Have you experienced the impact of inflation on your wallet? Citizens of the Hawkeye State will be glad to hear that there are many ways homeowners can benefit from the Iowa Inflation Reduction Act, including a bunch of renewable energy tax credits and rebate programs homeowners can receive simply for making their home more energy efficient.
The bill itself was over 700 pages, but don’t worry: We have the main points to be aware of below. Continue reading to find out what this Inflation Reduction Act means for Iowa.
Iowans Can Use This Inflation Reduction Tax Credit Now
Across Iowa, there’s already a push towards a cleaner and more renewable energy source for the state in general. To help encourage states like Iowa to continue their great work towards a zero-carbon future, there’s one big change. The Solar Investment Tax Credit was 26% and then by the end of 2022, it was supposed to decrease to 22%. But with the Inflation Reduction Act of 2023, you can now save 30% for residential, commercial, and agricultural solar projects. The increased credit makes a big difference for homeowners who want to go solar by getting a 30% return on their taxes next year.
Why Go Solar in Iowa Now?
With these new incentives, solar is even more attractive for the state of Iowa. However, it’s important to know that the 30% funding opportunities depend on your tax liability. Homeowners in Iowa will need to make a certain amount to be able to save on energy costs with the solar investment tax credit. But if you can’t claim it all at once, that might not be a problem. You can carry the solar investment tax credit forward each year until you’ve claimed your full amount.
The higher level of credit is why it’s a good idea to go solar now. You’ll have the full 10 years to work on claiming the solar tax credit, so you’re locking yourself into the best version of a program that may change in the next few years.
But is solar in Iowa a good idea for homeowners? Yes! The Hawkeye state has on average about 200 sunny days, which is more than enough to take advantage of renewable energy production and net metering to power your home year-round.
Iowa Saves with Energy Efficiency Credits
Have solar on your home, may not have a home, or planning on getting solar already? There are many other ways that the Inflation Reduction Act can help Iowans.
Here are some other credits that Iowans can receive in 2023:
Rebates can cover somewhere between 50-100% of the cost of installing new and energy-efficient electric appliances like heat pumps, water heaters, dryers, stoves, or ovens. Homeowners can see further savings for weatherizing their homes and updating their electrical systems.
The Inflation Reduction Act works for electric vehicles too, with a tax credit of$7,500 for new electric vehicles, and up to $4,000 for used electric vehicles. The clean vehicle credit, coupled, with the solar energy savings, can help Iowans save a ton of money on a clean energy investment.
How Iowans in Rural Towns Can Access Inflation Reduction Act Funding
Although the federal Inflation Reduction Act provides funds for encouraging rural clean energy, electrification, and transportation, it is not always easy for smaller towns to effectively access these opportunities. Small towns often lack the resources or staff necessary to pursue competitive funding programs. Experts suggest that individual members of a rural community take the initiative to promote their town’s projects and bring forward proposals in order to capitalize on these incentives.
According to Jigar Shah of the Department of Energy, these initiatives offer incentives for homeowners interested in making energy-efficient improvements to their houses as well as communities with coal or natural gas plants looking to repurpose these sources into cleaner energy sources. These opportunities could potentially provide the largest investment in rural electrification since 1936; however, because they are quite competitive, towns with fewer resources may struggle with the pursuit of this funding. It is important that members within small communities take steps toward advocating development within their town and helping make sure everyone has access to clean energy options.
Purelight Power of Iowa Saves You More!
Iowa needs solar to be designed in order to withstand intense winter storms, changeable spring weather, and so it can make the most of Iowa’s summer weather. Your Iowa-based team of solar professionals at Purelight Power can help you save even more with solar. We’ll help you make the most of solar savings and the credits from the Inflation Reduction Act.
Take this 30-second survey today to find out if your roof qualifies for Purelight’s $0 down program.
