September 19, 2025
Tax credits and utility rebates play an important role in making higher-efficiency equipment more affordable. They can help you complete upgrades that reduce your home’s energy use and save you money for years to come.
Tax Credits vs. Rebates
It’s important to understand the difference:
Utility Rebate – A predetermined incentive amount provided after qualifying equipment has been installed and verified under the program’s requirements.
Tax Credit – A dollar-for-dollar reduction in the amount of federal income tax you owe, claimed on your tax return.
Federal Tax Credits Still Available (for now)
Recent changes to the Inflation Reduction Act allow homeowners to take advantage of federal tax credits for home upgrades until December 31, 2025. These credits can cover up to 30% of the cost of certain energy efficiency improvements, with a maximum benefit of $3,200.
Examples of qualifying upgrades include:
- Air-Source Heat Pumps
- Supplemental Mini-Splits
- Heat Pump Water Heaters
- Electric Panel Upgrades
- Insulation & Air-Sealing
- Windows and Doors
Before making a purchase, confirm that your equipment meets the minimum ENERGY STAR® standards at: www.energystar.gov/federal-tax-credits.
Corridor Energy Cooperative Rebates Available!
While federal tax credits will expire, Corridor Energy Cooperative continues to offer rebates for energy-efficient equipment, such as:
- Ground & Air-Source Heat Pumps
- Mini-Split Heat Pumps
- Energy/Heat Recovery Ventilation (ERV/HRV)
- Heat Pump Water Heaters & Dryers
- Induction Cooktop Stoves
See the complete list of rebates and requirements on our website at corridorenergy.coop/rebates or contact our office to speak with a Member Services Energy Advisor.
Electric Vehicle Tax Credit Expired
The electric vehicle tax credit expired September 30, 2025. To claim the tax credit for the purchase of a new or used electric vehicle, buyers must have completed a written binding purchase agreement and have made a down payment on or before that expiration date. The final vehicle delivery can occur after the deadline.
In addition, Corridor Energy Cooperative offers up to $175 in rebates for the purchase and home installation of a Level II EV Charger.
Tip: Talk with your tax advisor or accountant for more information and to make sure you maximize the available credits before they expire.