The U.S. Department of the Treasury has released new data showing that more than 189,000 New York families saved over $374 million on clean energy and energy efficiency investments in 2023, thanks to tax credits provided under the Inflation Reduction Act. This marks the first public release of such data from 2023 tax filings.
Nationwide, there was a significant increase in the number of families benefiting from these expanded credits compared to 2021, prior to the Act’s passage. The aggregate value of these credits also saw substantial growth. According to recent research and analysis by Treasury’s Office of Economic Policy, consumers can save hundreds or thousands of dollars annually on their utility bills following these upgrades.
U.S. Secretary of the Treasury Janet L. Yellen emphasized the administration’s commitment to lowering costs for American families: “The Biden-Harris Administration’s top economic priority is lowering costs for American families, and the Inflation Reduction Act is advancing that goal by making home energy upgrades more affordable and cutting monthly utility bills.” She added that the law has significantly reduced costs for over 189,000 New York families.
Democratic Leader Hakeem Jeffries (NY-08) highlighted the Act’s impact: “Two years after it became law, the Inflation Reduction Act continues to strike a decisive blow against the climate crisis and lower energy costs for hardworking Americans as the largest federal climate investment in our nation’s history.”
Representative Tom Suozzi (NY-03) reiterated his support: “This summer of 2022 legislation provided for the world’s greatest investment to combat climate change in history.” He noted that nearly 194,000 New York families benefited from over $374 million in incentives last year.
Representative Paul Tonko (NY-20), Ranking Member of the Energy and Commerce Subcommittee on Environment, Manufacturing & Critical Materials, praised the Act’s broad impact: “This transformational law is securing our clean energy future, all while spurring unprecedented job growth and saving Americans on their energy bills.”
Through May 23, 2024, New York families claimed over $241 million in credits for residential clean energy investments such as solar electricity generation and battery storage. They also claimed more than $132 million for energy-efficient home improvements like heat pumps and insulation during this period.
Nationally, more than 750,000 families invested in residential solar electricity systems; over 250,000 opted for electric or natural gas heat pumps; more than 100,000 chose heat pump water heaters; and nearly 700,000 upgraded their insulation and air sealing.
The Inflation Reduction Act offers various incentives aimed at reducing consumer energy bills and protecting against future fossil fuel price spikes. These include extending tax credits for home improvements like insulation or efficient windows up to $1,200 annually with special provisions up to $2,000 for electric heat pumps. Additionally, it extends a credit covering up to 30% of installation costs for rooftop solar and battery storage through 2034.
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