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The Inflation Reduction Act (IRA) provides support for clean energy through these programs:
Inflation Reduction Act Rebates
Authorized by the IRA, the Home Energy Performance-Based, Whole House (HOMES) rebate program and the Home Electrification and Application Rebate (HEAR) program will provide residential energy efficiency and beneficial electrification rebates to Texans. The U.S. Department of Energy (DOE) allocated $690 million to Texas for the State Energy Conservation Office (SECO) to implement and administer the programs.
The HOMES and HEAR rebate programs are currently not available. SECO intends to apply for the federal funds that have been allocated to Texas. In anticipation of needing a third-party program administrator to manage these programs, SECO will apply for early administrative funds from the DOE. Applications for the rebate programs should be available in Summer 2025.
HOMES Rebate Program
The HOMES rebate program incentivizes whole-home retrofits in both single-family and multifamily dwelling units. Efficiency rebates are available to households of any income level, but rebate amounts are doubled for low- and moderate-income households. For the HOMES program, the rebate amounts will be determined based on energy savings using either a modeled or measured savings method. The modeled savings pathway will provide a rebate amount based on the estimated energy savings particular to a home at the time of the retrofit installation. The measured savings pathway will calculate rebates based on the actual energy savings after a certain period following the installation of the retrofit.
HEAR Rebate Program
The HEAR program is an appliance rebate program. The DOE has not determined which specific appliances will qualify but has indicated they will be ENERGY STAR® certified. Electrification rebates are available only to low- or moderate-income (LMI) households, as identified by Area Median Income (AMI). The rebate amounts are set by the IRA and are specifically targeted to LMI households.
Key DOE Milestones
- May 31, 2024 - Early administrative funding application deadline
- August 16, 2024 - Notice of Intent to apply for or decline funds
- January 31, 2025 - Application deadline
Resources
- Frequently Asked Questions for the Texas HOMES and HEAR Rebate Programs
- U.S. Department of Energy’s Home Energy Rebate Programs Frequently Asked Questions
- Internal Revenue Service’s Frequently Asked Questions About Energy Efficient Home Improvements and Residential Clean Energy Property Credits (PDF)
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Inflation Reduction Act Tax Credits
Learn more from the Department of Energy.
| Equipment Type | Tax Credit Available for 2022 Tax Year | Updated Tax Credit Available for 2023-2032 Tax Years |
|---|---|---|
| Home Clean Electricity Products | ||
| Solar (electricity) | 30% of cost | |
| Fuel Cells | 30% of cost | |
| Wind Turbine | 30% of cost | |
| Battery Storage | N/A | 30% of cost |
| Heating, Cooling and Water Heating | ||
| Heat pumps | $300 | 30% of cost, up to $2,000 per year |
| Heat pump water heaters | $300 | 30% of cost, up to $2,000 per year |
| Biomass stoves | $300 | 30% of cost, up to $2,000 per year |
| Geothermal heat pumps | 30% of cost | |
| Solar (water heating) | 30% of cost | |
| Efficient air conditioners* | $300 | 30% of cost, up to $600 |
| Efficient heating equipment* | $300 | 30% of cost, up to $600 |
| Efficient water heating equipment* | $150 | 30% of cost, up to $600 |
| Other Energy Efficiency Upgrades | ||
| Electric panel or circuit upgrades for new electric equipment* | N/A | 30% of cost, up to $600 |
| Insulation materials* | 10% of cost | 30% of cost |
| Windows, including skylights* | 10% of cost | 30% of cost, up to $600 |
| Exterior doors* | 10% of cost | 30% of cost, up to $500 for doors (up to $250 each) |
| Home Energy Audits* | N/A | 30% of cost, up to $150 |
| Home Electric Vehicle Charger | 30% of cost, up to $1,000 | 30% of cost, up to $1,000 ** |
* Subject to cap of $1,200/year
** The IRS will soon publish further information on eligibility requirements related to home electric vehicle chargers, but we know that credits are intended for residents in non-urban or low-income communities.
Still have questions? Visit the White House Guidance on Tax Credits and Rebates for Families (PDF), which includes information on solar, energy efficient home appliances, heating and cooling systems and electric vehicles. Your local utility or municipality may have additional incentives available.