ABOUT
The federal Inflation Reduction Act of 2022 made the largest single investment in climate and energy to date by supporting programs that fight climate change, support environmental justice, and increase American manufacturing of clean energy technologies.
According to the White House, the Inflation Reduction Act will have the following sustainability impacts:
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BY THE NUMBERS: The Inflation Reduction Act
whitehouse.gov | August 15, 2022
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Lowering Energy Costs
• Families that take advantage of clean energy and electric vehicle tax credits will save more than $1,000 per year.
• $14,000 in direct consumer rebates for families to buy heat pumps or other energy efficient home appliances, saving families at least $350 per year.
• 7.5 million more families will be able install solar on their roofs with a 30% tax credit, saving families $9,000 over the life of the system or at least $300 per year.
• Up to $7,500 in tax credits for new electric vehicles and $4,000 for used electric vehicles, helping families save $950 per year.
• Putting America on track to meet President Biden’s climate goals, which will save every family an average of $500 per year on their energy costs.
Building a Clean Energy Economy
• Power homes, businesses, and communities with much more clean energy by 2030, including: 950 million solar panels; 120,000 wind turbines; 2,300 grid-scale battery plants
• Advance cost-saving clean energy projects at rural electric cooperatives serving 42 million people.
• Strengthen climate resilience and protect nearly 2 million acres of national forests.
• Creating millions of good-paying jobs making clean energy in America.
Reducing Harmful Pollution
• Reduce greenhouse gas emissions by about 1 gigaton in 2030, or a billion metric tons – 10 times more climate impact than any other single piece of legislation ever enacted.
• Deploy clean energy and reduce particle pollution from fossil fuels to avoid up to 3,900 premature deaths and up to 100,000 asthma attacks annually by 2030.
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CURRENT INCENTIVES
The Office of Sustainability compiles programs and incentives for the benefit of Knoxville's residents and businesses. The following federal programs are active as of December 16, 2022*:
Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit
Tax credit of $2,5000-7,500 for individuals who purchase a new electric vehicle (amount of credit based on vehicle specifications and dates of purchase/delivery)
| Eligibility: |
For vehicles received before August 16, 2022: see pre-IRA information
For vehicles purchased (or contracted) before August 16, 2022 but received at a later date:
• vehicle must be an EV
• vehicle must use a traction battery which has capacity of at least 4 kWh and uses external power to recharge
• vehicle must have a gross vehicle weight rating of at most 14,000 pounds
• vehicle must meet specified emission standards
• vehicle must be acquired before or within the "phase-out" period after the manufacturer reaches a specified threshold on sales (details on the IRS webpage)
For vehicles purchased and received between August 17 - December 31, 2022:
• vehicle must meet all specifications above, AND
• vehicle must be assembled in North America (see DOE's Final Assembly database for general guidance and DOT's VIN Decoder database for model-specific information)
For vehicles purchased and received after December 31, 2022:
• vehicle must be an EV or FCEV
• vehicle must use a traction battery which has capacity of at least 7 kWh
• vehicle must meet specified requirements for battery materials and production
• vehicle must have a manufacturer suggested retail price of at most $80,000 (for vans, sport utility vehicles, and pickup trucks) or $55,000 (for all other EVs)
• applicants must have a modified adjusted gross income below $150,000 (for single filers), $225,000 (for head-of-household filers), or $300,000 (for joint filers)
Qualifying vehicles ... DOES NOT INCLUDE EBIKES
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Commercial Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit
For businesses that purchase a new electric vehicle
| Program start: |
January 1, 2023
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| Technology requirements: |
Vehicles must have:
• all-battery electric (EV), plug-in hybrid electric (PHEV), or fuel cell electric (FCEV)
• Vehicles must have EITHER a gross weight rate below 14,000 lbs. with a battery capacity of at least 7 kWh OR a gross weight rate above 14,000 lbs. with a battery capacity of at least 15 kWh |
| Program specifications: |
Tax credit
• The tax credit amount is equal to the lesser of the following amounts:
○ 15% of the purchase price for plug-in hybrid electric vehicles (PHEVs)
○ 30% of the purchase price for all-battery electric vehicles (EVs) and fuel cell electric vehicles (FCEVs)
○ The incremental cost of the vehicle compared to an equivalent internal combustion engine vehicle
• Maximum tax credits may not exceed $7,500 for vehicles under 14,000 lbs. OR $40,000 for vehicles above 14,000 lbs.
• Businesses may not combine this tax credit with the Clean Vehicle Tax Credit
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Pre-Owned Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit
For individuals who purchase a pre-owned electric vehicle
| Program start: |
January 1, 2023
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| Program eligibility: |
• Applicant must earn less than $150,000 (for single filers), $225,000 (for head-of-household filers), or $300,000 (for joint filers) |
| Program specifications: |
Tax credit of $2,5000-7,500 based on specific vehicle
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*The material on this website is for general informational purposes only and may not constitute the most up-to-date information available.