Financial Incentives for RHC
Types of Incentives
The federal government, states, communities, and other organizations provide a wide variety of incentives to encourage homeowners, business owners, and municipal leaders to install renewable heating and cooling (RHC) technologies. These incentives include:
- Personal tax credits and deductions
- Corporate tax credits and deductions
- Loans and loan guarantees
- Grants for municipal projects, schools, and certain commercial development projects
- Subsidies and rebates from utilities
The Database of State Incentives for Renewables and Efficiency Exit (DSIRE) provides the most comprehensive, up-to-date information about financial incentives for renewable energy projects. Users can search for incentives by state or view a summary of federal incentives.
The Internal Revenue Service (IRS) website provides more information about tax incentives and policies:
- Tax incentives for individuals
- Tax incentives for businesses
- IRS policies clarified in November 2013
For more information about sources of funding for renewable heating and cooling projects, visit EPA’s Financing an RHC Project page.