Are there any state-specific incentives for low-income households

Yes, there are several state-specific incentives for low-income households, especially related to energy efficiency, home electrification, and affordable housing. Here are some examples and key details:

Illinois

• The Illinois Environmental Protection Agency (EPA) administers Home Energy Rebate Programs funded under the federal Inflation Reduction Act (IRA).
• Initially, Illinois plans to allocate 100% of these rebate funds to low-income households defined as those with less than 80% of the area median income (AMI).
• These rebates cover home efficiency improvements and home electrification and appliance upgrades.
• A minimum of 10% of rebate funds is allocated to low-income multifamily buildings, often exceeding that percentage to support equity.
• Rebates will only apply to program-approved projects starting from the program launch, with no retroactive rebates planned.
• Additional funding and program details are forthcoming as Illinois works with the U.S. Department of Energy (USDOE).

Broader State and Regional Energy Incentives

• Several states, including Arizona, California, Colorado, Illinois, Minnesota, and Wisconsin, offer state-level energy incentives that can be combined with federal programs.
• For example, Colorado offers electrification rebates of up to $20,000 for high-efficiency electric homes (disaster-affected homeowners) and state tax credits for electric vehicle purchases. Residential solar installations in Colorado are exempt from property tax assessments.
• Wisconsin has launched the federal Home Efficiency Rebate (HOMES) program fully; Arizona, California, Colorado, and Wisconsin offer Home Electrification and Appliance Rebates (HEAR).

National Incentives Administered at the State Level (Rewiring America Program)

• Low- and moderate-income households (under 80% and between 80%-150% of AMI, respectively) qualify for point-of-sale rebates for electrification projects, such as heat pumps, weatherization, electric appliances, electrical panel upgrades, and wiring.
• For low-income households, the incentives cover 100% of electrification project costs, up to $14,000. For moderate-income households, 50% of costs up to $14,000. Contractors may receive an additional $500 per electrification project.
• This program is expected to roll out in many states starting in 2024-2025 through 2031 with claims processed through state energy offices.
• These rebates can be combined with federal tax credits like the Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit to maximize savings.

Affordable Housing Incentives

• States administer the federal Low Income Housing Tax Credit (LIHTC) program that incentivizes private investment in affordable housing projects through tax reductions over 10 years. These projects must remain affordable for at least 30 years.
• LIHTC comes as 9% credits (for new construction and larger renovations) and 4% credits (primarily for preservation and acquisition-rehab). Allocation to states is population-based, and local housing finance agencies set priorities.
• Tenant-based and project-based rental assistance programs tied to HUD Section 8 are also state-administered, supporting households with incomes at or below 80% AMI, with priority for extremely low-income (under 30% AMI). Participants pay about 30% of income toward rent and utilities, with the government covering the remainder.

Summary Table of Selected State-Specific Incentives for Low-Income Households

In conclusion, many states provide targeted incentives to support low-income households through rebates, tax credits, and affordable housing programs, often maximizing impact by combining state programs with federal incentives. Illinois and Colorado are notable examples with robust programs, and national initiatives are increasingly administered through state energy offices starting in 2024–2025.