IRA - Building Performance Association

State Energy Offices - Click Here to See How BPA is Supporting States ›

Graphic with a blue background and text that reads, "IRA Guidelines Released. $8.8B in incentives for home energy efficiency & electrification"

The DOE released the Program Requirements and Application Instructions that includes a wealth of critical information detailing how states will be required to operate their individual HOMES and HEAR (formerly HEEHR) programs.

Program Requirements & Application Instructions ›

In addition, DOE released several companion resources:

A 19-page ALRD for states containing more regulatory requirements for state applications.
A 34-page Data and Tools Requirements Guide.
A 9-page Utility Data Access Guidelines document.
Additional application documents for states (viewable here).

Have questions about the IRA? Click here to access the FAQ page by the U.S. DOE.

What's in the IRA for Home Performance Contractors & Consumers?

Homes Energy Performance Based, Whole House Rebates (HOMES)

Total Funding: $4.3 billion

(available through September 2031 or until expended)

State Energy Offices will set up new Home Energy Performance-Based, Whole-House (HOMES) Rebate Programs.

Rebates are doubled for low- and moderate-income individuals making less than 80 percent of Area Median Income.
- See your area's median income here.
Contractors providing retrofits under HOMES state programs can also claim a $200 rebate per home serviced in an underserved community.
IRA prohibits combining HOMES rebates with any other Federal grant or rebate – including the new High-Efficiency Electric Home Rebate Program.
IRA does not prohibit combining HOMES rebates with state/utility rebate programs.
IRA does not prohibit combining HOMES rebates with federal tax credits like 25C (Energy Efficient Home Improvement Credit).
HOMES rebate programs will feature an array of tiered incentives for consumers based on two different pathways to home performance: modeled energy savings and measured energy savings.

HOMES Tiered Incentive Pathways

HOMES rebate programs will feature an array of tiered incentives for consumers based on two different pathways to home performance: modeled energy savings and measured energy savings.

Modeled Energy Savings Pathway

Projects using the modeled energy savings pathway must be calibrated to historical energy usage for a home consistent with BPI 2400. DOE guidelines will provide more details.

Energy Savings	Single-Family	Multifamily
20-35 Percent	$2,000 or 50% of the project cost (whichever is less). For low- and moderate-income (LMI) individuals, $4,000 or 80% of the project cost (whichever is less).	$2,000 per dwelling unit, with a maximum of $200,000 per multifamily building.
Over 35 Percent	$4,000 or 50% of the project cost (whichever is less). For LMI individuals, $8,000 or 80% of the project cost (whichever is less).	$4,000 per dwelling unit, with a maximum of $400,000 per multifamily building.

Energy Savings

Single-Family

Multifamily

20-35 Percent

$2,000 or 50% of the project cost (whichever is less).

For low- and moderate-income (LMI) individuals, $4,000 or 80% of the project cost (whichever is less).

$2,000 per dwelling unit, with a maximum of $200,000 per multifamily building.

Over 35 Percent

$4,000 or 50% of the project cost (whichever is less).

For LMI individuals, $8,000 or 80% of the project cost (whichever is less).

$4,000 per dwelling unit, with a maximum of $400,000 per multifamily building.

Measured Energy Savings Pathway

Projects using the measured energy savings pathway must use open-source advanced measurement and verification software, as approved by DOE, to determine and document monthly and hourly (if available) weather-normalized home energy use, both before and after home efficiency retrofits. DOE guidelines will provide more details.

Energy Savings	Single-Family & Multifamily
Over 15 Percent	$2,000 payment rate per kilowatt hour saved equal to a 20% reduction for the average home in the state, or 50% of project cost. For LMI individuals, $4,000 payment rate per kilowatt hour saved equal to a 20% reduction per home or dwelling unit, or 80% of project cost. For multifamily buildings to qualify, at least 50% of residents must be LMI. Energy baselines are calculated based on the average energy use of single-family homes or multifamily buildings in the State.

Energy Savings

Single-Family & Multifamily

Over 15 Percent

$2,000 payment rate per kilowatt hour saved equal to a 20% reduction for the average home in the state, or 50% of project cost.

For LMI individuals, $4,000 payment rate per kilowatt hour saved equal to a 20% reduction per home or dwelling unit, or 80% of project cost. For multifamily buildings to qualify, at least 50% of residents must be LMI.

Energy baselines are calculated based on the average energy use of single-family homes or multifamily buildings in the State.

Home Electrification and Appliance Rebates (formerly HEEHR)

Total Funding: $4.5 billion

(available through September 2031 or until expended)

State Energy Offices will set up new Home Electrification and Appliance Rebate programs. These programs will provide point-of-sale rebates for electric appliances for exclusively low- and moderate-income households. Rebates cannot be combined with HOMES rebates, but IRA does not prohibit combining rebates with federal tax credits and state/utility rebates.

Rebates are capped at $14,000 total per recipient.
For households with less than 80% Area Median Income, 100% of costs are covered. For households with between 80-150% Area Median Income, 50% of costs are covered.
$225 million is reserved for tribal communities.

Training Residential Energy Contractors (TREC)

Total Funding: $200 million

(available through September 2031 or until expended)

State Energy Offices can now apply for *$150 million in funding from the Training Residential Energy Contractors Grants (formally Contractor Training Grants) to develop and implement programs to support training home energy efficiency and electrification contractors. The Administrative and Legal Requirements Document (ALRD) provides guidance to State Energy Offices on the application process for formula funding.

Eligible Uses of Funds

Reduce the cost of training contractor employees.
Provide testing and certification of contractors.
Partner with nonprofit organizations to develop and implement grants.

*$200,000,000 total, including $150,000,000 to be distributed to states through a formula in two installments, and up to $40,000,000 to be distributed to states through a competitive process. Details on the competitive process have not yet been announced.

Energy Efficient Home Improvement Tax Credit (25C)

The Inflation Reduction Act of 2022 (H.R. 5376) extends the Energy Efficient Home Improvement Credit (25C) through the end of 2032 and expands the credit to allow households to deduct 30% of the costs of eligible upgrades from their taxes while adding new qualified products and larger dollar maximums. IRA also eliminates the credit’s lifetime cap and makes 25C an annual credit, meaning eligible taxpayers can claim it every year for new improvements (but cannot carry the credit forward to future years).

25C is available now for qualifying upgrades placed in service on or after January 1, 2023. Consumers claim the credits when filling out their tax returns via IRS Form 5695, including any relevant product receipts.
25C expands the credit to allow households to deduct 30% of the costs of eligible upgrades from their taxes while adding new qualified products and larger dollar maximums.
Up to $600 per item: breaker panel, insulation, fossil fuel systems (meeting elevated efficiency limits) with maximum of $1,200 tax credit.
Heat pump water heaters, air source heat pumps, biomass stoves and boilers have a separate yearly credit limit of $2,000.
In a single year, taxpayers may claim up to $3,200 in tax credits for combined upgrades, provided costs fall under each sub-limit.
Can be claimed annually through 2032
IRS Factsheet
Home Energy Auditor Qualified Certification Programs

Click here to download our 25C tax credit fact sheet.

Jump to:
State Allocations for Home Energy Rebate Program | State Contractor Training Grants

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Inflation Reduction Act Resources

Website

DOE Better Buildings Funding & Incentives Resource Hub

May 22, 2023

The Funding and Incentives Resource Hub can help you navigate and discover the many rebates, funding opportunities, and other incentives, including those available through the IRA and BIL.

Download

NEEP: IRA Tax Credits – Commercial Buildings and Property

May 16, 2023

Download an outline of two enhanced and extended tax credits for energy efficiency and building decarbonization.

Download

Energy Circle: Optimizing Webpages for the Inflation Reduction Act Era

May 10, 2023

Use this infographic to inform your Inflation Reduction Act incentives landing page, and make sure to include all key sections.

Video

Energy Circle: Contractor Panel Highlight: Homeowner Awareness of the Inflation Reduction Act

April 18, 2023

Energy Circle CEO Peter Troast brought in some familiar faces to discuss homeowner awareness of the Inflation Reduction Act.

Download

DOE: Energy Planning Blueprint

April 12, 2023

This Energy Planning Blueprint includes a high-level overview of the process and benefits of energy planning, showcases important tools and online resources, and outlines Key Activities to help guide EECBG Program entities to success.

Website

Energy Circle: Marketing IRA Incentives to Low and Moderate Income Homeowners: Actionable Tips for Contractors

March 20, 2023

Energy Circle offers actionable tips for marketing IRA incentives to low and middle-income homeowners.

Inflation Reduction Act Updates

Updates

July 21, 2023

NPR Marketplace: New tax incentives ease home improvements to beat the heat

Updates

July 18, 2023

White House Kicks Off Bid to Train Home Efficiency Workers

Advocacy

July 17, 2023

$150M in Contractor Training Grants Now Available to States

IRA Funding Timeline

DOE Releases Guidance to State Energy Offices

Guidance from DOE will provide more detail on how State Energy Offices (SEOs) can apply for funding and what rebate and training programs should look like.

Find your state allocations below.

State Energy Offices Apply for DOE Funding

State Energy Offices submit applications for funding to DOE, relying on agency guidelines.

State Energy Offices Receive Funds and Set Up Programs

Funding for rebate programs is distributed to SEOs via formula, weighted by population and state energy consumption.

SEOs set up their state rebate programs.

Program Funds Flow to Consumers and Contractors

Rebates drive consumer demand for residential energy efficiency and electrification. Consumer interest drives demand for home performance contractors and electrification.

Your State Allocations for Home Energy Rebate Program

This information is from the U.S. Department of Energy.

State/ Territory	Home Energy Performance-Based, Whole-House Rebate Allocations	High Efficiency Electric Home Rebate Allocations	Total Allocations Amount
Alaska	$37,368,480	$37,150,940	$74,519,420
Alabama	$73,032,210	$72,607,220	$145,639,430
Arkansas	$52,739,720	$52,433,010	$105,172,730
American Samoa	$25,069,710	$24,923,740	$49,993,450
Arizona	$76,868,720	$76,421,080	$153,289,800
California	$291,951,040	$290,252,580	$582,203,620
Colorado	$70,395,350	$69,985,890	$140,381,240
Connecticut	$49,830,560	$49,541,390	$99,371,950
District of Columbia	$29,808,850	$29,635,400	$59,444,250
Delaware	$33,029,650	$32,837,400	$65,867,050
Florida	$173,668,720	$172,657,670	$346,326,390
Georgia	$109,817,290	$109,178,020	$218,995,310
Guam	$25,815,420	$25,665,110	$51,480,530
Hawaii	$34,293,520	$34,093,900	$68,387,420
Iowa	$60,827,450	$60,473,810	$121,301,260
Idaho	$40,604,320	$40,367,910	$80,972,230
Illinois	$132,219,190	$131,452,470	$263,671,660
Indiana	$91,302,840	$90,772,430	$182,075,270
Kansas	$52,971,870	$52,663,910	$105,635,780
Kentucky	$67,319,140	$66,927,750	$134,246,890
Louisiana	$106,593,900	$105,972,960	$212,566,860
Massachusetts	$73,233,910	$72,809,130	$146,043,040
Maryland	$68,611,060	$68,212,540	$136,823,600
Maine	$35,936,920	$35,728,050	$71,664,970
Michigan	$105,904,990	$105,291,160	$211,196,150
Minnesota	$74,459,590	$74,027,440	$148,487,030
Missouri	$75,807,060	$75,366,640	$151,173,700
Northern Marianas	$24,984,780	$24,839,290	$49,824,070
Mississippi	$52,543,050	$52,237,320	$104,780,370
Montana	$35,692,560	$35,484,830	$71,177,390
North Carolina	$104,918,280	$104,307,840	$209,226,120
North Dakota	$37,338,470	$37,121,060	$74,459,530
Nebraska	$45,813,680	$45,547,120	$91,360,800
New Hampshire	$34,952,780	$34,749,580	$69,702,360
New Jersey	$91,840,040	$91,307,380	$183,147,420
New Mexico	$43,999,070	$43,742,970	$87,742,040
Nevada	$48,200,980	$47,920,160	$96,121,140
New York	$159,338,380	$158,415,850	$317,754,230
Ohio	$124,875,180	$124,150,970	$249,026,150
Oklahoma	$64,764,840	$64,388,040	$129,152,880
Oregon	$57,046,250	$56,714,440	$113,760,690
Pennsylvania	$129,980,360	$129,226,380	$259,206,740
Puerto Rico	$42,698,980	$42,451,090	$85,150,070
Rhode Island	$32,006,100	$31,820,030	$63,826,130
South Carolina	$68,852,430	$68,451,650	$137,304,080
South Dakota	$34,379,110	$34,178,990	$68,558,100
Tennessee	$ 83,877,940	$83,390,060	$167,268,000
Texas	$346,022,980	$344,006,590	$690,029,570
Utah	$50,698,180	$50,403,030	$101,101,210
Virginia	$94,537,110	$93,987,430	$188,524,540
U.S. Virgin Islands	$25,660,980	$25,511,580	$51,172,560
Vermont	$29,362,920	$29,192,160	$58,555,080
Washington	$83,266,580	$82,782,050	$166,048,630
Wisconsin	$74,904,830	$74,470,200	$149,375,030
West Virginia	$44,275,290	$44,017,970	$88,293,260
Wyoming	$34,686,390	$34,484,390	$69,170,780

State Contractor Training Grants

This information is from the U.S. Department of Energy.

State/ Territory	Total Formula Allocation	Installment 1	Installment 2
Alabama	$2,562,900	$1,281,450	$1,281,450
Alaska	$1,296,870	$648,435	$648,435
American Samoa	$864,460	$432,230	$432,230
Arizona	$2,642,230	$1,321,115	$1,321,115
Arkansas	$1,881,690	$940,845	$940,845
California	$10,321,930	$5,160,965	$5,160,965
Colorado	$2,501,170	$1,250,585	$1,250,585
Connecticut	$1,881,620	$940,810	$940,810
Delaware	$1,151,040	$575,520	$575,520
District of Columbia	$1,048,490	$524,245	$524,245
Florida	$6,021,760	$3,010,880	$3,010,880
Georgia	$3,816,060	$1,908,030	$1,908,030
Guam	$891,700	$445,850	$445,850
Hawaii	$1,194,820	$597,410	$597,410
Idaho	$1,403,750	$701,875	$701,875
Illinois	$5,086,340	$2,543,170	$2,543,170
Indiana	$3,354,110	$1,677,055	$1,677,055
Iowa	$2,188,600	$1,094,300	$1,094,300
Kansas	$1,908,060	$954,030	$954,030
Kentucky	$2,420,420	$1,210,210	$1,210,210
Louisiana	$3,633,890	$1,816,945	$1,816,945
Maine	$1,303,340	$651,670	$651,670
Maryland	$2,531,970	$1,265,985	$1,265,985
Massachusetts	$2,797,870	$1,398,935	$1,398,935
Michigan	$4,124,380	$2,062,190	$2,062,190
Minnesota	$2,802,670	$1,401,335	$1,401,335
Mississippi	$1,848,620	$924,310	$924,310
Missouri	$2,779,120	$1,389,560	$1,389,560
Montana	$1,248,470	$624,235	$624,235
Nebraska	$1,614,510	$807,255	$807,255
Nevada	$1,637,710	$818,855	$818,855
New Hampshire	$1,259,230	$629,615	$629,615
New Jersey	$3,517,680	$1,758,840	$1,758,840
New Mexico	$1,533,830	$766,915	$766,915
New York	$6,369,300	$3,184,650	$3,184,650
North Carolina	$3,698,030	$1,849,015	$1,849,015
North Dakota	$1,288,200	$644,100	$644,100
Northern Marianas	$860,940	$430,470	$430,470
Ohio	$4,791,100	$2,395,550	$2,395,550
Oklahoma	$2,286,480	$1,143,240	$1,143,240
Oregon	$2,028,480	$1,014,240	$1,014,240
Pennsylvania	$4,960,910	$2,480,455	$2,480,455
Puerto Rico	$1,594,690	$797,345	$797,345
Rhode Island	$1,154,250	$577,125	$577,125
South Carolina	$2,397,600	$1,198,800	$1,198,800
South Dakota	$1,195,450	$597,725	$597,725
Tennessee	$2,980,770	$1,490,385	$1,490,385
Texas	$11,674,260	$5,837,130	$5,837,130
U.S. Virgin Islands	$889,010	$444,505	$444,505
Utah	$1,757,330	$878,665	$878,665
Vermont	$1,048,680	$524,340	$524,340
Virginia	$3,393,040	$1,696,520	$1,696,520
Washington	$2,925,550	$1,462,775	$1,462,775
West Virginia	$1,607,110	$803,555	$803,555
Wisconsin	$2,835,440	$1,417,720	$1,417,720
Wyoming	$1,192,070	$596,035	$596,035

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Navigating the Inflation Reduction Act

What's in the IRA for Home Performance Contractors & Consumers?

Total Funding: $4.3 billion

HOMES Tiered Incentive Pathways

Modeled Energy Savings Pathway

Energy Savings

Single-Family

Multifamily

Measured Energy Savings Pathway

Energy Savings

Single-Family & Multifamily

Total Funding: $4.5 billion

Total Funding: $200 million

Eligible Uses of Funds

More Resources Available with BPA Membership

Inflation Reduction Act Resources

DOE Better Buildings Funding & Incentives Resource Hub

NEEP: IRA Tax Credits – Commercial Buildings and Property

Energy Circle: Optimizing Webpages for the Inflation Reduction Act Era

Energy Circle: Contractor Panel Highlight: Homeowner Awareness of the Inflation Reduction Act

DOE: Energy Planning Blueprint

Energy Circle: Marketing IRA Incentives to Low and Moderate Income Homeowners: Actionable Tips for Contractors

Inflation Reduction Act Updates

NPR Marketplace: New tax incentives ease home improvements to beat the heat

White House Kicks Off Bid to Train Home Efficiency Workers

$150M in Contractor Training Grants Now Available to States

IRA Funding Timeline

DOE Releases Guidance to State Energy Offices

State Energy Offices Apply for DOE Funding

State Energy Offices Receive Funds and Set Up Programs

Program Funds Flow to Consumers and Contractors

Your State Allocations for Home Energy Rebate Program

State Contractor Training Grants

Stay Updated

Contact Details

Tell us about your organization

Email Preferences

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