Energize Your Wallet

Unlock the Power of Federal Energy Incentives

Do you hit the snooze button when someone starts talking about kilowatts, electricity use or energy efficiency? It’s true—sometimes, these can be pretty dry topics. What if you could get money back to make your home more energy efficient? And you could continue to keep more cash in your wallet every month because of those efforts?

Here’s the Scoop

Uncle Sam will pay you to make your home more energy efficient. If you’ve upgraded appliances or made home weatherization improvements to your primary residence since 2023, you may be eligible for tax credits or rebates for energy-efficient improvements.

Here’s a sampling of what’s covered: upgraded exterior windows and doors, insulation, high-efficiency ( Energy Star-rated) heat pumps, water heaters, heating and cooling equipment, appliances, switching to an electric vehicle, and adding a home charger or rooftop solar system.

More Money, More Comfort

So, how does it work? Federal tax credits of up to $3,200 per year can be claimed with your federal income taxes for the year when the upgrades are made. Complete IRS Form 5695, follow IRS instructions, and include the form when filing your tax return.

You’ll need to know the total cost of the upgrades and include relevant receipts. Given how annual total limits are structured, consider spreading your home energy-efficiency improvements over a few years. Planning your upgrades can help maximize the annual credit amounts you can claim. As with any tax matter, consulting a tax professional is a good idea.

Don’t Leave Money on the Table

While the Internal Revenue Service manages the federal tax credits, federal energy rebates are handled by the states. Check to see if your energy-efficiency improvements qualify for a rebate. Keep in mind, that you’ll need similar documentation and the total amount spent on the upgrades.

Your wallet will thank you for the effort required to get the cash back. Bonus! Gulf Coast Electric Cooperative has additional incentives.