{"id":26367,"date":"2022-08-17T08:05:09","date_gmt":"2022-08-17T13:05:09","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=26367"},"modified":"2022-11-02T07:48:59","modified_gmt":"2022-11-02T12:48:59","slug":"what-you-need-to-know-about-the-inflation-reduction-act-of-2022","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/what-you-need-to-know-about-the-inflation-reduction-act-of-2022\/","title":{"rendered":"What you need to know about the Inflation Reduction Act of 2022"},"content":{"rendered":"

In August 2022, President Biden signed the Inflation Reduction Act of 2022<\/a>, which includes new tax provisions, extensions, and expansions of tax benefits related to energy efficiency and healthcare.<\/p>\n

Here are some important things you and your clients need to know about provisions within the law:<\/p>\n

Energy efficient tax benefits<\/h2>\n

A portion of the tax bill will go to consumer home energy rebate programs, including the Clean Vehicle Credit, the Alternative Fuel Vehicle Credit, and energy credits for the taxpayer’s home.<\/p>\n

Clean Vehicle Credit<\/h3>\n

Before the Inflation Reduction Act, people were able to claim a credit of up to $7,500 for the purchase of a new electric vehicle. Under the new law, people still may be eligible for the renamed Clean Vehicle Credit, and up to a $7,500 tax credit for purchasing a new electric vehicle\u2014and for the first time. Depending on their income, people may be eligible for a tax credit up to the lesser of $4,000 or 30% of the sales price for buying a used electric vehicle. Since credits are a dollar for dollar reduction of taxes owed, they can lower your taxes by up to $7,500 and save money on gas.<\/p>\n

Some of the changes related to the Clean Vehicle Credit include:<\/p>\n