Tax credits, rebates can help pay for home energy upgrades

By
Posted on Jan 28 2025 in Boone REMC
Man doing a home project

Home energy-efficiency upgrades can lower energy bills, make your home more comfortable, and reduce your environmental footprint. A variety of tax credits and rebates are available that can help make home energy improvements more affordable. 

Tax credits

Federal tax credits of up to 30% are available for qualifying home improvements, subject to project-specific maximums outlined below. 

Air source and geothermal heat pump HVAC systems: $2,000 maximum

Heat pump water heaters:$2,000 maximum

Insulation and air sealing: $1,200 maximum; improvements include insulation, weatherstripping, caulk and expandable foam; materials or systems must meet International Energy Conservation Code requirements

Windows and skylights: $600 maximum; must make the ENERGY STAR® Most Efficient list, which features the very best products for energy savings and environmental protection

Exterior doors: Maximum $250 per door, $500 total; eligible doors must be ENERGY STAR-certified.

Claiming tax credits

You can claim credits when you file your tax return. A credit is an amount you subtract from the tax you owe, which can lower your tax payment or increase your refund.

If you completed qualifying home energy upgrades last year, you can claim them on this year’s return. Any upgrades you make this year can be claimed next year. 

Gather all relevant documents associated with your energy upgrades. To claim credits, answer appropriate questions in your tax filing software. If you file a paper return, you must complete Form 5695 and attach it.

For more information, visit irs.gov/credits-and-deductions or contact a qualified tax professional.

Rebates

Boone REMC members may qualify for energy efficiency rebates offered through our wholesale power provider’s POWER MOVES® program. For more specific details about each rebate or to learn about business rebates, please visit our website at bremc.com/rebates or call us at 800-897-7362. Rebate offers for residential members in 2025 are as follows:

Wi-Fi thermostat: Select from a list of qualified models (find a link on our website); must be replacing a non-Wi-Fi thermostat; rebate maximum: $75

Air source heat pump: Rebate amounts range from $250 to $1800

Geothermal heat pump: Rebate amounts range from $250 to $2,000

Dual fuel heat pump-split system (ducted): $500

Heat pump water heater: $800

Claiming rebates

For the 2025 incentives listed above, rebated equipment must be installed and operational on or after Jan. 1, 2025, and on or before Dec. 31, 2025. Members can complete the application process online or by mail. Visit our rebates page at bremc.com/rebates to find a link to the online application or to download a form to mail. If you need assistance, contact us at 800-897-7362 or stop by our office during regular business hours, Monday through Friday, 7:30 a.m. to 4:30 p.m.

All applications should be submitted or postmarked by Feb. 28, 2026. If you installed energy efficiency items in 2024, you can find a list of eligible rebates on our website. Applications for the 2024 rebate program must be submitted or postmarked by Feb. 28, 2025.