How to combine new home energy tax credits with Energy Trust incentives

How to combine new home energy tax credits with Energy Trust incentives

Is there a home efficiency upgrade you’ve been waiting to do? With more resources available than ever before, this may be the year to start.

In 2022, Congress passed the landmark Inflation Reduction Act that makes major investments to help people cut their energy use and add renewable energy sources. Those investments include new federal tax credits that became available January 1 and lower the cost of home energy upgrades.

For many people in Oregon and Southwest Washington, these federal tax credits can be combined with cash incentives already offered through Energy Trust, helping you save more money when making your home more energy-efficient and comfortable.

How it works 

Tax credits reduce the amount of taxes you owe or can increase your tax refund. If you make upgrades and purchases for home energy upgrades in 2023, you can claim those credits when filing your 2023 tax return in 2024.

Cash incentives provided by Energy Trust help lower the cost of making specific home energy upgrades. Oregonians can receive them:

  • Through retailers. When you’re buying the equipment or product at the retailer in Oregon, you’re immediately seeing the savings in the sale price.
  • Through trusted contractors who are part of Energy Trust’s Trade Ally Network. They deduct the incentive amount from your final payment.
  • By applying for cash back. After you complete an energy upgrade at home, you can fill out and submit an application online to get a check in the mail.

Before moving forward with any project, it’s important to review the eligibility requirements for both the federal tax credits and Energy Trust incentives.

Tax credits are available for the following upgrades, which also qualify for incentives from Energy Trust:

Energy UpgradeOffer TypeIncreased Incentive (starting Oct 1)
Ductless heat pump replacing electric resistance heatStandard offerUp to $1,0001
Rental promotion$1,800
Rental property$1,800
Savings Within Reach$1,800
Multifamily residence$1,800
Gas furnace (must be 95% AFUE)Community Partner Funding$1,600
Rental property$1,600
Savings Within Reach$1,600
Extended capacity heat pumpStandard offer$1,000
Rental property$2,000
Savings Within Reach$2,000
Community Partner Funding$2,000
Extended capacity heat pump replacing electric furnaceStandard offer$3,000
Rental property$3,000
Savings Within Reach$3,000
Community Partner Funding$6,000
Heat pump replacing electric furnaceStandard offer$1,000
Rental property2$3,000
Savings Within Reach$3,000
Smart thermostatAny offer3$250

NoteRequirements for federal tax credits and Energy Trust incentives may differ. There is an annual cap on federal tax credits of $1,200, with sub-caps on individual items. Homeowners can also receive up to $2,000 (not under the $1,200 cap) for a heat pump or a heat pump water heater. Some solar projects may also quality for state rebates.

 Where to start

If you’re looking for help in identifying which upgrades may be most helpful for your home, Energy Trust provides a free online home assessment.

You can also connect with an Energy Trust home energy advisor who can answer questions about specific upgrades or talk through how to prioritize which upgrade to make first. Set up an appointment by calling 1.866.311.1822.

If you’re feeling stressed to get upgrades completed quickly, don’t be. The new federal tax credits are available until 2032 and more pieces of the Inflation Reduction Act that support energy upgrades will be developed in the coming year including federal tax rebates.

Energy Trust does not give tax advice. Consult your tax professional for current information on credits available and how to apply.