Last edited January 2024:
Many working-class and middle-class households, as well as small businesses in Pennsylvania, may qualify for substantial tax breaks, rebates, and benefits under President Joseph R. Biden’s Inflation Reduction Act (IRA). This landmark legislation, passed last summer, aims to address climate change, create jobs, and invest in our communities. Check the guide below to determine your eligibility for these benefits under the IRA.
For rebates and reimbursements, please refer to the Rewiring America Calculator for personalized savings estimates.
Tax Credits for Electric Vehicles and Drivers:
Pennsylvanians who have purchased electric vehicles (EVs) or invested in renewable charging infrastructure may be eligible for substantial benefits:
EV Purchase Credit: The IRA provides up to $7500 in credit for light-duty EVs. New EV Purchase Credits.
PA Alternative Vehicle Fuel Rebate: Adds up to $2,000 off the purchase price of a new electric vehicle in addition to federal tax benefits. Rebates may fluctuate based on family size and income. Alternative Vehicle Fuel Rebate.
Used EVs Credit: Up to $4,000 or 30% of the vehicle’s value (whichever is lower). Used Clean Vehicle Credit.
Charging Infrastructure: Explore various programs, including the Direct Current Fast Charging (DCFC) Station Incentive offering rebates for EV charging infrastructure installations.
Rebates and Benefits for Homeowners:
Pennsylvania homeowners can benefit from tax credits and rebates for energy-efficient improvements:
Energy Efficiency Rebates: Explore programs such as PA Home Energy Programs for various rebates on energy-efficient improvements.
Weatherization Assistance Program: For low-income households, the Weatherization Assistance Program provides assistance in making energy-efficient upgrades.
Ratepayer Benefits and Reimbursements:
Check with your energy provider for benefits related to energy-efficient utilities, including furnaces, heat pumps, thermostats, cooling systems, and more.
Heating, Cooling, and Ventilation Benefits:
The IRA provides tax credits for residential, multifamily, small business, and commercial entities making temperature upgrades:
Clean Heating Fuel Corporate Tax Credit.
For households and businesses upgrading to solar in Pennsylvania, the IRA includes tax credits and exemptions:
Federal Solar Tax Credit: Although Pennsylvania does not currently offer tax credits for residential solar projects, residents may take advantage of the existing federal-level Solar Tax Credit.
Pennsylvanians stand to benefit significantly from the Inflation Reduction Act. Explore the various programs and incentives available to make eco-friendly improvements to your properties and vehicles. For additional information and personalized estimates, visit the Rewiring America Calculator.