Nevada and Arizona Energy Tax Credits – Inflation Reduction Act

Rising energy costs represent a significant cause for concern for residents throughout Nevada and Arizona. Fortunately, recent acts from the government designed to mitigate these costs are coming to our area.

You may take advantage of Nevada and Arizona energy tax credits through the Inflation Reduction Act. Our team at Ambient Edge can help you take advantage of this act to upgrade your old heating and cooling system to a more efficient unit.

Learn more by calling us or filling out our online contact form.

What Is the Inflation Reduction Act?

The Inflation Reduction Act was passed through Congress in late 2022. The program covers many national changes by pushing for lower prescription prices and handling healthcare reform. In addition to these changes, the act addresses rising energy costs.

The act focuses on pushing the country toward clean energy. The act provides several tax rebates and credits that allow families throughout Nevada and Arizona to curb the costs of their monthly energy expenses.

What Tax Credits Are in the Inflation Reduction Act for Nevada and Arizona?

The Inflation Reduction Act provides several energy tax credits for families in Nevada and Arizona. Credits cover many different options to boost the energy efficiency of your home. Depending on your situation, you may take advantage of the following:

Solar Panel and Battery Storage Tax Credits

The Inflation Reduction Act covers 30% of the installation costs for solar panels and the battery systems they use to store energy. These tax credits make installing solar power systems much easier for families across Nevada and Arizona.

Community Solar Power Project Tax Credits

Local businesses can receive tax credits to cover 30% of the expenses for solar projects completed on a community level. In addition, the Inflation Reduction Act provides bonus credits for projects in affordable housing or low-income areas.

Wage-Related Tax Credits

Businesses in Nevada and Arizona that meet specific criteria related to the wages for their employees can receive credits. These businesses must operate in clean energy industries in the states.

Small Business Tax Credits

Are you among hundreds of thousands of entrepreneurs who own a small business in Nevada or Arizona? If so, you may receive a tax credit tied to the square footage of your business property if you seek energy-efficient upgrades to the building.

Other Tax Credits

We’ve only discussed a few of the clean energy tax credits provided through the Inflation Reduction Act. For example, you may also receive credits if you purchase clean vehicles in Arizona or Nevada.

You may also receive credits for the installation of energy-efficient appliances, including:

• Heat pumps
• HVAC systems
• Stoves
• Dryers

Our team can help you maximize Nevada and Arizona energy tax credits. We want to help you save money as you boost your home’s energy efficiency.

When Can You Use Energy Tax Credits in Nevada and Arizona?

Some of the tax credits offered by the Inflation Reduction act became available for the 2022 tax year. These credits generally apply to home upgrades and the installation of solar panels.

However, additional credits may become available in 2023 and subsequent years. Our team can keep you up-to-date about currently available credits in Arizona and Nevada.

Who Qualifies for Benefits Under the Inflation Reduction Act?

You may take advantage of Nevada and Arizona energy tax credits from the Inflation Reduction Act if you make certain covered purchases for energy-efficient products and appliances.

In some cases, you may qualify for both tax credits and tax rebates. For example, installing a new heat pump can provide you with thousands in tax credits and access to an even larger tax rebate.

You may also qualify for a tax credit if you schedule a home energy audit, which can help you identify other areas to improve energy usage in your home in Arizona or Nevada.

How Much Money do You Save with Energy Tax Credits?

The funds available to you through the Inflation Reduction Act can vary. The federal government capped credits at around $1,200 annually in 2023, but the rates may change over time, either increasing or decreasing.

However, the cap increases to $2,000 if you choose to install either a biomass stove or a heat pump. When you contact us, we’re ready to discuss possible savings for your situation.

How do You Access Your Energy Tax Credits?

The Inflation Reduction Act only recently passed through Congress. Therefore, states around the country are still setting up programs to implement payment for the energy tax credits it offers.

However, legal experts believe you’ll have a chance to apply for these credits when you make a purchase. The program allows individuals to afford more energy-efficient systems, improving the overall energy grid through Arizona and Nevada.

Should You Utilize the Energy Tax Credits Right Away?

The energy tax credits offered by the Inflation Reduction Act arrived at a good time for many homeowners. The Department of Energy recently changed standards for AC efficiency, making it illegal to sell many older systems.

Therefore, the costs for new systems that align with the current regulations may increase in the coming years. However, the energy tax credits make these energy-efficient systems more affordable.

Speak to Us About Using the Inflation Reduction Act Energy Tax Credits

Want to learn more about Nevada and Arizona energy tax credits from the Inflation Reduction Act? Reach out to our team at Ambient Edge to discuss how you can save money on installing a new heating and cooling system.

When you call or complete our online contact form, we’re ready to discuss your options.