Ohio Climate Action & Sustainability Compass
Welcome to the Ohio Climate Action & Sustainability Compass, your comprehensive gateway to transformative climate action implementation education and opportunities. Formally known as the Inflation Reduction Act Resource Hub, this resource center is a bridge connecting clean energy champions to the tools, resources, and support needed to implement sustainability projects in their community that can also reduce GHG emissions and fight climate change.
As a cornerstone of our commitment to Ohio's sustainable future, PCFO also delivers comprehensive support to member governments through expert guidance, in-depth technical assistance, and planning support. Our experienced team works diligently to enhance your community's ability to compete for and secure crucial climate action implementation funding. We maintain an unwavering focus on our core strategies: maximizing cost savings for Ohio residents, achieving meaningful greenhouse gas emissions reductions, and fostering the development of healthy, vibrant communities throughout the state.
Residential Tax Credits, Rebates, and Energy Efficiency Savings
These opportunities are available to assist Ohio residents in reducing our energy consumption, saving money on our utility bills, and reducing our dependence on fossil fuels.
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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
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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
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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.
Commercial Tax Credits, Rebates, and Energy Efficiency Savings
These opportunities are available to businesses to ensure Ohio businesses have the resources to compete in the 21st-century economy.
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Provides a tax credit for alternative fuel vehicle refueling and charging property in low-income and rural areas. Alternative fuels include electricity, ethanol, natural gas, hydrogen, biodiesel, and others.
The qualified alternative fuel vehicle refueling property must be for clean burning fuels, as defined in the statute, and must be located in low-income or rural areas.
Transferable? Yes, for property used in a trade or business.
Stackability: No Rules
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Provides a tax credit for purchasers of qualified commercial clean vehicles.
Businesses that acquire motor vehicles or mobile machinery for use or lease; tax-exempt entities that acquire them for use.
"Business use" not narrowly defined. Generally, the term means any use in a trade or business of the taxpayer.
Transferable? No
Stackability: Cannot claim both the 30D credit and 45W credit.
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"13701 provides a technology-neutral tax credit for the production of clean electricity. Replaces the production tax credit for electricity generated from renewable sources (extended in Section 13201 through 2024).
13101 provides a tax credit for the production of electricity from renewable sources."
"13701: Facilities generating electricity for which the greenhouse gas emissions rate is not greater than zero.
13101: Facilities generating electricity from wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, and marine and hydrokinetic renewable energy."
Transferable? Yes
Period of Availability:
"13701: Facilities placed in service after 12/31/24. Phase-out starts the later of (a) 2032 or (b) when U.S. greenhouse gas emissions from electricity are 25% of 2022 emissions or lower.13101: Projects beginning construction before 1/1/25."
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Description: Provides a technology-neutral tax credit for investment in facilities that generate clean electricity. Replaces the investment tax credit for energy property (§48) for property placed in service in 2025 and later.
Eligible Recipients: Facilities that generate electricity with a greenhouse gas emissions rate that is not greater than zero and qualified energy storage technologies.
Base Credit Amount: 6% of qualified investment (basis)
Bonus Credit Amount: Credit is increased by 5 times for facilities meeting prevailing wage and apprenticeship requirements. Credit is increased by up to 10 percentage points for facilities meeting certain domestic content requirements for steel, iron, and manufactured products. Credit is increased by up to 10 percentage points if located in an energy community.
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Description: Provides a tax credit for investments in advanced energy projects, as defined in 26 USC § 48C(c)(1).
Eligible Recipients: A project that (1) re-equips, expands, or establishes an industrial or manufacturing facility for the production or recycling of a range of clean energy equipment and vehicles; (2) re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent; or (3) re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials.Base Credit Amount: 6% of taxpayer's qualifying investment
Bonus Credit Amount: Businesses can claim a 30% credit for projects meeting prevailing wage and apprenticeship requirements.
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Provides a tax deduction for energy efficiency improvements to commercial buildings, such as improvements to interior lighting; heating, cooling, ventilation, and hot water; and building envelope.
Transferable? Transferability is not allowed for 179D (except state/local governments, tribes, and non-profit organizations can transfer 179D deduction amounts to architects and designers responsible for the building project).
Period of Availability: Permanent; new rules generally begin in 2023.
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Provides a tax credit for the construction of new energy-efficient homes.
Transferable? No
Period of Availability: 2023-2032