New Climate Bill Savings
How you can cut costs and carbon emissions with the new climate bill
In the 117th Congress, we passed the biggest climate bill in our nation’s history—the Inflation Reduction Act. This legislation makes economy-wide investments in agriculture, coastal restoration, energy, manufacturing, and transportation. It will help the U.S. combat climate change while creating new, good-paying jobs and mitigating climate inequities. It also can help Americans save money.
The Inflation Reduction Act is projected to help cut U.S. greenhouse gas emissions 40 percent by 2030, putting us on track to meet our climate goals. The transition to a green economy will save families an average of $500 per year on their energy costs. And people who take advantage of the clean energy incentives listed below can earn thousands of dollars in additional savings.
Millions of Oregonians are eligible for tax credits and rebate programs that will make it easier and more affordable to weatherize homes, upgrade to more efficient appliances, purchase an electric vehicle, install residential clean energy systems, and save money on energy bills. All of the tax credits are available as of January 2023, but the Oregon Department of Energy (ODOE) anticipates that the rebate programs will be implemented no earlier than mid-2024.
The U.S. Department of Energy launched a new website to help consumers save energy and save money, and partnered with Civic Nation and other organizations to create the Save on Clean Energy Resource Hub. Energy Trust of Oregon has helpful tips and informationon how to avoid scams. For more information about ODOE's work implementing the rebate programs, visit here.
My team will update this page as new information becomes available. As we await further details, make sure you save your receipts and relevant documentation.
My team and I are here to help as you make plans to take advantage of these tax credits and rebate programs. You can share any feedback or ask questions by contacting my office. I look forward to hearing how these benefits help families and individuals throughout NW Oregon.
What can the new law do for me?
Purchasing an Electric Vehicle or Installing a Home EV Charger
UPDATE: As of 3/13/24, the Oregon Department of Environmental Quality has reopened Clean Vehicle Rebate Program for applications from April 3 through June 3, 2024. Any vehicles purchased or leased either before April 3, 2024, or on or after June 4, 2024, are not eligible to apply for the rebate.
The legislation improves existing federal tax credits for new and used EVs and home EV chargers. As of January 1st, 2024, these tax credits may be available time of sale at participating dealerships. These tax credits can be combined with Oregon’s Clean Vehicle and Charge Ahead Rebates, for up to $15,000 in total savings. Many local utilities also provide incentives for EVs and EV infrastructure, which can bring costs down even further. For more information about rebates and local incentives, you can visit https://goelectric.oregon.gov/incentives-rebates. The online application for the rebates can be found here.
All Oregonians are eligible for the Oregon Clean Vehicle rebate, which only applies to new vehicles. The Oregon Charge Ahead Rebate applies to both new and used vehicles, and you can check your eligibility by using this calculator.
Oregon’s rebates are cash incentives that can be applied at the point of purchase or after the buyer has completed the application within 6 months of purchase. The federal tax credits can be claimed after purchase on your tax return of that year or transferred to the car dealership for the discount to be applied at the point of purchase.
Help Purchasing a New Electric Vehicle – up to $7,500 Off
Available Now
The legislation makes it less expensive to purchase a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) by modifying the existing federal tax credit known as 30D and extending it for 10 years. Learn more about how you can get up to $7,500 for buying a new EV at this link.
The law introduces new eligibility requirements for the credit based on buyer income, vehicle price, vehicle assembly location, battery manufacturing location, and battery component origin.
Qualifying buyers are limited to individuals with a modified adjusted gross income (MAGI) less than $150K (or $300K for joint filers).
Qualifying vehicles must have a Manufacturer Suggested Retail Price (MSRP) of less than $55K (or $80K for vans, SUVs, or pick-up trucks), and meet certain battery manufacturing and component criteria. Note: The manufacturing and component criteria are effective on April 18, 2023. Vehicles delivered before that date are not subject to the updated criteria. Vehicles possessed on and after April 18, 2023 ARE subject to manufacturing and component criteria, even if the purchase was made before that date.
To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return.
Help Purchasing a Used Electric Vehicle – up to $4,000 Off
Available Now
To help make EVs more affordable to more Americans—and help them save money on gas long-term—the bill establishes a new tax credit for used EVs called the Previously-Owned Clean Vehicle Credit (25E).
Qualifying buyers can use this credit to get a discount of 30 percent off the cost of a used EV—up to a maximum of $4K. To qualify for this credit, buyers must have a MAGI of less than $75K (or $150K for joint filers).
Qualifying vehicles must have a MSRP of less than $25K, weigh less than 14,000 pounds, and be at least two years old (model year must be at least 2 years older than the year of sale.) Purchases must be made through a dealer.
To claim the credit, complete Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles and New Clean Vehicles), and file it with your tax return for the year you took possession of the vehicle.
Assistance in Installing a Home EV Charger – up to $1,000 Off
Available Now
Having reliable charging infrastructure is a barrier for many who want to switch to an electric vehicle. The new law incentivizes businesses and homeowners to install EV chargers by expanding the existing tax credit known as the Alternative Fuel Vehicle Refueling Property Credit (30C) and extending it for 10 years.
Homeowners residing in eligible lower-income or rural census tracts can get a tax credit of 30 percent of the cost of installing a home EV charger on their property—up to a maximum of $1K. This credit could also help renters by encouraging apartment complexes and other businesses to install EV chargers for residents and customers.
To claim the 30C tax credit, completeForm 8911, Alternative Fuel Vehicle Refueling Property Creditand file it with your tax return.
Credits for Making Your Home More Energy Efficient – up to $3,200 off
Available Now
This legislation significantly expands the 25C tax credit, now called the Energy Efficient Home Improvement Credit, and extends it for 10 years.
Homeowners can receive a tax credit equal to 30 percent of the cost of all eligible energy efficient home improvements made during the year.
The annual amount homeowners can claim for heat pumps, heat pump water heaters, or biomass stoves is capped at $2,000. Upgrade costs eligible for the credit can include equipment, installation, and labor costs.
Homeowners can also claim up to $1,200 for other energy-efficient improvements including up to: $150 for a home energy audit, $250 for a new exterior door ($500 total for all exterior doors); $600 for new exterior windows and skylights; $1,200 for insulation; and $600 for an upgraded electrical panel.
For more information, check out this IRS FAQ on the 25C credit, this ENERGY Star Guide on qualifying purchases, and Rewiring America’s Fact Sheet.
Credits for Rooftop Solar and Other Residential Green Energy – 30 percent tax credit
Available Now
It is projected that more than 75,000 additional Oregon households will install rooftop solar panels as a result of this bill’s expanded 25D Residential Clean Energy Tax Credit. This 30 percent credit applies to purchase and installation costs for:
- Solar panels;
- Solar water heaters;
- Fuel cell property expenditures;
- Small wind turbines;
- Geothermal heat pumps; and
- Battery storage systems.
For more information, check out this IRS FAQ on the 25D tax credit, this ENERGY Star Guide on qualifying purchases, and this Department of Energy guide to the Rooftop Solar tax credit .
Up-front Discounts on Electric Appliances and other Home Electrification Upgrades – up to $14,000 off
Program Start Date TBD, anticipated no earlier than mid-2024
Electrifying homes can save families hundreds of dollars on their energy bills but can also have high up-front costs. The new law allocates $56.7 million to help low- and moderate-income households in Oregon reduce their energy bills through the High-Efficiency Electric Home Rebate (HEEHRA) program.
Administered by the Oregon Department of Energy (ODOE), the program will provide point-of-sale rebates on the purchase of ENERGY STAR-certified electric appliances and other home electrification projects. ODOE anticipates that the program will be up and running no earlier than mid-2024, but it may take longer before the rebates will be available to consumers in Oregon.
Low-income households that make less than 80 percent of their Area Median Income (AMI) will be eligible for rebates that cover 100% of the purchase and installation costs for qualified electrification projects. That means an individual living in the Portland-area who makes less than around $53K a year (or a family of four with an income of less than $77K) could be able to get a new electric stove, heat pump HVAC, and more installed in their home for free.
Moderate-income households making between 80-150 percent AMI will be eligible for rebates covering 50 percent of the cost of home electrification projects. To learn more about whether you might qualify, check out this IRA Savings Calculator resource from Rewiring America.
The maximum allowable rebate amount for qualifying upgrades is $14,000 and includes:
- Heat pump HVAC for heating/cooling $8,000
- Heat pump water heater $1,750
- Electric stove, cooktop, range, or oven $840
- Heat pump clothes dryer $840
- Upgraded breaker box $4,000
- Upgraded electrical wiring $2,500
- Weatherization (insulation, ventilation) $1,600
Info for Renters: Renters may be able to use the rebates to purchase portable appliances like window-unit heat pumps and induction cooktops. Renters may also receive other indirect benefits if the owner of their rental unit makes use of the program.
Up-front Discounts on Energy-saving Home Improvements – up to $8,000 off
Program Start Date TBD, anticipated no earlier than mid-2024
The new law will allocate $57 millionto help Oregon families undertake comprehensive energy-efficient home improvement projects through the Home Owner Managing Energy Savings (HOMES) rebate program.
The rebate is designed to reward homeowners for making energy-efficiency retrofits that achieve greater energy savings. For example, households that reduce energy usage by 20 percent can get a rebate of up to $2,000, while households that achieve a 35 percent reduction in energy usage can get up to $4,000.
Low-income households (making less than 80 percent AMI) are eligible for larger rebates—80 percent of the project cost up to $8,000.
ODOE anticipates that the program will be up and running no earlier than mid-2024, but it may take longer before the rebates will be available to consumers in Oregon.
Please note that homeowners can only receive a rebate from either the HEEHRA program or the HOMES program—not both. However, homeowners are eligible to combine both a rebate from either of these two rebate programs and receive an energy efficiency tax credit at the same time. Check out this resource from Rewiring America for more information.
Note: This resource page was compiled to raise awareness of new clean energy and electrification incentives for constituents and is not intended to substitute for professional financial advice.
Other helpful resources to check out include the White House’s Clean Energy for All site, Rewiring America’s IRA Savings Calculator, and the Database of State Incentives for Renewables & Efficiency (DSIRE).