Janet Yellen Secretary of the Treasury | Twitter Website
In 2023, more than 88,000 Arizona families saved over $285 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 showing that more than 88,000 Arizona families benefitted from over $285 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 almost one-third compared to tax year 2021, prior to passage of the Inflation Reduction Act. The aggregate value of the credits increased by almost two-thirds. The new data shows that the Inflation Reduction Act is achieving its goal to lower both the upfront cost 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 consumers adopt these upgrades, they 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 88,000 Arizona families, saving them hundreds if not thousands of dollars annually on their utility bills for many years to come.”
“Over the past two years our Inflation Reduction Act has been put to work for Arizona families: cutting out-of-pocket drug costs for seniors, fueling our green energy jobs boom and taking meaningful action to protect our communities against this historic drought,” said Representative Greg Stanton (AZ-04).
Arizona families have claimed more than $244 million in credits for residential clean energy investments on 2023 tax returns filed and processed through May 23, 2024. This credit helps families afford investments in solar electricity generation, solar water heating, and battery storage among others. Families have also claimed more than $40 million for energy-efficient home improvements—which include heat pumps, efficient air conditioners insulation windows and doors—during this time span. These estimates are expected to increase as additional returns are filed and processed.
Home Clean Energy Investments Nationwide:
More than 750,000 families claimed investments in residential solar electricity.
Home Energy Efficiency Investments Nationwide:
More than 250,000 families claimed investments in electric or natural gas heat pumps.
More than 1000;000 families claimed investments in heat pump water heaters.
Nearly 700;000 families claimed investments in insulation and air sealing.
Background:
The Inflation Reduction Act provides incentives for consumers to lower their energy bills and shield themselves from future spikes in fossil energy prices:
Extended and expanded the Energy Efficient Home Improvement Credit providing a total credit up to $1;200 annually for investments like installing insulation or efficient windows and doors with a special credit as much as $2;000 for electric heat pumps that provide super-efficient heating cooling including a $150 credit for a home energy audit conducted by an inspector determine best home improvement options.
Extended Residential Clean Energy Credit ensuring households will be able continue receiving a tax credit cover up30% costs installing among others rooftop solar battery storage through2034
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