The Inflation Reduction Act

This bill focuses on a few key areas to help bring down costs. That starts by standing up to Big Pharma so Medicare can negotiate for lower prescription drug prices. It also lowers premiums for people who buy their own health insurance. And it invests in clean energy to create jobs, lower utility bills, and tackle climate change.

Nonpartisan experts have found the plan is fully paid for and lowers the national debt by closing tax loopholes on big corporations and by cracking down on tax evasion by billionaires.

To learn more about how to take advantage of the benefits passed by the Inflation Reduction Act, you can select from the following options.

Lowering your energy bills
Electric Vehicles
Home Energy Upgrades
Learn More: Read the Bill, Fact Sheets, and Independent Sources

Lowering your energy bills

The effects of climate change continue to burden communities across the country, including here in Kansas City. From dangerous heat waves to more frequent historic floods, climate change impacts each and everyone of us, and we need focused, pragmatic solutions.

That's why I voted for the Inflation Reduction Act in 2022, which is now law.This historic legislation delivers the largest ever federal investment in climate action, and it will protect our communities and save Kansans money. Additionally, the Inflation Reduction Act cuts wasteful spending and reduces our nation's deficit by roughly $300 billion – per the nonpartisan Congressional Budget Office.

The Inflation Reduction Act is delivering tax incentives to millions of Americans looking to make their homes cleaner and more efficient. Kansans in the Third District qualify for an average of $5,000 to $12,000 in upfront discounts or tax credits depending on their income level and adopting these clean energy technologies could save Americans an average of $500 per year on their utilities. On top of that, the Inflation Reduction Act is creating jobs nationwide, including up to 11,000 direct and indirect jobs in our community over the next decade. Read below to learn about these concrete solutions to lower costs and to find out how to take advantage of the Inflation Reduction Act's benefits.

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Electric Vehicles

Beginning this year, Kansans can receive a tax credit up to $7,500 for purchasing a new qualifying electric vehicle.

Also beginning this year, Kansans can receive a tax credit up to $4,000 for purchasing a used qualifying electric vehicle.

    • The tax credit will be the lesser of $4,000 or 30% of the cost of the vehicle.
    • To qualify, a taxpayer must make less than $75,000 (single), $112,500 (head of household), or $150,000 (joint filers).
    • To qualify, a vehicle must:
      • Cost less than $25,000,
      • Be at least two years old, and
      • Be sold at a car dealership.

In 2024, the new and used electric vehicle tax credits will change to point-of-sale discounts provided at dealerships.

The Inflation Reduction Act extends the tax credit for electric vehicle charging stations, which is available for both individual and commercial uses.

    • For individual consumers, the tax credit is set at 30% and capped at $1,000 per unit.
    • For commercial consumers, the tax credit is set at 6% and capped at $100,000 per unit.

Kansans may also qualify for the new commercial electric vehicle tax credit enacted in the Inflation Reduction Act.

    • This tax credit is the lesser of 30% of the vehicle's sales price or the cost difference between said electric vehicle and a comparable internal combustion engine vehicle.
    • The tax credit is capped at $7,500 for vehicles weighing less than 14,000 pounds and $40,000 for vehicles weighing more than 14,000 pounds.

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Home Energy Upgrades

The Inflation Reduction Act offers several tax incentives for Kansans to upgrade the energy efficiency of their home and save money on their utility bills. These tax credits include:

    • A 30% tax credit for home weatherization projects with an annual cap of:
      • $1,200 per year for insulation and air sealing projects,
      • $250 per year per energy efficient door – up to $500 total,
      • $600 per year for energy efficient windows, and
      • $150 per year for energy efficiency home audits.
      • Homeowners can also claim a 30% tax credit, up to $600 per year, for upgrading their electrical panel if done in conjunction with a heat pump HVAC system or heat pump water heater upgrade.
      • These tax credits are capped at $1,200 per year across all projects.

For more information on weatherization products eligible for these energy efficiency tax credits, please click here.

Depending on your income level, you may qualify for an upfront discount when making home energy upgrades via the High-Efficiency Electric Home Rebate Act (HEEHRA). These include:

  • A discount up to $4,000 for an electrical panel upgrade,
  • A discount up to $840 for an electric stove,
  • A discount up to $2,500 for an electrical wiring upgrade,
  • A discount up to $1,750 for installing a heat pump water heater,
  • A discount up to $8,000 for installing a heat pump HVAC system,
  • A discount up to $840 for installing a heat pump clothes dryer, and
  • A discount up to $1,600 for weatherization projects, including insulation, air sealing, and ventilation.
    • Total HEEHRA discounts may not exceed $14,000 in any given year.
    • If your household income is below 80% of your Area Median Income (AMI), HEEHRA discounts will cover 100% of the cost, up to the caps listed above, for these upgrades.
    • If your household income is between 80% and 150% of your AMI, HEEHRA discounts will cover 50% of the cost, up to the caps listed above, for these upgrades.

To determine what your county's AMI is, please click here. More information on these discounts will be available soon.

Finally, the Inflation Reduction Act offers Whole Home Energy Reduction Rebates at the following rates:

  • Homeowners making more than 80% of their AMI may receive:
    • The lesser of $4,000 or 50% of the total project cost for a retrofit with a modeled energy savings of 35% or more, or
    • The lesser of $2,000 or 50% of the total project cost for a retrofit with a modeled energy savings of 20% to 34% or a measured energy savings of 15% to 34%.
  • Homeowners making less than 80% of their AMI may receive:
    • The lesser of $8,000 or 80% of the total project cost for a retrofit with a measured or modeled energy savings of 35% or more, or
    • The lesser of $4,000 or 80% of the total project cost for a retrofit with a measured or modeled energy savings of 20% or more.
  • Multifamily building owners may receive:
    • The lesser of $400,000 or 50% of the total project cost for a retrofit with a modeled energy savings of 35% or more, or
    • The lesser of $200,000 or 50% of the total project cost per retrofit with a modeled energy savings of 20% to 34% or a measured energy savings of 15% to 34%.
      • In both cases, owners of buildings with more than 50% low- and medium-income residents may claim up to 80% of total project costs if other retrofit requirements are met.

To determine what your county's AMI is, please click here. More information on these rebates will be available soon.

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Learn More: Read the Bill, Fact Sheets, and Independent Sources

Here are some independent news articles about the clean energy tax incentives in the Inflation Reduction Act:

Here are some government resources on the clean energy tax incentives in the Inflation Reduction Act:

Here are some additional nonpartisan and bipartisan sources on the clean energy tax incentives in the Inflation Reduction Act:

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Issues:Energy & EnvironmentMaking Government Work for Kansans

Office Locations

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Phone: (202) 225-2865
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Phone: (913) 621-0832