Would you like to reduce your energy costs and help the environment? If so, you should know that some U.S. states are now offering green home modification incentives to their residents.
So today, let’s look at four states with incentivizing programs to consider for your green home modifications this year. We’ll discuss what kinds of incentives are available, who can qualify for them, and anything else you need to know for eligibility.
Key Takeaways
- The four top states for green home modification incentives in 2023 are California, Maryland, Massachusetts, and Vermont.
- California offers the TECH initiative, which has rebates for heat pump HVAC systems and other forms of clean heating.
- Maryland has incentives for purchasing energy-efficient products, including wood stoves and other heating products.
- Massachusetts offers rebates for heat pumps and biomass heating.
- Vermont has incentives for those who buy energy-efficient products for their property.
What Are the Federal Green Home Modification Incentives?
Property owners can receive financial compensation for making their property more energy efficient. These incentives can cover a variety of home improvements, including installing insulated windows and doors, upgrading HVAC systems, and even adding solar power.
Depending on where you live, you qualify for varying state-level incentives. So let’s look at four states that offer some of the best green home modification incentives in 2023.
Top States for Home Modification Incentives
California
CA Technology and Equipment for Clean Heating (TECH) Initiative
The TECH Initiative is a program that gives people money back for switching to clean heating. It’s composed of two parts. First, TECH will check the amount of money California’s natural gas utilities have provided property owners. From there, they match the amount and give it directly to contractors. This incentivizes the property owner and the contractor to switch to clean heating since both parties know they will get some money back. These matching funds offer anywhere from $3,000 per installation to $6,600.
Eligibility is determined solely by zip code. Check to see if you qualify for TECH today.
Maryland
Sales Tax Holiday for Energy-Efficient Appliances
The sales tax holiday is a tax incentive for certain ENERGY STAR products. With this incentive, appliances that meet the requirements (and are purchased within a specified time frame) are exempt from 100% of all state taxes. The holiday time frame is set for three days, starting from “the Saturday immediately preceding the third Monday in February through the third Monday in February each year.”
The ENERGY STAR product types eligible under the law include:
- Furnaces
- Dehumidifiers
- Boilers
- Compact fluorescent light bulbs
- Air conditioners
- LED lighting
- Heat pumps
- Standard size refrigerators
- Programmable thermostats
- Clothes washers
- Heat pumps and solar water heaters
Clean-Burning Wood Stove Grant Program
This green home incentive offers two significant rebates. The first is a $500 rebate for wood-burning stoves. And the second is a $700 rebate for pellet-burning stoves. As long as you purchase a new wood or pellet-burning stove that meets the following criteria, you can receive a rebate:
- Stoves must be EPA-Certified
- Stoves can’t produce more than 3 grams of particulate matter per hour
- Pellet-burning stoves can’t make more than 2 grams of particulate matter each hour (Washington State emission rules)
Additionally, you must adhere to the following:
- All stoves must have an EPA-Published efficiency rating of 75% or higher
- The property utilizing the stove must be your primary place of residence
Wood Heating Fuel Exemption
Do you use wood or “refuse-derived” fuel to heat your property? If so, it is exempt from state sales tax under this green incentive—regardless of whether the consumer is in the commercial or residential sector. It is a 100% tax exemption on all wood heating fuel. And there’s no special application or actions required to get the exemption. It’s applied automatically.
Massachusetts
Residential & Small-Scale Air-Source Heat Pump Program
Massachusetts offers money-back rebates to people who put cold-climate air-source heat pumps (ASHPs) in their properties. This property could be your house, a public place like a library, or a commercial business.
But you must put these heat pumps in properties that are part of a utility area: specifically, Renewable Energy Trust Fund areas, such as the National Grid, Eversource, Unitil, and municipal light plants.
Depending on the type of property, you can get different rebate amounts:
- Residential: Get up to $625 per unit with a maximum of $2,500.
- Low-Income Residential: Get up to $800.00 per unit with a maximum is $6,000.00.
- Commercial, Multifamily Residential: Get up to $625 per unit with a maximum of $12,500.
- Local Government, Non-profit, Schools, State Government, Federal Government: Get up to $800 per unit with a maximum of $16,000.
- Multi-family Residential: Get a maximum of $30,000.00.
Residential & Small-Scale Biomass Heating Program
The Massachusetts Clean Energy Center offers a rebate for installing small wood pellet heating systems in certain types of buildings, including residential, commercial, public, and non-profit structures. Your property must be in an area that pays into the Renewable Energy Trust Fund, and you must also use it all year.
If you qualify, you can find your potential rebate amount below:
- Residential: Get up to 45% of the cost with a maximum of $12,000.
- Local Government, Nonprofit, State Government, Federal Government, Multifamily Residential: Get up to 50% of the cost with a maximum of $27,000.
- Commercial, Multifamily Residential: Get up to 40% of the cost with a maximum of $22,000.
- Low-Income Residential: Get up to $16,500.00.
Vermont
Residential Rental Property Rebate Program
Are you a rental property owner with energy-efficient equipment? Managers of multi-family buildings are eligible for rebates when they purchase new furnaces, ventilation fans, boilers, or energy-efficient refrigerators. Through this program, you may also request LED bulbs, low-flow shower heads, and faucet aerators free of charge.
Here are the rebates you can get as a rental property owner:
- Refrigerators: $150 – $250
- Ventilation Systems: $110/fan
- Boilers: $2/MBh
- Furnaces: $500
- Free: LEDs, Low-Flow Shower Heads, and Faucet Aerators
Residential Heating Systems Rebate Program
Vermont also offers rebates and discounts if you buy new efficient heating equipment in a residential property. Here are the rebate values of what you can get:
- Furnaces and Boilers: $250
- Central Wood Pellet Furnaces and Boilers: $2,000
- High-Performance Circulator Pumps: $15 – $50 discount
- Cold Climate Heat Pumps: $600 – $800 discount
- Smart Thermostats: $150
Just make sure you meet the following requirements:
- Oil furnaces and boilers must be at least 87% efficient.
- Propane furnaces and boilers need an efficiency of 95% or higher.
- Boiler installations must have high-performance circulator pumps (HPCP).
- Central wood pellet furnaces and boilers must have an automated on/off switch, at least one week of fuel storage, and a regular feed.