If you bought an EV or made electric upgrades in 2023, then use this Rewiring America tool to confirm which Inflation Reduction Act (IRA) tax credits you qualify for.
I wholeheartedly recommend this easy-to-use online tool from electrification nonprofit Rewiring America, which I rely on myself. It’s free, and they don’t want anything from you in return.
The IRA tax credits are new, so it’s good to have a tool to refer to during tax preparation. What’s at stake is potentially thousands of dollars in tax credits, depending on what you’re claiming, so you don’t want to miss out.
Rewiring America lists three categories: Vehicles, Home, and Power, with subcategories. I installed rooftop solar in 2023, so that’s in the Power category.
The tool tells me that I get 30% of qualifying costs. I knew that when I installed it, but I want to confirm I’ve ticked all the boxes before I claim.
When I click the “More Info” link on the right, it takes me to the “Federal 25D rooftop solar tax credit” page, where all the vital details I need are in the easy-to-understand pull-down menus.
The page tells me about the Federal 25D rooftop solar tax credit, who qualifies for it (spoiler: everyone who pays federal income taxes), which rooftop solar projects qualify, and how to apply for the tax credit with IRS Tax Form 5695.
The tool is also forward-looking and tells you what you will qualify for before you install new projects, going forward. For example, our propane furnace is just about at the end of its life. We want to switch to a heat pump this year, but we’ll need to budget for that. So, I can also use this tool to see the actual cost after the tax credit is taken into account.
It’s also got the $7,500 EV tax credit guidance on there, which I found extremely useful for 2022 taxes when we bought our VW ID.4. (Tesla drivers, this pertains to you, too.) It made a huge difference to our finances.
Check out Rewiring America’s Personal Electrification Planner, too, which recommends electrification projects tailored to your home. I’ll be using it for heat pump planning, and will report back on my experience.
Read more: The US Treasury released EV charger tax credit guidance – here’s how to find out if you qualify
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