Programs for Southeast Alaskans

1) Inflation Reduction Act Tax Credits

Energy Efficient Home Improvement Credit | IRS Form 5695. Tax credit for qualified energy, efficiency and heating costs. Covers up to 30% of qualified expenses, with no lifetime limits. Open to all income levels. Households can claim up to $3,200 per year across the following categories:

  • $1,200 for energy property costs and certain energy-efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600), and home energy audits ($150)
  • $2,000 per year for qualified heat pumps, biomass stoves, or biomass boilers.

Residential Clean Energy Credit | IRS Form 5695. Tax credit for qualifying new clean energy purchases, including solar electric panels, solar water heaters, wind turbines, geothermal heat pumps, fuel cells, and battery storage technology. Covers up to 30% of qualified expenses. Open to all income levels.

Clean Vehicle Credit | IRS Form 8936. Tax credit for the purchase of an electric vehicle (EV). $7,500 for the purchase of a new EV, 30% credit up to $4,000 for the purchase of a used EV, and a 30% credit up to $1,000 for the purchase of an EV charger. Eligibility depends on modified adjusted gross income (AGI), filing status, and the type of vehicle.

Electric Panel Upgrade Tax Credit | IRS Form 5695. Covers 30% of the cost of electric panel purchases up to $600. This counts towards the $1,200 available per year for efficiency improvements under the Energy Efficient Home Improvement Credit listed first. Open to all income levels.

2) Inflation Reduction Act Rebates

Rebates will be administered by the State of Alaska and are expected to be available in early 2024. It is unknown how competitive it will be to access rebates.

Weatherization rebates | Anticipated early 2024. Point of sale rebate that covers insulation, air sealing, and ventilation. Rebates cover 100% of costs up to $1,600 for households under 80% area median income (AMI), and rebates of 50% up to $1600 for households under 150% AMI. 

HVAC heat pump rebates |Available early 2024. Point of sale rebate for 100% of costs up to $8,000 for households under 80% AMI. Rebates cover 50% of costs up to $8,000 for households under 150% AMI.

Water heater heat pumps | Available early 2024. Point of sale rebate for 100% of costs up to $1,750 for households under 80% AMI. 50% of costs up to $1,750 are covered for households under 150% AMI.

Electric panel | Available early 2024. Point of sale rebate for 100% of costs up to $4,000 for households under 80% AMI. 50% of costs up to $4,000 are covered for households under 150% AMI.

Electric/induction stove | Available early 2024. Point of sale rebate for 100% of costs up to $840 for households under 80% AMI. 50% of costs up to $840 are covered for households under 150% AMI.

Electric wiring | Available early 2024. Point of sale rebate for 100% of costs up to $2,500 for households under 80% AMI. 50% of costs up to $2,500 are covered for households under 150% AMI.

Heat pump clothes dryer | Available early 2024. Point of sale rebate for 100% of costs up to $840 for households under 80% AMI. 50% of costs up to $840 are covered for households under 150% AMI.

HOMES Program | Available early 2024. Rebate for whole-house energy-saving retrofits. Rebate amounts vary greatly by energy savings level, project cost, and type of home but start at homes that undergo a 15% change in energy use and distribute $2,000 to $8,000 per home.

3) Local Resources

Home heat pump assessment from Alaska Heat Smart | At no cost to the household, Alaska Heat Smart will analyze the home and energy use to create a report about potential heat pump installation options, including finding contractors and financing. Currently available in Juneau and Sitka.

Clean Heat Incentive Program (CHIP) from Alaska Heat Smart | Provides between $1,500 and $3,000 for heat pump purchase and installation costs to qualifying homeowners in Juneau and Sitka below 125% AMI.

Sitka Tribe of Alaska Heat Pump Program | Financial assistance for Sitka Tribe of Alaska enrolled members to install heat pumps, coming soon. Contact Alaska Heat Smart for more information.

Sitka Carbon Offset Fund | Year-round Sitka residents who have home heating systems that run on oil can apply for a grant from the Sitka Carbon Offset Fund, a local project that pools donations from visitors and residents to fund heat pump conversion awards. The fund focuses on serving households with financial need, with tiered award sizes based on income.

Juneau Carbon Offset Fund | Lower income Juneau households can apply for financial assistance to replace their oil-burning heating systems with efficient and emissions-free air source heat pumps that run on Juneau’s abundant fish-friendly hydroelectricity.

Alaska Power & Telephone | AP&T offers beneficial electrification incentives to their customers in the communities of Prince of Wales, Skagway, Haines and Gustavus.

  • Electric Vehicles | $1,000 incentive for electric vehicles.
    • AP&T also offers an incentive for EV chargers installed by tribes and municipalities.
  • Heat Pumps | $500 heat pump incentive for its customers.
    • Sealaska provides an additional $500 match for corporate shareholders!
  • Alaska Mini-Split Heat Pump Calculator | A free tool, developed with financial support from AP&T, that helps you evaluate the economics of heat pumps. Note, be sure to check your latest utility rates, to make sure the most up to date information is being used in the calculations.

Regional credit unions, banks, and private lenders offer heat pump and home improvement loan options.