IRA Home Energy Rebate Stacking Calculator

Layer your state IRA rebate with the 25C federal tax credit to understand your true out-of-pocket cost, quantify total incentives, and estimate a payback horizon from utility bill savings.

Percentage of area median income (AMI) used to determine rebate eligibility tier.
Installed cost of the qualifying home energy upgrade.
Expected state rebate percentage before income-based adjustments are applied.
Federal tax credit percentage applicable to the net cost after rebates.
Defaults to no cap. Enter the maximum rebate payable for the project.
Defaults to $0. Used to compute a simple payback period.

Indicative estimate only. Incentive eligibility varies by state and household; confirm programme rules before committing to upgrades.

Examples

  • 85% AMI, $14,000 project, 50% state rebate, 30% tax credit, $7,500 cap, $850 annual savings ⇒ Rebate $3,500.00 USD; net upfront $10,500.00 USD; tax credit $3,150.00 USD; total incentives $6,650.00 USD; effective cost $7,350.00 USD; 8.6-year payback; 80-150% AMI tier.
  • 165% AMI, $9,000 project, 35% state rebate, 30% tax credit, no cap, no savings ⇒ Rebate $0.00 USD; net upfront $9,000.00 USD; tax credit $2,700.00 USD; total incentives $2,700.00 USD; effective cost $6,300.00 USD; income tier above 150% AMI (no rebate).

FAQ

What if my state rebate has project-specific caps?

Use the optional cap field to enter the lower project limit. For multi-project upgrades, run the calculator for each measure and add the totals to track combined incentives.

Do I need tax liability to claim the federal credit?

Yes. Ensure you have sufficient tax liability or consult a tax advisor about carry-forward rules for unused credits so you do not overestimate savings.

How do I model multiple incentives?

Calculate each project separately with its applicable rebate percentage and cap, then sum the effective costs and compare to combined savings across your retrofit plan.

Can this show monthly bill impact?

Divide the estimated annual savings by 12 to view monthly reductions and compare against financing payments or energy-efficiency loans.

Additional Information

  • Income tiers follow IRA guidance: ≤80% AMI receives full rebates, 80-150% AMI receives half, and >150% AMI is ineligible.
  • Federal tax credits are applied to the net cost after rebates, and the calculator sums both incentives for a total view.
  • Enter a state rebate cap to respect programme-specific maximum payouts and avoid overstating incentives.
  • Simple payback divides the effective cost by estimated annual savings when provided, showing how quickly incentives recover the investment.
  • Income tier messaging in the results confirms which rebate factor was applied so you can document eligibility when applying.

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