Download document () of 20
Send email
Download
You have exceeded the download limit
In 2022, the Inflation Reduction Act (IRA) was passed and will support approximately $370 billion in climate and energy proposals. Learn about some of the key provisions that fall under the IRA and how Eaton can help to support your clean energy investment projects.
The commercial Investment Tax Credit (ITC) —which provides tax credits to qualifying clean energy improvement projects, like solar installations, has been extended to 2024 and qualifying project eligibility is expanded. The ITC eligibility is now expanded to include:
The ITC will include a base credit of 6%, or 30% if certain prevailing wage and apprenticeship requirements are met. Domestic content as well as qualifying environmental justice projects and those located in energy communities may qualify for additional credit increases.
In 2025, a general zero-emissions Clean Electricity Credit will go into effect in which new zero-emissions facilities can choose ITC. Credit availability will phase out as the U.S. power sector emits 75% less carbon than 2022 levels, or by 2032.
Learn more about microgrid solutions to accelerate the energy transition.
The Energy Efficient Commercial Building Tax Credit will allow a deduction for qualified building construction improvements and retrofit projects in an effort to reduce total energy and power costs by at least 25%. This tax credit makes it more afforadable to modernize your building's infrastructure.
The Energy Efficient Home Improvement Tax Credit allows households to deduct up to 30% of the cost of energy efficiency upgrades to their home from their taxes. These upgrades can include, but are not limited to installing heat pumps, insulation, windows and water heaters. And can also include improvements to, or replacement of, electrical equipment such as panelboard, sub-panelboard, branch circuits or feeders. The credit shall not exceed in the aggregate $1,200 for any taxpayer under any taxable year.
The Department of Energy’s High-Efficiency Electric Home Rebate Program will provide rebates to low- or moderate-income households for qualifying electrification projects, including but not limited to qualifying electrical infrastructure upgrades. Electric load service center upgrades can qualify for rebates up-to $4,000 and electric wiring projects can qualify for rebates up-to $2,500. Grants will be awarded to states to establish the program and details may vary by state. Rebates cannot be combined with Federal grants/rebates under the "HOMES" program.
The Alternative Fuel Refueling Property Tax Credit extends an up-to 30% credit for electric vehicle charging and refueling stations through 2032. To qualify for the full 30%, taxpayers must meet qualifying property and labor requirements.
At Eaton, we stand ready to support America’s federal stimulus infrastructure initiatives and build a stronger future for our families and communities. Learn about federal stimulus infrastructure funding opportunities and how we can help.
