Incentives for Home, Business and Transportation Electrification

Home & Business Electrification Incentives

Replacing a car or appliance is never cheap. And the sometimes higher initial cost of a cleaner choice can be daunting, even though fuel savings often pay it back in a few years.

Fortunately, incentives in various forms often make the cleaner choice pay back even faster, leaving you ready for the next electrification project even sooner. Part of being prepared to decarbonize through electrification is doing homework to know how to receive a federal tax incentive or a utility rebate. What follows is a sampling of electrification-related incentives available in southern Arizona. When you’re ready to take a big step, look around, because incentives are likely to change — often in a positive direction — in coming months. Here is a table of current and upcoming federal incentives.

Most federal tax credits available to apply to Spring 2024 tax filings (for 2023 expenditures) can be claimed on IRS Form 5695. Follow the links below, search for Residential Energy Credits or consult your tax preparer for details. See also Business Energy Credits (Form 3468) or, for landlords leasing energy efficient properties, Form 8908.

Heat Pump (for air conditioning and heating)

TEP: $900 for Heat Pump installed (early retirement of old system); $650 otherwise
Federal: $300 Tax Credit for Heat Pump installed.

Heat Pump Water Heater

TEP: Up to $400 for HPWH installed.
Federal: $300 tax credit for HPWH installed.

TEP also offers incentives for other home energy efficiency measures, including smart thermostats, AC tune-ups, duct sealing, pool pumps, and shade trees.

Federal energy efficiency incentives are also available for additional energy conservation measures in homes and businesses.

Transportation Electrification Incentives

Federal EV purchases tax credit

A Federal tax credit of up to $7,500 is currently available to offset part of the purchase price of some new EVs. See this summary and look for updates. Action opportunity: Ask Congress to take Climate action through the Budget Reconciliation Bill (Summer 2022).

EV charging incentives

TEP:   –Reduced rates for off-peak EV charging
         -Up to $500 rebates to offset costs of residential EV chargers
         –More generous rebates ($6,000-$9,000) for chargers installed at businesses, non-profits, and multi-family housing locations

Federal: –EV charging tax credit (through 2021).

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