IRA (Inflation Reduction Act)
Landmark 2022 federal legislation that extended and expanded clean energy tax credits, including the 30% solar ITC through 2032, and added new incentives for batteries, heat pumps, and EVs.
Why It Matters
The IRA is the largest climate investment in US history ($369B). It provides long-term policy certainty for solar with a 10-year credit timeline and introduced new bonus credits for domestic content and low-income projects.
Real-World Example
Related Tools
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Related Terms
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
MACRS (Modified Accelerated Cost Recovery System)
A federal tax depreciation schedule that allows businesses to recover solar investment costs over 5 years, significantly improving commercial solar ROI.