The Inflation Reduction Act has important tax credits to incentivize the transition to clean energy, including in residential real.
These are the tax credits for new construction that will benefit owners in Array who build a net-zero energy home.
First, The tax credit for the installation of solar has increased from 26% to 30%. This applies to systems placed into service before January 1, 2033.
- There is a $2,500 credit for homes that meet Energy Star Efficiency Standards.
- There is also a $5,000 credit for homes that are certified as zero-energy ready.
It is my understanding that these credits are either or. Homes in Array will go beyond zero-energy ready so they will definitely qualify for the $5,000 credit.
Third, there is a 30% tax credit for qualified battery storage expenditures placed in service prior to January 1, 2033. To qualify, the battery must be installed in connection with a dwelling and has a capacity of at least 3 kW hours.
Finally, there are also tax breaks for electric vehicles and for the installation of EV charging equipment.
I will be digging into the benefits of the IRA for Array homeowners and will have updates soon.