax credits for solar panels and increased financial incentives for buying an electric vehicle.

Inflation Reduction Act rebate and credit guide

Here’s a detailed breakdown of all of the rebates and credits available in the Inflation Reduction Act.

Home Solar Panels

What you get: A tax credit worth 30% of the cost of installing solar panels for your home.

Eligibility: Available to all property owners, no income limits. If a condominium installs solar panels, condo owners may claim a tax credit proportional to 30% of their contribution towards the project.

When can you get it: This tax credit is available now until 2035. The tax credit starts to decline in 2033 and will go away completely in 2035.

Electric Vehicle Credits

What you get: A tax credit worth 30% of the price, up to $7,500 for new vehicles and $4,000 for used vehicles.

Eligibility: Income limits apply. See the table below and see the next section of this article for a full breakdown of the new electric vehicle credits created in 2022.

New Electric VehicleUsed Electric Vehicle
Who Qualifies?
  • Single tax filers with a modified adjusted gross income under $150,000
  • Married couples filing jointly with income under $300,000
  • Individuals who file as head of household with an income under $225,000
  • Single tax filers with a modified adjusted gross income under $75,000
  • Married couples filing jointly with income under $150,000
  • Individuals who file as head of household with an income under $112,500
What Vehicles Qualify?
  • Sedans under $55,000
  • SUVs, trucks, and vans under $80,000
  • Vehicles that are at least two years old and under $25,000

When can you get it: This tax credit is available starting January 1st, 2023. Check with dealerships to see which electric vehicles will be eligible for the credit.

Residential Clean Energy Credit for Battery Storage Technology

What you get: A tax credit worth 30% of the cost of installing a battery storage device for the residence you live in.

Eligibility: Available to all property owners, no income limits. The battery must have a storage capacity of 3 kWh or more.

When can you get it: This tax credit is available now until 2035. The tax credit starts to decline in 2033 and will go away completely in 2035.

Clean Energy Credits for Windmills, Geothermal

What you get: A tax credit worth 30% of the cost of installing a qualified clean energy system to power your home. This can include a small windmill, geothermal heat pump, or other more niche qualified projects listed here.

Eligibility: Available to all property owners, no income limits.

When can you get it: This tax credit is available now until 2035. The tax credit starts to decline in 2033 and will go away completely in 2035.

Window and Door Tax Credits

What you get: A tax credit worth 30% of the cost of installing new energy efficient exterior windows and exterior doors. No lifetime maximum so you can claim the credit multiple years.

Eligibility: Available to all property owners, no income limits. Maximum allowable credit of $600 for windows and skylights per year. Maximum credit of $250 for any single exterior door, and $500 maximum for all exterior doors claimed in a single year. When combined with the “energy property” tax credits (see next entry), the combined amount cannot surpass $1,200 for a single year.

When can you get it: This tax credit is available January 1, 2023. It requires states to participate in the program which could lead to implementation delays depending on your location.

Energy Property Tax Credit

What you get: A tax credit worth 30% of the cost of any “qualified energy property”. The bill defines qualified energy property as the following –

  • An electric or natural gas heat pump water heater
  • An electric or natural gas heat pump
  • A central air conditioner
  • A natural gas, propane, or oil water heater
  • A natural gas, propane, or oil furnace or hot water boiler
  • A biomass stove or boiler

Eligibility: Available to all property owners, no income limits. Maximum allowable credit of $600. The newly installed devices must meet certain energy efficiency criteria, so be sure to check with your installer before purchasing. When combined with the window, skylights, and door tax credits, the combined amount cannot surpass $1,200 for a single year.

When can you get it: This tax credit is available January 1, 2023. It requires states to participate in the program which could lead to implementation delays depending on your location.

Heat Pump Tax Credit & Rebate

What you get: A tax credit worth 30% of the cost of a heat pump or heat pump water heater. A rebate of up to $1,750 towards a heat pump water heater or $8,000 towards a heat pump.

Eligibility: The credit is available to all taxpayers, no income limits. Maximum allowable credit of $2,000. The heat pump rebate has a maximum of $8,000, and the heat pump water heater rebate has a maximum of $1,750. The rebates are available to anyone making no more than 150% of the “area median income”. It’s not specified if the median incomes will be calculated at state, county, or zip code level. A maximum of $14,000 in rebates can be claimed per year.

< 80% Average Income80-150% Average Income>150% Average Income
100% of the cost (up to limit)50% of the cost0%

When can you get it: This tax credit and rebates are available January 1, 2023. It requires states to participate in the program which could lead to implementation delays depending on your location. The rebates are intended to be given at the time of sale so it’s immediately taken off the price, but it will depend on your state and retailers being set up to participate.

Insulation, Ventilation, and Air Sealing

What you get: A rebate of up to $1,600 for insulation, air sealing, and ventilation for your home. No lifetime maximum so it can be claimed multiple years.

Eligibility: The rebates are available to anyone making no more than 150% of the “area median income”. The full $1,600 can be claimed regardless if that’s 100% of the cost, or 50% of the cost. For example, if you spend $4,000 on insulation, you can still claim a $1,600 rebate. A maximum of $14,000 in rebates can be claimed per year.

< 80% Average Income80-150% Average Income>150% Average Income
100% of the cost (up to limit)50% of the cost0%

When can you get it: This rebate is available January 1, 2023. It requires states to participate in the program which could lead to implementation delays depending on your location. The rebates are intended to be given at the time of sale so it’s immediately taken off the price, but it will depend on your state and retailers being set up to participate.

Electric Appliance Upgrade Rebates

What you get: A rebate of up to $840 for an electric stove/range/oven, $1,750 for an electric water heater, $840 for an electric clothes dryer.

Eligibility: The rebates are available to anyone making no more than 150% of the “area median income”. The full amount can be claimed regardless if that’s 100% of the cost, or 50% of the cost. Appliances will need to be highly energy efficient, but exact standards aren’t yet set in stone. A maximum of $14,000 in rebates can be claimed per year.

< 80% Average Income80-150% Average Income>150% Average Income
100% of the cost (up to limit)50% of the cost0%

When can you get it: This rebate is available January 1, 2023. It requires states to participate in the program which could lead to implementation delays depending on your state. The rebates are intended to be given at the time of sale so it’s immediately taken off the price, but it will depend on your state and retailers being set up to participate.

Electric Panel and Wiring Tax Credit and Rebate

What you get: A tax credit for 30% of the cost, up to $600. A rebate of up to $4,000 for an electrical panel and $2,500 for rewiring.

Eligibility: To be eligible for the tax credit, the panel upgrade must be required to enable the use of other qualified energy improvements being made to the home, and the panel must have a capacity of 200 amps or more.

The rebates are available to anyone making no more than 150% of the “area median income”. The full amount can be claimed regardless if that’s 100% of the cost, or 50% of the cost. A maximum of $14,000 in rebates can be claimed per year.

< 80% Average Income80-150% Average Income>150% Average Income
100% of the cost (up to limit)50% of the cost0%

When can you get it: This rebate is available January 1, 2023. It requires states to participate in the program which could lead to implementation delays depending on your state. The rebates are intended to be given at the time of sale so it’s immediately taken off the price, but it will depend on your state and retailers being set up to participate.

New tax credits for electric vehicles in 2022

The Clean Vehicle Credit has also been extended through 2032, providing a tax credit of up to $7,500 for the purchase of a new all-electric or hybrid plug-in vehicle. The new Inflation Reduction Act also adds a new credit for the purchase of a used electric vehicle equaling 30% of the vehicle’s price, up to $4,000. This new credit will go into effect in 2023.

New Electric VehicleUsed Electric Vehicle
Who Qualifies?
  • Single tax filers with a modified adjusted gross income under $150,000
  • Married couples filing jointly with income under $300,000
  • Individuals who file as head of household with an income under $225,000
  • Single tax filers with a modified adjusted gross income under $75,000
  • Married couples filing jointly with income under $150,000
  • Individuals who file as head of household with an income under $112,500
What Vehicles Qualify?
  • Sedans under $55,000
  • SUVs, trucks, and vans under $80,000
  • Vehicles that are at least two years old and under $25,000

The income limits above apply to the year that you’ll be filing for the tax credit, or for the previous taxable year. So if you are a single tax filer that will be making more than $150k in 2023, but made less than $150k in 2022, you would still be eligible for the clean vehicle credit on your 2023 tax return.

Note that part of the Clean Vehicle Credit is determined by the size of the battery in the vehicle. A vehicle must have a battery with at least 17 kWh’s of storage to qualify for the full credit. This will safely cover any truly electric vehicles as well as most plug-in hybrids, but you should confirm with a dealership.

Another set of requirements have been added to the Clean Vehicle Credit that may impact which vehicles are eligible. The IRA set out a list of standards that manufacturers must meet such as where the vehicle is fully assembled, and where the companies source their “critical minerals” from.

What’s a Tax Credit?

A tax credit is a dollar-for-dollar reduction in the amount you owe in taxes in a given year. This is different from a tax deduction, which reduces your taxable income. The clean energy tax credits associated with the Inflation Reduction Act are non-refundable, meaning you can’t get money back from the government if your credits exceed your tax bill.

However, you can carry forward credits to future years to still get their full value.

What’s a Rebate?

A rebate is a partial or full refund on your purchase after the fact. There are many new rebates in this bill, but most don’t start until Jan 1, 2023.

Most of the rebates in the IRA are intended to be given at the time of purchase. For example, if you buy a new high-efficiency water heater from Lowes or a local plumbing company, they will (ideally) process the rebate when it’s time to pay and you immediately get that money knocked off your total cost.

What’s in the IRA for me?

The IRA marks the reinstatement of the Energy Efficient Home Improvement credit, which had previously expired in 2021. Under this newly revived program, homeowners can receive a 30% tax credit (up to $1,200 per year) for energy efficiency improvements made to their home. This can include things like new energy efficient windows and doors. The new Energy Efficient Home Improvement credit is available until 2033.

The Home Energy Performance-Based Whole House Rebate (HOMES) provides rebates for homeowners who make improvements such as installing insulation and HVAC systems to improve their home’s energy efficiency.

The High-Efficiency Electric Home Rebate Act (HEEHRA) will provide a rebate of up to $14,000 to homeowners who purchase qualifying electric appliances. This can include the purchase of appliances like electric stoves or the installation of a heat pump to replace your furnace. These rebates will begin in 2023.

While the above programs are income-driven (you may not qualify for some rebates if you make over 150% of your area’s median income), the new Clean Energy Credit, previously called the Solar Incentive Tax Credit (ITC), has been bolstered for all Americans. Under this new program, tax credits have increased from 26% to 30% for solar installation projects started after January 1, 2022.

While this doesn’t mean that you can get free solar panels from the government, it allows you to claim tax credits for solar panels, the equipment used to install them, the labor you pay for and the cost of energy storage systems such as backup batteries.

This credit, which was set to expire in 2024, has been extended until 2035. The credit remains at 30% through the end of 2032, then drops to 26% in 2033 and 22% in 2034. If you have questions or want to get started on installing your own system, your local solar installer is the best person to help you calculate your savings.

Inflation Reduction Act Credits and Rebates FAQ

Can I get free solar panels from 2022 Inflation Reduction Act (IRA)?

No, you cannot get free solar panels from the government under the new Inflation Reduction Act. However, the financial incentives for the installation of solar systems have been improved, making them more affordable than ever before. Speak with your local solar panel installer to learn more about what incentives you qualify for, how much installation would cost and what savings you can expect on your energy bill.

What are the income limits for the Inflation Reduction Act credits and rebates?

The income limits for IRA credits and rebates vary. For some incentives such as the federal solar panel credits, there are no limits based on your income. For the electric vehicle credits, it varies based on your income and kind of car.
– For new electric vehicles, the limit ranges from $150,000 for a single tax filer to $300,000 for a married couple.
– For used electric vehicles, the limit ranges from $75,000 for a single tax filer to $150,000 for a married couple.
For most of the rebates in the 2022 IRA, you an ineligible for any rebates if your income is more than 150% of the median income in your area, so it will vary greatly based on where you live.

How do I know my adjusted gross income?

To find your adjusted gross income (AGI), you will need to find your Form 1040 from the most recent tax year. On most versions of Form 1040, your AGI should be on line 11. You can request copies of your past Form 1040s and other tax forms from the IRS via their website.

How do I know what the median household income is in my area?

Median household income for your area is calculated using this tool provided by the Department of Housing and Urban Development.

How do I know if my new windows, doors or appliances are considered “energy efficient”?

Different criteria apply to different improvements. An Energy Star certification or rating is often a good sign, but talking to your home improvement retailer or a tax professional will give you the most accurate information.

Can I get both tax credits and a rebate for the same project under the Inflation Reduction Act?

Generally yes, you can receive both a rebate and tax credits for the same project. Depending on the type of rebate you receive, it may apply before or after any tax credits are calculated. Speak with your tax professional to get the best understanding of how various incentives apply to your home improvement project.

Are Inflation Reduction Act tax credits refundable?

Consumer tax credits under the Inflation Reduction Act are not refundable, meaning you won’t get a refund if the amount of tax credit you qualify for exceeds the tax you owe that year.

Can I claim tax credits and rebates when I make improvements to my second home, rental property, or small business?

The majority of tax credits and rebates under the Inflation Reduction Act are designed to apply to a property in the United States that you own; most secondary residences fall under this distinction. There are also certain incentives for commercial properties. We recommend speaking with a tax professional before making any financial decisions.

Where can I learn more about the Inflation Reduction Act?

A broad overview of the Inflation Reduction Act can be found on the official White House website. A more detailed breakdown can be found here.