Financial Incentive Programs for Homeowners
On November 2, 2022, the U.S. Department of Energy (DOE) released information regarding the energy rebate programs provided by the Inflation Reduction Act (IRA). The OED is closely monitoring the progress and the development of federal guidance. DOE has also established a website for information on these rebate programs, which include:
Home Energy Performance-Based, Whole-House Rebates (HOME)
- This program will offer rebates for residential energy efficiency improvements. Rebate amounts will be determined based on the energy saved and varies for single-family residences, multi-family buildings, and low- and moderate-income homes.
High Efficiency Electric Home Rebate (HEEH)
- This program will offer rebates for electric appliances. The rebate amounts are set by the legislation and are specifically targeted to low-income households.
Tax Credits
In the meantime, some IRA residential tax credit provisions have immediate effect or will be effective early 2023. This offers a near-term opportunity for homeowners to obtain residential efficiency products and improvements as the two programs above are developed. For example, qualifying home improvements made after December 31, 2021, may be eligible for these federal tax credits, including purchases of ENERGY STAR certified products and improvements to the building shell. They include:
- Equipment Tax Credits for Primary Residences for energy efficiency equipment purchased or improvements made for your principal residence, such as air conditioning units, water heaters, furnaces, insulation, windows, or doors. Information regarding home energy tax credits can also be found through the U.S. Department of Energy website.
- Renewable Energy Tax Credits for renewable energy systems installed at your principal or secondary residence, such as geothermal, solar, wind, or biomass.
Further, certain renewable energy systems installed on your property may qualify for Indiana Property Tax Deductions. This includes solar, wind, geothermal, and hydroelectric devices. For more information, contact your County Auditor’s Office. The state form can be found by visiting the Indiana Department of Local Government Finance website.