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New Federal Energy Program Saves
Homeowners Thousands


High Efficiency Electric Home Rebate Program (HEEHRP) Details

  • Allocates $4.5 billion in grants to states and tribal governments for home energy improvement projects including point-of-sale heat pump rebates.

  • 10-year program, administered through State Energy Offices, likely to start mid-2023.

    • Parameters of state-administered programs may vary.

  • Single-home maximum cost offset is $14,000

  • Caps per qualified equipment type:

    • $8,000 for a heat pump.

    • $1,750 for a heat pump water heater.

    • $1,600 for insulation, air sealing, and ventilation.

    • $2,500 for electric wiring.

    • $4,000 for an electric load center upgrade.

    • $840 for a stove, cooktop, range, oven, or heat pump clothes dryer.

  • Up to a $500 rebate is available for our contractors per heat pump installation.

  • ENERGY STAR® will be the criteria to qualify heat pump systems.

  • Designed to support low-to-moderate income (LMI) households.

    • Example:

      • Households making up to 80% of local median income are eligible to receive a 100% rebate of up to $8,000 on the cost of heat pump installation.

      • Moderate-income households (making 80-150% of local median) are eligible for a 50% rebate up to the same limits.

        • E.g., To claim up to the cap of $8,000, must spend $16,000 in heat pump installation.

      • Households with incomes above 150% of local median are not eligible.

  • No stacking with other federal or state grants/rebates on same project. There are options for combining rebates. See possible scenarios below in the FAQ section.

  • Provides funding to DOE for state energy offices ($4.3 billion) to develop and implement a rebate program to homeowners and aggregators for whole-house energy saving retrofits.

  • Based on modeled energy savings for single and multifamily.

  • Rebate levels:

    • Homes with energy reduction of 20% are eligible for maximum rebate of $2,000, or half the cost of the retrofit project (whichever is less).

    • Homes with energy reduction of 35% are eligible for maximum rebate of $4,000.

    • Homes with energy reduction of 35% and qualify as lower income (<80% of local median income) are eligible for maximum rebate of $8,000.

Homes Rebate Program

  • A 10-year extension and expansion of existing 10% tax credit to 30%.

  • Begins with tax year 2023 (January 1, 2023), claim credit on your 2023 taxes.

  • Up to $600 per item: breaker panel, insulation, fossil fuel systems (meeting elevated efficiency limits) with maximum of $1,200 tax credit.

  • However, tax credit increases up to $2,000 max when adding a qualified heat pump installation to the project.*

    • The heat pump system must meet or exceed the highest performance tier set by the Consortium for Energy Efficiency (CEE).**

  • Households may claim annually through 2032.

  • You can receive a tax credit and a rebate for the same project.

*Interpretation of this provision varies across media channels. We're actively pursuing a universally accepted interpretation.

**Efforts are underway to simplify the efficiency performance qualifications. Check back soon for updates.

Energy Efficient Home Improvement
(25C) Tax Credit

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