Amidst rocketing housing prices, Montana homeowners have been grappling with the impacts of inflation.
Thankfully, this past week the Inflation Reduction Act was signed into law. Montana homeowners will see relief with tax credits, and save money at home.
However, the law is over 700 pages long, and some of the changes won’t take effect until next year. It’s a lot to read through.
So we’ve pulled some of the main points to make it easy for you. Keep reading to find out more.
An Inflation Reduction Tax Credit Montanans Can Use Now
From housing updates, new energy efficient appliances, electric vehicles, to installing a renewable home energy system with solar, the Inflation Reduction Act has a bevy of options for homeowners in Montana.
While some of these credits won’t be available until 2023, there are several which will be applicable for purchases and updates made in 2022.
The biggest of which is the Solar Investment Tax Credit. Originally, this credit saved homeowners 26%, and was slated to end after 2023.
But now, the solar tax credit will save homeowners in the high, wide, and handsome state 30%!
That’s a great (and unexpected) perk for homeowners who have already made the switch to renewable home energy with solar. Even better, unlike many of the other credits, homeowners can go solar now and see that 30% return on their tax return early next year.
Why Go Solar in Montana Now?
So that you have plenty of time to claim the full amount you’re owed.
Because the Solar Investment Tax Credit is claimed on your income tax return, the amount you’re able to receive any year is dependent on your tax liability.
Depending on how much in taxes you owe the first year you go solar and claim the credit, you may be able to get the full 30% back all at once.
But depending on the cost of investment in solar, you might need to claim that credit across more than one year to receive the full amount back.
You can only carry forward the credit as long as the ITC is active (until 2032). Going solar now means that you have plenty of time to make sure you can carry it forward as needed to claim the full amount and save.
While the Inflation Reduction Act extends when Montana homeowners can claim this credit, it’s still a good idea to not wait if you’re looking to switch to solar.
2023: Montana Saves with Energy Efficiency Credits
Don’t own a home yet, or already have a home with solar? There are still so many ways the Inflation Reduction Act can save you money in Montana.
Here are some of the credits that will come online in 2023 you can access in Montana:
• Tax credits for new electric vehicles ($7,500) and used electric vehicles ($4,000).
• Heat pump installations come with either a tax credit or upfront discount ranging from $1,750 – $8,000.
• Switching to an electric stove or dryer gets you a $840 upfront discount.
• Updating weatherization, electrical wiring, and your electrical paneling saves you $1,600, $2,500, and $4,000 respectively.
As Montana faces hotter summers, and less predictable weather in general, making even some of these updates can help you save thousands now and later.
Professional Solar Saves You More
Montana requires solar designed for the snowy winters, hot summers, and everything in-between.
Going solar with your local professionals at Purelight Power means you can save more with $0 down, and an energy system designed for your needs.
Find out today if your roof qualifies for solar with $0 upfront!