Federal home energy efficiency tax breaks expired at the end of 2025, but homeowners still have options. Some states still offer their own incentives for eco-friendly upgrades, including Maine.
The long-running federal income tax break was one of the benefits eliminated by the "Big Beautiful Bill" signed into law in July 2025. Many mistakenly believe that the policy changes eliminated all incentives, which is why industry experts are working to spread awareness of the state rebates.
"Vendors are working hard to explain to confused consumers that even though the tax break is gone, there's still state money available to help with projects," according to Maine Public.
Tim Adams, owner of heat pump installer EcoHeat, told Maine Public that heat pump installations in the state can qualify for up to $9,000 in state rebates.
Heating and cooling are a significant part of household energy use. The U.S. Department of Energy estimates that about 43% of a home's utility bill goes toward heating, ventilation, and air conditioning systems, making HVAC upgrades one of the most effective ways to manage long-term costs.
There are several tools and programs that can help you manage these upgrades. TCD's HVAC Explorer can help you learn and understand your HVAC options and save up to 50% on energy bills with more efficient systems.
Smart upgrades that slash monthly energy bills
Aside from state rebates, there are other solutions from clean energy companies that can help you upgrade your home and lower your monthly energy bills.
Palmetto, for example, offers HVAC leases that start as low as $99 per month and include 12 years of free maintenance. The company's $0-down HVAC leasing program can lower your energy costs by up to 50%. Plus, by using the free Palmetto Home app, you can also gain up to $5,000 in rewards to spend on home upgrades through in-app challenges like cutting your home energy use.
Upgrading HVACs with heat pumps can also reduce household pollution. According to Consumer Reports, air-source heat pumps can cut home emissions by about 40% compared to gas furnaces, depending on electricity sources.
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By clarifying that state rebates are still available, industry experts can help you move forward with energy upgrades you might otherwise delay or skip.
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$200 or more 💰 "You know we're getting fewer calls coming to us, we're processing fewer rebates in the last month or two, so it absolutely has an effect," Michael Stoddard, Efficiency Maine's executive director, told Maine Public.
Stoddard mentioned that Maine is "continuing to do as well or better than any other state in the country when it comes to these kinds of home improvements and business improvements."
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