Janet Yellen Secretary of the Treasury | Twitter Website
In 2023, more than 158,000 Pennsylvanian families saved over $267 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 new analysis by the Office of Economic Policy showing that more than 158,000 Pennsylvanian families benefited from over $267 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, 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 158,000 Pennsylvanian families, saving them hundreds if not thousands of dollars annually on their utility bills for many years to come.”
“Thanks to the Inflation Reduction Act," said Senator Bob Casey "Pennsylvania is experiencing a clean energy and manufacturing boom and Pennsylvanians are spending less on their prescription drugs, taxes, and more. This legislation invests in American industry creates good jobs for Pennsylvanians ensures that Commonwealth continues power Nation.”
Representative Matt Cartwright (PA-08) stated: “The Inflation Reduction Act serves as one most significant investments our country has ever made advance environmental industry save families money create good-paying jobs.” He added: “This historic legislation also provides incentives firms locate next generation renewable energy manufacturing Northeast Pennsylvania an area whose history fueled coal now poised next generation manufacturing.”
“As we mark second anniversary Inflation Reduction Act its impact Pennsylvania undeniable,” said Representative Chrissy Houlahan (PA-06). She continued: “In fact its impact Chester Berks Counties firsthand evidence success generational investment continues yield dividends across southeastern Pennsylvania benefiting small business owners seniors farmers alike just last month I welcomed Biden-Harris Administration our community talk about how boosting agricultural economy part historic legislation capping cost prescription drugs reducing creating new securing cleaner future fulfills promise combat climate change build stronger communities simply put ensures Pennsylvanians have new opportunities economy built long term.”
Pennsylvanian families have claimed more than $149 million in credits for residential clean energy investments on 2023 tax returns filed through May 23 2024 credit helps afford solar electricity generation solar water heating battery storage among others also claimed over $118 million efficient home improvements include heat pumps air conditioners insulation windows doors estimates expected increase additional returns processed.
Home Clean Energy Investments Nationwide
More than 750000 claimed residential solar electricity.
Home Energy Efficiency Investments Nationwide
More than 250000 electric natural gas heat pumps.
More than 100000 heat pump water heaters.
Nearly 700000 insulation air sealing.
Background
Inflation Reduction Act provides incentives lower shield themselves future spikes fossil prices:
Extended expanded Energy Efficient Home Improvement Credit providing total credit up $1200 annually like installing insulation efficient windows doors special much as $2000 electric provide super-efficient heating including a $150 audit conducted inspector help determine best options.
Extended Residential Clean Energy Credit ensuring households continue receiving cover up costs installing rooftop storage through
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