Incentives for Households and Individuals
New rebates and tax credits make it more affordable to make home energy efficiency upgrades, switch to an electric vehicle, or generate your own electricity at home — all of which can help you save money on your energy and vehicle bills for years to come.
For example, with these new incentives, you could get 30% off a rooftop solar installation, $2,000 off an energy-efficient heat pump that heats and cools your home, or $1,000 off the installation of an EV charger at home.
This page breaks down types of projects that can help you save money by making your home and commute more energy efficient and the corresponding government incentives that can save you money. Each category includes multiple incentives households may qualify for.
Incentive Calculator
Households can use Rewiring America’s home energy incentive calculator to find ways to save money on home energy efficiency upgrades, fund weatherization improvements, and electrify your home or car. The calculator links to tax credits, incentives, and rebates available across the state.
I’m interested in home upgrades that reduce energy costs
Get discounts on energy-saving home upgrades with government and utility incentives. It’s now cheaper than ever to:
- Overhaul heating and cooling systems with a heat pump, which helps homes more efficiently stay comfortable in any season as an energy-efficient alternative to furnaces and air conditioners.
- Weatherize your home and save on energy costs with upgrades to insulation, windows, air sealing, and exterior doors.
- Generate renewable energy at home with solar panels.
- Swap to electric or induction stovetops to modernize your kitchen and reduce indoor air pollutants.
- Purchase electric heat pump water heaters to more efficiently heat water.
I’m interested in purchasing or leasing an electric vehicle or installing an EV charger
Using new federal tax credits, you can buy or lease a clean vehicle and install electric vehicle charging at a discounted rate. Switching from gasoline to electric vehicles can save you money since EVs are typically cheaper to power and maintain.
By offsetting the purchase price with tax credits and rebates, new incentives make it more affordable to:
- Purchase or lease new and used electric vehicles.
- Install electric vehicle charging equipment at your home.
Can I still use these incentives if I rent my home?
Yes, many of these tax credits can be used by renters if they buy the equipment.
Renters are eligible for pieces of the following federal incentives and may be eligible for various state, local, and utility incentives as well:
- Residential Clean Energy Credit 25D.
- Energy Efficient Home Improvement Credit 25C when applied to portable window-unit heat pumps.
- Home Efficiency Rebate.
- Home Electrification and Appliance Rebate.
- Clean Vehicle Credit 30D.
- Previously Used Vehicle Credit 25E.
- Commercial Clean Vehicle Credit 45W.
- Alternative Fuel Vehicle Refueling Property Tax Credit 30C.
What if I’m a landlord who rents a multifamily building or builds residential properties?
Multifamily building owners and builders can also take advantage of government incentives to modernize buildings, increase efficiency, and ultimately cut costs for owners and renters. For more information on these please check out our article on incentives for businesses.
Incentives to Consider for Multifamily Residential Buildings:
- Home Efficiency Rebate to make home efficiency retrofits.
- New Energy Efficient Home Credit Section 45L to build new or substantially reconstruct homes that meet certain energy standards.
- Energy Efficient Commercial Buildings Deduction 179D for commercial buildings including multifamily homes greater than 3 stories to make retrofits that result in a 25% or greater energy savings.
- Clean Energy Investment Credit Energy Credit 48E & 48 to build clean electricity generation and energy efficiency equipment.
- Low-Income Communities Bonus Credit Program 48E(h) and 48(e) to build solar, wind and affordable housing developments on low-income communities or on Indian land.
- Alternative Fuel Vehicle Refueling Property Credit 30C to build electric vehicle charging.
Incentives can be used together to maximize home improvement project savings
Many home projects are eligible for multiple incentives, and to maximize cost savings households should use, or “stack,” as many government incentives as they qualify for in their home upgrade projects. Household tax credits for energy efficiency and clean energy upgrades can often be stacked with other financial incentives, including state and local programs.
Disclaimer: None of the information presented on this website should be considered official legal or financial advice. Please contact a licensed tax professional for additional information.