Clean energy tax credit now available for homeowners and renters with eligible products

Clean energy tax credit now available for homeowners and renters with eligible prodcuts
Published: Jan. 12, 2023 at 9:21 PM EST
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WILMINGTON, N.C. (WECT) - Going green is a popular trend, but for things like electric vehicles and solar panels, it comes with a price.

“The reality is, we know that if you make these upgrades to your home if you switch from an internal combustion engine vehicle that runs from gasoline at the pump, to one that can also run on electricity, just by plugging it in and charging it up, that will save you money in the long run. I think for a lot of folks, the sticker price is the thing that’s kept them from being able to tap into that savings opportunity. Now we’ve got tax credits that help bring that sticker price down so that you don’t really have to pay a premium to be able to get yourself into something that will save you money over the long run,” Ali Zaidi, President Biden’s national climate advisor, said.

Zaidi said these clean energy tax credits are available for certain energy-efficient products around your home including some heating and cooling units, even energy-efficient windows.

“This isn’t designed to subsidize folks that don’t need the tax break,” Zaidi added.

  • Homeowners and renters are eligible for the credit if they have items on the approved list.
  • To get the credit, you need to fill out IRS Form 5695.
  • There are some credit limits depending on the amount of products you have in or around your home.

For example, if you have an electric vehicle, not all of them will qualify. “These are for vehicles that tend to be lower or moderate price vehicles that luxury vehicles don’t qualify,” Zaidi said.

But he’s hopeful the next time you head to the dealership or are in the market to purchase a new appliance, you consider something that is on the approved list of energy-efficient products.

“You will be able to get credits for a lot of those upgrades that you make all the way up to $3,200, depending on the improvements you’ve made. And then just to make sure that everybody has a chance to take advantage of these programs, for folks that are low income, maybe don’t have a ton of tax liability, we’re actually in the process of working with all of the states to set up rebate programs that will just be, you know, a straight up grant that will help people again, weatherize, winterize, upgrade and make their homes more efficient. That’s the way folks are going to cut their energy bills. The reality is the conversation about clean energy today is a conversation about saving money. It’s a conversation about boosting our economy here at home and creating jobs for workers all through the supply chain. It’s a conversation about cleaning up our communities,” Zaidi said. “That’s an important thing. But you will also be putting money in your pocket saving dollars you would have spent otherwise on energy.

For those choosing to go green, the impact is the most important with the ultimate goal of protecting the planet, no matter the cost.

For more information on the tax credit, click here.

For a list of eligible electric vehicles, click here.