Energy Efficiency Tax Credits for Green Building

$4.3 billion in direct rebates accessible to all existing households (not new construction) for whole-home energy efficiency upgrades. Starting in 2023 through September 30, 2031, or when funding runs out, whichever comes first. It could take time for the Department of Energy to stand up the programs and provide further guidance around income eligibility, etc. Rebates will be available at point-of-sale through state programs funded by the U.S. Department of Energy.

Retroactivity Fact Sheet and
Eligibility Checklists
The retrofit must have started on or after Aug. 16, 2022 and a home assessment must be conducted prior to the retrofit that recorded. 

For low- and moderate-income households:

• Up to $8,000 (or 80 percent of the project cost): Home retrofits that achieve energy savings of at least 35%.
• Up to $4,000 (or 50 percent of the project cost): Home retrofits that achieve energy savings of at least 20%.

For all other households:

• Up to $4,000 (or 50 percent of the project cost): Home retrofits that achieve energy savings of at least 35%.
• Up to $2,000 (or 50 percent of the project cost): Home retrofits that achieve energy savings of at least 20%.
• Program uses modeled energy savings, states may choose to use measured savings.

Tax credit equal to 30% of the costs of eligible equipment or materials that improve energy efficiency in existing homes (not new construction). All homeowning taxpayers, and in some cases renters.

Generally, a taxpayer can take up to $1,200 in credits per year, with a few exceptions for taking an additional $2,000 in credits. This credit can be taken annually, so a taxpayer could receive credits for installing a heat pump one year, insulation the next year, windows the next year, etc. There are additional caps on certain types of improvements. They are:

• Up to $2,000: Heat pump, heat pump water heaters, biomass stoves
• Up to $1200: Envelope improvements such as insulation and air sealing.
• Up to $600: Traditional HVAC equipment such as central AC, water heaters, boilers, furnaces, as well as
  upgraded breaker boxes, exterior windows and skylights.
• Up to $500: Exterior doors ($250 per door).
• Up to $150: Home energy audits.

$4.5 billion in direct, point-of-sale rebates to qualifying households based on income (in existing AND new homes – depending on the state) for purchasing qualifying energy-efficient equipment, up to $14,000 total for all eligible purchases. Qualifying households are low- and middle-income families whose income is less than 150% of their area’s median income. Rebates will be available at point-of-sale through state programs funded by the U.S. Department of Energy. Rebates are now projected to be available in limited areas after June of 2024 and available in most areas beginning in 2025 according to the U.S. Department of Energy. The rebates won’t be retroactive, so you’ll need to wait until they’re available.

Limits:

Median Income Lookup Tool

• To be eligible for rebates of 100%, households must be below 80% (for Buncombe County $70,080) of their area’s median income.
• To be eligible for rebates of 50%, households must be between 80% and 150% (for Buncombe County $70,080-$131,400) of their area’s median income.

Eligible appliances and projects:

• Up to $8,000: Heat pump for space heating or cooling.
• Up to $4,000: Electric load service center upgrade.
• Up to $2,500: Electric wiring.
• Up to $1,750: Heat pump water heater.
• Up to $1,600: Insulation, air sealing, and ventilation.
• Up to $840: Electric stove, cooktop, range, or oven. Electric heat pump clothes dryer

Duke Energy’s SmartSaver Program Residential Rebate for efficiency upgrades:

ONLY available for existing homes, not new construction.

• Insulate and Seal Attic: Get $250
• Seal Ductwork: Get $100
• HVAC Install: Get up to $300
• Heat Pump Water Heater: Get $350
• Pool Pump: Get $300

Duke Energy’s EnergyWise Home enrollees receive up to $100 annual discount applied to their bill to help reduce consumption during times of high demand. It is the greatest opportunity for our community to avoid the need to build a new power plant and most program participants never notice a difference. It requires a free contractor-installed device on your home’s heat pump or electric water heater.

Smart Thermostat Up to $100 credit
AC Control Device Up to $50 credit
Heat Strip Control Device Up to $50 credit
Water Heater Control Device Up to $50 credit
Bundle: Smart Thermostat + Water Heater Up to $150 credit

Duke Energy’s Home Energy House Call offers eligible homeowners a free home energy assessment, valued at $180. What you’ll get:

• Free in-home energy assessment
• Free personalized report with recommendations to save energy and money
• Free energy savings kit with LED lightbulbs, weatherstripping, showerhead and more

Expanded Sec. 45L tax credit for builders and developers for new, energy-efficient housing, including single-family, manufactured, and multifamily from 2023 through 2032. This is a tax credit that qualifying taxpayers receive when filing federal income taxes.

Amounts for developers of single-family and manufactured homes:

• $5,000: For homes that are certified under the U.S. Department of Energy’s (DOE) Zero Energy Ready
  Home program guidelines.
• $2,500: For homes that are certified under ENERGY STAR guidelines.

Incentivizes contractors to perform electrification projects in LMI communities with contractor rebates up to $500 per qualified project.

The RNC Program provides incentives to builders up to $9,000 per home in Duke Energy Progress (DEP) territory, and up to $6,000 in Duke Energy Carolinas (DEC) territory. Incentives help builders install high-quality upgrades that impact energy efficiency to comply with the HERO code. Some local builders have received $5000-7500/house in rebates. The savings are based on the HERS rating.

The key to maximizing your rebates is working closely with your HERS Rater ($1200-$1800). Your Rater will evaluate your current plans and specifications, develop upgrade options, project your rebates, and process rebate applications on your behalf.

View the list of Participating Raters.

Amended by the Inflation Reduction Act of 2022 (IRA) to provide taxpayers with a tax credit for eligible new or substantially reconstructed homes that meet applicable ENERGY STAR home program or DOE Zero Energy Ready Home (ZERH) program requirements. More information is available on the ENERGY STAR® website:
Tax Credits for Homeowners – up to $3,200 annually to lower the cost of energy efficient home upgrades by up to 30 percent available through 2032. 
Tax Credits for Home Builders – $2500-5000 for single-family, manufactured, and multifamily homes has been extended through 2032.

If you install qualified vehicle refueling and recharging property in your home or business, you may qualify for the alternative fuel refueling property tax credit. The credit was extended and modified by the Inflation Reduction Act. The credit allowed is based on the placed-in-service date for the qualifying property.

Starting in 2023 through 2032, the credit will also apply to “bidirectional” charging equipment and qualifying property will be limited to property placed in service within low-income communities or non-urban census tracts.

• Businesses meeting prevailing wage and apprenticeship requirements may be eligible for a 30% credit with the same $100,000 limit.
• For qualifying property not subject to depreciation, the credit equals 30% of the cost with a maximum amount of $1,000 per item.

DSIRE lists energy-efficiency rebates for various cities in NC or through various NC energy companies.

The City of Asheville’s Sustainability Office offers residential building permit fee rebates for single-family homes to support a clean and healthy environment on properties meeting the following criteria below. More information on the sustainability fee rebates can be found under “Supplemental Forms” on the city’s residential permit application page.

• $500 for Green Built Homes certification
• $250 for a verified Home Energy Rating System (HERS) score of 49 or below
• $100 for ENERGY STAR® certification
• $175 for solar photovoltaic systems
• $100 for tree protection (saving a tree)
• $100 for energy-savings tree planting (planting a new tree)

The Town of Black Mountain offers $500 permit fee rebate for buildings certified under the Green Built Homes or LEED programs.