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How to Keep Track of Federal Home Energy Incentives in 2025

January 25, 2025

By Willa Frej

Summary

Following recent political changes, contractors and homeowners alike have questions about the status of federal clean energy incentives. This guide breaks down where each major program stands and what to expect going forward.

Energy Efficient Home Improvement Tax Credit Status

The tax credit program remains fully active and operational. While there has been discussion about potential changes, the program continues to provide benefits to homeowners investing in energy-efficient improvements.

Key points to note:

  • The tax credit remains in full effect for eligible systems
  • Bipartisan support exists for preserving certain credits, with 18 Republican representatives advocating for their continuation due to demonstrated economic benefits
  • Contractors can continue informing homeowners about credit eligibility for qualifying systems
  • Support is available for homeowners needing assistance with 2024 tax forms through our tax credit reference guide

HOMES and HEAR Rebate Program Update

The Department of Energy has made significant progress in expanding the $8.8 billion clean energy home improvements program. Recent developments include:

  • Funding has been secured for 55 states and territories
  • South Dakota remains the only exception to program participation
  • Initial rollouts have begun in select states
  • Broader implementation across newly approved states is expected throughout 2025
Keep Track

State and Utility Programs

It's important to note that state and utility-level incentive programs operate independently of federal politics. These programs will continue as planned, providing:

  • Ongoing incentives for homeowners across many states
  • Continued availability of meaningful rebates and benefits
  • Long-term stability in program offerings

Looking Forward

While the political landscape continues to evolve, the foundation for clean energy incentives remains strong. Contractors and homeowners can continue to leverage these programs while staying informed about any future developments.