Federal Tax Credit for Energy Efficiency

HOME ENERGY IMPROVEMENTS: New federal income tax credits are available through 2032 providing up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent.

Improvements such as installing heat pumps (Petersburg Power & Light also has a rebate program for heat pumps), heat pump water heaters, biomass stoves, furnaces, insulation, doors and windows, as well as electrical panel upgrades, home energy audits and more, are covered by the tax credits and can help families save money on their monthly energy bills for years to come.

In addition to the energy efficiency credits, homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30 percent income tax credit for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps and battery storage through 2032, stepping down to 22 percent for 2033 and 2034. 

For more information visit: Federal Income Tax Credits and Incentives for Energy Efficiency | ENERGY STAR

ELECTRIC VEHICLES:  All-electric, plug-in hybrid, and fuel cell electric cars purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500.

The availability of the credit will depend on several factors, including the vehicle's MSRP, its final assembly location, and your modified adjusted gross income (AGI).

Qualified vehicles purchased before 2023 may be eligible for a similar tax credit of up to $7,500.

Pre-owned vehicles purchased in 2023 or after are eligible for a tax credit of up to $4,000.

More information: Tax Incentives (fueleconomy.gov)