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

Learn More

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.