Individuals

Consumers can lower their energy costs with programs geared toward home energy efficiency upgrades, home electrification, clean energy installation, and electric transportation.

The Iowa Economic Development Authority and the Iowa Finance Authority are providing programmatic updates to the Home Energy Rebates mailing list as they become available. Email en***************@*****da.com with the word “subscribe” to be added to the mailing list and notified with updates.

 

Available Programs & Grants

Renewable Energy & Energy Efficiency

Residential solar, wind, geothermal and battery storage Investment Tax Credit

This Investment Tax Credit (ITC) reduces the cost of installing residential solar PV systems, small wind turbines, geothermal and battery storage. This credit can also be applied to standalone battery storage installed without solar.

  • 30% credit goes through 2032, declining to 26% in 2033 and 22% in
  • Available for solar + storage, or standalone battery systems. Battery storage must be 3 kilowatt hours or greater.

Tax Credit has no maximum amount.

Energy efficiency home improvement tax credit

A 30% tax credit on energy efficiency home improvements such as insulation, air sealing, installation of energy-efficient doors and windows, and more.

Available through 2032.

Annual credit limits of $600 on energy property, $600 on energy efficiency, $600 on electrical panel upgrade, and $150 on audits.

Home Energy Performance-Based Whole House Rebates (HOMES)

The Department of Energy will send funds to state energy offices to implement a HOMES rebate program to provide rebates to homeowners and aggregators for whole-house energy saving retrofits.

Start date dependent on Department of Energy approval of the State of Iowa implementation plan. Rebates authorized through September 30, 2031.

  • Iowa Allocation: $60,827,450
  • Additional funding can be provided to individuals earning less than 80% of the area median income. Visit the AMI calculator at bottom of page to learn if you qualify.

Please note that these funds are not currently available. The Iowa Economic Development Authority (IEDA) applied for the funds to implement programs for both the HEAR and HOMES rebates.

The current projected timing is uncertain given current actions by the administration regarding funding for DOE programs. Importantly, the rebates are not projected to be retroactive.

High Efficiency Home ElectricHome Rebate (HEEHR)

The Department of Energy will provide grants to States and Tribes to implement the High Efficiency Home ElectricRebate (HEEHR) program. Eligible recipients must fall below 150% of the area median income, providing up to $14,000 in point-of­ sale rebates per household.

Start date dependent on Department of Energy approval of the State of Iowa implementation plan. Rebates authorized through September 30, 2031.

  • Iowa Allocation: $60,473,810
  • HEEHR is a voluntary program that provides point-of-sale rebates for eligible electrification equipment and projects. Low-income households receive up to 100 percent of rebate and moderate-income households receive up to 50 percent of rebate Limit of $14,000 per household.

See the table below for qualified rebates.

Please note that these funds are not currently available. The Iowa Economic Development Authority (IEDA) applied for the funds to implement programs for both the HEEHR and HOMES rebates.

The current projected timing is uncertain given current actions by the administration regarding funding for DOE programs. Importantly, the rebates are not projected to be retroactive.

guidance in DOE’s new Administrative and Legal Requirements Document.

Eligible Equipment & Project Type

From the High-Efficiency Electric Home Rebate Act (HEEHRA)

A heat pump is a single electric appliance that can replace both your traditional air conditioner and home heating system, like a furnace or boiler.

Heat pump water heaters (HPWHs) are similar to heat pumps for space heating, except they produce hot water instead of hot air.

Upgraded electrical panels themselves won’t save you money, but they will enable other upgrades — like heat pumps and electric vehicles — that will save you money!

Electrical wiring is a critical enabling step for whole-home electrification. While some electric appliances can plug into a normal outlet, many others require 240V outlets. This is especially important for EV chargers, induction stoves, and most heat pumps and heat pump water heaters.

The term “electric stove” (or “range” or “cooktop”) includes both traditional electric resistance stoves and modern electric induction stoves. These technologies are quite different, but what matters is that neither burns methane gas inside your home to create heat.

Like heat pumps for space and water heating, heat pump clothes dryers are more efficient than their traditional counterparts, which translates to utility bill savings — and they don’t burn fossil fuels!

Weatherization refers to a series of steps you can take to reduce the amount of energy required to heat and cool your home. Weatherization may involve air sealing, insulation, door and window upgrades, and ventilation improvements.

Available Programs & Grants

Electric Vehicles

Clean Vehicle Credit

A consumer tax credit for the purchase of a qualified new clean vehicle, including electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles.

  • Credit available through December 31, 2032.
  • Buyers are allowed to transfer the credit to auto dealers at the point of sale in order to directly reduce the purchase price.

A maximum $7,500 credit, with income eligibility limits:

  • Single tax filers: < $150,000
  • Heads of households: < $225,000
  • Joint tax filers: < $300,000
Used Clean Vehicle Credit

A maximum tax credit is equal to the lesser of $4,000 or 30% of the vehicle cost on previously owned clean non-commercial vehicles. Vehicles must be at least 2 years old and have a sale price less than $25,000.

  • January 1, 2023 through December 31, 2032.
  • Buyers are allowed to transfer the credit to auto dealers at the point of sale in order to directly reduce the purchase price.

Income eligibility:

  • Single tax filers: < $75,000
  • Heads of households: < $112,500
  • Joint tax filers: < $150,000

Tools & Resources

The IRA Savings Calculator

The IRA Savings Calculator from the nonprofit Rewiring America is a helpful tool to determine available programs based on your specific household information:

Area Median Income Lookup Tool

Low-and moderate-income households are able to access higher levels of funding under the IRA. Because of this, it may be useful to know your area median income (AMI) as you consider what financial resources are available to you. Use this lookup tool below to help assess your eligibly:

Disclaimer: Nothing in this summary should be interpreted as tax or legal advice.