Energy rebate glossary

Plain-English definitions of every federal credit code, IRA program, utility tariff, and eligibility term you will encounter.

25C: IRS Section 25C Energy Efficient Home Improvement Credit. 30% of cost up to $3,200/year for heat pumps, insulation, windows, doors. Through 2032.
25D: IRS Section 25D Residential Clean Energy Credit. 30% uncapped on solar, batteries, geothermal, small wind. Carryforward allowed. Through 2032 then phasedown.
25E: IRS Section 25E Previously-Owned Clean Vehicle Credit. 30% of sale price up to $4,000 on qualifying used EVs from registered dealers.
30C: IRS Section 30C Alternative Fuel Vehicle Refueling Property Credit. 30% up to $1,000 for residential EV chargers in eligible census tracts.
30D: IRS Section 30D Clean Vehicle Credit. Up to $7,500 on new EVs, transferable to dealer at point of sale since 2024.
45L: IRS Section 45L New Energy Efficient Home Credit. Builder credit ($2,500 ENERGY STAR / $5,000 ZERH) often passed through to buyers.
HEEHRA: High-Efficiency Electric Home Rebate Act. IRA-funded point-of-sale rebate up to $14,000 for income-qualified electrification (heat pumps, induction, panels, wiring).
HOMES: Home Owner Managing Energy Savings Rebate Program. IRA-funded performance-based whole-home retrofit rebate up to $8,000 (income-amplified).
AMI: Area Median Income. HUD-published household income median by county and household size. Used to determine HEEHRA and HOMES eligibility tiers (≤80%, ≤150%).
MAGI: Modified Adjusted Gross Income. Tax measure used for 30D and 25E income caps. For most filers MAGI equals AGI exactly.
NEM: Net Energy Metering. Utility tariff that credits solar customers for excess generation exported to the grid. 1:1 retail-rate NEM is being replaced by avoided-cost or VDER-style tariffs in many states.
NEM 3.0: California successor to net metering since April 2023. Exports valued at avoided-cost rate (~$0.05–$0.15/kWh) instead of retail. Battery storage essentially required for reasonable payback.
VDER: Value of Distributed Energy Resources. New York tariff replacing 1:1 net metering. Stack of credits including energy value, capacity, demand reduction, locational system relief value, environmental.
RCP: Resource Comparison Proxy. Arizona APS tariff for solar export, ~$0.087/kWh. Significantly below retail.
SREC: Solar Renewable Energy Certificate. Tradable certificate generated by solar production. NJ, MA, MD, DC, IL, PA have active SREC markets paying $50–$300/MWh.
PBI: Performance-Based Incentive. Payment based on actual energy production over time. Massachusetts SMART, NY-Sun MW Block, and similar programs use PBI structures.
PIN: Qualified Product Identification Number. Manufacturer-issued identifier required on Form 5695 starting tax year 2025 for heat pumps and HPWHs.
ITC: Investment Tax Credit. Commercial Section 48 ITC is the business equivalent of residential 25D — used by leasing companies and commercial solar installations.
PPA: Power Purchase Agreement. Customer pays for electricity produced at a fixed rate per kWh. Customer does not own the system, so no 25D credit.
POS Transfer: Point-of-sale credit transfer. Mechanic introduced 2024 for 30D and 25E — buyer signs Form 15400, dealer applies credit immediately as cash off price.
CEE: Consortium for Energy Efficiency. Sets multi-tier efficiency standards. Heat pumps must meet highest CEE tier for federal 25C credit eligibility.
NEEP: Northeast Energy Efficiency Partnerships. Maintains the Cold Climate Air Source Heat Pump list — required equipment qualification for state rebates in northern states.
AHRI: Air-Conditioning, Heating, and Refrigeration Institute. Issues certificates confirming equipment performance specifications for tax credit and rebate eligibility.
ENERGY STAR: Federal energy efficiency certification program (EPA + DOE). Most state rebate programs require ENERGY STAR certification on qualifying equipment.
ZERH: DOE Zero Energy Ready Home certification. Higher tier than ENERGY STAR — used for builder 45L credit and higher state rebate tiers.
DAC: Disadvantaged Community. CalEnviroScreen-designated census tracts in California eligible for higher SGIP and DAC-SASH solar rebate tiers.
SGIP: Self-Generation Incentive Program. California battery storage rebate $150–$1,000 per kWh based on tier (General/Equity/Equity Resiliency).
WAP: Weatherization Assistance Program. Federal program providing free weatherization (insulation, air sealing) to low-income households, administered by community action agencies.
LIHEAP: Low Income Home Energy Assistance Program. Federal bill-payment assistance for heating and cooling, administered through state offices.
AMT: Alternative Minimum Tax. Parallel federal tax calculation. 25D and 30D are allowed against AMT; 25C is limited.