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!
- 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.
- 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.
- 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.
- 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