Tax credits and rebates still available for energy-saving projects and electric vehicles

Federal budget cutting has eliminated much of the funding for residential and commercial
clean energy incentives. The scope and media coverage of those cuts makes it easy to
assume that no incentives are available, but you can still find refunds and tax credits for all
kinds of energy-saving projects like weatherization, heat pumps, solar panels and more.
Some federal tax credits are still available, although time is running out on them. Local
governments, including Peterborough and Harrisville, also have secured federal clean energy funding that has escaped the cuts. This funding is available through the HeatSmart+ program.

At least one local non-profit, the Monadnock Sustainability Hub, is stepping up with incentive programs for those considering energy-saving projects. The state’s utilities continue to run programs to help ratepayers make their homes more energy efficient through the NH Saves program, which is run jointly by the state’s three main utilities: Eversource, Unitil, and Liberty. The utilities benefit from these programs because increasing buildings’ energy efficiency helps to reduce electricity demand during peak periods when their costs are highest.

Electric Vehicles

The federal non-refundable tax credit for new or used EVs is still available through September 30, 2025. The maximum credit for new EVs is $7,500; it’s $4,000 for qualifying used EVs. You may apply that credit to the price of the car at the dealer or use it to reduce your federal taxes by the amount of the credit. Since it’s a nonrefundable credit, the government won’t write you a check for the difference if your tax liability is less than the credit. You must buy an EV, new or used, through a dealer, who can walk you through the process. A federal tax credit of 30% of the cost of an EV charger, with a $1,000 maximum, is available until June 30, 2026.

Heat pumps, heat pump hot water heaters

A 30% tax credit on the cost of a heat pump, heat pump hot water heater, or biomass system is available until December 31, 2025, with a maximum credit of $2,000. This tax credit also applies to biomass stoves or boilers.

The NH Saves program (https://nhsaves.com/) offers a rebate on heat pump installations at a rate of $250 per ton, or 12,000 BTUs. For example, a 24,000-BTU heat pump would qualify for a $500 rebate. That rebate increases to $1,250 per ton if the heat pump replaces an electric resistance heating system. Heat pump hot water heater installations qualify for a NH Saves $750 rebate.

The HeatSmart+ program provides up to $3,300 for heat pump or heat pump hot water heater installations to low- to moderate-income Peterborough and Harrisville residents who own detached, single-family homes. For information, go to peterboroughnh.gov/departments/planning_and_building/renewable_energy_plan/heatsmart_plus.php.