The Inflation Reduction Act, signed into law in August of 2022, enhanced a couple of consumer energy credits. The Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit have become more popular than many had expected.
Internal Revenue Service data shows that U.S. Households claimed $8.4B in these credits on their 2023 returns.
These tax breaks are aimed at reducing the costs of solar panels, electric heat pumps, and other energy efficient technologies. They also reduce greenhouse gases and lower monthly energy bills.
The average household claimed $5,084 for the Residential Clean Energy Credit. This provides a credit of 30% of the cost of rooftop solar panels, battery storage, and other technology such as wind turbines.
The average for the Energy Efficient Home Improvement Credit was $882. This provides a credit of up to 30% of the cost of these projects not to exceed $1,200.
Over 3.4M households claimed at least one of the credits. Since many 2023 returns are still on extension, that number will probably increase.
Let me leave you with this…
I’ve had several conversations with clients in the past couple of days. The one major factor shared by many, was an undertone of fear.
Some worried about the economy, while others feared the results of the upcoming elections. Many worried about other more centralized issues, like our continuing issues in the labor markets.
Others are still having supply chain problems given the wars in Europe. And let’s not forget the universal nightmare of inflation eating away at our bottom lines.
It seemed like everyone I spoke to had trepidations about something.
If you know the enemy and know yourself, you need not fear the results of a hundred battles.
Sun Tzu
This last week we’ve been on a roller coaster ride in the financial markets. Last week everything blew up because the weekly unemployment reports were a bit higher than many had expected. This week they came in lower and the S&P had its largest uptick in two years.
My Brothers and Sisters, I have a question. Exactly what do any of us have to be afraid of?
I’m not afraid of storms, for I’m learning to sail my ship
Louisa May Alcott
We wake up everyday, go to work, and operate our businesses. Is any of this something that we haven’t seen before? This isn’t like the pandemic that was unprecedented. None of this is new.
Economic problems? Been there.
Crazy elections? We have at least one every year.
Labor Markets? Finding good people is always hard.
Supply Chain Issues? Business problems are the new norm.
Inflation? Okay. Manage your prices already.
Is any of this actually new? Must we be cautious? Of course. Caution is still the order of the day.
But can we allow any of this to lull us into a state of inaction or quiescence?
Thinking will not overcome fear, but action will.
W. Clement Stone
“Clemy” as his friends knew him, was without a doubt one of the most successful and aggressive entrepreneurs I’ve ever known. I met him in the first class section of a plane bound for Acapulco.
He’d bought out every seat in first class other than the two that I had, and it was one hell of a party. We were dancing and drinking Champagne and Margaritas in the aisle. The stewardess had to get on the loudspeaker to make us sit down so that we could land.
Many times in business, when faced with issues, I’ve asked myself, “What would Clemy do?”
We may not be in a comfortable place right now. We may not know exactly what the future will bring, but when do we ever?
Maybe I’ve entreneured for too long. Maybe I’m too aggressive. Maybe my company is so large and successful that I don’t get worked up over much anymore.
But no matter where you are in business, we’ve been through all of this before and we know how to handle these issues. What’s so different this time?
Other than the 24 hour news cycle designed to create fear so we won’t change that channel, is anything actually different? Nope.
So I’m going to get my work done today, manage my businesses, help my clients, and realize that no matter what happens, it’ll all be just fine. Tonight I’ll grab some dinner with my wife, have a few glasses of Champagne, maybe do some Salsa Dancing, and remember my old friend who taught me so many things.
But the greatest lesson he ever taught me was that…
The only thing we have to fear is fear itself.
President Franklin Delano Roosevelt
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
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