More than 3.4 million Americans used $8.4 billion in clean energy credits in 2023
By Doug Cunningham
Aug. 7, 2024 /
More than 3.4 million Americans used $8.4 billion in Inflation Reduction Act clean energy tax credits in 2023, according to IRS and other data released Wednesday. Treasury Secretary Janet Yellen said the credits save families hundreds, if not thousands, of dollars annually on utility bills. File Photo by Bonnie Cash/UPI | License Photo
Aug. 7 (UPI) -- More than 3.4 million Americans benefitted from $8.4 billion in clean energy tax credits in 2023, according to IRS and other data released Wednesday by the Treasury Department.
The use of Inflation Reduction Act expanded tax credits to lower utility bills increased nearly one-third compared to the 2021 tax year, the Treasury Department said.
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Tax return data showed American families used more than $6 billion in residential clean energy credits in 2023 in addition to more than $2 billion for energy-efficient home improvements.
Households putting in residential solar energy saved a median of $2,300 annually.
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Households 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 that is being replaced, according to the Treasury Department.
"The Biden-Harris Administration's top economic priority is lowering costs for American families, and the Inflation Reduction Act is advancing that goal by making home energy upgrades more affordable and cutting monthly utility bills," Treasury Secretary Janet Yellen said in a statement.
Yellen said the law "has lowered the cost of clean energy upgrades for more than 3.4 million American families, saving them hundreds, if not thousands, of dollars annually on their utility bills for many years to come."
Treasury said the new data show the Inflation Reduction Act is achieving its goals of lowering costs for both the upfront cost of energy and the cost of energy efficiency investments.
"Recent research from U.S. national labs and analysis from Treasury's Office of Economic Policy shows that after consumers adopt these upgrades, they can save hundreds or thousands of dollars per year on their utility bills, depending on the upgrades made to their homes," the Treasury said.
On Tuesday eighteen House Republicans wrote Speaker Mike Johnson to urge that any GOP efforts to repeal the Inflation Reduction Act should not include repealing the energy tax credits provided by that law.
"We hear from industry and our constituents who fear the energy tax regime will once again be turned on its head due to Republican repeal efforts. Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing," the House Republican conference members wrote.
They added that repealing those credits "would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return."
While they said the IRA was "deeply flawed", the Republican House conference members said energy tax credits in the Biden-Harris administration's Inflation Reduction Act have spurred innovation, incentivized investment and created good jobs in many parts of the country.
"As Republicans, we support an all-of-the-above approach to energy development and tax credits that incentivize domestic production, innovation, and delivery from all sources," their letter to Speaker Johnson said.
The letter was signed by GOP Reps. Garbarino, Valadao, Chevez-DeRemer, Molinaro, Houchin, D'Esposito, Lawler, Kiggins, LaLota, Kim, Curtis, Bacon, Kean, Joyce, Miller-Meeks, Ciscomani, Carter and Amodei.
The Inflation Reduction Act tax credits extended and expanded the Energy Efficient Home Improvement Credit. It gives tax credits to households that install energy efficiency upgrades like windows and doors, electric heat pumps, and rooftop solar.
More than 750,000 families claimed tax credits for residential solar electricity.
More than 250,000 used tax credits for electric or natural gas heat pumps while over 100,000 families claimed credits for heat pump water heaters.
According to the Treasury Department, nearly 700,000 families claimed credits for investments in insulation and air sealing.
U.S. announces tax credits for clean energy programs in underserved communities
Government agencies launch effort to expand use of clean-energy tax credits
Households 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 that is being replaced, according to the Treasury Department.
"The Biden-Harris Administration's top economic priority is lowering costs for American families, and the Inflation Reduction Act is advancing that goal by making home energy upgrades more affordable and cutting monthly utility bills," Treasury Secretary Janet Yellen said in a statement.
Yellen said the law "has lowered the cost of clean energy upgrades for more than 3.4 million American families, saving them hundreds, if not thousands, of dollars annually on their utility bills for many years to come."
Treasury said the new data show the Inflation Reduction Act is achieving its goals of lowering costs for both the upfront cost of energy and the cost of energy efficiency investments.
"Recent research from U.S. national labs and analysis from Treasury's Office of Economic Policy shows that after consumers adopt these upgrades, they can save hundreds or thousands of dollars per year on their utility bills, depending on the upgrades made to their homes," the Treasury said.
On Tuesday eighteen House Republicans wrote Speaker Mike Johnson to urge that any GOP efforts to repeal the Inflation Reduction Act should not include repealing the energy tax credits provided by that law.
"We hear from industry and our constituents who fear the energy tax regime will once again be turned on its head due to Republican repeal efforts. Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing," the House Republican conference members wrote.
They added that repealing those credits "would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return."
While they said the IRA was "deeply flawed", the Republican House conference members said energy tax credits in the Biden-Harris administration's Inflation Reduction Act have spurred innovation, incentivized investment and created good jobs in many parts of the country.
"As Republicans, we support an all-of-the-above approach to energy development and tax credits that incentivize domestic production, innovation, and delivery from all sources," their letter to Speaker Johnson said.
The letter was signed by GOP Reps. Garbarino, Valadao, Chevez-DeRemer, Molinaro, Houchin, D'Esposito, Lawler, Kiggins, LaLota, Kim, Curtis, Bacon, Kean, Joyce, Miller-Meeks, Ciscomani, Carter and Amodei.
The Inflation Reduction Act tax credits extended and expanded the Energy Efficient Home Improvement Credit. It gives tax credits to households that install energy efficiency upgrades like windows and doors, electric heat pumps, and rooftop solar.
More than 750,000 families claimed tax credits for residential solar electricity.
More than 250,000 used tax credits for electric or natural gas heat pumps while over 100,000 families claimed credits for heat pump water heaters.
According to the Treasury Department, nearly 700,000 families claimed credits for investments in insulation and air sealing.
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