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Inflation Reduction Act Tax Credits & Rebates

The Inflation Reduction Act (IRA) Has Tax Credits and Rebates For Knoxville Homeowners

If you’ve been considering upgrading your home’s HVAC system, water heater, and electrical box, now is the time! The Inflation Reduction Act provides tax credits and rebates that can mean huge savings for you on qualifying new appliances, equipment, and installation.


How Much Can I Save with Tax Credits?

25C Tax Credit (Covers 30% of Cost)
For Qualified Electrification Upgrades
Total Annual Credit$3,200
Heat Pump$2,000
Other Upgrades$1,200
Annual Credit For Heat Pumps and Heat Pump Water Heater$2,000
Heat Pump$2,000
Annual Credit for Other Upgrades$1,200
Air Conditioner$600
Electrical Panel$600
Energy Audit$150

The Inflation Reduction Act (IRA) was created to benefit homeowners who make energy-efficient home upgrades, with over $369 billion in tax credits and rebates. The IRA allows homeowners who purchase heat pumps or other energy-efficient home appliances to save more than $14,000 in consumer rebates and tax incentives. Not only that, but energy-efficient upgrades can also save homeowners in the Knoxville area over $600 annually on their energy bills.

Contact Pioneer or call 865-351-1995 today to learn how to save money this year through rebates and tax incentives.

25C Energy Efficient Home Improvement Tax Credit

The Inflation Reduction Act has built-in tax credits for households making energy-efficient upgrades, including the Energy Efficient Home Improvement Tax Credit. An expansion of the existing 25C tax credit, allows homeowners to deduct up to 30% of the total cost of certain home improvements, up to $3200 each year. NOTE: Certain requirements set by the Consortium For Energy Efficiency and Energy Star must be met for home upgrades to be eligible for the 25C tax credit.

The Knoxville home service experts at Pioneer can provide you with help and guidance when you are ready for your energy-efficient upgrades. Contact us online or call 865-351-1995 to schedule your free home energy analysis today.

Yes, everyone is eligible for the 25C tax credit. There are no income qualifications; anyone with adequate tax liability to offset can qualify.

Yes. Eligible 25C upgrades must meet the Consortium for Energy Efficiency’s highest non-advanced tier and Energy Star requirements. The professionals at Pioneer can help you select the right upgrades to qualify for the 25C tax credit.

The professionals at Pioneer will provide you with all the proper documentation to easily claim your home upgrade tax credits when you file your taxes. NOTE: We are not tax professionals and cannot offer filing or other financial advice.

Let Pioneer help you get the most out of your tax credits. Contact us today or call 865-351-1995 for assistance.

Rebates Are Coming Soon

High-Efficiency Electric Home Rebate (HEEHRA)

The High-Efficiency Electric Home Rebate program was designed to provide point-of-sale immediate discounts to low- and middle-income homeowners, allowing them to save up to $14,000 on energy-efficient upgrades. The program covers 100% of electrification costs for low-income households and 50% of costs for moderate-income households, including the cost of equipment and labor for professional installation. To qualify for this rebate program, households must earn less than 150% of the area median income.

HEEHRA Rebate Levels
For Qualified Electrification Upgrades
Income Eligibility and % Costs Covered
Low Income: <80% Area Median Income (AMI)
% costs covered (including installation)
Moderate-Income: <80% Area Median Income (AMI)
% costs covered (including installation)
Overall Incentives
Max Consumer Rebate$14,000
Max Contractor Rebate$500
Rebates for Qualified Electrification Projects
Heat Pump HVAC$8,000
Heat Pump Water Heater$1,750
Electric Stove/Cooktop$840
Heat Pump Clothes Dryer$840
Breaker Box$4,000
Electric Wiring$2,500
insulation, air sealing, ventilation

Whole Home Energy Reduction Rebate Program (HOMES)

The Homeowner Managing Energy Savings (HOMES) rebate program was created to encourage families to cut back on their energy use and will reimburse Knoxville, homeowners, anywhere from $2000-$8000 for whole-house energy improvements. The HOMES rebate program applies to homeowners who cut their energy use by 20%-35% (or more). Low- and middle-income households can save $4000-$8000 or 80% of project costs. High-income households can save $2000-$4000 or 50% of project costs. The HOMES rebates are based on the performance of energy savings measured by a threshold of either 20% modeled savings (pre-upgrade) or 15% measured savings (post-upgrade). The more energy you save, the bigger the rebate. All Knoxville homeowners qualify for the HOMES rebate program.

Are Rebates Available Now?

The HEEHRA and HOMES rebate programs will start sometime at the end of 2023 or the beginning of 2024 through state energy offices, depending on guidance from the Department of Energy. Be sure to check with Pioneer to see if rebates are available when you’re ready to purchase.

Tax Credits and Rebates—what’s the difference?

A tax credit is money that will be given back to customers when they file their taxes. You can earn up to $3200 in tax credits with the 25C tax credit every year with the Inflation Reduction Act.

Rebates are off-the-top discounts at the point of sale and provide customers with upfront savings. Rebates will not be available until the end of 2023 or the beginning of 2024. Contact Pioneer to stay updated on the latest news about when rebates will be available in Knoxville.

How do I save on my home upgrades today?

Take advantage of the 25C Energy Efficient Home Improvement tax credit and ask our professionals at Pioneer how you can maximize savings with qualified energy-efficient upgrades. We’re ready to help you every step of the way.

Fill out our contact form or call 865-351-1995 to learn more information on how to take advantage of the $369 billion Inflation Reduction Act.

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