Janet Yellen Secretary of the Treasury | Twitter Website
In 2023, more than 41,000 Nevada families saved over $151 million on clean energy and energy efficiency investments.
WASHINGTON – Today, in advance of the two-year anniversary of the Inflation Reduction Act, the U.S. Department of the Treasury released new data from the IRS and analysis by the Office of Economic Policy. The data reveals that more than 41,000 Nevada families benefitted from over $151 million in tax credits to lower the costs of clean energy and energy efficiency upgrades to their homes during 2023. This announcement marks the first public release of data from 2023 tax filings showing the benefit of the Inflation Reduction Act’s clean energy tax incentives for consumers.
Nationwide, the number of families benefiting from these expanded credits for investments that lower their utility bills increased by almost one-third compared to tax year 2021, prior to passage of the Inflation Reduction Act. The aggregate value of the credits increased by nearly two-thirds. The new data indicates that the Inflation Reduction Act is achieving its goal to reduce both upfront costs of clean energy and energy efficiency investments and monthly utility bills for American families.
In addition to upfront cost savings on home improvements, consumers will save on their energy bills for years to come. Recent research from U.S. national labs and analysis from Treasury’s Office of Economic Policy shows that after adopting these upgrades, consumers can save hundreds or thousands of dollars per year on their utility bills, depending on the upgrades made to their homes. For example, households installing residential solar have saved a median of $2,230 annually. Households that install efficient heat pumps and improve building efficiency are expected to save up to $600, $1,200, or $3,100 per year based on the type of heating and cooling system being replaced.
“The Biden-Harris Administration’s top economic priority is lowering costs for American families, and the Inflation Reduction Act is advancing that goal by making home energy upgrades more affordable and cutting monthly utility bills,” said U.S. Secretary of the Treasury Janet L. Yellen. “The law has lowered the cost of clean energy upgrades for more than 41,000 Nevada families, saving them hundreds if not thousands of dollars annually on their utility bills for many years to come.”
“In Nevada, we continue to experience the consequences of climate crisis – from worsening droughts to more severe wildfires to extreme heat waves across the state. I proudly helped pass the Inflation Reduction Act two years ago to make historic investments in clean energy and fight effects of climate change,” said Senator Jacky Rosen. “This landmark legislation is helping strengthen our clean energy economy, increase our energy independence, and create good-paying jobs.”
“Southern Nevadans sent me to Congress to lower costs, create jobs, and fight climate crisis with urgency," said Congresswoman Susie Lee (NV-03). "When I helped pass Inflation Reduction Act into law I delivered on that promise."
Nevada families have claimed more than $137 million in credits for residential clean energy investments on 2023 tax returns filed through May 23rd this year. This credit helps families afford investments in solar electricity generation among others. Families have also claimed over $14 million for energy-efficient home improvements during same time span.
Home Clean Energy Investments Nationwide
More than 750k families claimed investments in residential solar electricity.
Home Energy Efficiency Investments Nationwide
More than 250k families claimed investments in electric or natural gas heat pumps.
More than 100k families claimed investments in heat pump water heaters.
Nearly 700k families claimed investments in insulation & air sealing.
Background
The Inflation Reduction Act provides incentives for consumers lowering their energy bills & shielding themselves from future spikes fossil fuel prices:
Extended & expanded Energy Efficient Home Improvement Credit providing total credit up-to $1.2k annually investing like installing insulation/efficient windows/doors w/special credit as much as $2k electric heat pumps providing super-efficient heating/cooling including a $150 credit home-energy audit conducted inspector determining best home improvement options.
Extended Residential Clean Energy Credit ensuring households able continue receiving tax credit cover up-to 30% costs installing rooftop solar/battery storage through '34.
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