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Tax Credits

Take advantage of federal tax credits, incentives for home efficiency and solar upgrades

If you’ve been considering making energy efficiency and renewable energy upgrades to your home, now is the time to do so.

The reason: Significant new tax credits that launched in 2023 can offset the cost of your projects in big ways. These tax credits were part of the Inflation Reduction Act, passed by Congress in 2022.

Even better: You can combine these federal tax credits with Energy Trust cash incentives to help you save even more on your project to make your home more energy-efficient and comfortable.

That means you’ll save money now on the cost of improvements such as insulation, windows, heating and cooling and even solar equipment.

Plus, new rebate programs that are part of the Inflation Reduction Act are expected to launch in 2024 and will provide more benefits for income-qualified customers.

Combine Energy Trust Incentives with New Federal Tax Credits to Save More

The following upgrades are eligible for both tax credits and Energy Trust cash incentives.

ItemFederal Tax Credit
(30% of total cost, up to cap listed below)		Energy Trust Incentive
InsulationUp to $1,200Up to $1.50 per square foot
WindowsUp to $600Up to $1.50 per square foot depending on efficiency rating
Heat pumps (warms and cools spaces)Up to $2,000Up to $3,000
Heat pump water heater, also called hybrid water heaterUp to $2,000Up to $700 instant discount on select models at participating retailers
Central air conditioningUp to $600$100-$250 depending on SEER rating
Natural gas furnaceUp to $600Up to $1,600
Natural gas water heaterUp to $600$100 from participating retailers and up to $400 for tankless natural gas water heaters
Solar30% for solar systems; 30% also available for battery storage with new or existing systemsSolar incentives vary

Note: Requirements for federal tax credits and Energy Trust incentives may differ. There is an annual cap on federal tax credits of $1,200, with sub-caps on individual items. Homeowners can also receive up to $2,000 (not under the $1,200 cap) for a heat pump or a heat pump water heater. Some solar projects may also qualify for state rebates. Before moving forward with any project, it’s important to review the eligibility requirements for both the federal tax credits and Energy Trust incentives. Energy Trust does not give tax advice. Consult your tax professional for current information on credits available and how to apply.

Frequently Asked Questions

No matter your situation or budget, we will guide you toward solutions that meet your needs and have the greatest benefits for you and your community.