Through 2032, federal income tax credits are available to homeowners, that will allow up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30%.

In addition to the energy efficiency credits, homeowners can also take advantage of the modified and extended Residential Clean Energy credit, which provides a 30% income tax credit for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps and battery storage through 2032, stepping down to 22% for 2033 and 2034.

Unlike a point-of-sale rebate, a tax credit does not reduce the purchase price of the project. Rather, it’s claimed when you file your taxes and can increase your refund or reduce the amount of tax you owe. Members are encouraged to consult a tax professional to determine if they can qualify for tax credits.

Project Specific Guidance

Heat pump space heating and cooling incentives

• 30% tax credit worth up to $2,000 per year
• The tax credit also applies to biomass stoves and boilers

Heat pump water heater incentives

• 30% tax credit worth up to $2,000 per year
• Also qualifies for a Tideland rebate of $300

Electrical panel and wiring upgrade incentives

• For many households, the first step toward electrification and energy savings is upgrading the electrical panel or breaker box.
• 30% tax credit worth up to $600 per year

Exterior windows and doors incentives

• Energy savings can literally fly out the window if windows and doors aren’t air tight. The Energy Efficient Home Improvement Credit can help you upgrade windows and doors.
• 30% tax credit worth up to $600 per year for exterior windows and skylights, $250 per year for one exterior door, and $500 per year for all exterior doors

Although these incentives will be around for the next decade, energy efficiency is about long-term savings. The sooner you invest in home electrification, the more time you have to compile savings and reduce your energy footprint. Call our energy services team if you need guidance in bringing a project to fruition.