Janet Yellen Secretary of the Treasury | Twitter Website
In 2023, more than 87,000 Georgia families saved over $148 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 87,000 Georgia families benefitted from over $148 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 demonstrating 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 these credits increased by nearly two thirds. The new data indicates that the Inflation Reduction Act is achieving its goal to reduce both upfront costs for clean energy and energy efficiency investments as well as monthly utility bills for American families.
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 specific improvements made. For example, households installing residential solar have saved a median of $2,230 annually, while those installing efficient heat pumps and improving 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 replaced.
“The Biden-Harris Administration’s top economic priority is lowering costs for American families,” said U.S. Secretary of the Treasury Janet L. Yellen. “The Inflation Reduction Act is advancing that goal by making home energy upgrades more affordable and cutting monthly utility bills.”
Senator Reverend Warnock commented: “The investments we make in clean energy today will help families across Georgia save more money tomorrow. That is part of why I fought so hard to pass the Inflation Reduction Act and ensure it included historic tax credits for Georgia.”
Georgia families have claimed more than $97 million in credits for residential clean energy investments on 2023 tax returns filed through May 23, 2024. These credits support investments in solar electricity generation, solar water heating, and battery storage among others. Families also claimed over $51 million for energy-efficient home improvements—including heat pumps, efficient air conditioners, insulation windows—during this period.
Nationally:
- Over 750,000 families claimed investments in residential solar electricity.
- More than 250,000 families invested in electric or natural gas heat pumps.
- Over 1000families invested in heat pump water heaters.
- Nearly7000families invested in insulation and air sealing.
The Inflation Reduction Act provides incentives for consumers to lower their energy bills and shield themselves from future spikes in fossil fuel prices by extending various tax credits until at least2034.
