Discover the Hidden Benefits of the Inflation Reduction Act
By Clement Feng
Unlocking Savings for Homeowners and Business Owners
Have you ever wondered what hidden treasures lie within large legislative bills? The Inflation Reduction Act (IRA) is no exception. Packed with taxpayer goodies, this legislation offers significant tax savings for eligible homeowners and business property owners. Don’t miss out on the chance to help your clients save big on their tax filings.
Lowering Energy Usage and Costs
One of the main focuses of the IRA is to decrease energy usage and costs. By incentivizing consumers to invest in energy-efficient electric appliances, clean vehicles, rooftop-solar, and home energy storage systems, this legislation provides a pathway to a more sustainable future.
Powerful Timing for Energy Resilience
The timing of the IRA legislation couldn’t be more perfect. With our aging and fragile energy infrastructure, homeowners and small business owners are seeking energy resilience and security. The IRA offers solutions to combat increasing power outages and skyrocketing energy bills.
Essential Components of the IRA
CPAs, tax professionals, and finance and accounting teams need to familiarize themselves with the components of the IRA. This legislation can make a significant difference in tax savings for eligible homeowners and businesses. The key components include:
- An income tax credit of 30% on energy-efficient equipment installations
- Home energy rebate programs for low-income consumers
- Consumer tax credit for clean vehicle purchases
- A grant program for energy-efficient affordable housing
Unlocking Savings for Small Businesses
Don’t overlook the benefits of the IRA for small businesses with stand-alone properties. By switching to solar power, small businesses can receive tax credits covering a significant portion of the cost. Furthermore, there are tax credits available for clean commercial vehicles used by small businesses.
Extending Solar Energy and Battery Storage tax credits
The IRA legislation also includes the extension of existing tax credits for solar energy and battery storage. Homeowners can now receive tax credits of up to 30% of installation costs for solar energy systems. Pairing this federal tax credit with additional incentives available in many states can lead to significant savings.
Energy Storage Solutions
Energy storage systems are now eligible for tax credits, even if they are not directly connected to solar power projects. This opens up new possibilities for homeowners, allowing them to tap into stored energy for backup power or cost savings. Battery storage systems offer silent operation, require no fuel, and can be installed in limited spaces.
Maximizing Savings with Local Incentives
While the federal legislation offers numerous benefits, it’s important to explore state, municipal, and utility company incentives. By combining various incentives, your clients may be able to save even more money when installing or enhancing their homes or businesses with clean energy products.
As the understanding of the IRA benefits grows, coupled with frustrations over high energy costs and power outages, interest in these energy solutions will increase. Be prepared for client questions by familiarizing yourself with the legislative details. Now is the time to seize the opportunities presented by the Inflation Reduction Act.
Clement Feng is VP of Product Management for Briggs & Stratton Energy Solutions, which offers home standby generators and energy storage systems to deliver peace of mind, energy resiliency, and efficiency to homeowners and businesses.
Read More of this Story at www.cpapracticeadvisor.com – 2023-12-13 20:49:24
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