Have questions about available tax credits?

Improving your home’s energy efficiency with energy upgrades, such as insulation, make you feel good about saving money and the environment. But as an extra incentive and thank you for doing your part, local and federal programs offer a variety of tax credits and rebates for energy upgrades that you may qualify for. It’s a win-win for everyone!

Local Energy Incentives

Prairie Village Grant Program

The city will provide a 25% match for energy efficiency improvements for one- and two-family dwellings with a minimum $2,000 investment by the property owner or a 50% match with a minimum $1,000 for an insulation-only project.

Reimbursement amounts from the city will be a minimum of $500 and a maximum of $2,500.

Energy-saving improvements must meet the 2021 International Energy Conservation Code and/or the attached project specifications, whichever results in the greatest energy efficiency.

Full program details can be found here: Residential Sustainability Grant, City of Prairie Village.

Merriam Grant Program

The program will provide a 30% reimbursement for energy saving improvements upon completion.

Minimum $2,000 investment by property owner.

Reimbursement amount = minimum $600; maximum $3,000.

Eligible improvements include but are not limited to: Home Energy Audit (blower door audit) by certified auditor, solar power, wind power, energy efficient HVAC and/or water heater, energy efficient windows and/or doors, insulation, geothermal heating and cooling, duct sealing.

Energy saving improvements must meet the 2018 International Energy Conservation Code.

Full program details can be found here: Residential Sustainability Grant, City of Merriam.

Federal Tax Credits

The Inflation Reduction Act (IRA) is directing an unprecedented $369 billion toward energy saving initiatives through tax credits. These tax credits will have numerous benefits including improved energy efficiency, reduced energy bills, and improved home comfort.

IRA tax credits include:

  • Residential retrofit incentives
  • New and retrofit commercial incentives
  • New home incentives
  • Efficient building envelopes through building codes
30% Tax Credit (up to $1200) for Insulation Upgrades

Here are some key points from the Act:

New Home Incentives

  • Builder credit of $2,500 for single family homes that meet ENERGY STAR Version 3.2 and meet 2021 IECC prescriptive envelope standards.
  • Builder credit of $5,000 for homes that meet DOE Zero Energy Ready Home standard.
  • Builder credit of $500 / $1,000 for multifamily units, with incentives increasing to $2,500 / $5,000 when meeting prevailing wage requirements.
  • Enhanced credit amount applies from January 1, 2023 to December 31, 2032.

Residential Retrofit Incentives

  • Enhanced credit amount applies from January 1, 2023 to December 31, 2032.
  • 30% of insulation and air sealing materials up to $1,200 (per year).
  • Credit available on a yearly basis.
  • Home energy audits covered up to $150.

Get Started Today

There are many components to the IRA and many ways you can save, but tax credits are subject to program changes. Check out more details at the Energy.gov website.

REMEMBER – federal tax credits can be combined with local incentives for even bigger savings!

Our team is happy to answer all your energy incentive questions. Contact us today to discuss your project and which incentives you may qualify for.