City Of Bozeman
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Explore this page to learn about rebates, tax credits, and financing options that might be available for your home or business.
Home Efficiency Rebates
City of Bozeman Heat Pump Water Heater Rebate
The City of Bozeman's Sustainability Division offers a $500 rebate for qualifying heat pump water heaters.
City of Bozeman Water Conservation Rebates
The City of Bozeman's Water Conservation Division offers cash rebates for residential and commercial customers for a variety of high efficiency fixtures, appliances, drought tolerant plants, and sprinkler system equipment.
NorthWestern Energy customers are eligible for a variety of rebates for existing homes and new construction. Rebates include: qualifying dishwashers, clothes washers, water heaters, air purifiers, air source heat pumps, ground source heat pumps, LED lighting, insulation, and more!
Inflation Reduction Act Rebates
Inflation Reduction Act (IRA) rebates are not yet available in Montana. However, you can start thinking about home upgrades now to be ready when they are available!
Financing
MT DEQ Alternative Energy Revolving Loan Program
The Alternative Energy Revolving Loan Program provides low-interest loans to individuals, small businesses, nonprofit organizations, and government entities in order to increase investments in alternative energy systems and energy conservation measures in Montana.
Tax Credits
2022 Tax Credit Information
The Inflation Reduction Act of 2022 significantly enhanced the variety of equipment and amount of tax credits available for 2023-2032. These are active for expenditures in 2023.
- MT DEQ Energy Tax Credit Information
- EnergyStar© Homeowner Tax Credit Information and Qualifying Products
- IRS Factsheet (DEC22) FAQ: Residential Energy Credits
- Residential Energy Credit Tax Form
Energy Efficient Home Improvement Tax Credit (25C)
Energy Efficient Home Improvement tax credits are available for existing homes (principal residence only) through 2032.
Annual aggregate limit of $3,200
- Annual total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers, and central air conditioners.
- Annual total limit of $2,000 for any combination of heat pumps, heat pump water heaters, and biomass stoves/boilers.
|
Energy Efficient Home Improvement Tax Credit (25C) |
|
| Equipment (must meet rebate qualifications) | Up to 30% of the total cost with a max amount of: |
| Home Energy Audit | $150 |
| Exterior Doors | $500 ($250/door) |
| Exterior Windows/Skylights; Central Air Conditioners; Electric Panel Upgrade; Water Heater (natural gas, oil, propane); Furnaces (natural gas, oil, propane) | $600 |
| Insulation | $1,200 |
| Air Source Heat Pumps; Heat Pump Water Heater; Biomass Stoves and Boilers | $2,000 |
Residential Clean Energy Tax Credit (25D)
The Residential Clean Energy Tax Credit can be applied to qualifying expenditures for:
- Solar Energy Systems
- Battery storage
- Geothermal Heat Pumps
- Small Wind Turbines
- Fuel Cells
Expenditures can include equipment, cost of labor, permits, and inspection. The Residential Clean Energy Tax Credit can be used for existing homes and new construction. Both principal homes and second homes qualify. Rentals do not qualify.
| Residential Clean Energy Tax Credit | ||||
| Property placed in service during: |
2019-2021 |
2022-2032 |
2033 |
2033 |
| % of expenditure available | 26% | 30% | 26% | 22% |
Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) of 2022 was signed into law in August 2022. The IRA marks the single largest investment in climate and energy in American history. Within the IRA there are a variety of rebates, tax credits, and financing tools citizens and businesses can take advantage of to advance energy efficiency, clean energy systems, electric vehicles, and more.
At this time, there are still many unknowns related to the IRA implementation. We will continue to track the IRA guidance as it becomes available and share it with the Bozeman community.
Rebates vs. Tax Credits
Rebates and tax credits for home energy efficiency are both part of the IRA. Tax credits are active and available for 2023-2032, so you can start taking advantage of these this year! Rebate and other incentive programs are not available yet in Montana.
Upcoming IRA Rebate Programs
The IRA rebates are not available in Montana yet. The program will be administered by the MT State Energy Office. Stay tuned for updates on program logistics and requirements.
- Montana DEQ Energy Efficiency Rebates
- DOE Home Energy Rebate Programs
- IRS Inflation Reduction Act of 2022 Updates
High-Efficiency Electric Home Rebate Program (HEEHRA)*
*HEEHRA is not active in Montana yet. The program will run through 2032.
The High-Efficiency Electric Home Rebate Program Act (HEEHRA) is a 10-year rebate program to support home electrification for low- and moderate-income (LMI) households.
Who qualifies: "Low" and "moderate" income is relative to where you live based on the Area Medium Income (AMI) of the region. Rebate eligibility and amounts vary based on what income level your household falls in.
- Above 150% of AMI residents are not eligible for HEERHA but can take advantage of IRA Tax Credits, HOMES rebates, & more
- Multifamily buildings are eligible for rebates if 50% of occupants meet income requirements.
|
HEEHRA Rebate Overview |
|
| Single Family Income Eligibility* | % of Cost Covered |
| Low-Income: less than 80% AMI | 100% |
| Moderate-Income: 80-150% AMI | 50% |
| Max Incentives |
|
| Max Consumer Rebate (through 2032) | $14,000 |
| Max Contractor Rebate per project | $500 |
| Rebate Max Amount for Qualified Electrification Projects | |
| Heat Pump HVAC | $8,000 |
| Heat Pump Water Heater | $1,750 |
| Electric Stove, Cooktop, Range, Oven | $840 |
| Heat Pump Clothes Dryer | $840 |
| Breaker Box | $4,000 |
| Electric Wiring | $2,500 |
| Weatherization (insulation, air sealing, ventilation) | $1,600 |
*Maximum rebate per building is $14,000 with percentage caps varying by income and building type.
- Single family at 80-150% area median income: 50% of project costs or 50% of maximum
- Single family at less than 80% area median income: 100% of project costs or 100% of maximum
- Multifamily with 50% of occupants at 80-150% area median income: 50% of project costs or 50% of maximum
- Multifamily with 50% of occupants at less than 80% area median income: 100% of project costs or 100% of maximum
Home Energy Performance-Based, Whole-House Rebates (HOMES) Program*
*HEEHRA is not active in Montana yet. The program will run through 2032.
HOMES (Home Owner Managing Energy Savings) rebates are for efficiency upgrades that improve the overall energy performance of a single-family home or multi-family building. HOMES cannot be combined with HEEHRA rebates.
Unlike HEEHRA, there is no income limit for HOMES. Applicants with income below 80% AMI can qualify for larger incentives.
Applicants are required to demonstrate savings by comparing energy consumption before and after the retrofits, either through use of building energy models that estimate the energy performance of the whole house, or by measured performance. The energy savings requirements and the rebate calculation differ for the two methods.
| HOMES Pathway 1: Modeled Energy Savings | |||||
| Energy Savings |
Single Family Homes Below 80% AMI |
Single Family Homes Above 80% AMI |
Multifamily Homes 50% of occupants below 80% AMI |
Multifamily Homes 50% of occupants above 80% AMI |
|
| 20-34% |
80% of project costs $4,000 max |
50% of project costs $2,000 max |
80% of project costs $4,000 per unit max No per-building max |
$2,000 per dwelling unit $200,000 max per building |
|
| 35% + |
80% of project costs $8,000 max |
50% of project costs $4,000 max |
80% of project costs $8,000 per unit max No per-building max |
$4,000 per unit $400,000 max per building |
|
|
HOMES Pathway 2: Measured Energy Savings 15% or more energy saving measured through the rebate or rate option** |
||||
|
Rebate Option |
Single Family Homes Below 80% AMI |
Single Family Homes Above 80% AMI |
Multifamily Homes 50% of occupants below 80% AMI |
Multifamily Homes 50% of occupants below 80% AMI |
| Rebate | 80% of project costs | 50% of project costs | 80% of project costs | 50% of project costs |
| Rate Option (alternative method)** | $200 per 1% of reduction from average home energy use | $100 per 1% of reduction from average home energy use | $200 per 1% of reduction from average home energy use | $100 per 1% of reduction from average home energy use |
**The rate option is a reimbursement calculated per kilowatt-hour of energy saved. Consultants who assist homeowners with the participating in the rebate program can also be eligible. The rate ($100 or $200) is calculated per 1% reduction in energy consumption of the average single family home or multi-family building in the state; multiplying this rate by the homeowner’s actual energy savings gives the amount of the rebate.
Tax Credits for Home Builders
As part of the IRA, the Tax Credit for Energy Efficient New Homes (45L) was updated and extended through the 2032. This tax credit is tied to ENERGY STAR© certification for single-family ($2,500), manufactured ($2,500), and multifamily homes ($500; or $2,500 when prevailing wage requirements are met); see program requirements.
Additional tax credits are available for homes certified with DOE Zero Energy Ready Home (ZERH) Program.
Rebates and Cash Incentives
NorthWestern Energy commercial customers are eligible for a variety of efficiency rebates. Custom incentives may be available through NorthWestern's E+ Business Partners program.
IRA HEEHRA and HOMES Rebates
Multi-family buildings may be eligible for HEEHRA and HOMES rebates through the Inflation Reduction Act. See residential section above.
Financing
C-PACE financing (Commercial Property Assessed Capital Enhancements) makes energy efficiency upgrades and renewable energy investments more attainable to commercial building owners by improving their bottom line. MTPACE can cover up to 100% of eligible project costs and payments are repaid through a special property tax assessment with terms up to 20 years. Learn more at lastbestpace.com
MT DEQ Alternative Energy Revolving Loan Program
The Alternative Energy Revolving Loan Program provides low-interest loans to individuals, small businesses, nonprofit organizations and government entities in order to increase investments in alternative energy systems and energy conservation measures in Montana.
Tax Credits
Commercial Buildings Energy-Efficiency Tax Deduction (179D)
The 179D commercial buildings energy efficiency tax deduction primarily enables building owners to claim a tax deduction for installing qualifying systems in buildings.
Solar Tax Credit for Businesses
- The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
- The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.