Federal tax credits for making energy saving changes at home are expiring at the end of the year but some opportunities for Oregonians to save on upgrades will remain beyond 2025.
Expiring federal energy efficiency credits can save homeowners up to $3,200 on upgrades like heat pumps and insulation. Originally established to last 10 years under the Inflation Reduction Act, these and other climate incentives are ending under the One Bill Beautiful Bill Act passed in July.
Jami Seymore, spokesperson for the Energy Trust of Oregon, said its cash incentives and programs will continue regardless of federal changes.
“For people who have made these upgrades this year, they can receive both the tax credit and that incentive,” Seymore noted. “Really stacking those savings and taking advantage of that opportunity before the end of the year.”
Seymore explained Energy Trust incentives can be received as instant savings at retailers, as an up front deduction through a vetted contractor, or as cash-back after completing an upgrade. She added upgrades like heat pumps, high-efficiency gas furnaces, and solar panels are eligible for both the expiring federal credits and ongoing Energy Trust incentives.
Electric costs in Oregon have increased significantly, with residential rates for Pacific Power and Pacific Gas and Electric rising by about 50% since 2020. Seymore pointed out insulation is one of the easiest, most cost-effective ways to lower energy use and make your home more comfortable year round. And until the end of the year it still qualifies for federal tax credits.
“Adding insulation around your home can lower your heating costs by up to 20%,” Seymore emphasized. “That makes a really big difference when keeping your home warm during the winter.”
Seymore explained the federal tax credit for insulation is up to $1,200 and in addition, Energy Trust lowers the cost by $1.50 cents per square foot and more for families with lower incomes. People can visit EnergyTrust.org to find a vetted contractor who can do an energy assessment to see what upgrades to their home would make the most difference.
