The Internal Revenue Service says 117,000 Michigan households received more than more than $134 million in tax credits for energy saving and energy efficiency upgrades from the Inflation Reduction Act last year.
From the IRS press release:
"Michigan families have claimed more than $54 million in credits for residential clean energy investments on 2023 tax returns filed and processed through May 23, 2024. This credit helps families afford investments in solar electricity generation, solar water heating, and battery storage, among others. Families have also claimed more than $79 million for energy efficient home improvements—which include heat pumps, efficient air conditioners, insulation, windows, and doors—during the same time span."
Camila Thorndike with the nonprofit group Rewiring America said the number of households taking advantage of the IRA's tax credits last year was twice the number anticipated - and it's expected to grow even more in the years ahead.
She said many of the tax credits for things like more efficient appliances, heat pumps, and insulation don't expire until 2030. The tax credits for electric vehicles don't expire until 2032, and credits for installing rooftop solar panels and home battery storage don't expire until 2034. She said that gives people a lot of time to plan ahead for future investments to save energy.
"It's really important to make sure that you've got a plan ready," said Thorndike. "It's going to save you money, and it will help protect the planet."
Thorndike said each house and each household is different in its energy savings needs. So people should calculate what credits offer the best return on investment based on the age of their home, along with individual household size, income, and zip code.
There are also gas and electric utility credits and rebates available in many states, such as those offered by Consumers Energy and DTE Energy in Michigan.
Rewiring America has a calculator showing both federal IRA and state utility tax credits and rebates available.
