5 Tax Credits in Biden’s New Law

After about a year in the works, the Inflation Reduction Act is poised to become law.

The bill passed the House and Senate last week along party lines via reconciliation.

It also extends the health insurance premium tax credit. 

The measure promises lower health-care and energy costs for American families. Here’s what that could mean for you.

The Inflation Reduction Act creates a new tax credit worth up to $4,000 for purchasing a “previously owned clean vehicle,” which will take effect in 2023.

A revised tax credit for new ‘clean’ vehicle

“Under the new provision, the maximum credit for qualifying vehicles is $7,500, through 2032. 

An improved residential clean energy credit

The nonbusiness energy property credit was for certain energy-efficient components installed in or on a home — such as energy-efficient roofing, insulation, windows and doors — and associated costs. 

The new law retroactively extends this tax credit, making it available for 2022 through 2032.