News 3: Nevada families save millions with clean energy credits, says IRS

LAS VEGAS (KSNV) — More than 41,000 families in Nevada saved more than $151 million on clean energy and clean energy investments.

The U.S. Department of the Treasury released new data from the IRS and the Office of Economic Policy has a new analysis just days before the second anniversary of the Inflation Reduction Act.

According to that data, those families benefitted from tax credits to lower the costs of clean energy and clean energy efficiency upgrades to their homes in 2023.

This is the first public information released from 2023 tax filings.

The data shows the benefit of the Inflation Reduction Act's clean energy tax incentives for customers.

Coast to coast, the number of families that have benefitted from these expanded credits increased by almost one-third in comparison to the 2021 tax year.

The new data indicates the Act is reaching its goal of lowering the costs of energy and monthly utility bills for Americans.

The data reflects that consumers should save on their energy bills for many more years.

The latest research from the U.S. national labs and analysis from the Treasury's Office of Economic Policy indicates that after consumers acquire these upgrades, they can save hundreds or thousands of dollars yearly on their utility bills.

This also depends on the amount of upgrades that have been made to their homes.

One example is if solar panels are installed, can save around $2,350 yearly.

Another example is installing energy-efficient heat pumps in a household can save up to $600, $1200, or $3,100 a year depending on what type of heating and cooling system is being replaced.

Southern Nevadans sent me to Congress to lower costs, create jobs, and fight the climate crisis with the urgency that it demands," said Congresswoman Susie Lee(NV-03). "When I helped pass the Inflation Reduction Act into law, I delivered on that promise. Two years later, Nevada is reaping the benefits of this historic legislation with everything from clean energy tax credits for working families to lower costs on live-saving medicines to hundreds of new manufacturing jobs right here in my district.

Nevada families have claimed more than $137 million in credits for residential clean energy investments on 2023 tax returns that were filed and processed through May 23, 2024.

This credit helps families afford solar electricity generation, solar water heating, and battery storage.

Families have also claimed more than $14 million for energy-efficient home improvements including heat pumps, efficient air-conditioners, and insulation, along with windows and doors.

These estimates are expected to increase as additional returns are filed and processed.

Home Clean Energy Investments Nationwide

• More than 750,000 families claimed investments in residential solar electricity.

Home Energy Efficiency Investments Nationwide

• More than 250,000 families claimed investments in electric or natural gas heat pumps.
• More than 100,000 families claimed investments in heat pump water heaters.
• Nearly 700,000 families claimed investments in insulation and air sealing.

Background

The Inflation Reduction Act provides incentives for consumers to lower their energy bills and shield themselves from future spikes in fossil energy prices. The Inflation Reduction Act:

• Extended and expanded the Energy Efficient Home Improvement Credit, providing a total credit of up to $1,200 annually for investments like installing insulation or efficient windows and doors, with a special credit of as much as $2,000 for electric heat pumps that provide super-efficient heating and cooling, including a $150 credit for a home energy audit conducted by an inspector to help determine the best home improvement options.
• Extended the Residential Clean Energy Credit, ensuring that households will be able to continue receiving a tax credit to cover up to 30% of the costs of installing, among others, rooftop solar and battery storage through 2034.