Credits and deductions under the Inflation Reduction Act of 2022
The IRS is working on implementing the Inflation Reduction Act of 2022. This major legislation will affect individuals, businesses, tax exempt and government entities.
We’ll post guidance for taxpayers on all credits and deductions from the Inflation Reduction Act as it becomes available. Please check back regularly for updates.
- Energy-related credits and deductions
- Credits for individuals
- Credits and deductions for businesses and other entities
Energy-related credits and deductions
- Clean vehicle credits
- Home energy credits
- Alternative Fuel Vehicle Refueling Property Credit (added June 22, 2023)
- Advanced Energy Project Credit (added May 31, 2023)
- Clean Electricity Investment Credit
- Clean Electricity Production Credit
- Clean Fuel Production Credit
- Clean Hydrogen
- Cost recovery for qualified clean energy facilities, property and technology
- Credit for carbon oxide sequestration
- Credit for electricity produced from certain renewable resources (added April 4, 2023)
- Energy credit for solar and wind facilities PDF
- Energy efficient commercial building deduction
- Energy Efficient Home Improvement Credit
- Second generation biofuel incentives
- Sustainable Aviation Fuel Credit
- Zero-Emission Nuclear Power Production Credit
For an interactive guide to energy credits available under the Inflation Reduction Act, visit cleanenergy.gov.
Bonus incentive credits
Qualifying energy projects that also meet other specific criteria may be eligible for additional tax credit amounts (also known as bonuses). Check back for details on these bonuses.
- Low-income communities (updated Aug. 10, 2023)
- Energy communities PDF (added April 4, 2023)
- Prevailing wage & apprenticeship (updated Aug. 29, 2023)
- Domestic content bonus (updated June 17, 2024)
- Frequently asked questions for energy communities (updated June 7, 2024)
Elective payment and credit transfer
The Inflation Reduction Act of 2022 allows new ways for ensuring eligible taxpayers receive their credits.
- Elective payment and applicable credits and transfer of certain credits
- Register your dealership to enable credits for clean vehicle buyers
Credits for individuals
From purchasing clean vehicles to making your home more energy efficient, the Inflation Reduction Act of 2022 may have a significant effect on your taxes.
Credits and deductions for businesses and other entities
- Advanced Energy Project Credit (added May 31, 2023)
- Advanced Manufacturing Investment Credit (added Sept. 10, 2024)
- Advanced Manufacturing Production Credit
- Clean Electricity Investment Credit
- Clean Electricity Production Credit
- Clean Fuel Production Credit
- Cost recovery for qualified clean energy facilities, property and technology
- Credit for builders of energy-efficient homes (added Aug. 31, 2023)
- Credit for carbon oxide sequestration
- Credit for electricity produced from certain renewable resources (added April 4, 2023)
- Credits for new clean vehicles purchased in 2023 and after
- Credits for new electric vehicles purchased in 2022 and before
- Commercial Clean Vehicle Credit
- Energy credit for solar and wind facilities
- Incentives for biodiesel, renewable diesel and alternative fuels
- Research credit against payroll tax for small businesses
- Second generation biofuel incentives
- Sustainable Aviation Fuel Credit
- Zero-Emission Nuclear Power Production Credit
Related resources
Publication 5886-A, Clean Energy Tax Incentives for Individuals
Inflation Reduction Act of 2022
Publication 5886, Clean Energy Tax Incentives for Businesses PDF
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