The Inflation Reduction Act introduced two new programs for home energy upgrades.

The first is for electrification rebates, sometimes referred to as the High Efficiency Electric Home Rebate Program (HEEHR), which will provide point-of-sale rebates to low- and moderate-income customers, defined as households with incomes up to 150% of Area Median Income, for home electrification measures, including heat pumps.

The second program is for efficiency rebates, also referred to as the Home Energy Performance Based, Whole House Rebates (HOMES) program. This program will grant funds to states, who will then develop rebate programs for whole-house energy saving retrofits.

At this time, Commerce expects rebates to be available in 2024. Commerce will develop the program throughout fall 2023, and federal funding is expected to be available in late 2023 or early 2024. It may take some time to establish contracts and program processes before money can be distributed to households.

Based on U.S. Department of Energy guidance, projects eligible for these rebates will be those initiated after the states have federal funding, meaning that eligible purchases will likely need to be made after the program officially launches in Washington. However, the federal tax credits renewed under the IRA are currently in effect, meaning purchases in 2023 qualify for these tax credits. You can find more information about tax credits on the clean energy tax credit webpage. If you have further questions, we recommend you consult a licensed tax professional for information that pertains to your situation.

While the IRA provides some federal guidelines for what products qualify and who may be eligible, the state of Washington will design its own program to distribute rebates. Until program design is complete, we cannot guarantee who will qualify when we begin providing rebates in 2024, or that sufficient funds will be available for all who apply. Commerce plans to hold listening sessions later this year to gather input from Washingtonians on how we should design these programs – please enter your email address in the subscribe box on the right-hand side of this webpage to receive notice when the sessions are scheduled.

Commerce expects to hold one or more listening sessions in fall 2023 — please enter your email address in the subscribe box on the right-hand side of this webpage to receive notice when the sessions are scheduled.

Commerce staff also welcome the opportunity to attend virtual or in-person community events to hear feedback from Washingtonians on what they are interested in with regards to these programs. Reach out to HomeRebates@Commerce.wa.gov to notify us of an upcoming event.