The Inflation Reduction Act of 2022 aims to promote energy efficiency, combat climate change and incentive the domestic buildout of the EV car industry. The majority of the provisions take effect starting in 2023, but there are some tax credits already in place for items purchased this year. Here's a breakdown of the major provisions in the bill and what you can expect in the coming years.

1. The Solar Energy and Battery Backup credit is 30% from 2022 - 2032. This credit has no income cap, is one of the few items that is changed retroactively to January 1, 2022, and is typically obtained when filing your individual 1040 tax return (unless you are doing a lease to buy, in which case usually the installer or some other 3rd party will utilize the credit and factor that into the pricing structure).