Tax Credit Legislation

Information updated 12/30/2022

The Inflation Reduction Act of 2022

In August of 2022, President Biden signed into law the Inflation Reduction Act of 2022. This landmark bill extended and modified many of the tax credits that were previously offered under the Energy Policy Act of 2005. The Inflation Reduction Act of 2022 features tax credits for consumers and businesses that save money on energy bills, create jobs, make homes and buildings more energy efficient, utilize clean energy sources and lower greenhouse gas emissions that contribute to climate change and global warming.  

• H.R.5376 - Inflation Reduction Act of 2022
• Energy Efficiency Home Improvement Credit - 26 USC 25C
• Residential Clean Energy Credit - 26 USC 25D

The Energy Policy Act of 2005

The Energy Policy Act of 2005 first established the energy efficiency tax credits that were effective in 2006 & 2007. The majority of these tax credits were for 10% of the cost, up to $500. On October 3, 2008 former President Bush signed the Emergency Economic Stabilization Act of 2008 (also known as the "Bailout Bill") to put many of the tax credits back in place for 2009, and increased the credit to 30%, up to $1,500. On February 17, 2009 former President Obama signed into law the American Recovery and Reinvestment Act of 2009 (also known as the "Stimulus Bill") which among other changes extended the tax credits to 2010.

• Energy Policy Act of 2005 (PDF, 1.3MB)
• Emergency Economic Stabilization Act of 2008 ("the Bailout Bill") 
  • Signed October 3, 2008 by former President Bush
  • Relevant sections are in DIVISION B, Sections 106 (25D) and 302 (25C)
• American Recovery and Reinvestment Act of 2009 (the "Stimulus Bill") (PDF, 1.1MB)
  • Signed February 17, 2009 by former President Obama
  • Relevant Sections are: DIVISION B, Sections 1103, 1121 (25C) and 1122 (25D)

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