Mainers’ Guide
to Climate
Incentives
Financial support from state and federal programs can help
you make smart, climate-friendly investments in your home,
transportation, business, and more.
Jan 2024
HOME p3
VEHICLE p4 BUSINESS p5
MUNICIPALITIES
& SCHOOLS p6
CLIMATE INCENTIVES FOR MAINERS
The Inflation Reduction Act (IRA) invests over $350
billion to help fight the causes and impacts of climate
change. Tax credits, rebates, and other incentives directly
help individuals and businesses transition to cleaner
technologies, from electric cars to heat pumps to rooftop
solar panels.
Maine people are also eligible for many cost-saving
rebates from Efficiency Maine. This booklet summarizes
current incentives and tax credits available to Mainers
through federal and state programs. Programs may
change, so please check for updated information before
making any purchasing decisions. Sign up for our email
list at mainewontwait.org to receive updates as new
information becomes available.
Mainer’s Guide to Climate Incentives • April 2023 • www.mainewontwait.org
CLIMATE INCENTIVES FOR YOUR
HOME
Financial support is
available to help you
heat, cool, insulate,
and power your home,
and switch to energy
efficient appliances.
You can often cut
carbon while saving
money on bills and
being more comfortable
at the same time.
AVAILABLE INCENTIVES
Heat
Pumps
Federal Tax Credits
IRA tax credit 25C provides:
• 30% of your total project
cost up to $2,000 for
qualied heat pumps, heat
pump water heaters, and
other space and water
heating technologies.
More information is available on
the IRS website.
File form 5695 with your taxes.
Electrical Panel
Upgrade
Federal Tax Credits
IRA tax credits 25C and 25D both
provide for electrical panel up-
grades in conjunction with a heat
pump or a solar installation:
• 30% tax credit up to $600
per year in conjunction with
a heat pump
• 30% tax credit uncapped,
in conjunction with rooftop
solar
If both tax credits are applicable
to your upgrades, choose the one
that saves you the most money.
File form 5695 with your taxes.
Rooftop Solar,
Geothermal &
Battery Storage
Federal Tax Credits
IRA tax credit 25D provides:
• 30% of all costs for
rooftop solar, or investment
in community solar
• 30% of all costs for
geothermal heating
• 30% of all costs for
battery storage
There is no cap on these projects.
File form 5695 with your taxes.
Maine Incentives
Efficiency Maine rebates:
• $3,000 for qualifying home
geothermal systems
• $100 per enrolled kilowatt
(kW) for EMT batteries
Weatherization
Upgrades
Federal Tax Credits
IRA tax credit 25C provides:
• 30% of of your total cost, up
to $1,200, for weatherization
and building performance
projects such as:
• insulation and air sealing
• door upgrades
• window upgrades
• energy audits
More information is available on
the IRS website.
File form 5695 with your taxes.
Mainer’s Guide to Climate Incentives • April 2023 • www.mainewontwait.org
Maine Incentives
Efficiency Maine has programs to help with HVAC, weatherization,
water heating, and more. Enhanced rebates for income eligible house-
holds.
Visit Efciency Maine’s website, contact (866) 376-2463, or email
info@efciencymaine.com.
CLIMATE INCENTIVES FOR YOUR
VEHICLE
Used or new
Electric Vehicle
Battery storage
EV charger
49% of Maine’s fossil
fuel emissions come
from transportation.
Federal and state
incentives can help you
buy an electric vehicle
(EV), so you can save
money on fuel and
maintenance, get an
enjoyable ride, and fight
climate change.
AVAILABLE INCENTIVES
New EV
Federal Tax Credits
IRA tax credit 30D provides:
• up to $7,500 for eligible battery
(BEV) and plug-in hybrid electric
vehicles (PHEV)
To be eligible, new EVs must have a:
• list price of less than $80,000 for vans,
SUVs, and pickup trucks
• list price less than $55,000 for all other
vehicles
• certain percentage of vehicle materi-
als and assembly made in America
Check updated lists of eligible new EVs.
File form 8936 with your taxes.
Maine Incentives
Efficiency Maine rebates:
• $500 – $7,500, depending on in-
come, for qualifying new battery
electric vehicles (BEVs) or plug-in
hybrid electric vehicles (PHEVs).
Note: Customers seeking enhanced
rebates based on income must be pre-
qualified before purchase.
Home EV
Chargers
Federal Tax Credits
IRA tax credit 30C provides:
• up to $1,000 for home EV chargers
in eligible low-income/non-urban
communities. This program is still
in development.
Consult the IRS website for updates.
File form 8911 with your taxes.
Used EV
Federal Tax Credits
IRA tax credit 25E provides:
• 30% of the cost of a used battery
(BEV) or plug-in hybrid electric ve-
hicle (PHEV), up to $4,000
Used EV eligibility:
• price of $25,000 or less
See the current list of eligible used EVs.
File form 8936 with your taxes.
Maine Incentives
Efficiency Maine rebates:
• $2,500 for low-income buyers
Mainer’s Guide to Climate Incentives • April 2023 • www.mainewontwait.org
Electric eet
Renewable energy
EV charging station
Making your business
more climate-friendly
doesn’t have to be
complicated. Smart
investments can save
you money while also
creating a cleaner
future for Maine.
AVAILABLE INCENTIVES
Electric
Vehicles
Federal Tax Credits
IRA tax credit 45W
(Commercial Clean Vehicle
Tax Credit) provides:
• up to $7,500 for
commercial EVs under
14,000 pounds
• up to $40,000 for
commercial EVs over
14,000 pounds (e.g.
electric trucks)
This program is still in devel-
opment.
Please consult the IRS
website for updates.
Maine Incentives
Efficiency Maine rebates, up to
10 allowed every 12 months:
• $2,000 for a new battery EV
• $1,000 for a new plug-in
hybrid EV
Rooftop
Solar
Federal Tax Credits
Solar tax credits for
businesses, including the
Investment Tax Credit (ITC)
and Production Tax Credit
(PTC), have been expanded
by the Inflation Reduction
Act:
• 30% of all costs for
rooftop solar
See more information from the
US Dept. of Energy.
EV Chargers
Federal Tax Credits
IRA tax credit 30C offers:
• 30% of costs for
EV chargers, up to
$100,000, in eligible
low-income/non-urban
communities
Maine Incentives
Efficiency Maine has several
programs for public and
commercial EV charging.
See Efciency Maine’s website
for details.
Energy
Efciency
Federal Tax Credits
IRA tax credit 179D
(Commercial Buildings Energy-
Efficiency Tax Deduction)
provides:
• $0.50–$5 per sq. ft. for
energy efciency projects,
with higher amounts
available to projects
that meet certain labor
requirements
See more at the IRS website.
Maine Incentives
Efficiency Maine has programs
for businesses of all sizes,
including commercial,
industrial, multifamily,
institutions, and more.
Programs include lighting,
HVAC, water heating, and
customizable incentives.
Visit Efciency Maine’s website,
contact (866) 376-2463, or email
info@efciencymaine.com.
CLIMATE INCENTIVES FOR YOUR
BUSINESS
Mainer’s Guide to Climate Incentives • April 2023 • www.mainewontwait.org
Federal and state
incentives can help towns
and school systems
invest in clean and
efficient energy upgrades
for buildings, fleets,
and more. Tax-exempt
entities are now eligible
to claim some federal tax
credits thanks to new IRS
rules on “elective pay.”
Learn more at www.irs.gov/credits-deductions/
elective-pay-and-transferability
AVAILABLE INCENTIVES
Electric Vehicles
Federal Incentives
45W Commercial Clean Vehicle Tax
Credit:
• up to $7,500 for commercial EVs
under 14,000 pounds
• up to $40,000 for commercial EVs
over 14,000 pounds (e.g. electric
buses)
For guidance see www.irs.gov/credits-de-
ductions/commercial-clean-vehicle-credit
Maine Incentives
Efficiency Maine rebates, up to 10
allowed in each 12 month period:
• $7,500 for a new battery EV
• $2,000 for a new plug-in hybrid EV
• $350 for level 2 EV charger
Solar
Federal Incentives
Solar tax credits have
been expanded by the
Inflation Reduction Act,
and include tax-exempt
entities:
• 30% of all costs for
rooftop solar
See more information
at www.energy.gov/
eere/solar/federal-so-
lar-tax-credits-busi-
nesses
CLIMATE INCENTIVES FOR
MUNICIPALITIES
& SCHOOLS
EV Chargers
Federal Tax Credits
IRS tax credit 30C offers:
• 30% of costs for
EV chargers, up to
$100,000, in eligible
low-income/non-
urban communities
Maine Incentives
Efficiency Maine has
several programs for
public and commercial
EV charging.
Visit www.efciencymaine.
com/at-work-electric-ve-
hicles-and-charging-solu-
tions/
FAQs
Can I get money for climate-friendly
upgrades?
Yes. Two kinds of financial help are available to
Mainers:
1. The Federal government offers tax credits for
investments in energy efficiency and clean energy.
The details of some programs are still being
worked out, especially for businesses, so check
back for updates.
2. Maine, through Efficiency Maine, offers
rebates and other incentives when you make
energy efficient upgrades to your home or
company’s spaces, equipment, vehicles,
and more.
Can I stack different incentives?
Generally, yes. It is permitted to claim as many
of these rebates and tax credits as you qualify for
in the same year, up to any yearly caps for each
project or category for federal tax credits, or other
restrictions from Efficiency Maine.
However, guidance and rules are still emerging,
so please check for updated information before
making purchasing decisions.
How do I claim my tax credits?
For your home heat pumps, weatherization,
rooftop solar, geothermal, battery storage, and/ or
electrical panel upgrade, file form 5695 with your
tax return.
For eligible battery electric vehicles (BEV) and
plug-in hybrid electric vehicles (PHEV) in 2023, file
form 8936 with your tax return. Starting January 1,
2024, EV tax credits will be applied by participating
dealerships at the point of sale with no extra step.
For home EV chargers in eligible rural or low-
income areas, file form 8911.
For businesses, some details of these programs
are still being finalized. Check for updates on
electric vehicles and energy efficiency upgrades.
How do I claim an Efciency Maine
incentive?
To claim rebates through Efciency Maine,
find details at www.efficiencymaine.com, or
call their toll-free help line at 866-376-2463.
What is it? Am I eligible for it? When do I get it? How do I get it?
A rebate is money provided to you to help you pay
for something. It may be a check in the mail after you
submit your receipt of purchase, or it may be a ‘point-
of-sale rebate’, knocking money off the price when you
buy it.
Efciency Maine offers rebates
for residents, businesses, and
other entities located in Maine.
See www.efciencymaine.com
for more info on each of their
programs.
At point-of-sale Vendor reduces the
price you pay
Get a check in the mail after
purchase
Mail in your receipt &
required paperwork
A tax credit offsets money you may owe when you
le your annual federal tax return. Most clean energy
and energy efciency tax credits are non-refundable,
which means that you cannot receive more than you
owe in federal income taxes in a given year.
Tax credits are available to an-
ybody who les federal taxes.
• At tax time
• Or at the time of purchase
(for EVs only)
• Some tax credits are also
available to tax-exempt
entities under IRS provision
called “elective pay”
File the appropriate
form with your tax
return
What’s the difference between a rebate and a tax credit?
Mainer’s Guide to Climate Incentives • April 2023 • www.mainewontwait.org
TIPS TO
GET STARTED
1. Identify the right investment for you
Want to heat and cool your home or business more efciently?
Try a heat pump.
Know you have a drafty building? Add insulation or replace leaky windows!
Log a lot of miles on the road? Invest in an EV.
2. Get estimates from qualied installers
See Efciency Maine’s list of Registered Vendors at
www.efciencymaine.com/at-home/vendor-locator/
Or for businesses: www.efciencymaine.com/at-work/qualied-partners/
Or, choose an electric vehicle
Test drive at local dealers.
Check the list of new EVs eligible for the federal tax credit.
Make sure you pre-qualify for vehicle rebates based on your income.
Check the list of new EVs eligible for instant rebates from Efciency Maine
3. Aer purchase, claim your rebates
and/or tax credits
Get your total cost reduced by any available point-of-sale rebates.
Save your receipts. Complete, sign, and mail in forms as required for
other rebates. See www.efciencymaine.com.
File required forms at tax time to reduce your overall tax bill.
4. Enjoy your upgrades!
Share you experiences with friends and / or customers.
And it’s never too early to ponder your next climate investment...
NOTESCHECK
Mainer’s Guide to Climate Incentives • April 2023 • www.mainewontwait.org