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Energy Efficiency Incentives

Federal Tax Credits for Home Improvements

By making qualified energy efficiency improvements to your home, you can receive up to a 30% tax credit. Energy efficient home improvement tax credits will be effective for projects completed after January 1, 2023 and before December 31, 2032. The Energy property 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. 

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.  

Coming in 2023: The Home-Owner Managing Energy Savings (HOMES) rebate program

The Inflation Reduction Act created two new grant programs that will be administered by State Energy Offices, though participation by states is optional and each state must apply for funding. Rebates are based on income level and energy savings. We anticipate that grants will be available sometime in 2023, unless the state of Utah chooses not to participate. 

  • Can be used in addition to home energy efficiency tax incentives.  
  • 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. 
  • Households cannot claim both a HOMES Rebate and another federal grant or rebate for the same energy improvement.  
  • Applies to multi-family building owners as well which can assist renters. Above limits applicable per unit up to a maximum of 100 units. 

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!

Utility Incentives for Businesses

Another Commercial Incentive comes in the form of Commercial Property Assessed Clean Energy (C-PACE) that allows commercial properties to install Energy Efficiency and Renewable Energy upgrades with little or no upfront cost. Click here to learn more.

Utility Incentives for Builders

Resources & Technical Assistance:

Additional incentives:

1014 Second Ave. Salt Lake City, Utah 84103 (801) 363-4046 www.utahcleanenergy.org

Website content provided by Utah Clean Energy, a 501(c)3 non-profit organization working to stop energy waste, create clean energy, and build a smart energy future in Utah and the western United States.

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The recently approved Inflation Reduction Act has made some information on this website outdated. We are working to update ASAP. In the meantime, please consult a tax expert on all incentives and rebates listed.