The Inflation Reduction Act (IRA) Home Energy Rebates programs provide rebates for home improvements like energy efficiency and home electrification measures. The rebates are for low- and moderate-income homes and will be distributed through third-party administrators. We expect these programs to begin in early 2025.
IRA programs
Home Electrification and Appliance Rebates (Section 50122)
This program provides rebates at the point of sale for income-eligible consumers on a range of highly efficient electric equipment and electrification projects.
Status: Washington State applied for these funds and has been awarded them by DOE in June 2024. Rebates will be available no sooner than early 2025.
Whole Home Efficiency Rebates (Section 50121)
This program provides rebates to homeowners for whole-house energy savings retrofits. Rebates will vary by amount of energy savings and income qualification.
Status: Washington State has applied for these funds. DOE expects to release funds to Washington State later this year. Rebates will be available no sooner than early 2025.
- Commerce will target half the rebate funds toward low-income households, defined as those with incomes less than 80% AMI
- Both renters and homeowners qualify
- It is likely that rebates will also be available to households with incomes less than 150% area median income (AMI) and entities that own multifamily buildings primarily serving lower incomes households
- Third-party implementers will manage the rebate program
- You or your building owner will apply to the implementers for the rebates
- You must apply and be approved first before buying appliances or doing the upgrades (there is no rebate guarantee for work completed before the program launches)
What the rebates can cover
- Electric wiring
- Electric panel upgrade
- Insulation
- Air sealing
- Ventilation
- Appliances
- Heat pumps
- General weatherization measures
Rebate amounts
Rebate amounts will vary depending on equipment and the work being done. View HEAR and HOMES fact sheet (PDF) to see more information
Will the rebates be retroactive?
Federal law does not authorize states to offer Home Electrification and Appliance Rebate Program (50122) retroactively. It is unlikely that rebates will be retroactive for the Whole Home Efficiency Rebates (Section 50121) program due to a number of laws and guidelines.
If you have further questions, you can visit the DOE frequently asked questions website.
Commerce expects rebates to be available no sooner than early 2025. We are currently designing the rules and processes for the program. We estimate federal funding will be available to households in 2025.
- If you need financial assistance with these upgrades, there may be state, municipal, utility, and federal programs available, including the Washington State Weatherization Assistance Program
- Tax credits under the IRA are available. Please contact the Internal Revenue Service, the US Department of Energy’s Clean Energy Tax Credit webpage or your tax preparer for more information.
The 2022 Inflation Reduction Act directed $500 billion to accelerate clean energy investments that reduce carbon emissions. Building-related rebates and incentives under the IRA will support electrification and efficiency, with a special focus on low-income households. Households will be able to take advantage of a range of upfront rebates and tax credits for energy efficient electric appliances and energy efficiency improvements in their homes. For more information on the Inflation Reduction Act please see the IRA Guidebook.