Inflation Reduction Act
How to Save Money, Energy, and Help Build a Green Future
The 2022 Inflation Reduction Act (IRA) offers federal tax credits to people working to cut their home energy use and adopt renewable energy.
Many of these tax credits overlap with PSE programs, so you may be able to combine the tax credits with our incentives and rebates to save more.
And, since the IRA tax credits will be in place until 2032, you have the time you need to plan your project.
For more information about expected IRA Home Energy Rebates, please visit Washington Department of Commerce’s webpage. These rebates are not yet available.
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How it works
How it works
IRA tax credits are nonrefundable and can reduce the amount of taxes you owe.
While PSE cannot offer tax advice, here are resources to help you learn more about IRA tax credits and their specific requirements.
- CEE – Equipment Specifications for IRA Tax Credits
- IRS Resources
- Energy.gov – Clean Energy Tax Credits for Consumers
We encourage you to consult with a qualified contractor or tax professional to fully understand the tax credit eligibility requirements before tackling your project.
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PSE programs and related tax credits
PSE programs and related tax credits
The table below lists product and equipment categories incentivized by both the IRA and PSE. Note that the requirements for the IRA tax credit program and PSE programs may differ.
As you begin planning your project, we strongly suggest reaching out to a PSE Energy Advisor (1-800-562-1482) to ensure you are meeting the PSE program requirements.
Item Federal tax credit* 2024 PSE Rebate Space heating, cooling, and water heating Heat pumps Up to $2,000 Up to $2,400 Electric hybrid heat pump water heater Up to $2,000 Up to $750 Efficient gas furnace Up to $600 Up to $750 Efficient gas water heater Up to $600 Up to $600 Clean Energy Products Electric vehicle Up to $7,500 Up to $250k for Fleet
Up to $40k for MultifamilyOther Energy Efficiency Upgrades Insulation Up to $1,200 Up to $2.50 per square foot, depending on efficiency rating Windows Up to $600 Up to $2,000 depending on efficiency rating and eligibility *30% of total cost, up to cap listed in table
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Learn more and get started
Learn More and Get Started
Step 1: Complete a free PSE Online Home Energy Assessment to learn more about your energy usage.
Step 2: Then check out what energy efficiency rebates and renewable energy incentives make the most sense for your home.
Step 3: Plan your project by first getting advice on PSE incentives and rebates from a PSE Energy Advisor (1-800-562-1482). Then, reach out to your tax professional for guidance on the IRA tax credits program. Lastly, speak directly with a qualified contractor.
Have questions about PSE programs? We are here to help.