Inflation Reduction Act of 2022 Panel and Cooktop Upgrade

[jgleonard1]

We are looking to upgrade our electrical panel and our cook top at our primary residence. The cook top would be electric before and after. Are these eligible for a credit via the new IRA? If so do we need to wait until 2023 to install them and claim them on our 2023 return? Or can we install them in 2022 and claim them on our 2022 return?

[OmM1]

Hello jgleonard1

Thank you for your question.

Under the Inflation Reduction Act, individual states will choose how to use the funds available to states under the law.

The legislation does disqualify replacing an old electric range with a new model but as said earlier each state will define.

Please refer to article from consumer reports - What the Inflation Reduction Act Could Mean for Your Next Appliance Purchase as with any third party article, TurboTax cannot vouch for it's accuracy, so before making any decision, please review you state's program / guidelines by visiting Database of State Incentives for Renewables & Efficiency® 

The electrical panel upgrade credit is available from 2023 only.

Hope you find this helpful,

Thanks again for asking

[jgleonard1]

Thank you OmM1,

So there are no Federal Tax credits for the electrical panel or cook top upgrades? We live in Washington State so no state tax return. Is there any news about how Washington State is allocating the funds? Are the rebates at the time of purchase or issued through the local utilities company?

[OmM1]

Please review the link I sent for Washington and following up with your utility may be the logical next step.