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Inflation Reduction Act: Consumer Guide
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class="l-page__title"> <h1 class="c-page-title"> A Consumer Guide to the Inflation Reduction Act </h1> <div dir="ltr" lang="en"> <div data-drupal-messages-fallback class="hidden"></div> </div> </div> <div class="l-page__subtitle"> <div class="c-subtitle"><p>Here鈥檚 how to save on electric vehicles, solar panels, heat pumps, and more via tax credits and rebates.</p></div> </div> <div class="l-page__details"> <div class="l-page__inline-detail"> <div class="c-date"> <time datetime="2024-07-31T12:00:00Z">July 31, 2024</time> </div> </div> </div> </div> </div> </div> <div class="l-page__content"> <div class="l-constrain"> <div class="l-page__full-width"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="eager" srcset="/sites/default/files/styles/huge_16x9_25/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-516009830-2400.jpg.webp?h=c3635fa2&itok=LTXoh8Zb 384w, /sites/default/files/styles/huge_16x9_50/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-516009830-2400.jpg.webp?h=c3635fa2&itok=g6-LC9nF 768w, /sites/default/files/styles/huge_16x9_75/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-516009830-2400.jpg.webp?h=c3635fa2&itok=ttQ8sOAS 1152w, /sites/default/files/styles/huge_16x9_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-516009830-2400.jpg.webp?h=c3635fa2&itok=edA14wdW 1536w, /sites/default/files/styles/huge_16x9_150/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-516009830-2400.jpg.webp?h=c3635fa2&itok=9FOh9Gpa 2304w, /sites/default/files/styles/huge_16x9_200/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-516009830-2400.jpg.webp?h=c3635fa2&itok=4aZPf-rA 3072w" sizes="min(100vw, 1536px)" width="1152" height="648" src="/sites/default/files/styles/huge_16x9_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-516009830-2400.jpg.jpg?h=c3635fa2&itok=edA14wdW" alt="A man and small child look at a book together on a couch in a home living room" /> </div> <figcaption class="c-figure__caption"><div class="c-figure__caption-credit"> <span class="u-visually-hidden">Credit: </span><p>iStock</p></div></figcaption> </figure> </div> <div class="l-page__metadata"> <div class="c-article__authors"> <div data-history-node-id="25267" class="c-profile is-link"> <a class="c-profile__link" href="/bio/courtney-lindwall"> <div class="c-profile__photo"> <img loading="lazy" srcset="/sites/default/files/styles/profile_100/public/2023-05/courtney-lindwall-009.jpg.webp?h=b13ea8c4&itok=6jv3EZTc 48w, /sites/default/files/styles/profile_200/public/2023-05/courtney-lindwall-009.jpg.webp?h=b13ea8c4&itok=Y9EAVJjz 96w" sizes="min(calc(100vw - 2.22222rem), 48px)" width="96" height="96" src="/sites/default/files/styles/profile_100/public/2023-05/courtney-lindwall-009.jpg.jpg?h=b13ea8c4&itok=6jv3EZTc" alt="A headshot of Courtney Lindwall" /> </div> <div class="c-profile__content"> <div class="c-profile__name">Courtney Lindwall </div> <div class="c-profile__title">Contributor</div> </div> </a></div> </div> <div id="block-sharethispageblock" class="c-social-share js-share"> <div class="c-social-share__label">Share this page</div> <ul class="c-social-share__list"> <li class="c-social-share__item"> <a href="https://bsky.app/intent/compose?text=https%3A//www.nrdc.org/stories/consumer-guide-inflation-reduction-act" aria-label="Share on Bluesky" class="c-social-share__link"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-bluesky"></use></svg> </a> </li> <li class="c-social-share__item"> <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A//www.nrdc.org/stories/consumer-guide-inflation-reduction-act" aria-label="Share on Facebook" class="c-social-share__link"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-facebook"></use></svg> </a> </li> <li class="c-social-share__item"> <a href="https://www.linkedin.com/sharing/share-offsite/?url=https%3A//www.nrdc.org/stories/consumer-guide-inflation-reduction-act" aria-label="Share on LinkedIn" class="c-social-share__link"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-linkedin"></use></svg> </a> </li> <li class="c-social-share__item"> <a href="https://www.twitter.com/share?url=https%3A//www.nrdc.org/stories/consumer-guide-inflation-reduction-act" aria-label="Share on X" class="c-social-share__link"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-x-twitter"></use></svg> </a> </li> <li class="c-social-share__item"> <button class="c-social-share__link js-copy-link" aria-label="Copy link" type="button"> <svg class="c-icon c-icon--social-share" role="img" aria-hidden="true"><title>Share this page block</title><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#circle-link"></use></svg> </button> </li> </ul> </div> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <p>The <a href="https://www.nrdc.org/stories/inflation-reduction-act-congress-takes-monumental-step-climate-fight">Inflation Reduction Act</a> directs an unprecedented $369 billion toward fighting climate change. As a result, we鈥檒l all see innumerable <a href="https://www.nrdc.org/stories/inflation-reduction-act-could-save-us-nearly-2-trillion-climate-costs#:~:text=One%20nonpartisan%2C%20energy%2Dfocused%20think,43%20percent%20below%202005%20levels.">long-term benefits,</a> like reduced energy bills and health-care costs. But the most direct and immediate consumer-focused advantages come in the form of tax credits and rebates for buying emissions-reducing goods and services.</p> <p>Here鈥檚 how to take advantage of Congress鈥檚 big climate moment.</p> <h4>Do some prep to make the most of these potential benefits.</h4> <p>Start by considering a home energy audit. That means enlisting an expert to help determine your home鈥檚 energy efficiency pain points so that you can make the best use of these tax credits and rebates. (Good news: The Inflation Reduction Act offers a partial tax credit for this.) If you need help selecting a professional energy assessor, check out <a href="https://www.energy.gov/energysaver/professional-home-energy-assessments">energy.gov</a>. And remember to save your receipts and any other relevant records as you go so that you can either accurately account for the purchase when you file your taxes or apply for the rebates when they go live.</p> <h4>Educate yourself on how tax credits and rebates will roll out and what purchases qualify.</h4> <p>Some tax credits are extensions of existing ones; others are new and will require implementation. Expect the rebates, which will likely offer either point-of-sale discounts or partial refunds to consumers, to take longer to go into effect. Thankfully, once these incentives kick in, most last at least a decade. Longer-lived incentives provide more market certainty for consumers, manufacturers, and even contractors who have to invest in training around new technologies.</p> <p>The best part? If you were to take advantage of all of the Inflation Reduction Act鈥檚 tax credits and rebates, you could get back more than $10,000. The caveat is that it鈥檚 unlikely you鈥檇 qualify for all the credits and rebates at once. So as you consider the following options, note that there is some overlap in what qualifies, and pace yourself.</p> </div> </div> <div class="l-page__main"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="lazy" srcset="/sites/default/files/styles/medium_25/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-45218-2400.jpg.webp?itok=3fsNnpp5 192w, /sites/default/files/styles/medium_50/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-45218-2400.jpg.webp?itok=UiahJAFZ 384w, /sites/default/files/styles/medium_75/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-45218-2400.jpg.webp?itok=cCc8ayZx 576w, /sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-45218-2400.jpg.webp?itok=KpSTcIoY 768w, /sites/default/files/styles/medium_150/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-45218-2400.jpg.webp?itok=r5jWbYz6 1152w, /sites/default/files/styles/medium_200/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-45218-2400.jpg.webp?itok=u9F5GV8g 1360w" sizes="(min-width: 1024px) min(calc((100vw - 4.44444rem) / 2), 768px), (min-width: 808px) max(calc((100vw - 2.22222rem) / 2), 29rem), calc(100vw - 2.22222rem)" width="576" height="384" src="/sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-45218-2400.jpg.jpg?itok=KpSTcIoY" alt="A row of houses each with solar panels on the roof" /> </div> <figcaption class="c-figure__caption"><div class="c-figure__caption-text">Rooftop solar panels on houses in Boulder, Colorado</div><div class="c-figure__caption-credit"> <span class="u-visually-hidden">Credit: </span><p>Dennis Schroeder/NREL, 45218</p></div></figcaption> </figure> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <h4>Solarize your roof or update other home renewable energy options.</h4> <p>Though the <a href="https://www.eei.org/-/media/Project/EEI/Documents/Resources-and-Media/Newsroom/2152022EEI-NRDC-SEIA-joint-solar-statement-FINAL.pdf">price of rooftop solar</a> has dropped more than 70 percent in the last decade, it still costs about $20,000 on average to install. Encouragingly, an expansion of a soon-to-expire solar tax credit will help make this more affordable for more people and shorten the time it takes for families to see a return on their up-front investment.</p> <ul> <li><strong>What the Residential Clean Energy [Tax] Credit covers:</strong> You鈥檒l get 30 percent back on what you pay for new household clean energy systems鈥攍ike solar, wind, or geothermal systems that produce electricity or heating鈥攁s well as the labor to install them and the fees for permitting, inspection, and development. It also covers the purchase of stand-alone batteries with more than 3 kilowatt-hours of storage. There is no cap on the total spent. So spend $5,000 or $50,000 and still get a 30 percent tax credit. If you don鈥檛 owe that much in federal taxes, the remainder of the credit rolls over into the next tax year.</li> <li><strong>When it starts and ends: </strong>The credit is applied retroactively, for projects completed between January 1, 2022 and the end of 2032. If you began the project in 2021 but completed it in 2022, it qualifies. (The credit for battery storage鈥搊nly projects begins in 2023.) The credit is then reduced slightly to 26 percent in 2033 and 22 percent in 2034 for projects completed in those years.</li> <li><strong>Who qualifies: </strong>There are no income or location restrictions to apply for this tax credit.</li> </ul> </div> </div> <div class="l-page__main"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="lazy" srcset="/sites/default/files/styles/medium_25/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-4228ae55b6-2400.jpg.webp?itok=w-Z8i51e 192w, /sites/default/files/styles/medium_50/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-4228ae55b6-2400.jpg.webp?itok=zmIP8Pi3 384w, /sites/default/files/styles/medium_75/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-4228ae55b6-2400.jpg.webp?itok=ljpBEcrc 576w, /sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-4228ae55b6-2400.jpg.webp?itok=PgYsFdI7 768w, /sites/default/files/styles/medium_150/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-4228ae55b6-2400.jpg.webp?itok=zopSyiMh 1152w, /sites/default/files/styles/medium_200/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-4228ae55b6-2400.jpg.webp?itok=4WWxVAGT 1360w" sizes="(min-width: 1024px) min(calc((100vw - 4.44444rem) / 2), 768px), (min-width: 808px) max(calc((100vw - 2.22222rem) / 2), 29rem), calc(100vw - 2.22222rem)" width="576" height="384" src="/sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-4228ae55b6-2400.jpg.jpg?itok=PgYsFdI7" alt="A young child sits on the sill of a large window" /> </div> <figcaption class="c-figure__caption"><div class="c-figure__caption-text">Energy-efficient double-paned windows</div><div class="c-figure__caption-credit"> <span class="u-visually-hidden">Credit: </span><p>Marcela Gara/Resource Media via EE Image Database, CC BY-NC 4.0</p></div></figcaption> </figure> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <h4>Invest in sustainable home improvements.</h4> <p>Many smaller, more low-tech upgrades can go a long way toward shrinking your carbon footprint, which is why the Inflation Reduction Act rewards residents who make all manner of climate-friendly renovations.</p> <ul> <li><strong>What the Energy Efficient Home Improvement [Tax] Credit covers</strong>: Recently expired, this credit is getting a renewal and a big upgrade. Compared to the previous $500 lifetime max, consumers can now get 30 percent back, up to $1,200 per year, for energy-saving renovations like <a href="https://www.nrdc.org/stories/energy-efficient-home-makeover">adding insulation or swapping out exterior windows</a> that better keep cool air out in the winter and inside in the summer. It also incentivizes the purchase of certain electric, energy-efficient appliances, like heaters, AC units, and boilers. It ups the annual credit cap to $2,000 per year for items like <a href="https://www.nrdc.org/experts/alex-hillbrand/thinking-buying-air-conditioner-consider-heat-pump">眉ber-efficient heat pump air conditioners</a>, <a href="https://www.nrdc.org/stories/whats-most-energy-efficient-water-heater">heat pump water heaters</a>, and boilers. If you鈥檙e unsure which changes to make, the new law also offers a $150 tax credit per household for a home energy audit.</li> <li><strong>When it starts and ends: </strong>The tax credit applies to projects completed between January 1, 2023 and the end of 2032. There are a handful of appliances, like hot-water boilers, for which the credit expires at the end of 2027.</li> <li><strong>Who qualifies: </strong>As long as the improvements were made to a noncommercial home, you qualify. If you鈥檙e a renter or living in a multifamily building, you qualify too.</li> </ul> </div> </div> <div class="l-page__main"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="lazy" srcset="/sites/default/files/styles/medium_25/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17963-2400.jpg.webp?itok=JocT4OuK 192w, /sites/default/files/styles/medium_50/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17963-2400.jpg.webp?itok=Zx9AZXmy 384w, /sites/default/files/styles/medium_75/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17963-2400.jpg.webp?itok=r5Obyo59 576w, /sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17963-2400.jpg.webp?itok=pJDOEUIg 768w, /sites/default/files/styles/medium_150/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17963-2400.jpg.webp?itok=ht6DgnTO 1152w, /sites/default/files/styles/medium_200/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17963-2400.jpg.webp?itok=g9HDIwNH 1360w" sizes="(min-width: 1024px) min(calc((100vw - 4.44444rem) / 2), 768px), (min-width: 808px) max(calc((100vw - 2.22222rem) / 2), 29rem), calc(100vw - 2.22222rem)" width="576" height="384" src="/sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17963-2400.jpg.jpg?itok=pJDOEUIg" alt="A worker with a facemask on sprays insulation into a wall" /> </div> <figcaption class="c-figure__caption"><div class="c-figure__caption-text">William Stewart with Veterans Green Jobs blows cellulose insulation into the wall of a home in Lakewood, Colorado.</div><div class="c-figure__caption-credit"> <span class="u-visually-hidden">Credit: </span><p>Dennis Schroeder/NREL, 17963</p></div></figcaption> </figure> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <h2 class="h4">Take advantage of rebate programs for energy efficiency upgrades.</h2> <p dir="ltr"><span>While tax breaks help incentivize efficiency upgrades, the high up-front costs of these projects still put them out of reach for many families. Thankfully, two new rebate programs established under the Inflation Reduction Act aim to cut sticker prices for climate-friendly renovations and appliances, with a larger portion of the benefits going to low- to moderate-income families. An important note: You cannot claim the same renovation project twice.</span></p> <ul> <li dir="ltr"> <p><strong>What these rebate programs cover:</strong><span> The </span><a href="https://homes.rewiringamerica.org/federal-incentives/home-electrification-appliance-rebates"><span>Home Electrification and Appliances Rebates</span></a><span> (formerly called the High-Efficiency Electric Home Rebate Act) offers low- to medium-income families as much as $14,000 per year in point-of-sale discounts for electrification projects鈥攊ncluding up to $8,000 for a heat pump for space heating and cooling, $840 for an electric stove, and $1,600 for an insulation project. </span></p> <p><span>The Home Efficiency Rebates get you cash back by shrinking your overall home energy use through weatherization renovations (like adding insulation) or by installing more efficient appliances (like </span><a href="https://www.energystar.gov/products/heat_pump_dryer"><span>heat pump clothes dryers</span></a><span>). The amount you get back depends on how much energy you鈥檝e saved and your household income. Save more energy, get more cash鈥攗p to $8,000 if you cut energy use by 35 percent and up to $4,000 if you cut energy use by 20 percent. Low-income earners can qualify for the highest rebate amount.</span></p> </li> <li dir="ltr"><strong>When they start and end: </strong><span>The Home Electrification and Appliance Rebates are now rolling out, with </span><a href="https://www.governor.ny.gov/news/governor-hochul-announces-396-million-now-available-low-income-new-yorkers-home-energy"><span>New York</span></a><span> the first state to offer the funding as of May 30, 2024. Eligible New Yorkers can apply for the rebates through the state鈥檚 </span><a href="https://www.nyserda.ny.gov/All-Programs/EmPower-New-York-Program"><span>EmPower+ program</span></a><span>. Arizona, California, Maine, New Mexico, Washington, and Wisconsin will soon follow, according to the </span><a href="https://www.energy.gov/save/rebates"><span>map of state progress</span></a><span> maintained by the U.S. Department of Energy. The Home Efficiency Rebates are likewise still getting off the ground. Most state Home Energy Rebate programs are expected to begin in 2025 and run until September 30, 2031. </span></li> <li dir="ltr"><strong>Who qualifies:</strong><span> For the Home Electrification and Appliance Rebates, families must make less than 150 percent of their </span><a href="https://ami-lookup-tool.fanniemae.com/amilookuptool/"><span>area鈥檚 median income</span></a><span>. For the Home Efficiency Rebates, everyone qualifies. </span></li> </ul> </div> </div> <div class="l-page__main"> <figure class="c-figure"> <div class="c-figure__media"> <img loading="lazy" srcset="/sites/default/files/styles/medium_25/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17-2400.jpg.webp?itok=b6tLAU-f 192w, /sites/default/files/styles/medium_50/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17-2400.jpg.webp?itok=LwTjdt_q 384w, /sites/default/files/styles/medium_75/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17-2400.jpg.webp?itok=2tkzhwdb 576w, /sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17-2400.jpg.webp?itok=Jdnup0ga 768w, /sites/default/files/styles/medium_150/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17-2400.jpg.webp?itok=pN4B_B3O 1152w, /sites/default/files/styles/medium_200/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17-2400.jpg.webp?itok=6YkkLnla 1360w" sizes="(min-width: 1024px) min(calc((100vw - 4.44444rem) / 2), 768px), (min-width: 808px) max(calc((100vw - 2.22222rem) / 2), 29rem), calc(100vw - 2.22222rem)" width="576" height="384" src="/sites/default/files/styles/medium_100/public/media-uploads/nrdc-consumer-guide-inflation-reduction-act-17-2400.jpg.jpg?itok=Jdnup0ga" alt="Two workers on an auto assembly line" /> </div> <figcaption class="c-figure__caption"><div class="c-figure__caption-text">Workers at the Ford Electric Vehicle Center in Dearborn, Michigan</div><div class="c-figure__caption-credit"> <span class="u-visually-hidden">Credit: </span><p>Ford Motor Company</p></div></figcaption> </figure> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <h4>Get a tax credit for electric vehicles.</h4> <p dir="ltr"><span>Electric vehicles in the United States </span><a href="https://theicct.org/sites/default/files/publications/Global-LCA-passenger-cars-jul2021_0.pdf"><span>emit about a third</span></a><span> of the greenhouse gases of gas-guzzling cars, on average鈥攎aking this switch a smart one for the climate. But even with the release of more affordable models, electric vehicle (EV) prices continue to be a roadblock for many shoppers. Thankfully, the new climate law expands the existing EV tax credit, which, alongside historic investments into EVs and charging infrastructure made by the </span><a href="https://www.nrdc.org/experts/deron-lovaas/putting-climate-infrastructure-law"><span>bipartisan infrastructure law</span></a><span>, sets us up for a stronger clean transportation future. But there are some asterisks to keep in mind.</span></p> <ul> <li dir="ltr"><strong>What the EV tax credit covers: </strong><span>The law renewed the $7,500 </span><a href="https://home.treasury.gov/system/files/136/EV-Tax-Credit-FAQs.pdf"><span>Clean Vehicle Credit</span></a><span> for new electric vehicles, which was set to expire at the end of 2022. It also added a 30 percent tax credit (capped at $4,000) for used electric vehicles. Great news for families on a budget. Starting in 2024, you can transfer these credits to a dealer, which allows for a point-of-sale discount rather than waiting until tax season. And if you need to </span><a href="https://www.nrdc.org/stories/electric-vehicle-charging-explained"><span>install an EV charger</span></a><span> at home, the Inflation Reduction Act renews a recently expired tax credit that covers </span><a href="https://www.kiplinger.com/taxes/605201/federal-tax-credit-for-electric-vehicle-chargers"><span>30 percent of the cost</span></a><span>.</span><br><br><span>But there are some new requirements specifically for </span><em>new</em><span> cars. In an effort to boost domestic EV and battery production, this tax credit was amended in a few ways. All eligible vehicles now have to satisfy a requirement for </span><a href="https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit"><span>final assembly in North America</span></a><span>. Additional changes around </span><a href="https://www.nrdc.org/bio/britt-carmon/treasurys-clean-vehicles-tax-credit-guidance-puts-us-one-step-closer-clean"><span>critical mineral and battery sourcing requirements</span></a><span> are also now in effect. (Vehicles that only meet half of these new sourcing requirements will still be eligible for $3,750 of the tax credit.) But since not all EV manufacturers have the supply chains to comply with these provisions just yet, there鈥檚 going to be a temporary dip in the number of qualifying vehicles while automakers and downstream supply chains scale up U.S. production. Check on a specific vehicle鈥檚 eligibility through the U.S. Department of Energy鈥檚 website, which has a </span><a href="https://fueleconomy.gov/feg/tax2023.shtml"><span>searchable database of qualifying vehicles</span></a><span>.</span></li> <li dir="ltr"><strong>When it starts and ends: </strong><span>The new climate law鈥檚 Clean Vehicle Credit for new and used vehicles starts in 2023 and runs until the end of 2032.</span></li> <li dir="ltr"><strong>Who qualifies: </strong><span>There are income limits. For the new car credit, single taxpayers making $150,000 or less, heads of household making $225,000 or less, and households filing jointly making $300,000 or less qualify. For the used car credit, single taxpayers must make $75,000 or less; heads of household must make $112,500 or less, and households filing jointly must make $150,000 or less.</span><br><span>There are vehicle price caps to qualify too. Smaller cars and sedans can cost up to $55,000; SUVs, trucks, and vans up to $80,000. For used cars, the price cap to qualify is $25,000.</span></li> </ul> <hr> <p dir="ltr"><em>This story was originally published on October 24, 2022, and has been updated with new information and links.</em></p> </div> </div> <div class="l-page__main"> <div class="c-wysiwyg u-clearfix" data-wysiwyg> <hr> <p><em><small>This NRDC.org story is available for online republication by news media outlets or nonprofits under these conditions: The writer(s) must be credited with a byline; you must note prominently that the story was originally published by NRDC.org and link to the original; the story cannot be edited (beyond simple things such as grammar); you can鈥檛 resell the story in any form or grant republishing rights to other outlets; you can鈥檛 republish our material wholesale or automatically鈥攜ou need to select stories individually; you can鈥檛 republish the photos or graphics on our site without specific permission; you should </small></em><a href="/contact-us"><em><small>drop us a note</small></em></a><em><small> to let us know when you鈥檝e used one of our stories.</small></em></p> </div> </div> <div class="l-page__main u-spaced-2-above"> <div class="c-field c-field--name-field-issue-terms c-field--type-entity-reference c-field--label-hidden"> <div class="c-field__label">Related Issues</div> <a class="c-button c-button--tertiary" href="/issues/climate-change" rel="nofollow">Climate Change</a> <a class="c-button c-button--tertiary" href="/issues/renewable-energy" rel="nofollow">Renewable Energy</a> <a class="c-button c-button--tertiary" href="/issues/transportation" rel="nofollow">Transportation</a> <a class="c-button c-button--tertiary" href="/issues/buildings" rel="nofollow">Buildings</a> <a class="c-button c-button--tertiary" href="/issues/fossil-fuels" rel="nofollow">Fossil Fuels</a> <a class="c-button c-button--tertiary" href="/issues/sustainable-cities" rel="nofollow">Sustainable Cities</a></div></div> <div class="l-page__full-bleed"> <section class="l-section has-top-border"> <div class="l-constrain"> <div class="l-section__main"> <h2 class="l-section__title">Related Stories</h2> <div class="l-section__content"> <div class="c-view c-view--related-content c-view--display-news_commentary_how_to_guide_issue_location_audience view js-view-dom-id-bf5d5f58ba0a2f85f7984f0d8ae350889ff8e56cd9370c1e04e55ed9fad1dc7f"> <div class="l-card-grid l-card-grid--carousel" data-card-grid-carousel> <a class="l-card-grid__skipnav u-visually-hidden u-focusable" href="#carousel">Skip carousel items</a> <div class="l-card-grid__controls" data-card-grid-carousel-controls> <button class="l-card-grid__prev" aria-label="Previous"> <svg class="c-icon is-left icon--card-grid" role="img" aria-hidden="true"><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#angle"></use></svg></button> <button class="l-card-grid__next" aria-label="Next"> <svg class="c-icon is-right icon--card-grid" role="img" aria-hidden="true"><use href="/themes/nrdc_theme/dist/images/sprite.artifact.svg#angle"></use></svg></button> </div> <div class="l-card-grid__content" data-card-grid-carousel-content > <div data-history-node-id="58660" class="c-card"> <div class="c-card__wrapper"> <div class="c-card__media"> <img loading="lazy" srcset="/sites/default/files/styles/medium_16x9_25/public/media-uploads/nrdc-climate-solutions-b2bb7b-2400.jpg.webp?h=c3635fa2&itok=i_SzSi_4 192w, /sites/default/files/styles/medium_16x9_50/public/media-uploads/nrdc-climate-solutions-b2bb7b-2400.jpg.webp?h=c3635fa2&itok=emjXdx83 384w, /sites/default/files/styles/medium_16x9_75/public/media-uploads/nrdc-climate-solutions-b2bb7b-2400.jpg.webp?h=c3635fa2&itok=Q-az4K7I 576w, /sites/default/files/styles/medium_16x9_100/public/media-uploads/nrdc-climate-solutions-b2bb7b-2400.jpg.webp?h=c3635fa2&itok=pRL1GD8F 768w, /sites/default/files/styles/medium_16x9_150/public/media-uploads/nrdc-climate-solutions-b2bb7b-2400.jpg.webp?h=c3635fa2&itok=JsZQBtvW 1152w, /sites/default/files/styles/medium_16x9_200/public/media-uploads/nrdc-climate-solutions-b2bb7b-2400.jpg.webp?h=c3635fa2&itok=fM5Y4xaw 1360w" sizes="(min-width: 1044px) min(calc((100vw - 4.44444rem - 3.55556rem) / 3), 491px), (min-width: 1024px) calc((100vw - 4.44444rem - 1.77778rem) / 2), (min-width: 1004px) calc((100vw - 2.22222rem - 3.55556rem) / 3), (min-width: 672px) calc((100vw - 2.22222rem - 1.77778rem) / 2), calc(100vw - 2.22222rem)" width="576" height="324" src="/sites/default/files/styles/medium_16x9_100/public/media-uploads/nrdc-climate-solutions-b2bb7b-2400.jpg.jpg?h=c3635fa2&itok=pRL1GD8F" alt="A woman holds a lantern that is connected by a wire to a small solar panel held by a man to her left." /> </div> <div class="c-card__content"> <a class="c-card__link" href="/stories/what-are-solutions-climate-change"><h3 class="c-card__title">What Are the Solutions to Climate Change? 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