Inflation Reduction Act Home Energy Rebates

The federal Inflation Reduction Act (IRA) and the Washington State Legislature provides funds to support home improvements like energy efficiency and home electrification measures. Washington expects to receive IRA funding for two rebate programs in 2024.

Aerial view of a neighborhood clustered with trees.

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.

Frequently Asked Questions (FAQs)

  • 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)  

Upgrades and building materials could include: 

  • Electric wiring  
  • Electric panel upgrade  
  • Insulation 
  • Air sealing
  • Ventilation 
  • Appliances
  • Heat pumps
  • General weatherization measures

Commerce is currently working with DOE to design rebate maximums that will meet household needs in Washington State. Check back for more information. 

Commerce expects rebates to be available no sooner than early 2025. We are currently designing the rules and processes for the program.

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.

  • If your home urgently needs energy efficiency upgrades, don’t wait!    
  • 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 or the US Department of Energy’s Clean Energy Tax Credit webpage for more information. Please see your tax preparer for more information.

Program History

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.

Questions?    homerebates@commerce.wa.gov 

Updates and Announcements

Inflation Reduction Act Home Energy Rebates Program
Inflation Reduction Act Home Energy Rebates program is pleased to announce we have submitted Washington State’s funding applications to the Department of Energy (DOE) for the Home Electrification and Appliance…

Contact

Home Energy Rebates Team
Email: HomeRebates@Commerce.wa.gov

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