Interested in saving money and making your home more climate friendly? Get $3,200 or more back on home improvements with new federal funding!

Photo by Tima Miroshnichenko: June 11, 2023
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Photo Credit: UPDwell Homes

This post was adapted from a City of Philadelphia article written by Anna Shugoll. It has been modified to contain Montgomery County-relevant information by Fisher Mallon.

Half of Montgomery County’s annual carbon emissions, a staggering five million metric tons of CO2, come from our buildings’ energy use. Luckily for our county’s health, safety, and for your pocketbook, there are a variety of ways that you can save money while making your home more climate-friendly. Keep reading to learn about local, state, and new federal funding from the Inflation Reduction Act (IRA) that can help you pay for sustainable home upgrades!

Two types of IRA tax credits can help you make your home more energy efficient, transition to clean sources of energy, and save money.

  • Energy Efficient Home Improvement Tax Credit: Claim up to $3,200/year on energy-saving renovations and efficient appliances.
    • Get 30% back (up to $1,200/year) on energy-saving renovations including electric panel upgrades for new electric equipment, energy efficient exterior doors and windows, insulation and air-sealing materials, energy efficient skylights, energy efficient air conditioners, heating systems, and hot water boilers. See section 4 about scheduling a discounted home energy audit.
    • Get up to $2,000/year for installing efficient heat pump air conditioners and water heaters. Heat pump technology is extremely efficient, and heat pump air conditioners can provide both heating and cooling for your home. Learn more about heat pump technology.
    • Credits are available for 10 years, starting Jan. 1, 2023 until the end of 2032. (Boiler credit ends in 2027.)
  • Residential Clean Energy Tax Credit: For adopting clean energy technologies for your home.
    • Get 30% back with no-cap, rollover credits on new household clean energy systems such as rooftop solar. The credit covers equipment and costs of installation.
    • Credits are available for 10 years, starting Jan. 1, 2022 until the end of 2032. Credit reduces to 26% in 2033, and 22% in 2034.
    • Interested in learning more? The Montgomery Energy Connection website can tell you how to join a solar co-op or finance your own project.

In addition to IRA funding, there are thousands of dollars available for clean energy and energy efficient improvement financing through Montgomery County and the state of Maryland.

Not sure where to start?

Photo credit Sketch Bubble

  • Get a home energy audit to identify where your home is wasting energy and money!
    • All Montgomery County residents who receive a monthly utility bill are eligible for a free, quick home energy checkup or a heavily discounted ENERGY STAR ® audit. Visit the MEC website under “Schedule a Home Energy Assessment” to take advantage.
    • You may also be eligible for a 30% tax credit (up to $150) for a professional home energy audit with IRA funding.
  • Do you have appliances that you are ready to replace?
    • Use the information shared here to invest in better energy and cost-saving alternatives!
    • For appliances that you’re not yet ready to replace, make a note of when you think they will reach end-of-life, and be aware of better alternatives and the tax credits you can take advantage of!

Did you already invest in home improvements?

Non-Business Energy Property Tax Credits from ENERGYSTAR apply retroactively for eligible purchases made prior to 2023, such as a 30% tax credit for rooftop solar systems placed in service by Dec. 31, 2019. These credits expire on Dec. 31, 2023.

Interested in clean transportation?

  • Tax credits are also available for purchasing new and used electric vehicles (EVs). You can receive up to $7,500 in IRA tax credits on a new or used EV, on top of the thousands of dollars in annual savings on gas! Visit the Energy Savers Hub to learn more.
  • Maryland also offers a tax credit of up to $3,000 for the purchase of a qualified electric vehicle. To learn about driving an EV in Maryland or to pledge to make your next vehicle electric, visit the County website for Zero-Emission Vehicles.

Want to learn more?

The U.S. Department of Energy has launched an Energy Savers Hub that provides an easy way to explore what tax credits are available for upgrades in all areas of the home. You can also check out the Hub’s FAQ page for answers to additional questions (e.g., what actually is a tax credit?), and stay tuned as additional benefits for income-qualified residents are expected to become available in late 2023.

For Montgomery County-specific information, explore the Montgomery Energy Connection website.



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