Rebuilding for Resilience: A Guide to Incentives

February 2023

By Carrie Schuman, Ph.D., SCCF Coastal Resilience Manager

In the wake of Hurricane Ian, Sanibel, Captiva, and Southwest Florida communities are rebuilding. There is a great deal of opportunity for the region to make choices that increase resilience to specific events like Ian, and against the broader backdrop of climate change. This guide from SCCF includes a variety of available financial incentives that can help homeowners, businesses, and other entities make some of these choices while taking advantage of potentially significant savings.

The majority of incentives represent new or updated programs resulting from the passing of the 2022 Inflation Reduction Act. One of the most obvious ways many of these incentives contribute to resilience is through their collective potential to reduce greenhouse gases. This translates into reducing rising temperatures and subsequently, the intensity of future climate change impacts that we’ll need to adapt to. However, there are additional benefits. Adopting solar and other renewable energy sources means less dependence on a volatile fossil fuel market, and the availability of backup power as battery technology improves. Energy-efficient appliances can help streamline overall energy usage, resulting in lower bills. Savings range from hundreds of dollars to potentially several thousand.

Incentive descriptions include some basic information about the potential cost savings and eligibility requirements. Many of these opportunities are offered as tax credits, which reduce a consumer’s federal tax bill. For example, a taxpayer taking advantage of the residential clean energy tax credit can subtract up to 30% of the cost of their renewable energy system from their tax bill for the year the system is installed. The credit will apply when taxes are filed in the following year, so there is some delay in receiving the benefit. Some of these tax credits also have a direct-pay option for entities that don’t pay taxes – such as schools, nonprofits, and local municipalities – that functions like a tax refund in the amount of the claimed credit. Please carefully review timelines and eligibility, and seek outside guidance from a Certified Public Accountant (CPA) or other financial professionals as needed.

IMPORTANT NOTE:

Incentives marked with an asterisk (*) must follow IRS prevailing wage requirements for full credit amounts.

Incentives marked with a diamond (◊) must follow IRS labor apprenticeship requirements for full credit amounts.

ENERGY GENERATION

INCENTIVE WHAT’S COVERED POTENTIAL SAVINGS

Residential Clean Energy Tax Credit

Net Metering

Clean Electricity Investment Tax Credit (ITC)

Clean Electricity Production Tax Credit (PTC)

Rural Energy for America Program (REAP)

Energy Efficiency

ENERGY EFFICIENCY

Energy Efficiency Home Improvement Tax Credit

Solar panels, solar water heaters, geothermal heat pumps, wind turbines, battery storage

30% of system and installation costs

Excess solar energy production Credits on statements for energy produced – paid at retail rate

Geothermal, solar, wind, fuel cell, waste energy

Wind, biomass, geothermal, municipal solid waste, marine and hydrokinetic, hydropower

Renewable energy systems (multiple types); the purchase, installation, and construction of energy efficiency improvements (multiple types)

Home energy audits; windows, doors, and skylights; central air; electric panels; heaters, hot water boilers, and furnaces fueled by natural gas, propane, or oil; *electric or natural gas heat pumps or heat pump water heaters; *biomass stoves and boilers

Energy Efficient Commercial Buildings Property Deduction

High Efficiency Electric Home Rebate Act (HEEHRA)

Buildings designed to be energy efficient

30% of system and installation costs if labor and wage requirements are met

2.6 ¢/kWh for first 10 years of system’s operation

Grants up to 40% of eligible project costs

($2,500 - $1 million for renewable energy, $1,500 - $500,000 for energy efficiency), loans up to 75% of project cost

Reimbursement varies across categories $1,200 total maximum combined yearly limit for most improvements; $2,000 yearly limit for items marked with an *

$.25/ft2 - $1/ft2 depending on improvement in energy efficiency; increases to $2.50/ft2 - $10/ft2 if labor and wage requirements also met

Home Owner Managing Energy Savings (HOMES) Rebate

Utility-Offered Programs

Heat pump HVACs, water heaters, dryers; electric stoves; breaker boxes; electric wiring; ventilation, insulation, air sealing

100% project and installation costs for lowincome households, 50% for moderate-income household; maximums vary by category up to a total of $14,000

Home energy upgrade projects $2,000 - $4,000 depending on energy improvement; doubled for low- and medianincome households

For example, FPL offers rebates on air conditioning units and ceiling insulation

Varies

HURRICANE-PROOFING

Clean Vehicle Credit New and used electric, hybrid, and hydrogen fuel cell vehicles

INCENTIVE WHAT’S COVERED POTENTIAL SAVINGS TRANSPORTATION

$7,500 for some new vehicles, $4,000 for some used vehicles (Income and additional requirements apply) Commercial Clean Vehicle Credit

- 30% of vehicle costs with maximums based on vehicle weight Alternative Fuel Vehicle Refueling Property Credit and fuel cell vehicles

Fueling support for clean vehicles 6% - 30% costs for qualified clean-fuel vehicle refueling property, up to $30,000; 30% or up to $1,000 for residential or nonqualifying properties

My Safe Florida Home (MSFH) Program Free home inspection, mitigation grants for home upgrades to strengthen against wind damage through structural and roof improvements, upgraded windows and doors

$2 for every $1 a homeowner spends up to $10,000