Rebates and Tax Incentives
Emissions from fossil fuels are warming the planet, causing rising sea levels and changing our weather. There are now many rebates and tax incentives that help us more affordably convert the fuel sources in our homes and vehicles from fossil fuels to electricity.* Electrification is the term used to describe this move from carbon-based fossil fuels to electricity.
Many local rebates are available to all SMPA members (if filed within 60 days of purchase) while many federal rebates are based on income status and should become available sometime in the Fall of 2023. Federal and (EV) state tax incentives are available now. These rebates and incentives are often generous, but there are also often caveats. Be careful. Federal tax incentives have amount limits and federal tax incentives for electric vehicles are based on buyer income, vehicle characteristics, and cost. We hope these links will allow you to identify which of these rebates and incentives might assist you in your purchases.
Additional information on rebates and tax incentives is found in the "Electrification" section, more narrowly focused by project or purchase.
Many local rebates are available to all SMPA members (if filed within 60 days of purchase) while many federal rebates are based on income status and should become available sometime in the Fall of 2023. Federal and (EV) state tax incentives are available now. These rebates and incentives are often generous, but there are also often caveats. Be careful. Federal tax incentives have amount limits and federal tax incentives for electric vehicles are based on buyer income, vehicle characteristics, and cost. We hope these links will allow you to identify which of these rebates and incentives might assist you in your purchases.
Additional information on rebates and tax incentives is found in the "Electrification" section, more narrowly focused by project or purchase.
Federal rebates are becoming available, probably this fall, for residents whose annual income is below 150% of the area average median income (AMI). As there are very unlikely to be retroactive rebates, i
t may be wise for residents who qualify for rebates based on their income to postpone household electrification purchases until this federal rebate program is finalized by Colorado. Those who earn under 80% of our local AMI are eligible for the largest rebates. For those who earn between 80% and 150% of our AMI, those rebates are reduced by 50%. Those who earn over 150% of the AMI are not eligible for federal rebates (all are eligible for tax credits) but may qualify for local rebates from SMPA. More specific federal rebate information can be found here. Many local rebates are available to all SMPA customers. These SMPA rebates are powered by the Totally Green program, providing 100% renewable energy for area homeowners, businesses, and municipalities for an additional one cent per kWh. Read more + sign up for the Totally Green program here! |
Rewiring America has a great website that lets you know how much IRA rebate or tax incentive you qualify for based on your area of residence, income, and desired project. However, understand that until Colorado finalizes their rebate program, these are estimates - and it is wise to wait for program initiation since there will likely be no retroactive rebates. "The rebates may be implemented differently in each state, so we cannot guarantee final amounts, eligibility, or timeline."
Overview on Electrification Rebates & Tax Credits: The Inflation Reduction Act of 2022 includes two provisions authorizing $8.8 billion in rebates for home energy efficiency and electrification projects. These two provisions are section 50121: Home Efficiency Rebates and section 50122: Home Electrification and Appliance Rebates. The State of Colorado and SMPA, our local electrical coop, also provide financial assistance in electrification. The CARE program is an SMPA program administered by EcoAP for low and middle income residents and provides no or low cost home energy assessment and upgrades. Check it out!! |
30% federal tax credits for homeowners up to a defined limit are now available. Tax credits can only be used to offset the federal taxes you owe. Tax credits are available for certain electric vehicles, vehicle chargers, home energy generation (solar, wind, hydro), home energy storage, and a number of home insulation and electrification projects. Consult the Electrification pages and the links to find information about your particular purchase or project to make sure it qualifies.
Energy Star has a concise Tax Credits for Homeowners reference on what qualifies for the 30% federal tax credits - and what the limits are. Colorado EV Tax credits - for EV’s purchased or leased before 1 January 2026 Tax credits are based on type of vehicle, can be assigned, and in addition, there is no sales tax. Read this material for more details. |
* Our local electricity is increasingly powered by clean, renewable energy. In 2023, over 35% of SMPA electricity is generated from non-fossil fuels, and SMPA's major supplier, TriState, has pledged to reduce CO2 emissions 90% by 2030.