Janet Yellen Secretary of the Treasury | Twitter Website
In 2023, more than 109,000 Ohio families saved more than $150 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 (Treasury) released new data from the IRS and new analysis by the Office of Economic Policy showing that more than 109,000 Ohio families benefitted from more than $150 million in tax credits to lower the costs of clean energy and energy efficiency upgrades to their homes during 2023. Today’s 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, and the aggregate value of the credits increased by almost two thirds. The new data shows 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, and 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 109,000 Ohio families, saving them hundreds if not thousands of dollars annually on their utility bills for many years to come.”
“By making clean energy and energy efficiency improvements more affordable we are not only significantly cutting energy costs for Ohio families but also showcasing our commitment to building a more sustainable and resilient energy future,” said Congresswoman Marcy Kaptur (OH-09), Ranking Member of the House Appropriations Subcommittee on Energy and Water Development. “Provided by the Inflation Reduction Act these tax credits allow families to receive tax refunds for installation costs for solar panels heat pumps and other major home upgrades. These improvements allow families to save hundreds of dollars or more annually on home energy costs at a time where every penny counts. Together we are working to cut costs while building a new energy future for generations to come.”
Ohio families have claimed more than $73 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 $77 million for energy efficient home improvements—which include heat pumps efficient air conditioners insulation windows and doors—during this same time span. These estimates are expected to increase as additional returns are filed and processed.
Home Clean Energy Investments Nationwide
More than 750000 families claimed investments in residential solar electricity.
Home Energy Efficiency Investments Nationwide
More than 250000 families claimed investments in electric or natural gas heat pumps.
More than 100000 families claimed investments in heat pump water heaters.
Nearly 700000 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. The Inflation Reduction Act:
Extended and expanded the Energy Efficient Home Improvement Credit providing a total credit of up to $1200 annually for investments like installing insulation or efficient windows and doors with a special credit as much as $2000 for electric heat pumps that provide super-efficient heating and cooling including a $150 credit for a home energy audit conducted by an inspector.
Extended Residential Clean Energy Credit ensuring households will be able continue receiving a tax credit cover up thirty percent costs installing rooftop solar battery storage through2034.
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