Save money with home energy efficiency tax credits

Federal clean energy investments in our homes and infrastructure can help individuals and families in all zip codes cut down on their energy bills, improve indoor and outdoor air quality, and modernize the technologies we use every day to help curb climate change. 

In addition to saving money annually, going fully electric in our homes can shield the economy from energy price spikes and help combat inflation. 

The Inflation Reduction Act is a remarkable achievement projected to position the U.S. to reach 80% of our 2030 climate target. The climate provisions of the Infrastructure Investments and Jobs Act result in additional progress. 

How households can benefit from the affordable clean energy plan investments in the Inflation Reduction Act and the Infrastructure Investment and Jobs Act


Reducing your federal taxes:

The federal clean energy tax credits, which work by reducing the money you owe on your federal taxes, are available now! Here’s how you can lower your federal taxes based on which appliances and equipment and upgrades you do. 

Energy Efficient Home Improvements – up to $3,200 off, each year

  • Section 25C offers a 30% tax credit, up to $1,200 per year for most projects including weatherization and insulation, with a separate $2,000 cap for heat pumps and heat pump water heaters.
  • There’s also a $150 tax credit for energy audits
  • Applies to purchases for weatherization projects (insulation, doors, windows) and the purchase and installation of heat pumps, heat pump water heaters, and electrical panel upgrades.
  • Available now through 2032, with no upper-income limit.
  • For more information visit the IRS 25C webpage here and the IRS fact sheet here.

HOW TO CLAIM ENERGY EFFICIENCY TAX CREDIT: File Form 5695, Residential Energy Credits Part II, with your tax return to claim the credit. You must claim the credit for the tax year when the property is installed, not merely purchased.


Rooftop Solar and other Clean Energy – 30% off 

  • Section 25D offers a 30% uncapped tax credit for rooftop solar installation, solar-powered water heaters, small wind energy, geothermal heating installation, and battery storage installation.
  • Available now with no income limit; phases down to 26% in 2033, and 22% in 2034, expires in 2034.
  • For more information visit the IRS fact sheet here


New Electric Vehicle – up to $7,500 off 

  • Section 30D offers a 30% tax credit of up to $7,500 for new electric vehicles manufactured in the United States.
    • Available now on some electric vehicles for households with incomes below $300,000 for joint filers and $150,000 for most other filers
    • Detailed information about eligibility (income, critical mineral and battery requirements, and manufacturer-suggested retail price) requirements is available here.
    • For more information on eligible vehicles visit here.

HOW TO CLAIM ELECTRIC VEHICLE TAX CREDIT: file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle’s VIN.


Used Electric Vehicle – up to $4,000 off 

  • Section 25E offers a 30% tax credit of up to $4,000 for used electric vehicles.
    • There are income limits of $150,000 for joint filers and $75,000 for most other filers, and there are manufacturer’s suggested retail price limits but no manufacturing requirements.
    • Detailed information about qualified vehicles, income eligibility, and more is available here.
  • Available now through 2032.

HOW TO CLAIM USED ELECTRIC VEHICLE TAX CREDIT: file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle’s VIN.


EV Charger – 30% up to $1000 off 

  • Section 30C offers a 30% tax credit dedicated to low-income or rural areas toward the total purchase and installation of EV charging equipment—up to $1,000 per charger.
    • Includes bi-directional chargers.

HOW TO CLAIM EV CHARGER TAX CREDIT: file Form 8911, Alternative Fuel Vehicle Refueling Property Credit, with your tax return. 

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Consumer Rebates:

The IRA also provides upfront discounts on electric appliances and other efficiency upgrades. These are one of the few options also available for landlords to improve the energy efficiency for their tenants. 

States will be starting up these programs in 2024. The latest rebate information can be found here and here. Note that some program eligibility is determined by income.

If you would like to better understand how your household can benefit from the Inflation Reduction Act, Rewiring America has an IRA Savings Calculator that can determine what, and how much, you’re eligible to save. 


Electric Appliances — up to $14,000 per household 

  • $4.5 billion from the IRA is reserved for discounts applied when you purchase electric appliances or supporting systems. These rebates can cover up to 100% — up to $14,000 — of the costs for electrification projects for low-income consumers and 50% for moderate-income consumers. Within the $14,000 per household limit, individual upgrades are subject to the following caps:
    • Heat Pump – $8,000
    • Electric Load Service Center – $4,000 
    • Electric Wiring – $2,500
    • Heat Pump Water Heater – $1,750
    • Weatherization – $1,600
    • Electric/Induction Stove – $840
    • Heat Pump Clothes Dryer – $840


Home Efficiency Improvements – $2,000 to $8,000 per household or more!

The Efficiency Rebates program sets aside $4.3 billion for energy-efficient upgrades. Homeowners and landlords can work with contractors to access these discounts on whole-home energy efficiency upgrades — adding insulation and air sealing, plus new more efficient appliances. If you’re a renter, this is a great opportunity to let your landlord know how these upgrades could make the property more energy efficient while reducing energy expenses.

Qualifying for these benefits involves a property owner hiring a contractor to estimate projected energy savings. Higher energy savings will enable even higher rebate levels. 

  • If the upgrade is modeled to save 35% or more energy you can get up to $4,000 or 50% of project costs, whichever is less.
  • If the savings are modeled between 20% and 34%, you can get up to $2,000 or 50% of project costs, whichever is less.
  • Measured energy savings allow for uncapped rebates — the more you save over 15% the larger the rebate — and builds in accountability for achieving promised savings.  
  • Low-income households (earning less than 80% of the Area Median Income) receive double incentives, up to 80% of project costs.


Note, you can’t combine Efficiency Rebates with Electrification Rebates for the same upgrade, but you can use both programs for different upgrades in a single project. Learn more about the Home Energy Rebate Programs including all the latest program guidance from DOE here

IMPORTANT NOTE: The state of Michigan has not yet implemented the consumer rebate program, so these benefits are coming soon. We will keep this page updated as more information becomes available. 

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