The Inflation Reduction Act (IRA) is now in effect. While its name suggest it’s an economic law, some of its biggest impacts benefit the environment.
Here are Wisconsin’s biggest wins (& what they mean for you):
Energy Cost Savings
The IRA extends existing incentives to help homeowners pay for energy-saving upgrades through 2032, and it significantly expands what these incentives can help pay for to include doors, windows, heat pumps for both space heating and water heating, and rooftop solar. This will help Wisconsin reduce the 13% of its greenhouse gas emissions that come from residential and commercial buildings.
What It Means for YOU: In addition to the tax incentives, the IRA gives rebates for appliances, like $1,750 for an electric water heater and $840 for an electric stove-top or dryer.
The IRA extended the current federal investment and production tax credits (ITC and PTC) for solar and wind energy through 2024 and established a new technology-neutral ITC and PTC for all zero-carbon (and some very low-carbon) electricity generation technologies, from 2025-2032.
What It Means for YOU: A 100% carbon-free Wisconsin by 2050.
The IRA includes $1 billion for zero-emission heavy-duty vehicles, including garbage trucks and school buses. Wisconsin is a leader in manufacturing electric vehicles, particularly specialty applications, such as Harley-Davidson’s big investments in electric motorcycles. The IRA’s EV incentives will significantly accelerate the growth of EV sales and will sustain Wisconsin’s manufacturing economy.
What It Means for YOU: Low-income car-buyers can claim up to $7,500 in additional tax credits for the purchase of a new electric vehicle.
Click here to learn more about the impact Biden’s Inflation Reduction Act will have on Wisconsin.