The Department of Energy (DOE)’s Home Energy Rebate Programs, enacted in the Inflation Reduction Act (IRA) of 2022, aim to save consumers money on home efficiency and electrification upgrades to cut energy use and carbon emissions in residential buildings. The historic $8.8 billion in funding for these programs—the largest pot of money ever for home energy efficiency and electrification rebates—has tremendous potential to reduce residential greenhouse gas emissions, while also helping low- and moderate-income households better heat and cool their homes, save money on their utility bills, and increase resiliency to extreme weather.

To ensure these investments reach their full potential, state rebate programs should coordinate federal, state, and utility dollars while pointing participants to additional federal tax credits. Stacking rebates and tax credits will unlock maximum decarbonization outcomes while saving consumers the greatest amount of money.

Version 3 of this report, released December 11, 2024, incorporates updated Federal program requirements from the Department of Energy (DOE), the Internal Revenue Service (IRS) and the Environmental Protection Agency (EPA). The factsheet also now covers additional key considerations for Stacking with the Weatherization Assistance Program, the Greenhouse Gas Reduction Fund, and Retail-Focused Upgrades.

“This factsheet is for informational purposes only and is designed to advise based on legislation and policy guidance released by Congress, the White House, and various federal agencies including the Department of Energy (DOE) and the Internal Revenue Service (IRS). The AnnDyl Policy Group is not offering tax advice and the information provided in this document should not be relied upon as legal or accounting advice.

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