According to the Internal Revenue Service (IRS), 117,000 Michigan households received more than $134 million in tax credits for energy savings and energy efficiency improvements last year under the Inflation Reduction Act.

From the IRS press release:

“Michigan families claimed over $54 million in tax credits for residential clean energy investments on their 2023 tax returns filed and processed by May 23, 2024. This credit helps families afford investments in solar power generation, solar water heating, and battery storage, among others. During the same period, families also claimed more than $79 million for energy-efficient home improvements – including heat pumps, efficient air conditioning, insulation, windows and doors.”

According to Camila Thorndike of the nonprofit Rewiring America, the number of households claiming IRA tax credits last year was twice as high as expected — and is expected to rise even further in the coming years.

She said many of the tax credits for things like more efficient home appliances, heat pumps and insulation don’t expire until 2030. Tax credits for electric vehicles don’t expire until 2032 and credits for installing solar panels on rooftops and home battery storage don’t expire until 2034. She said this gives people plenty of time to plan ahead for future energy saving investments.

“It’s really important to make sure you have a plan in place,” Thorndike said. “It will save you money and help protect the planet.”

Thorndike says that since every home and household has different energy saving needs, people should calculate the best return on investment based on the age of their home as well as individual household size, income and zip code.

Utility credits are also available in many states, such as those offered by Consumers Energy and DTE Energy in Michigan.

Rewiring America has a calculator that shows the tax credits and rebates available for both federal IRAs and state-level utilities.