Posted On: February 29, 2024
In 2022, when the Inflation Reduction Act was signed into law it revived and enhanced the tax credit program (25C) for making energy efficiency improvements to a tax payer’s home. It also included provisions for states to create their own programs around electrification and energy efficiency improvements. States are required to apply for these funds and overall it can be a challenge to keep track of where each state stands in the process.
The Department of Energy now has a website to help track the status of each state.
The first step for a state is to apply for administrative funding and once that funding is received, they begin work building their state-specific program(s), which must be submitted and approved through an application process. Four states so far have program applications submitted while 37 states have applied for administrative funding with many already having been awarded the administrative funding.
Remember these programs are focused on Heat Pumps – are your dealers confident installing heat pumps and ready to take advantage?