Home energy improvements are easier to make with incentives. There are tax credits and utility rebates available now for a limited time, and state rebates to come soon. Whether you are a resident in the process of performing energy-efficient upgrades on your home or looking to collect resources on completed work, we want to make sure you have the most up-to-date information on these incentives.
As a result of H.R.1, a new federal law more commonly known as the One Big Beautiful Bill Act, residential tax credits for energy efficiency improvements are ending soon. Most credits were previously anticipated to last until 2033 under the Inflation Reduction Act. If you are interested in utilizing any of these, it is in your best interest to complete the work you want done before the end of the calendar year. That way, you will still be eligible to receive your tax credits.
Purchases or improvements must be made before the relevant deadline to qualify. See this helpful chart for information on the affected improvement, deadlines, and tax item numbers:
Energy Efficiency Improvement and Tax Credit Amount | Deadline for Completed Work for Tax Credit Eligibility | Tax Item Number |
Electric Vehicle Purchase (New) – Credit up to $7500 | Before September 30, 2025 | 30D |
Electric Vehicle Purchase (Used) – Credit up to $4000 | Before September 30, 2025 | 25E |
Battery Storage Installation – Credit up to 30% of the total cost | Before December 31, 2025 | 25D |
Electric Panel Installation – Credit up to $600 | Before December 31, 2025 | 25C |
Geothermal – Credit up to 30% of the total cost | Before December 31, 2025 | 25D |
Heat Pump – Credit up to $2000 | Before December 31, 2025 | 25C |
Heat Pump Water Heater – Credit up to $2000 | Before December 31, 2025 | 25C |
Home Energy Audit – Credit up to $150 | Before December 31, 2025 | 25C |
Solar (Rooftop Installation) – Credit up to 30% of the total cost | Before December 31, 2025 | 25D |
Weatherization/Insulation – Credit up to $1200 | Before December 31, 2025 | 25C |
Electric Vehicle Charger – Credit up to $1000 | Before June 30, 2026 | 30C |
More detailed information can be found at Rewiring America’s Electric Tax Credits Update and the IRS’s Energy Efficient Home Improvement Credit Page.
For residents interested in rebates, we still expect the Home Energy Rebate Programs through the Inflation Reduction Act to launch later this year. This program will be administered through the State of Minnesota. At this time, a rollout date has not yet been provided, but we will continue to provide updates once we hear.
If you have any questions, please feel free to reach out to the Ecolibrium3 Energy Team via phone at 218-203-0464 or email at energy@ecolibrium3.org.