Federal Incentives

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Explore the benefits of the Inflation Reduction Act

Save money on your monthly bills by making various energy-efficient upgrades. Whether you're considering home weatherization, upgrad​ing to electric appliances, purchasing an electric vehicle, or installing rooftop solar panels, the Inflation Reduction Act can help alleviate costs. Discover more about this initiative by visiting the Clean Energy for All page on the official whitehouse.gov site.

 

Start with a Home Energy Audit

Before embarking on any efficiency upgrades, it's essential to understand your home's energy usage. Consider scheduling a home energy audit , where professionals will analyze your utility bills, conduct thorough inspections of your home's interior, exterior, and safety features, assess your electrical system and appliances, and perform a blower door test. Upon completion, you'll receive a personalized energy report with recommendations for enhancing your home's energy efficiency. Plus, the Inflation Reduction Act offers up to $150 off the cost of your audit when you file your 2023 taxes. To access this incentive submit IRS form 5695  when filing your taxes.

 

Appliances

The Inflation Reduction Act offers rebates that may fully cover the expenses of purchasing new electric heat pump clothes dryers, electric stoves, cooktops, ranges, and ovens, contingent upon household qualification. For further details, visit the Clean Energy section of the whitehouse.gov website. These incentives are provided in the form of both tax credits and rebates, with the exact amount varying depending on the specific appliance. To view a comprehensive list of available incentives, please refer to the Incentives for Homeowners page on Energy.gov.


Electric Vehicles

The IRS offers the Clean Vehicle Credit for certain electric vehicle purchases. The qualifications for this tax credit have changed for 2024. Consumers now have the option of transferring their $7500 EV tax credit to the dealer at the time of purchase. To learn more click here​


Heat Pumps

A heat pump serves as an efficient solution for both heating and cooling in residences, offering an alternative to traditional furnaces and air conditioners. By installing a heat pump, families can potentially save hundreds of dollars annually on energy expenses. The Inflation Reduction Act provides tax credits and rebates that may cover the entire installation cost, subject to household eligibility.

Further information regarding heat pump eligibility and available rebates can be found on the whitehouse.gov website. This initiative combines a tax credit and rebate, offering a 30% reimbursement of the consumer's expenditure, up to $2,000 per year. Additional incentives based on income levels will be introduced through the Home Energy Rebates program, particularly targeting households with incomes below 150% of the area median. 

To claim the tax credit, individuals must submit IRS Form 5695  when filing taxes. While rebates are currently unavailable, updates will be provided as the Home Energy Rebates programs are rolled out nationwide and managed by State Energy Offices.

 

Heat Pump Water Heaters

Assistance is provided for the installation of heat pump water heaters , which boast energy efficiency levels two to three times higher than traditional water heaters. Under the Inflation Reduction Act, tax credits and rebates are offered to potentially cover the entirety of the expenses, depending on household eligibility. This incentive encompasses both a tax credit and rebate, amounting to 30% of the consumer's expenditure, capped at $2,000 per year. Additional incentives based on income will be introduced through the Home Energy Rebates program, particularly targeting households below 150% of the area median income. To claim the tax credit, individuals must submit IRS Form 5695 when filing taxes, while rebates are forthcoming and will be distributed as the Home Energy Rebates programs are rolled out nationwide, managed by State Energy Offices.

 

Insulation and Air Sealing

Insulation materials have the potential to reduce heating and cooling costs by up to 20%, while air sealing measures like caulking and weather-stripping prevent energy loss and enhance air quality by preventing moisture infiltration. Additionally, the Inflation Reduction Act not only supports the implementation of these upgrades but also covers the expenses associated with home energy audits, enabling inspectors to recommend the most effective improvement options. This initiative offers a Tax Credit worth 30% off the cost, accessible by submitting IRS Form 5695  during tax filing.


Rooftop Solar

The Inflation Reduction Act aims to assist more Americans in utilizing solar energy to generate clean electricity for their households, resulting in substantial savings on utility expenses. Presently, tax credits are offered to offset up to 30% of the installation expenses, and this federal credit can be combined with supplementary incentives offered in numerous states. On average, families can expect to save $300 annually, amounting to $9,000 over the system's lifespan. This incentive constitutes a Tax Credit equivalent to 30% of the consumer's expenditure, accessible by submitting IRS Form 5695 during tax filing.

 

For a full list of solar incentives click here

 

Weatherized Windows & Doors

Windows alone can account for 25-30% of heating and cooling energy usage, with doors also contributing significantly to energy leakage. In addition to facilitating upgrades to exterior windows and doors, the Inflation Reduction Act can cover the expenses associated with home energy audits, enabling inspectors to pinpoint the most effective improvement strategies. This incentive takes the form of a tax credit valued at 30% of the consumer's expenditure, capped at $600 per year, and can be accessed by submitting IRS Form 5695 during the tax filing process.​