Federal and State Carbon Footprint Reduction Incentives in the United States

In recent years, the United States has taken significant steps to reduce its carbon footprint. Several federal and state policies and programs have been introduced to encourage businesses and individuals to adopt sustainable practices and reduce their emissions.


Federal Incentives

  • Renewable Energy Tax Credit (PTC): This credit provides a 30% tax credit for the cost of installing solar panels, wind turbines, geothermal systems, and other renewable energy systems.
  • Home Energy Efficiency Tax Credit (HEETC): This credit provides a 10% tax credit for the cost of making energy-efficient improvements to your home, such as installing insulation, windows, and doors.
  • Low-Income Home Energy Assistance Program (LIHEAP): This program provides financial assistance to low-income households to pay for their energy bills.
  • Energy Star Program: This program helps consumers identify and purchase energy-efficient products.
  • Transportation Electrification Tax Credit (CTC): This credit provides a $7,500 tax credit for the purchase of a new electric vehicle.
  • Alternative Fuel Vehicle Refueling Property Credit (AVRP): This credit provides a tax credit for the installation of refueling infrastructure for alternative fuel vehicles.
  • Hybrid Electric Vehicle Tax Credit (HEVTC): This credit provides a $3,750 tax credit for the purchase of a new hybrid electric vehicle.
  • Plug-in Hybrid Electric Vehicle Tax Credit (PHEVTC): This credit provides a $7,500 tax credit for the purchase of a new plug-in hybrid electric vehicle.
  • Clean Vehicle Rebate Project (CVRP): This program provides rebates for the purchase of new electric and plug-in hybrid electric vehicles.
  • Clean Fuel Reward (CFR): This program provides rewards for the purchase of new fuel-efficient vehicles.
  • Drive Clean: This program provides rebates for the purchase of new electric and plug-in hybrid electric vehicles, as well as incentives for the installation of charging stations.
The total amount of federal carbon footprint incentives that are available in the United States for 2024:

Incentive Name

Estimated Cost

Renewable Energy Tax Credit (PTC)

$8 billion

Home Energy Efficiency Tax Credit (HEETC)

$1.5 billion

Low-Income Home Energy Assistance Program (LIHEAP)

$3.5 billion

Energy Star Program

$0.5 billion

Transportation Electrification Tax Credit (CTC)

$3 billion

Alternative Fuel Vehicle Refueling Infrastructure Credit (AVRP)

$0.2 billion

Hybrid Electric Vehicle Tax Credit (HEVTC)

$1.2 billion

Plug-in Hybrid Electric Vehicle Tax Credit (PHEVTC)

$2.5 billion

Clean Vehicle Rebate Project (CVRP)

$0.1 billion

Clean Fuel Reward (CFR)

$0.3 billion

Drive Clean

$0.1 billion


The Federal Carbon footprint incentive items and the maximum of them for each person

Incentive Name

Description

Maximum Incentive

Renewable Energy Tax Credit (PTC)

Tax credit for the cost of installing solar panels, wind turbines, geothermal systems, and other renewable energy systems.

$8,000

Home Energy Efficiency Tax Credit (HEETC)

Tax credit for the cost of making energy-efficient improvements to your home, such as installing insulation, windows, and doors.

$1,500

Transportation Electrification Tax Credit (CTC)

Tax credit for the purchase of a new electric or plug-in hybrid electric vehicle.

$7,500

Alternative Fuel Vehicle Refueling Infrastructure Credit (AVRP)

Tax credit for the installation of refueling infrastructure for alternative fuel vehicles, such as hydrogen fuel cells and natural gas vehicles.

$2,000

Hybrid Electric Vehicle Tax Credit (HEVTC)

Tax credit for the purchase of a new hybrid electric vehicle.

$3,750

Plug-in Hybrid Electric Vehicle Tax Credit (PHEVTC)

Tax credit for the purchase of a new plug-in hybrid electric vehicle.

$7,500

Clean Vehicle Rebate Project (CVRP)

Rebate for the purchase of new electric and plug-in hybrid electric vehicles.

Varies

Clean Fuel Reward (CFR)

Reward for the purchase of new fuel-efficient vehicles.

Varies

Drive Clean

Program provides rebates and incentives for the purchase of new electric and plug-in hybrid electric vehicles, as well as for installing charging stations.

Varies



West Coast States Incentives:

California:

California has several incentive programs for reducing carbon footprint, including the following:

  • California Clean Cars Rebate: This program provides rebates for the purchase of new electric and plug-in hybrid electric vehicles.
  • California Alternative Fuel Vehicle Incentive: This program provides rebates for the purchase of new electric, plug-in hybrid electric, fuel cell, and natural gas vehicles.
  • California Single-Family Affordable Solar Homes (CASFH): This program provides grants for the installation of solar panels on single-family homes with income below 80% of the median income in California.
  • California Public Utilities Commission (CPUC) Clean Energy Incentive Program (CEIP): This program provides rebates for the purchase of solar panels, batteries, and other energy-efficient appliances.
  • California Low-Income Weatherization Assistance Program (LIWAP): This program provides weatherization assistance to low-income households.
  • California Hybrid and Electric Vehicle Purchase Rebate: This program provides rebates for the purchase of new hybrid and electric vehicles.
  • California Electric Vehicle Infrastructure Project (EVIP): This program provides funding for the installation of charging stations in California.
  • California Zero-Emission Vehicle (ZEV) Mandate: This mandate requires automakers to sell a certain percentage of ZEVs in California.
  • California Clean Air Act: This act regulates air pollution in California, including greenhouse gas emissions.
The total amount of federal carbon footprint incentives that are available in the State of California for 2024:

Incentive Name

Estimated Cost

California Clean Cars Rebate

$2.5 billion

California Alternative Fuel Vehicle Incentive

$0.5 billion

California Single-Family Affordable Solar Homes (CASFH)

$1 billion

California Public Utilities Commission (CPUC) Clean Energy Incentive Program (CEIP)

$0.5 billion

California Low-Income Weatherization Assistance Program (LIWAP)

$0.25 billion

California Hybrid and Electric Vehicle Purchase Rebate

$0.75 billion

California Electric Vehicle Infrastructure Project (EVIP)

$1.25 billion

California Zero-Emission Vehicle (ZEV) Mandate

$0.75 billion

California Clean Air Act

$0.5 billion


the State of California Carbon footprint incentive items and the maximum of it for each person

Incentive Name

Description

Maximum Incentive

California Clean Cars Rebate

Rebate for the purchase or lease of a new electric or plug-in hybrid electric vehicle.

$7,000

California Alternative Fuel Vehicle Incentive

Rebate for the purchase or lease of a new alternative fuel vehicle, such as a hydrogen fuel cell or natural gas vehicle.

$7,500

California Single-Family Affordable Solar Homes (CASFH)

Grant to install solar panels on single-family homes with income below 80% of the median income in California.

$10,000

California Public Utilities Commission (CPUC) Clean Energy Incentive Program (CEIP)

Rebate or loan for the purchase of solar panels, batteries, and other energy-efficient appliances.

Varies

California Low-Income Weatherization Assistance Program (LIWAP)

Weatherization assistance to help low-income households save energy.

Varies

California Hybrid and Electric Vehicle Purchase Rebate

Rebate for the purchase of a new hybrid or electric vehicle.

$6,000

California Electric Vehicle Infrastructure Project (EVIP)

Funding for the installation of charging stations for electric vehicles.

$200,000

California Zero-Emission Vehicle (ZEV) Mandate

Mandate that automakers sell a certain percentage of ZEVs in California.

40% by 2030


Washington:

Washington has several incentive programs for reducing carbon footprint, including the following:

  • Washington State Energy Efficiency Program (WSEEP): This program provides rebates for the purchase of energy-efficient appliances and other products.
  • Washington State Department of Ecology (DOE) Energy Savings Projects (ESPs): This program provides funding for energy-efficiency projects for businesses and organizations.
  • Washington State Department of Commerce (DOC) Renewable Energy Development Incentive Program (REDIP): This program provides funding for the development of renewable energy projects.
  • Washington State Department of Transportation (DOT) Clean Air Vehicle Incentive Program (CAVIP): This program provides rebates for the purchase of new electric, plug-in hybrid electric, and hydrogen fuel cell vehicles.
  • Washington State Department of Fish and Wildlife (WDFW) Wildlife Habitat Carbon Offset Program: This program provides carbon offsets to landowners who protect or restore wildlife habitat.
  • Washington State Department of Ecology (DOE) Green Tier Program: This program provides recognition and incentives to businesses that reduce their environmental impact.
  • Washington State Department of Transportation (DOT) Low-Carbon Fuel Standard (LCFS): This standard requires transportation fuel suppliers to reduce their carbon intensity.
  • Washington State Department of Ecology (DOE) Renewable Portfolio Standard (RPS): This standard requires electricity providers
The total amount of federal carbon footprint incentives that are available in the State of Washington for 2024:

Incentive Name

Estimated Cost

Washington State Energy Efficiency Program (WSEEP)

$1.2 billion

Washington State Department of Ecology (DOE) Energy Savings Projects (ESPs)

$0.6 billion

Washington State Department of Commerce (DOC) Renewable Energy Development Incentive Program (REDIP)

$0.4 billion

Washington State Department of Transportation (DOT) Clean Air Vehicle Incentive Program (CAVIP)

$0.2 billion

Washington State Department of Fish and Wildlife (WDFW) Wildlife Habitat Carbon Offset Program

$0.1 billion

Washington State Department of Ecology (DOE) Green Tier Program

$0.15 billion

Washington State Department of Transportation (DOT) Low-Carbon Fuel Standard (LCFS)

$0.5 billion

Washington State Department of Ecology (DOE) Renewable Portfolio Standard (RPS)

$0.35 billion

the State of Washington Carbon footprint incentive items and the maximum of it for each person

Incentive Name

Description

Maximum Incentive

Renewable Energy Tax Credit (PTC)

Tax credit for the cost of installing solar panels, wind turbines, geothermal systems, and other renewable energy systems.

$5,000

Home Energy Efficiency Tax Credit (HEETC)

Tax credit for the cost of making energy-efficient improvements to your home, such as installing insulation, windows, and doors.

$3,500

Low-Income Home Energy Assistance Program (LIHEAP)

Financial assistance to low-income households to pay for their energy bills.

$5,000

Washington State Energy Efficiency Program (WSEEP)

Rebate for the purchase of energy-efficient appliances and other products.

$1,200

Washington State Department of Commerce (DOC) Renewable Energy Development Incentive Program (REDIP)

Rebate for the purchase of renewable energy equipment, such as solar panels and wind turbines.

$4,000

Washington State Department of Transportation (DOT) Clean Air Vehicle Incentive Program (CAVIP)

Rebate for the purchase of new electric or plug-in hybrid electric vehicles.

$4,500

Washington State Department of Fish and Wildlife (WDFW) Wildlife Habitat Carbon Offset Program

Program that provides payments to landowners who restore or conserve wildlife habitat.

Varies

Washington State Department of Ecology (DOE) Green Tier Program

Program that encourages businesses to reduce their greenhouse gas emissions.

Varies

Washington State Department of Transportation (DOT) Low-Carbon Fuel Standard (LCFS)

Program that requires transportation fuels to contain a certain percentage of low-carbon fuel.

$5,000

Washington State Department of Ecology (DOE) Renewable Portfolio Standard (RPS)

Mandate that utilities provide a certain percentage of their electricity from renewable sources.

25% by 2030


Oregon:

Oregon also has several incentive programs for reducing its carbon footprint, including the following:

  • Oregon Solar + Storage Rebate Program: This program provides rebates for the purchase and installation of solar panels and batteries.
  • Energy Efficient Wildfire Rebuilding Incentive: This program provides rebates for energy-efficient upgrades to homes that have been damaged in wildfires.
  • Heat Pump Incentive Programs: This program provides rebates for the purchase and installation of heat pumps.
  • Community Renewable Energy Grant Program: This program provides grants to community organizations to develop renewable energy projects.
  • Rural & Agricultural Energy Assistance Program: This program provides grants and loans to help rural and agricultural communities reduce their energy costs.
  • Energy Incentives & Grant Programs: This program provides a variety of rebates and grants for energy-efficiency upgrades and renewable energy installations.
  • Grid Resilience Grant Program: This program provides grants to help communities improve their energy infrastructure to withstand extreme weather events.
The total amount of federal carbon footprint incentives that are available in the State of Oregon for 2024:

Incentive Name

Estimated Cost

Oregon Solar + Storage Rebate Program

$1 billion

Energy Efficient Wildfire Rebuilding Incentive

$0.25 billion

Heat Pump Incentive Programs

$0.2 billion

Community Renewable Energy Grant Program

$0.05 billion

Rural & Agricultural Energy Assistance Program

$0.3 billion

Energy Incentives & Grant Programs

$0.3 billion

Grid Resilience Grant Program

$0.2 billion

Incentive Name

Estimated Cost

the State of Oregon Carbon footprint incentive items and the maximum of it for each person

Incentive Name

Description

Maximum Incentive

Renewable Energy Tax Credit (PTC)

Tax credit for the cost of installing solar panels, wind turbines, geothermal systems, and other renewable energy systems.

$5,000

Home Energy Efficiency Tax Credit (HEETC)

Tax credit for the cost of making energy-efficient improvements to your home, such as installing insulation, windows, and doors.

$1,500

Low-Income Home Energy Assistance Program (LIHEAP)

Financial assistance to low-income households to pay for their energy bills.

$5,000

Energy Efficient Wildfire Rebuilding Incentive

Rebate to help homeowners rebuild wildfire-damaged homes with energy-efficient features.

$2,500

Heat Pump Incentive Programs

Rebate for the purchase or installation of heat pumps, including air source heat pumps and geothermal heat pumps.

$1,200

Community Renewable Energy Grant Program

Grant to help communities develop renewable energy projects.

Varies

Rural & Agricultural Energy Assistance Program

Technical assistance and financial incentives to help rural and agricultural households and businesses reduce their energy use.

$3,000

Energy Incentives & Grant Programs

Rebate or loan for the purchase of energy-efficient appliances, home improvements, and renewable energy systems.

Varies

Grid Resilience Grant Program

Grant to help communities improve their energy infrastructure to withstand extreme weather events.

$2,500

Comments