If you’ve been considering making energy efficiency and renewable energy upgrades to your home, now is the time to do so.
The reason: Significant new tax credits that launched in 2023 can offset the cost of your projects in big ways. These tax credits were part of the Inflation Reduction Act, passed by Congress in 2022.
Even better: You can combine these federal tax credits with Energy Trust cash incentives to help you save even more on your project to make your home more energy-efficient and comfortable.
That means you’ll save money now on the cost of improvements such as insulation, windows, heating and cooling and even solar equipment.
Plus, new rebate programs that are part of the Inflation Reduction Act are expected to launch in 2024 and will provide more benefits for income-qualified customers.
Combine Energy Trust Incentives with New Federal Tax Credits to Save More
The following upgrades are eligible for both tax credits and Energy Trust cash incentives.
| Item | Federal Tax Credit (30% of total cost, up to cap listed below) | Energy Trust Incentive |
|---|---|---|
| Insulation | Up to $1,200 | Up to $1.50 per square foot |
| Windows | Up to $600 | Up to $1.50 per square foot depending on efficiency rating |
| Heat pumps (warms and cools spaces) | Up to $2,000 | Up to $3,000 |
| Heat pump water heater, also called hybrid water heater | Up to $2,000 | Up to $700 instant discount on select models at participating retailers |
| Central air conditioning | Up to $600 | $100-$250 depending on SEER rating |
| Natural gas furnace | Up to $600 | Up to $1,600 |
| Natural gas water heater | Up to $600 | $100 from participating retailers and up to $400 for tankless natural gas water heaters |
| Solar | 30% for solar systems; 30% also available for battery storage with new or existing systems | Solar incentives vary |
Note: Requirements for federal tax credits and Energy Trust incentives may differ. There is an annual cap on federal tax credits of $1,200, with sub-caps on individual items. Homeowners can also receive up to $2,000 (not under the $1,200 cap) for a heat pump or a heat pump water heater. Some solar projects may also qualify for state rebates. Before moving forward with any project, it’s important to review the eligibility requirements for both the federal tax credits and Energy Trust incentives. Energy Trust does not give tax advice. Consult your tax professional for current information on credits available and how to apply.
If you make upgrades and purchases for home energy upgrades in 2024, you can claim those credits when filing your 2023 tax return in 2024 and your 2024 tax return in 2025.
Upon filing your taxes, IRA tax credits can reduce the amount of taxes you owe.
In addition, you can receive Energy Trust cash incentives:
- Through retailers. When you’re buying the equipment or product at the retailer in Oregon, you’re immediately seeing the savings in the sale price.
- Through trusted contractors who are part of Energy Trust’s Trade Ally Network. They deduct the incentive amount from your final payment.
- By applying for cash back. After you complete an energy upgrade at home, you can fill out and submit an application online to get a check in the mail.
Before moving forward with any project, it’s important to review the eligibility requirements for both the federal tax credits and Energy Trust incentives. To confirm you’re eligible and find out how the tax credits might benefit you, talk to your tax professional, the Oregon Department of Revenue or the Internal Revenue Service.
Eligibility requirements for federal tax credits and Energy Trust incentives may differ.
Some solar projects may also quality for state rebates and other solar-related project incentives.
Before moving forward with any project, it’s important to review the eligibility requirements for both the federal tax credits and Energy Trust incentives. Energy Trust does not give tax advice. Consult your tax professional for current information on credits available and how to apply.
Homeowners can receive tax credits for 30% of the cost of solar arrays and stand-alone battery storage systems with a capacity greater than 3 kWh. Though less common, homeowners can also receive tax credits for 30% of the cost of microgrid controls and geothermal or biomass technologies. The credits will be in place at these levels through 2032 and with reduced credits through 2034.
If you purchased a solar system or battery storage system in 2022, you may qualify for the 30% tax credit.
If you’re interested in exploring solar systems combined with battery storage, Oregon Department of Energy also offers additional rebates as part of its Solar + Storage Rebate program for homeowners.
Learn more about the federal solar tax credits through the U.S. Department of Energy’s FAQ.
Start exploring Energy Trust’s solar incentives available here.
If you make or made upgrades and purchases for home energy upgrades in 2023 or 2024, you can claim those credits when filing your tax returns for those years. Any tax credits available to you will be applied to the taxes you owe.
If you know what upgrades you’re interested in pursuing, you can get started by exploring the various incentives available through Energy Trust.
A great way to explore what improvements might make sense for your home is to start with a free online home assessment through Energy Trust. Or check out our article about why weatherization is the first step you should take.
You can also connect with an Energy Trust home energy advisor who can answer questions about specific upgrades or talk through how to prioritize which upgrade to make first. Set up an appointment by calling 1.866.311.1822.
he upgrades that are eligible for tax credits are most likely made available to your landlord or whomever owns your property. However, Energy Trust does offer several tips for renters to make your homes more comfortable and energy efficient.
If you rent an older house, condo, apartment or manufactured home, talk to your property manager about larger improvements like insulation, new heating equipment and high-efficiency windows, which could be eligible for both tax credits and Energy Trust incentives.
New federal energy efficiency rebate programs are expected to become available in mid-2024 according to the Oregon Department of Energy (ODOE). Full details of the rebates have not been determined, however we do know that the IRA rebate programs will have income and eligibility requirements. These requirements will limit the number of Oregonians eligible to receive rebates:
- HEAR or HEEHR rebates will only be available to income-qualified customers (up to 150% or less of the area median income; see below).
- HOMES rebates will only be available for customers undertaking comprehensive home energy projects that involve upgrading multiple pieces of equipment.
ODOE has created this FAQ explaining the different federal incentive programs and how they may be used in Oregon.
Check out the IRS’s fact sheet on the Inflation Reduction Act tax credits specifically for home energy efficiency upgrades.
The Oregon Department of Energy also has an FAQ on how federal rebates may be available in Oregon.
The tax credits can be claimed by anyone filing federal income taxes. In addition, Energy Trust offers special incentives, resources and no-cost energy upgrades to income-qualified households to make upgrades even more affordable.