This Investment Tax Credit (ITC) reduces the cost of installing residential solar PV systems, small wind turbines, geothermal and battery storage. Starting in 2023, this credit can also be applied to standalone battery storage installed without solar.
No maximum amount to be claimed.
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.
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 State of Iowa implementation. Earliest of 2023 through September 30, 2031.
Please note that these funds are not currently available. The Iowa Economic Development Authority (IEDA) will need to apply for the funds and implement programs for both the HEAR and HOMES rebates.
IEDA is awaiting guidance from the Department of Energy (DOE) on how to apply for the funding. The current projected timing is for the DOE guidance to be issued this summer, and the rebate programs likely implemented in 2024. Importantly, the rebates are not projected to be retroactive.
The Department of Energy will provide grants to States and Tribes to implement the Home Electrification and Appliance Rebate (HEAR) 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 State of Iowa implementation. Earliest of 2023 through September 30, 2031.
See the table below for qualified rebates.
Please note that these funds are not currently available. The Iowa Economic Development Authority (IEDA) will need to apply for the funds and implement programs for both the HEAR and HOMES rebates.
IEDA is awaiting guidance from the Department of Energy (DOE) on how to apply for the funding. The current projected timing is for the DOE guidance to be issued this summer, and the rebate programs likely implemented in- late 2024. Importantly, the rebates are not projected to be retroactive.
DOE has released application guidelines for Tribal governments to apply for $225 million in funding under the HEAR program. Once DOE has approved a Tribe’s application, the Tribe may launch its program and begin issuing rebates. Tribal officials can review the published guidance in DOE’s new Administrative and Legal Requirements Document.
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.
A consumer tax credit for the purchase of a qualified new clean vehicle, including electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles.
A maximum $7,500 credit, with income eligibility limits:
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.
Income eligibility:
The IRA Savings Calculator from the nonprofit Rewiring America is a helpful tool to determine available programs based on your specific household information:
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.
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