Federal Tax Credits
& Rebates
The federal Inflation Reduction Act has all sorts of tax credits and rebates that can help you pay for weatherization and save you money on your heating bill. These federal incentives will be a game changer for Middleborough residents, who are not eligible for MassSave rebates.
We Love Tax Credits!
In 2023 federal tax credits for energy efficiency improvements increased from $300 to $2,000, with no more lifetime caps. This is great news for taxpayers. Unlike a deduction, a tax credit is a dollar-for-dollar reduction in your taxes.
You can get a 30% federal tax credit of the cost of insulation—and a lot of other improvements, such as windows, doors, heat pumps, electric panel upgrades, and solar panels.
The annual cap for most individual energy improvements (like an insulation job) is $600. If you install a new heat pump system, you can get a tax credit up to $2,000.
The tax credit is available now, and you can take it every year you make energy-efficiency home improvements. If you haven’t had an energy audit in the past two years, sign for one now at the link below. The audit can help you plan which home improvements to make over several years, to make the most of the annual tax credit.
We Love Rebates Too!
Some big federal rebates are coming with the Inflation Reduction Act, too. We’re still waiting to hear how Massachusetts will administer them, which we expect in 2024. A rebate is money you get back after you’ve paid for your weatherization work.
We do know this: You’ll be able to get a federal rebate on insulation and air sealing up to $1,600 and on heat pumps up to $8,000.
This is what’s really exciting: If your income qualifies—and it can be higher than you’d think—you can get a rebate for 50% to 100% of the cost of a long list of energy improvements, up to a $14,000 cap. We estimate* that households up to about $200,000 annual income can get a rebate for 50% of costs, and households up to $106,000 annual income can get 100% rebate.
We will be watching this closely. Watch our website for updates, or contact us at sustainablemiddleborough@gmail.com to get our Google Group alerts.
*Estimated using the Fannie Mae average median income tool. These income guidelines could change.
WHAT YOU SHOULD
DO NOW
You can calculate how much money you could get from the new Inflation Reduction Act using this tool.
DID YOU KNOW?
You can also sign up for updates as new federal tax credits and rebates roll out this year for insulation, heat pumps, electric vehicles, and more here.
In case you missed it…
You can still watch our workshop on the Inflation Reduction Act and how to save on your heating bill, with Loie Hayes, the energy efficiency specialist at Green Energy Consumers Alliance, here:
Start Weatherizing Now
Sign Up for Your Energy Audit:
