This information applies to the following locations: Washington, Oregon, Idaho, Montana, Alaska, California and Nevada

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Frequently Asked Questions

Common IRA, Rebate and Tax Credit Questions.

General IRA Questions:

When do IRA incentive programs begin?

The Tax Credit program is currently active and will run from January 1, 2023 to December 31st, 2032. The IRA Rebates program is estimated to launch Q4 of 2024.

What is the income limit for low- or moderate-income households?

Find your Income Limit in 5 easy steps:

  1. Visit: https://www.huduser.gov/portal/datasets/il/il2024/select_Geography.odn
  2. Click on the button “Click here for FY 2024 IL Documentation”
  3. Select your State
  4. Select your County
  5. Review the Low & Median income levels in your relative area

The term “low- or moderate-income household” means an individual or family whose total annual income is less than 80% of the median income for the area in which that individual or family resides for HOMES rebate (or 150% for HEAR rebate), as reported by the Department of Housing and Urban Development (HUD).

  • Low income households making up to 80% of local median income are eligible to receive a 100% instant rebate of up to $8,000 on the cost of heat pump installation.
  • Moderate-income households (making 80-150% of the local median) are eligible for a 50% instant rebate of up to $8,000 on the cost of heat pump installation.

Household Income examples:

  • A low income household installs a: $8,000 ductless heat pump – $8,000 instant rebate = $0 cost for the household
  • A moderate income household installs a: $16,000 ducted heat pump – $8,000 instant rebate = $8,000 cost for the household
  • A moderate income household installs a: $8,000 ductless heat pump – $4,000 instant rebate = $4,000 cost for the household
  • A low income household installs a: $16,000 ducted heat pump – $8,000 instant rebate = $8,000 cost for the household

Can I combine my local utility rebates with the Federal Tax Credits and/or Federal Rebates?

Yes, homeowners can combine their local utility rebates, Federal Rebates and Federal Tax Credits. This process is also called “rebate stacking”.

What are my first step towards my receiving my rebate and/or tax credit?

The first step is to find a contractor in your area to start your home improvement process. You can do so by clicking here or using the Contractor Locator below.

What are some additional resources to learn more about the Inflation Reduction Act?

What are some state specific resources?

Washington:

Washington State HEAR Program

Montana:

Residential Energy Efficiency Rebates | Montana DEQ (mt.gov)

IRA Rebate Questions:

Can I receive both the HOMES and HEAR Rebate?

Homeowners can only receive one federal rebate per qualifying project. However, homeowners may combine a federal rebate with a tax incentive.

Tax Credit Questions:

Is the Tax Credit Non-refundable?

Tax Credits are nonrefundable personal tax credits. A taxpayer claiming a nonrefundable credit can only use it to decrease or eliminate tax liability. A taxpayer will not receive a tax refund for any amount that exceeds the taxpayer’s tax liability for the year.

Are there annual limits on Tax Credits?

 Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000. 

Maximize your comfort and savings today.

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