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The 25C tax credit for home efficiency and electrification (which was first created in 2005 but updated in the IRA) is a potential budget reconciliation target. The American Council for an Energy-Efficient Economy (ACEEE) put out a report in February detailing what the tax credit accomplished in 2023. Some highlights:
- In 2023, overall 25C tax credits (a.k.a. budgetary cost) was about $2 billion.
- In other words, saved 2.3 million families an average of $882 on their taxes.
- It lowered their energy bills by about $130 the first year.
- The most popular upgrades were added insulation or air sealing, advanced windows and doors, and efficient air conditioners.
- More families used the tax credit to install efficient 'fuel' (presumably natural gas) HVACs & water heaters than heat pumps (though heat pump HVACs were close).
- "By 2032 we estimate peak demand savings of about 3400 MW, equivalent to the power output of roughly seven large 500 MW power plants."

So, the key benefits are reduced tax bills (of course), household energy bills, power demand, and of course climate pollution 🤓

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