Although the 2023 tax season seems like it is far away, it is fast approaching. April 2023 will be here before you know it, so understanding revisions to the tax code now will leave you with fewer headaches come next year.

On August 16th, 2022, the Inflation Reduction Act was signed into law. This monumental act has several implications for the 2023 tax season. Consumers may qualify for several new tax credits that were not available previously. It can be difficult to keep up with all the ongoing revisions to the tax codes. The experts at ORT Consulting are here to help with any of your tax preparation questions. We can help you navigate the Inflation Reduction Act and find you the maximum amount of tax credits possible.

Tax Credits Available Under the Inflation Reduction Act

The Inflation Reduction Act offers numerous tax credits for consumers including the following:

  1. Electric & Hybrid Vehicle Tax Credits

The inflation reduction act allows consumers to claim a $7,500 tax credit on new electric vehicles, or $4,000 on used electric vehicles. There is a specific list of vehicles that qualify for this tax credit. Vehicles are chosen to qualify based on where their battery is sourced from or where the vehicle was assembled. Not all vehicles qualify for the rebate. ORT Consulting can assist you with determining whether your vehicle qualifies for this tax credit.

  1. Rooftop Solar Installation

This bill extends the 30% federal tax credit on a solar installation for the next 10 years. This tax credit now also applies to battery storage, as well as solar installation. Previously, the solar tax credit did not apply to battery storage.

  1. Energy Efficient HVAC

Heat pump HVAC systems qualify for a 30% tax credit, up to $2,000.

  1. Heat Pump Water Heater

Similar to heat pump HVAC systems, heat pump water heaters also qualify for a 30% tax credit, up to $2,000.

  1. Geothermal Heating Installation

The tax credit for a geothermal heating installation is like the one available for solar installation. It will net you a 30% tax credit on the geothermal heating installation.

ORT Consulting Can Navigate the Inflation Reduction Act with You

Rather than tackling the tax code alone, let the experts at ORT Consulting do the hard work for you. We can help you determine what tax credits you qualify for under the new act. Contact our office at (773) 637-8802 to speak with one of our representatives regarding tax credits.