Historic federal and state investments are amping up the energy transition! Check out exciting tax credits and rebates that can help you kick carbon.
Tax Credits and Rebates
Type: Federal Tax Credit
Amount: 30% of the cost paid by the consumer, up to $150, is available through a federal tax credit.*
Period: 2023-2032
Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
More Information: energy.gov/save/homeowners
Type: Federal Tax Credit and State Rebates
Amount:
- 30% of the cost paid by the consumer, up to $600, is available through a federal tax credit if installed in conjunction with certain electrification or efficiency upgrades*
- Additional income-based incentives will be announced through the federal Home Energy Rebates program (for households at or below 150% area median income).
- Thanks to action at the Minnesota Legislature, extra state funding is also available to extend the impact of federally funded electric panel rebates (for households at or below 150% area median income).
- For the federal tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
- Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for electric panel or circuit upgrades for new electric equipment are not yet available.
- The Department of Commerce will be administering state-allocated rebates established by the Minnesota Legislature. At the time of printing, this rebate program has not yet launched.
Type: State Rebate
Amount: Income-based incentives will be announced through the federal Home Energy Rebates program (for households at or below 150% area median income).
Period: Expected 2025
Access: Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for electrical wiring are not yet available.
More information: energy.gov/save/homeowners
Type: Federal Tax Credit and State Rebates
Amount:
- 30% of the cost paid by the consumer, up to $2,000/year, is available through a federal tax credit.*
- Additional income-based incentives will be announced through the federal Home Energy Rebates program (for households at or below 150% area median income).
- Thanks to action at the Minnesota Legislature, extra state funding is also available to extend the impact of federally funded air-source heat pump rebates (for households at or below 150% area median income).
- For the federal tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
- Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for air-source heat pumps are not yet available.
- The Department of Commerce will be administering state-allocated rebates established by the Minnesota Legislature. At the time of printing, this rebate program has not yet launched.
Type: Federal Tax Credit and State Rebate
Amount:
- 30% of the cost paid by the consumer is available through a federal tax credit.
- Additional income-based incentives will be announced through the federal Home Energy Rebates program (for households below 150% area median income).
- Period: 2023-2032 for federal tax credit; state rebate expected 2025
- For the federal tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
- Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for geothermal heat pumps are not yet available.
Type: State Rebate
Amount: Income-based incentives will be announced through the federal Home Energy Rebates program (for households at or below 150% area median income).
Period: Expected 2025
Access: Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for heat pump clothes dryers are not yet available.
More Information: energy.gov/save/homeowners
Type: State Rebate
Amount: Income-based incentives will be announced through the federal Home Energy Rebates program (for households at or below 150% area median income).
Period: Expected 2025
Access: Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for induction cooktops are not yet available.
More Information: energy.gov/save/homeowners
Type: Federal Tax Credit and State Rebate
Amount:
- 30% of the cost paid by the consumer, up to $2,000/year, is available through a federal tax credit.*
- Additional income-based incentives will be announced through the federal Home Energy Rebates program (for households below 150% area median income).
- For the federal tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
- Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for heat pump water heaters are not yet available.
Type: Federal Tax Credit and State Rebate
Amount:
- 30% of the cost paid by the consumer is available through a federal tax credit.*
- Additional income-based incentives will be announced through the federal Home Energy Rebates program (for households at or below 150% area median income).
- For the federal tax credit, submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
- Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these state-administered rebates for insulation and air sealing materials are not yet available.
Type: Federal Tax Credit
Amount: 30% of the cost paid by the consumer, up to $500/year (up to $250/door), is available through a federal tax credit. *
Period: 2023-2032
Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
More Information: energy.gov/save/homeowners
Type: Federal Tax Credit
Amount: 30% of the cost paid by the consumer, up to $600/year, is available through a federal tax credit.*
Period: 2023-2032
Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
More Information: energy.gov/save/homeowners
Type: State Rebate
Amount: Forthcoming state incentives will be announced through the federal Home Energy Rebates program administered by the Minnesota Department of Commerce.
Period: Expected 2025
Access: Stay tuned as the federal Home Energy Rebates programs are deployed nationwide and administered through Minnesota’s State Energy Office at the Minnesota Department of Commerce. At the time of printing, these whole home energy efficiency rebates are not yet available. Only projects with expected energy savings of 20% or more will qualify.
More Information: energy.gov/save/homeowners
Type: Federal Tax Credit
Amount: 30% of the cost paid by the consumer is available through a federal tax credit.
Period: 2023-2032
Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
More Information: energy.gov/save/homeowners
Type: Federal Tax Credit
Amount: 30% of the cost paid by the consumer is available through a federal tax credit.
Period: 2023-2032
Access: Submit IRS Form 5695 when filing your taxes if you meet the requirements detailed on IRS.gov.
More Information: energy.gov/save/homeowners
Type: Federal Tax Credit and State Rebate
Amount:
- Income-based federal tax credit available to individuals and businesses for new EVs purchased from 2023-2032, up to $7,500 depending upon whether the vehicle meets critical mineral and/or battery component requirements.
- Thanks to action at the Minnesota Legislature, state funding is also available for new EV rebates. A new electric vehicle with a cost of $55,000 base MSRP or less could qualify for a state rebate up to $2,500 if purchased on or after May 25, 2023.
- For the federal tax credit, submit IRS Form 8936 when filing your taxes if you meet the requirements detailed on IRS.gov.For the state program, submit an application via the Minnesota Department of Commerce.
Type: Federal Tax Credit and State Rebate
Amount:
- 30% of the sale price paid by the consumer, up to $4,000, is available through a federal tax credit. Vehicle must be bought from a participating dealer.
- Income-based federal tax credit available starting January 1, 2023.
- Thanks to action at the Minnesota Legislature, state funding is also available for a rebate for an electric vehicles purchased on or after May 24, 2023. Used electric vehicle with a cost of $25,000 or less could qualify for a state rebate up to a $600.
- For the federal tax credit, submit IRS Form 8936 when filing your taxes if you meet the requirements detailed on IRS.gov.
- For the state program, submit an application for a used EV rebate via the Minnesota Department of Commerce.
- Given the popularity of the state EV rebates, rebates are likely to be reserved quickly.
Type: Federal Tax Credit
Amount: 30% of the cost of hardware and installation paid by the consumer, up to $1,000, is available through a federal tax credit if consumer meets income-based and geographical requirements.
Period: 2023-2032
Access: Submit IRS Form 8911 when filing your taxes if you meet the requirements detailed on IRS.gov.
More Information: chargepoint.com/drivers/home/tax-credit/
Type: State Rebate
Amount: A rebate of up to 75% of the sale price of a new e-bike, up to $1,500, is available through the state rebate program. The program is scaled to income and has limited funds available each year of operation.
Period: 2024 and 2025
Access: The Minnesota Department of Revenue has launched an online application portal.
More Information: revenue.state.mn.us/electric-assisted-bicycle-e-bike-rebate
Amount: A rebate of up to 75% of the sale price of a new e-bike, up to $1,500, is available through the state rebate program. The program is scaled to income and has limited funds available each year of operation.
Period: 2024 and 2025
Access: The Minnesota Department of Revenue has launched an online application portal.
More Information: revenue.state.mn.us/electric-assisted-bicycle-e-bike-rebate
Type: Utility Rebates
Amount: Your utility may offer a variety of rebates:
Period: Varies by utility
Access: Varies by utility
More Information:
Amount: Your utility may offer a variety of rebates:
- Solar Rebates
- EV Charger Rebates
- Heat Pump Rebates
- Insulation and Air Sealing Rebates
- Residential Energy Efficiency Rebates
- Commercial and Industrial Energy Efficiency Rebates
- Electric Lawn Equipment Rebates
Period: Varies by utility
Access: Varies by utility
More Information:
- Check with your utility and the DSIRE Database at programs.dsireusa.org/system/program/mn
- Search for air-source heat pump rebates by your utility using MN Air Source Heat Pump Collaborative’s database: https://www.mnashp.org/utility-rebates
Type: Grant and/or Rebate
Amount: TBD
Period: TBD-June 30, 2027
Access: Varies by utility
More Information: Thanks to action at the Minnesota Legislature, the Minnesota Pollution Control Agency will administer state-allocated rebates to eligible applicants to purchase electric lawn and snow removal equipment. Applicants living in environmental justice areas will be d. Access and details are to be determined.
Amount: TBD
Period: TBD-June 30, 2027
Access: Varies by utility
More Information: Thanks to action at the Minnesota Legislature, the Minnesota Pollution Control Agency will administer state-allocated rebates to eligible applicants to purchase electric lawn and snow removal equipment. Applicants living in environmental justice areas will be d. Access and details are to be determined.
Type: Federal reimbursement for some clean energy projects by non-taxed entities
Amount: Varies by tax credit, often 30% if project pays prevailing wage, without limit
Period: 2023-2032
Access: Elective Pay makes a number of energy related tax credits available to non-taxed entities like cities, nonprofits, tribes, churches, and beyond, as direct payments. Organizations must register with the IRS Energy Credits Online portal. Spread the word with your synagogue, nonprofit community organization, city administrator, or other tax-exempt organization.
More Information:
Amount: Varies by tax credit, often 30% if project pays prevailing wage, without limit
Period: 2023-2032
Access: Elective Pay makes a number of energy related tax credits available to non-taxed entities like cities, nonprofits, tribes, churches, and beyond, as direct payments. Organizations must register with the IRS Energy Credits Online portal. Spread the word with your synagogue, nonprofit community organization, city administrator, or other tax-exempt organization.
More Information:
- https://www.cleanenergyresourceteams.org/what-you-need-know-about-ira-electivedirect-pay
- List of available credits: https://www.irs.gov/pub/irs-pdf/p5817g.pdf
- Energy Credits Online portal: https://www.irs.gov/credits-deductions/register-for-elective-payment-or-transfer-of-credits
*Subject to additional annual caps.
