Federal Tax Credits for Home Improvements
You can receive up to a 30% tax credit on qualified energy efficiency improvements to your home completed after January 1, 2023 and before December 31, 2032. The Energy Efficient Home Improvement tax credit is capped at $1,200 annually for most improvements, though taxpayers are able to claim the $2,000 credit for heating and cooling system upgrades, for a maximum of $3,200 per year.
Eligible tax credits include:
- $1,200 per year tax credit for energy-efficient skylights, insulation, efficient doors and windows.
- Installations must meet certain efficiency criteria which will need to be documented starting in 2024.
- Home energy audit (up to $150)
- Electrical panel upgrade (up to $600)
- Doors (up to $500)
- Windows & skylights (up to $600)
- $2,000 per year tax credit for heat pumps, heat pump water heaters and biomass stoves and boilers.
Learn more and apply for Energy Efficiency Tax Credit
Home Energy Rebate Program” is Coming Soon!*
The Inflation Reduction Act created two new state rebate programs that will be administered by state governments in each state. Here in Utah, the Utah Office of Energy Development will be setting up and overseeing these rebate programs with $101 million in funding from the IRA. Rebates will vary based on a household’s income level, energy savings, and appliances installed. We are hopeful that Utah’s Home Energy Rebate programs will be launched before the end of 2025. Read below for more information about the two rebate programs:
Home Efficiency Rebates* (more information)
- Can be used in addition to the Energy Efficient Home Improvement tax credit.
- Eligible energy improvements include: insulation, air sealing, smart thermostat, efficient heating and cooling equipment.
- Applies to existing homes, including single family homes, duplexes, town-homes, and multifamily units.
- Eligible for 50% of the cost of energy efficient improvements/retrofits at existing residences up to a dollar cap.
- If you cut energy use by 20%: rebate up to $2,000 or half the cost of the retrofit, whichever is less.
- If you cut energy use by 35%: rebate up to $4,000 or half the cost of the retrofit, whichever is less.
- If your income is 80% or less of an area’s median income (AMI), then the above amounts are doubled to $4,000 and $8,000 respectively.
- Cannot be combined with another federal rebate (see below) for the same energy improvement, but utility rebates can be used for the same energy improvement.
- Applies to multi-family building owners if at least 50% of residents are low- or moderate-income households, which can assist renters. Above limits applicable per unit up to a maximum of 100 units.
Home Electrification and Appliance Rebates* (more information)
- Can be used in addition to the Energy Efficient Home Improvement tax credit.
- Eligible appliances, equipment, and improvements include: insulation, air sealing, ventilation, heat pump water heater, air source heat pump, electric panel upgrade, electrical wiring upgrade, electric cooking, heat pump electric clothes dryer.
- Applies to existing or new homes, including single family homes, duplexes, town-homes, and multifamily units.
- Will be set up as a “point of sale” rebate for efficient electric appliances and energy improvements.
- Income eligibility:
- If your income is below 80% of an area’s median income (AMI), the rebate can cover 100% of the cost of electric appliance(s) and energy efficient improvements up to $14,000 per home.
- If your income is between 80% and 150% AMI, the rebate can cover 50% of the cost of the electric appliance(s) and energy efficiency improvements up to $7,000 per home.
- Households with a household income above 150% AMI are not eligible for this rebate.
- Cannot be combined with another federal rebate (see above) for the same energy improvement, but utility rebates can be used for the same energy improvement.
- Applies to multi-family building owners if at least 50% of residents are low- or moderate-income households, which can assist renters. Above limits applicable per unit up to a maximum of 100 units.
*(This information is subject to change as additional details are forthcoming. The latest information from the U.S. Department of Energy can be found here.)
Utility Incentives for Homes
The following utilities offer incentive programs for energy efficient appliances, air sealing, and other energy-saving measures. If your utility isn’t on the list, inquire about the possibility of creating an incentive program!
- Dominion Energy: ThermWise Weatherization Program offers rebates for insulation, air sealing, and duct sealing.
- Dominion Energy: ThermWise Appliance Program offers rebates for smart thermostats, water heating, and HVAC systems.
- Rocky Mountain Power: WattSmart residential incentives & programs include cash discounts and incentives for heating and cooling, insulation, light bulbs and more.
Resources & Technical Assistance:
- Residential:
- ENERGY STAR: Home Energy Yardstick gives you a tool to see how your overall energy use compares to homes nationally and suggests ideas for improving your home’s efficiency.
- Rocky Mountain Power Wattsmart Home Energy Report gives you a glimpse into how your electricity usage compares to other Utahns along with tips to save.
- Rocky Mountain Power Wattsmart Home Energy Assessment gives you a place to start on your energy efficiency journey.
- Dominion Energy: ThermWise Energy Comparison Report gives you a glimpse into how your natural gas usage compares to other Utahns along with tips to save.
- Dominion Energy: ThermWise Home Energy Plan offers trained experts who can provide an energy efficiency assessment and recommendations to improve the efficiency of your home.
- Commercial:
- Rocky Mountain Power: Business Energy Choices provide a list of efficiency incentives and programs for businesses
- Rocky Mountain Power: Energy Profiler Online
- Rocky Mountain Power: Energy Management Program
Additional incentives:
- Visit DSIRE for a summary of all Utah energy incentives, policies and financing programs