3 Ways To Save Money And Fight Climate Change With Biden’s Inflation Reduction Act

The Inflation Reduction Act (IRA) celebrates its one year anniversary this week. The landmark legislation incentivizes clean energy use and attempts to combat climate change. Here are three ways you can use the IRA to save money while also bettering the environment.

1. Install Solar Panels

Through 2032, you can get a 30% tax credit for solar-panel-related expenses, including the cost of the panels themselves, a solar array, installation permits and labor.

Homeowners can get an extra 10% credit if the solar panels are domestically sourced, the Treasury Department says. This means all steel and iron manufacturing processes must happen in the U.S. and a minimum percentage of costs must come from “products and components that were mined, produced or manufactured” within the country.

According to the Department of Energy, solar power could be a great way to cut costs from monthly utilities, especially as utility bills trend upward. Having solar panels can also help your home retain power if there is a disruption to the power grid.

(​MORE: Floating Solar Panels Could Soon Power Entire Towns)

2. Consider Other Home Improvements

The Home Efficiency Rebates Program offers rebates up to $8,000 for home upgrades depending on how much they decrease energy consumption. Upgrades include new windows and doors, and smart thermostats.

3. Purchase An Electric Vehicle

Whether it’s a new or used vehicle, you can save money by going electric. Electric vehicles (EVs) also produce zero tailpipe emissions, and according to the Department of Energy, they typically produce fewer emissions than similar conventional gasoline or diesel vehicles during their life cycle.

(​MORE: AAA's Top 10 Fuel Efficient Electric Vehicles)

The IRA awards up to $7,500 of tax credit for new EVs, depending on whether the car’s batteries and component minerals are produced in the U.S. or by an approved trade partner. The vehicle must also undergo final assembly in North America and have a battery capacity of at least 7 kilowatt-hours.

For used EVs, individuals can earn back up to 30% of the purchase price with a maximum credit of $4,000. To qualify, the vehicle has to be at least two years old, have a sale price of $25,000 or less and be for use primarily in the U.S.

If you decide to install a home charging station for your vehicle, you can earn an additional $1,000 or 30% of the hardware and installation costs as a tax credit, whichever is lower.

The Weather Company’s primary journalistic mission is to report on breaking weather news, the environment and the importance of science to our lives. This story does not necessarily represent the position of our parent company, IBM.