A: The Iowa Economic Development Authority will be applying for the funding and expects the rebates to be available in mid to late 2024. Unfortunately, the rebates will not be retroactive. Although federal tax credits are available now, the DOE guidance to the states on applying for the rebate funds specifically says: “A rebate may be paid only for a qualified electrification project (QEP) initiated after the State receives authorization from DOE for rebate program launch.”
A: Yes. The rebates and tax credits can be combined, so a homeowner should be able to claim both the tax credit and the rebate for the same project. For a heat pump the Home Electrification and Appliance Rebates (HEAR) rebate up to $8,000 and the 25C tax credit can be used together.
For example: Installed cost $15,000 – $8,000 (if income < 80% of AMI) = $7,000 x 30% = $2,100 capped at $2,000 so final cost if able to fully utilize the tax credit is $7,000 – $2,000 = $5000).
