Home >Articles >Inflation Reduction Act of 2022 Would Extend 45L Tax Credit for Ten Years

Inflation Reduction Act of 2022 Would Extend 45L Tax Credit for Ten Years

Jul 28, 2022


On July 27, the United States Senate announced the Inflation Reduction Act of 2022, which includes $369.75 billion in Energy Security and Climate Change programs over the next ten years.

The funding includes an extension of Section 45L, the new energy-efficient home credit of $2,500 for homes that are certified as ENERGY STAR, $5,000 for homes that are labeled as DOE Net Zero Ready, and up to $2,000 per unit in residential buildings of three or fewer stories (beginning on page 360 of the bill here).

Other provisions include:

• $9 billion in consumer home energy rebate programs, focused on low-income consumers, to electrify home appliances and for energy-efficient retrofits.

• $4,000 consumer tax credit for lower/middle income individuals to buy used clean vehicles, and up to $7,500 tax credit to buy new clean vehicles.

• $1 billion grant program to make affordable housing more energy efficient.

President Joe Biden on Wednesday said the tax credits and investments for energy projects in the agreement would create thousands of new jobs and help lower energy costs.

The legislation must still be passed by the Senate and the House and be signed into law by President Biden before it comes into effect.

Read the full bill at https://www.documentcloud.org/documents/22122281-inflation_reduction_act_of_2022