Official Government Website

Rebates & Incentives

Idaho Residential Alternative Energy Tax Deduction:

  • The residential alternative energy tax deduction allows taxpayers an income tax deduction of 40% of the cost of a solar, wind, geothermal, and certain biomass energy devices used for heating or electricity generation. This can be applied in the year that the energy system is installed. 20% can be deducted each year for an additional three years. The maximum deduction in any one year is $5,000. The total maximum deduction is $20,000.

Idaho State Energy Loan Program:

  • OEMR’s State Energy Loan Program offers low-interest loans to develop energy projects for homes located within Idaho. Applications are evaluated using project specification that are noted under the Qualifying Addendums below. All loans are evaluated by a financial institution for credit worthiness and must be secured with real estate. Consumers may choose to leverage these loans by accessing utility incentives and federal and state tax credits and deductions.
  • Single Family Housing Loans – $1,000 minimum to $30,000 maximum.
  • Please see OEMR’s Loan Program page for more information.

Weatherization Assistance Program

The Weatherization Assistance Program provides Department of Energy-approved measures to low-income households in order to increase energy efficiency and decrease energy burden. This program is available year-round to eligible home owners and renters. Household eligibility is based on income. For more information regarding the Weatherization Assistance Program please visit the State of Idaho’s Department of Health and Welfare website.

Other Financial Incentives

Energy Savings Hub

Energy Savings Hub is here for the average American consumer to find ways that they can save money by going green. This means helping you find a way to reduce your carbon footprint and your wallet! Please visit the Department of Energy for more information.

Inflation Reduction Act (IRA)

The information below is from the Inflation Reduction Act (IRA).

IRA Energy Rebates

OEMR is actively engaged in collaborative efforts with partners, stakeholders and counterparts in other states to review and analyze the Home Energy Rebates Programs, with the intention to develop a program to benefit Idahoans. While OEMR remains on track to meet the application deadline, it is important to note that rebates are not currently available. This process is ongoing and we strongly advise against basing purchasing decisions on the anticipation of receiving a rebate at this time.  To stay up to date on the latest developments, we encourage you to subscribe to our newsletter: OEMR Newsletter

For the most current information regarding the Home Energy Rebates Programs,  please refer to the DOE’s official website

The IRA includes approximately $8.8 billion in rebates for home energy efficiency and electrification projects. The rebate programs will  help American households save money on energy bills, upgrade to clean energy equipment and improve energy efficiency, and reduce indoor and outdoor air pollution. The rebate programs include:

Rebate Provision

IRA Information Summary
Home Energy Performance Based, Whole-House Rebate IRA page 216 Section 50121 Rebates for energy efficiency retrofits will range from $2,000 – $4,000 for individual households and up to $400,000 for multifamily buildings. This offers grants to states to provide rebates for home retrofits up to $2,000 for retrofits reducing energy use by 20% or more and up to $4,000 for retrofits saving 35% or more. Maximum rebates can double for retrofits of low- and moderate-income homes.
High-Efficiency Electric Home Rebate Program IRA page 219 Section 50122 Develops a high efficiency electric home rebate program with $225 million allocated for Tribes. Includes means testing and will provide 50% of the cost for incomes 80 to 150% of area median income, and 100% of the cost for incomes 80% of area medium income and below and similar tiers for multifamily buildings. Includes a $14,000 cap per household, with a $8,000 cap for heat pump costs,  $1,750 for a heat pump water heater, and $4,000 for panel/service upgrade.

 

IRA Tax Credits

To learn more about IRA Tax Credits please visit the Department of Energy or Internal Revenue Service.

Equipment Type Tax Credit Available for 2022 Tax Year Updated Tax Credit Available for 2023-2032 Tax Years
Home Clean Electricity Products
Solar (electricity) 30% of cost
Fuel Cells
Wind Turbine
Battery Storage N/A 30% of cost
Heating, Cooling, and Water Heating
Heat Pumps $300 30% of cost, up to $2,000 per year
Heat Pump Water Heaters
Biomass Stoves
Geothermal Heat Pumps 30% of cost
Solar (water heating)
Efficient Air Conditioners* $300 30% of cost, up to $600
Efficient Heating Equipment*
Efficient Water Heating Equipment* $150 30% of cost, up to $600
Other Energy Efficiency Upgrades
Electric Panel or Circuit Upgrades for New Electric Equipment* N/A 30% of cost, up to $600
Insulation Materials* 10% of cost 30% of cost
Windows (including skylights) 10% of cost 30% of cost, up to $600
Exterior Doors* 10% of cost 30% of cost, up to $500 for doors (up to $250 each)
Home Energy Audits* N/A 30% of cost, up to $150
*Subject cap of $1,200/year

 

Additional Tax Credit Information

Tax Credit Information Tax Code IRA Information Summary
Alternative Fuel Infrastructure Credit 30C Page 149 Section 13404 Fueling equipment for natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel, is eligible for a tax credit of 30% of the cost or 6% in the case of property subject to depreciation, not to exceed $100,000.
Clean Electricity Production Credit 45/45Y Page 165 Section 13702 For any taxable year is an amount equal to the product of 0.3 cents, multiplied by the kilowatt hours of electricity produced by the taxpayer from qualified energy resources, and at a qualified facility during the 10-year period beginning on the date the facility was originally placed in service, and sold by the taxpayer to an unrelated person during the taxable year.
Clean Electricity Investment Credit 48/48E Page 173 Section 13702 Technology-neutral tax credit for clean energy generation and for energy storage projects placed in service after Dec. 31, 2024. The credit will phase out for projects beginning construction in the first calendar year after the “applicable year,” which is either 2032 or the calendar year that the annual greenhouse gas emissions from electricity generation are 75% lower than in 2022. The maximum ITC value of 30% bonus credit will last until 2033, then drop to 75% of the maximum in 2034 (22.5% bonus credit), and to 50% of the maximum in 2035 (15% bonus credit).
Carbon Dioxide Sequestration Credit 45Q Page 107 Section 13104 Provides up to $85 per metric ton of CO2 permanently stored and $60 per metric ton of CO2 used for enhanced oil recovery or other industrial uses of CO2. The credit increases for direct air capture projects to $180 per metric ton of CO2 permanently stored and $130 per metric ton for used CO2.
Clean Hydrogen Production Credit 45V Page 119 Section 13204 Provides projects that begin construction before 2033 a credit for 10 years after placed in service for $0.60 per kilogram of clean hydrogen produced.
Commercial Clean Vehicles 45W Page 147 Section 13403 Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000. The credit will be the lesser of either the incremental cost of the vehicle or 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel). Maximum credit is $7,500 for vehicles with gross vehicle weight ratings under 14,000 pounds and $40,000 for all other vehicles.
Manufacturing Production Credit 45X Page 154 Section 13502 A tax credit equal to 10% of the cost of production is awarded to the producer of the following applicable critical minerals used in such manufacturing: aluminum, antimony, barite, beryllium, cerium, cesium, chromium, cobalt, dysprosium, europium, fluorspar, gadolinium, germanium, graphite, indium, lithium, manganese, neodymium, nickel, niobium, tellurium, tin, tungsten, vanadium, yttrium and others. Eligible minerals must be produced in the United States. The credit for critical mineral production begins in 2023 and is exempt from the phaseout that is applied to other eligible components beginning in 2030.
Clean Fuel Production Credit 45Z Page 180 Section 13704 Provides a base credit of $0.20 per gallon or $1.00 per gallon if prevailing wage and apprentices requirements are met. For sustainable aviation fuel, the Act provides a base credit of $0.35 per gallon or $1.75 per gallon if prevailing wage and apprentices requirements are met. The actual credit amount is determined by the GHG emissions factor. Credit applies to transportation fuel produced and sold by the taxpayer from December 31, 2024, through December 31, 2027
Advanced Energy Production Credit 48C Page 152 Section 13501 Provides a tax credit up to 30% on investments into production facilities for clean energy producers for purchasing and commissioning property to build a manufacturing facility before January 1, 2025. The credit includes additional types of qualified investments for up to $10 billion in credits.

 

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