Inflation Reduction Act Resource Hub
Resources for Ohio Residents
The Inflation Reduction Act (IRA) offers tax credits that can help Ohio households transition to cleaner energy consumption and save money on energy expenses.
For example, households that upgrade and retrofit their home heating and cooling systems may be eligible for the energy-efficient home improvement credit. This credit is available for the installation of new doors, windows, skylights, insulation, and heat pumps that more efficiently regulate the temperature of a home. The residential clean energy credit is available for the installation of residential solar, small-scale wind, geothermal heat pump, home battery storage, and fuel cell energy systems. Each of these installations is subject to its own set of eligibility criteria and maximum credit limits. Additionally, electric vehicles cost less to fuel and operate per year than gas-powered vehicles, and the climate bill provides a credit equal to 30 percent of the sales price of a used electric vehicle, up to a maximum of $4,000. By taking advantage of these credits, Ohioans can save money, create new high-paying jobs, and ensure a more secure and stable economy and environment.
Tax Credits, Rebates, and Energy Efficiency Savings
Ohio Homeowners
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Solar, wind, and geothermal power generation
Solar water heaters
Fuel cells
Battery storage (beginning in 2023)
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
2022 to 2032: 30%, no annual maximum or lifetime limit
2033: 26%, no annual maximum or lifetime limit
2034: 22%, no annual maximum or lifetime limit
Learn more at https://www.irs.gov/credits-deductions/residential-clean-energy-credit
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Exterior doors, windows, skylights and insulation materials
Central air conditioners, water heaters, furnaces, boilers and heat pumps
Biomass stoves and boilers
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
2022: 30%, up to a lifetime maximum of $500
2023 through 2032: 30%, up to a maximum of $1,200 (biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit
Learn more at https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
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These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, these FAQs may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review.
Learn more at https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-clean-energy-property-credits
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The Electric Partnership Program (EPP) helps eligible Ohioans reduce their electricity usage in their home. The EPP provider performs in-home audits and installs appropriate electric energy efficiency measures to reduce electric usage. Participants also receive information on reducing their electric use and improving their home’s efficiency.
Ohioans are eligible for EPP if they are on or eligible for the Percentage of Income Payment Plan Plus (PIPP) or have a total household income that is at or below 175% of the federal poverty levels.
Learn more at https://development.ohio.gov/individual/energy-assistance/5-electric-partnership-plan
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The Home Weatherization Assistance Program (HWAP) provides eligible Ohioans with assistance to improve the energy efficiency of their homes and reduce their energy costs. Services are provided through local agencies in each county.
Ohioans with a household income at or below 200% of the federal poverty guidelines are eligible for the program. Priority is given to Ohioans who are older than age of 60, those with disabilities, those with children in the home, and households with a high energy usage and/or burden.
Learn more at https://development.ohio.gov/individual/energy-assistance/6-home-weatherization-assistance-program
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Easily access all the necessary information to select energy-efficient products that match your preferences and needs. Not only will you be able to find rebates that can save you a lot of money, but you will also be able to locate the nearest retailers that offer these products. The ENERGY STAR label guarantees quality, as it indicates that the products that bear this label have passed strict energy-efficiency standards set by the U.S. Environmental Protection Agency (EPA). This certification ensures that you will save energy and money on your utility bills while protecting the environment by reducing your carbon footprint.
Learn more at https://www.energystar.gov/rebate-finder
Ohio Renters
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Incentive Type: Rebate
Incentive Amount: Forth coming income-based incentives will be announced through the Home Energy Rebates program (for households below 150% area median income).
How to Access: Rebates are not yet available. Stay tuned as the Home Energy Rebates programs are deployed nationwide.
Learn more at https://www.energy.gov/scep/home-energy-rebate-programs
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If you are renting your home, remember that you should always check with your landlord before making any changes or improvements to the property. However, if you're looking to make energy-efficient upgrades, you'll be happy to know that there are tax credits available for certain improvements. These improvements include exterior doors, windows, skylights, insulation materials, central air conditioners, water heaters, furnaces, boilers, heat pumps, and biomass stoves and boilers.
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation. In 2022, the credit is 30% of the total expenses, up to a lifetime maximum of $500. From 2023 through 2032, the credit is also 30%, but up to a maximum of $1,200 (with the exception of biomass stoves and boilers, which have a separate annual credit limit of $2,000) and with no lifetime limit.
Learn more at https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
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Easily access all the necessary information to select energy-efficient products that match your preferences and needs. Not only will you be able to find rebates that can save you a lot of money, but you will also be able to locate the nearest retailers that offer these products. The ENERGY STAR label is a guarantee of quality, as it indicates that the products that bear this label have passed strict energy-efficiency standards set by the U.S. Environmental Protection Agency (EPA). This certification ensures that you will save energy and money on your utility bills while protecting the environment by reducing your carbon footprint.
Learn more at https://www.energystar.gov/rebate-finder
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Energy Efficiency Tips for renters and property owners from the US Department of Energy.
https://www.energy.gov/energysaver/tips-renters-and-rental-property-owners
Ohio Drivers
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Incentive Type: Tax Credit
Incentive Amount: Up to $7,500 for eligible buyers of qualified clean vehicles
How to Access: Submit IRS Form 8936 when filing your taxes if you meet the requirements detailed on IRS.gov.
⚠️ There are eligibility requirements for both the consumer and the vehicle. Find eligible vehicles on FuelEconomy.gov. Starting in 2024, the tax credit can be transferred to the dealer to lower your upfront purchase price.
⚠️ If you are considering buying an electric vehicle, you may need to consider a home charger and/or upgrades to your outlet to facilitate faster charging. Credits exist for both.
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Incentive Type: Tax Credit
Incentive Amount: Up to $4,000 for eligible buyers of qualified, previously-owned clean vehicles
How to Access: Submit IRS Form 8936 when filing your taxes if you meet the requirements detailed on IRS.gov. Visit FuelEconomy.gov for a list of eligible used vehicles.
⚠️ There are eligibility requirements for both the consumer and the vehicle.
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https://fueleconomy.gov/feg/tax2022.shtml
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In the state of Ohio hybrid and electric vehicle registration applications will be assessed additional fees. Fuel-type fees will be prorated based on the number of months for which the vehicle is registered. The Ohio Bureau of Motor Vehicles uses a VIN Decoding Program to determine a vehicle's fuel type.
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DriveOhio is working to deploy EV Infrastructure in Ohio, learn more about their plans on their website.
It’s Time for Ohioans to Make the Switch to Electric Vehicles!
Buying any new or used vehicle can be challenging between inflation and rising interest rates. Fortunately, if you go electric, you can save thousands of dollars through a tax rebate. Thanks to new federal legislation, most new EVs now come with a $7,500 rebate, and most used EVs are eligible for a $4,000 rebate. Ohio is also now part of a national program to install thousands of EV chargers nationwide along highways. Beginning later this year, Ohio will be adding up to 30 additional fast-charging locations, with at least four charging ports at each location.
Keep Up to Date with the Latest News and Resources About the Inflation Reduction Act
Disclaimer: The tax credit information contained within this website is provided for informational purposes only. It is not intended to substitute expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).