Inflation Reduction Act of 2022

These new tax credits and rebates are not just because the IRA suddenly decided to give them to climate-conscious people, but rather because they are part of the Inflation Reduction Act of 2022, which was signed into law last August. It aims to reduce inflation through a number of means, including lowering the prices of prescription drugs, reducing the deficit, and promoting clean energy by investing in the energy production that is done domestically. This is also why the climate tax breaks have been introduced: to reward Americans who are climate conscious.

You can earn the IRA’s ax credit in four ways, each of which comes with its own amount that is awarded. Let’s take a look at all four of them in detail!