Residential Tax Credits Available Now (and Next Year) Through the Inflation Reduction Act

Tags: tax credits, inflation reduction act, tax season 2023

It's tax season again and we want to make sure your equipped to take advantage of energy efficient incentives available this year.

It's tax season again, and we want to make sure you are equipped to take advantage of the tax credits for energy efficiency and clean energy upgrades available this year, and are informed about what will be available for the 2023 tax year. Due to the Inflation Reduction Act (IRA), residents can already take advantage of some increased tax credits when they file this year. However, eligibility and specific details vary, so we always recommend consulting with a tax professional for more information.

If you received a DCSEU rebate for a home energy efficiency upgrade in 2022, you may qualify for a tax credit on your upgrade as well.

Here are some residential tax credits residents can take advantage of now:

Rooftop Solar

DC is one of best places to get rooftop solar in the country. Thanks to changes made by the IRA, households can receive up to 30% tax credit on installing rooftop solar starting with their 2022 tax filing. This is up from 26% previously in the previous tax season.

Energy-Efficient Upgrades

Homeowners filing in 2022 can receive a tax credit to cover up to 10% of the cost of insulation materials and other energy efficient improvements, such as windows and doors. They can also receive a $300 tax credit for purchasing efficient heating and cooling equipment, like a heat pump or central air conditioner.

Check out DCSEU rebates for energy-efficient home heating & cooling that will save households an additional $50-$700 on these upgrades.

When you file in 2023, you'll be able to take advantage of significant increases in tax incentives thanks to the IRA.

Replacing Heating & Cooling Systems

Heat pumps use electricity to transfer heat from a colder area to warmer area of a building. It is commonly used for heating and cooling buildings, and can be more energy-efficient than traditional heating and cooling systems.

Homeowners can get a tax credit up to $300 when making the switch to a heat pump. District residents may also qualify for a $375-$700 rebate on a heat pump upgrade with a DCSEU rebate.

Electric Vehicles

Bought a new electric vehicle in 2022? You can get a tax credit up to $7,500 if your vehicle qualifies.


Check out these sites to get even more details about the Inflation Reduction Act tax credits and what's available in 2022 vs. 2023:

Clean Energy for All | The White House

Inflation Reduction Act of 2022 - What it Means for You | Department of Energy

As funds from the Inflation Reduction Act continue to rollout, stay on the lookout for updated tax credits and rebate information. Many of these tax credits will be expanded next season. Until then, we hope you continue to take advantage of energy-efficient upgrades and savings with rebates from the DCSEU. As written, the IRA directs all funding for efficiency rebate programs through State Energy Offices. In the case of the District of Columbia, this means the District Department of Energy & Environment (DOEE), which administers the DCSEU contract. As this funding becomes available, the DCSEU will communicate with our customers and partners about what, if any, role the DCSEU will have.

Media Contact

Ben Burdick
[email protected]
(202) 677-4807