Most programs start on January 1, 2023, especially the tax credits and deductions. The 25C tax credit is in place today (at $500 max), but the expansion starts for projects billed as of January 1, 2023. The HEAR rebates depend on each state's delivery schedule. Check back for more information as states bring their programs online To Top of SectionGenerally, when do the incentive programs begin?
For the rebate programs, states will have to adhere to the criteria in the law (i.e. efficiency performance standards) but will be able to alter the allocations, except when exceeding the amounts and percentages specified in the law. The tax credits are available directly through your federal tax deductions. Consult your tax advisor for advice. To Top of SectionWill each state operate differently?
Starting in 2023, homeowners are eligible for a tax credit of 30% of the cost, up to $2,000, for heat pumps, and/or heat-pump water heater, in accordance with section 25C of the US tax code. Only certain models qualify for the tax credit, and you must have a tax liability from which to reduce your taxes. Consult your tax advisor for advice. To Top of SectionWhat is the 25C tax credit?
The 45L tax credit is aimed at contractors that build and sell qualifying energy-efficient new homes that meet specified energy efficiency requirements. If a new home meets the provisions of the ENERGY STAR® New Home program, the rebate is $2,500. Likewise, the rebate is $5,000 if the new home meets the Net Zero Ready designation from the Department of Energy. To Top of SectionWhat is the 45L tax credit for newly built homes?
HEAR is for lower-to-middle income homeowners and includes up to $8,000 in rebates for heat pumps, with additional rebates for electrical panel upgrades and other improvements. The cap is $14,000 maximum. Low income (making less than 80% area median income [AMI]) homeowners can receive 100% of the project cost in a rebate. Moderate income homeowners (making 80% to 150% AMI) can receive 50% of project cost in a rebate. To Top of SectionWhat is the Home Electrification and Appliance Rebates (HEAR)?
The HOMES Act provides rebates for all homeowners based on modeled energy savings for efficiency improvements, including heat pumps. If the improvement measures yield 20% modeled savings, a homeowner can receive a $2,000 rebate, and $4,000 modeling in excess of 35% savings. This rebate is doubled for lower income homeowners and building owners with lower income occupants to $4,000 and $8,000. To Top of SectionWhat is the HOMES Act rebate program?
Currently, in order to qualify for the 25C tax credit, equipment must meet the Consortium for Energy Efficiency (CEE) highest tier. In order to qualify for the HEAR rebate program, a homeowner must qualify as low-to-moderate income (LMI) and equipment must meet or exceed the ENERGY STAR® 6.1 specification. A listing of 25C-qualified products can be found near the top of this page. METUS will publish a list of qualifying equipment for ENERGY STAR soon. To Top of SectionWhich Mitsubishi Electric, Trane/Mitsubishi Electric, or American Standard/Mitsubishi Electric models are eligible, and how will I know?
We believe the funding for the rebates specified in the IRA will be available on a first-come-first-served basis until funding is depleted. To Top of SectionFor how long will these rebates be available?
Congress specified $4.3B for the HOMES Act, available through 2031. The HOMES Act provides rebates for homes that cut energy by 20% across their whole home. Homeowners would be eligible for a maximum rebate of $2,000 or half the cost of the retrofit project, whichever is less. That dollar threshold rises to $4,000 for those who cut energy by at least 35%. These rebates are double — up to $4,000 and $8,000, respectively — for households with income lower than 80% of an area’s median income (AMI).Activations will happen by state. Check back to see what states are live. To Top of SectionWhat is the HOMES rebate program?
