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 rebates and save more.
And, since the IRA tax credits will be in place until 2032, you have the time you need to plan your project.
How it works
IRA tax credits can either reduce the amount of taxes you owe or increase your tax refund.
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 eligibility requirements before tackling your project.
PSE programs and related tax credits
The table below lists product and equipment categories incentivized by both the IRA and PSE. Because there are often different requirements for the IRA tax credit program compared to PSE programs, products and equipment that qualify for one may not qualify for the other.
As you begin planning your project, we strongly suggest reaching out to a PSE Energy Advisor (1-800-562-1482) to ensure you are maximizing your potential benefits.
| Item | Federal tax credit* | 2023 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 $500 (purchased through retail) If purchased through contractor, get more information here. |
| Efficient gas furnace | Up to $600 | Up to $1,400 |
| Efficient gas water heater | Up to $600 | Up to $600 |
| Clean Energy Products | ||
| Electric vehicle | Up to $7,500 | N/A |
| Other Energy Efficiency Upgrades | ||
| Insulation | Up to $1,200 | Up to $1.50 per square foot, depending on efficiency rating |
| Windows | Up to $600 | Up to $2,000 depending on efficiency rating |
*30% of total cost, up to cap listed in table
Learn More and Get Started
Step 1: Identify which upgrades make the most sense for your home by completing a free online PSE Home Energy Assessment
Step 2: Plan your project by getting advice from a PSE Energy Advisor (1-800-562-1482) or speak directly with a qualified contractor
Step 3: Complete your project, claim your applicable PSE rebate, and prepare required information for your possible tax credits next year