Lowering your energy costs today for a cleaner tomorrow

President Biden’s Inflation Reduction Act (IRA) passed in 2022 is the largest investment in clean energy in U.S. history. Thanks to these historic investments in our clean energy future, Michiganders can take advantage of opportunities to save money and lower their energy costs when making major home purchases. Now, with the help of tax rebates and other incentive programs, Michiganders can invest in rooftop solar panels, electric appliances, energy efficiency upgrades, and much more – with major cost savings.

With the help of these federal investments, we can build a cleaner tomorrow together – and save money in the process.

Getting Started

The Inflation Reduction Act provides financial incentives to businesses, schools, non-profits, and households to generate clean energy, improve efficiency, and swap out old fossil fuel-based systems, vehicles, and appliances for new, healthier, electric alternatives. Whether you are a renter, homeowner, or a small business owner, there are resources available for you to take advantage of historic opportunities to lower your energy costs and your carbon footprint!

Generate a personalized plan for your own home using Rewiring America’s planner tool
The IRS has resources to help you understand available home tax credits.
There are also opportunities to capitalize on tax credits for the purchase of electric vehicles. See which electric vehicle makes and models are eligible for incentives here.
See the list of all available clean energy tax credits.
Schedule an energy assessment with a building professional who can detail which appliances and energy upgrades could deliver the best long-term savings, comfort, and healthier indoor air. There’s also a $150 tax credit for energy assessments!

Live in the Ann Arbor area? Find out more about local programs and benefits from the A2Zero program!

Live in the Lansing area? Check out the Lansing Board of Water and Light website for more information on local programs and benefits!

Calculate Your Savings:

Rewiring America’s easy-to-use calculator tool can show you all the savings available to you and ways the Inflation Reduction Act can help you lower your energy costs.

Renters

The Inflation Reduction Act has created historic opportunities to improve energy efficiency of your apartment or home through tax credits and other incentives! By investing in new, efficient electric appliances, installing rooftop solar, or purchasing an electric vehicle, you can lower your energy costs and your federal taxes at the same time.

Whether you rent or own, there are resources for tax credits for you:

Energy Efficient Home Improvements – up to $3,200 off, each year
Rooftop Solar and other Clean Energy – 30% off
New Electric Vehicle – up to $7,500 off (30D)
Used Electric Vehicle – up to $4,000 off (25E)
EV Charger – 30% up to $1000 off

Make a Plan!

Even if you don’t own your home, you can make a plan using this Rewiring America renter’s guide to go electric on your own, talk to your landlord, and learn and help others.

Homeowners

Benefits available now

Whether you want to make home upgrades now or save for major projects down the road, for the next ten years you can save money on things like solar panels, battery storage, electric appliances, energy efficiency measures, and so much more.

How you can save on energy costs at home

The Inflation Reduction Act’s investments and consumer incentives make investing in clean energy, energy efficiency, or a new electric vehicle a no-brainer. With tax credits available, there has never been a better time to make your home or your commute a little cleaner – and cheaper in the long run!

Benefits available include:

Clean Energy: 30% tax credit on solar, heat pumps, geothermal, and battery storage
Energy Efficiency: 30% tax credit on insulation, windows, appliances, and more
Electric Vehicles: Up to $7,500 tax credit for new models, up to $4,000 for used

Schedule a home energy assessment today

Not sure where to start? A trained, licensed professional will come to your home to assess your current energy use and identify measures that can make your home more energy efficient. You can get a $150 tax credit for an assessment completed in the next ten years. That’s roughly 30 percent of the total cost! Schedule an energy assessment today!

More benefits coming soon!

This is just the beginning! In 2024, even more savings will be available. Lower and moderate-income families can receive up to $14,000 in upfront savings on clean energy upgrades for a home or apartment.

What we can do and save in the next decade

Between the already available tax credits and more upfront discounts coming soon, we can transform our daily lives while building a clean energy future over the next decade. See how you can get started today with the Electrify Everything in Your Home Guide!

Landlords

Are you a landlord? All of these benefits are available to you too. Keep your costs low for you and your tenants, and make your properties the place to be for living a clean energy lifestyle.

The benefits for landlords include upfront discounts on electric appliances and other efficiency upgrades to improve the energy efficiency for their tenants. These incentives include:

Electric Appliances — up to $14,000 per household
Home Efficiency Improvements – $2,000 to $8,000 per household, or more

Additional resources for landlords:

Businesses & Labor

The Inflation Reduction Act also includes many incentives and opportunities for small and large businesses and entrepreneurs to kickstart American ingenuity and increase energy independence across the country. With available tax credits and clean energy incentives, Michigan businesses can establish more efficient building and manufacturing processes, reduce carbon emissions and operating costs, and contribute to the national buildout of necessary supply chains and new clean renewable energy infrastructure.

Opportunities for Michigan businesses to lower costs and capitalize on tax credits include:

Energy Efficiency Upgrades – Tax Deduction of up to $5 per square foot
Commercial Clean Vehicles – Tax Credit up to $40,000 for a large vehicle
Clean Electricity Investment Tax Credit – up to 70% of installation costs
Clean Energy Production Tax Credit – up to $33 per megawatt-hour (MWh)
Rural Energy for America Program (REAP) – Loans and grants for renewable energy and energy efficiency
EV Charging – Tax Credit of up to $100,000 per charging facility
Advanced Energy Projects – Capped Tax Credit up to 30% of the cost
Clean Energy Financing – Loans and Loan Guarantees
Replace Energy Infrastructure — Loan Guarantees
Advanced Manufacturing Production Credit

Local, State, and Tribal Government, Non-Profits & Community Organizations

The Inflation Reduction Act’s benefits include expanded tax credits for a wide array of clean energy technologies and new provisions that will enable tax-exempt and governmental entities — like states and local governments, Tribal governments territories, rural electric cooperatives, and non-profit organizations to capitalize on opportunities to help build the clean energy economy, lower costs for working families and advance environmental justice.

Resources for:

These benefits include “direct pay” provisions for tax-exempt and governmental entities to receive a payment equal to the full value of tax credits for qualifying clean energy projects. Qualified governments and tax-exempt organizations can use direct pay for 12 clean energy tax credits, including for:

Clean electricity generation through wind, solar, and battery storage
Community solar projects in neighborhoods
Electric vehicle (EV) charging infrastructure
Electric vehicle fleets for schools, cities, and states

Additional Resources & More

If you want to learn even more about how President Biden’s Inflation Reduction Act can help you, your community, non-profit, tribal government, school, or business, check out these links:

Save Money on Your Energy Bills with President Biden’s Inflation Reduction Act