FAQ

The Home Energy Rebate Program details and timelines are dependent on individual states, so the best resource for information is this website (Montana specific). Rebate information from national sources like Rewiring America and others can provide general information. Please keep in mind that these resources are not reflective of individual states’ program design. The best way to stay informed is to suggest customers register for the Montana Home Energy Rebates Program email list using the link above. DEQ will send timeline information and other relevant updates to email list registrants as it becomes available.

Contractors will play an important role in the Montana Home Energy Rebates Program because cost reductions will be provided at the consumer’s point of sale. While details on the specific role of contractors will be forthcoming, the program requires some form of “Montana Home Energy Rebates Program, Approved Contractor” process. To become an approved contractor, contractors will need to participate in trade-specific, baseline technical proficiency validation and/or training offerings, as well as a Rebates Program administrative orientation process where details on invoicing processes and the contractor’s role in them will be clearly communicated. DEQ is working to prioritize simplicity and expediency in the invoicing process in our program design.

No, DBA and BABA do not apply to the Home Energy Rebates Program.

No, projects under the Home Efficiency Rebate Program (based on the percentage of energy savings of the whole-house project) must be installed by an approved program contractor.

Under the Home Electrification and Appliance Program as part of new construction, states have flexibility to allow households to receive a rebate for a qualified project. However, states are not required to provide rebates for new construction. The determination to allow new construction projects to receive rebates has not yet been made for Montana.

New construction is not eligible under the Home Efficiency Rebate Program.

Rebate eligibility and amounts for both programs are based on Area Median Income (AMI). Additional information on qualifications and how to apply will be released as the planning and application period is complete.

The Home Efficiency Rebate Program incentive amounts will be tiered based on whether your gross household income falls above or below 80% AMI with no income cap. You will receive a higher rebate amount if your income is less than 80% AMI, and households with income at or above 80% AMI will receive a lower rebate amount.

The Home Electrification and Appliance Rebate Program incentives are tiered based on whether your gross household income is under 80% AMI, or between 80% and 150% of AMI. Eligibility is capped at 150% AMI. You will receive a higher rebate amount if your income is under 80% AMI and a lower rebate amount if your income is between 80% and 150% AMI. You will not be eligible for rebates under the Home Electrification and Appliance Rebate Program if your gross household income exceeds 150% AMI.

You can find AMI amounts by state, county and number of household members on the Housing and Urban Development (HUD) website. Note that on the linked page provided here, you will need to select “Montana” and your county. The 80% of AMI income limit will be displayed for your household size, and you would need to calculate the 150% AMI amount based off that figure.

Please note AMI amounts vary by year and there is an allowance for flexibility in the rebate amounts available at a given AMI. The HUD website should only be used as a general guideline for program eligibility until the rebate programs and final income levels are available.

The rebate programs contain core baseline aspects that are firmly based in federal statute but allow state-based discretion outside of those core requirements. Because of this, Montana has yet to determine final rebate program rules and must work through stakeholder engagement, program design, and submittal of a Montana-specific application for funding to DOE for approval before finalizing program details.

Potential Home Efficiency Rebate amounts and type: Please note that the Home Efficiency Rebate Program may be implemented using a measured savings approach, a modeled savings approach, or a combination of both. DEQ has not made a determination on the approach that will be utilized. Please see page 12 – 14 of the Home Energy Rebates program requirement document from DOE to view what the rebate levels could be: Home Energy Rebate Programs Requirements & Application Instructions.

To view potential Home Electrification and Appliance Rebate amounts and measures, please see page 51 of the Home Energy Rebates Program requirement document from DOE: Home Energy Rebate Programs Requirements & Application Instructions.

No. Rebates for the Home Appliance and Electrification Program will not be available retroactively.

Rebates for the Home Efficiency Rebate Program may be available retroactively in limited circumstances when all necessary preconditions are met. To get a sense of what could be required to be eligible for a retroactive rebate, please see page four of this document.

DEQ will develop systems of implementing point-of-sale rebates and income verification during the design phase of the Home Energy Rebates Program. Those details have not been finalized at this time.

Tax credits are filed annually at year-end, and individuals that owe taxes are eligible for a credit against their tax liability for eligible expenditures per the relevant tax code. In the case of low to moderate income households, and individuals on fixed incomes that may have little to no tax liability, or insufficient funds to pay for the full cost of eligible improvements upfront, tax credits can be of limited use.

Rebates are intended to offset upfront costs of equipment and installation of measures that are included in the Home Energy Rebates Program. Rebates are helpful because they reduce the upfront cash required for eligible equipment or installation of measures (versus paying the full cost and receiving a credit at year-end) and are available to individuals that may have limited, or no tax liability.

Yes, a project or appliance that qualifies for rebates can also receive a federal tax credit under the Energy Efficient Home Improvement Credit (25C) or other qualifying credits. Be sure to verify that the measure and appliance being installed qualifies for both. The tax credit applies to the part of the eligible costs that the person pays themselves. (i.e. not the portion of the cost covered by the rebate).

Yes, households looking for immediate home energy retrofit assistance may be eligible for other local, state, and federal programs including tax credits, Weatherization Assistance Programs, and utility programs.

Utility Rebates

• NorthWestern Energy – NorthWestern Energy has rebates available for both electric and natural gas customers. Available measures will vary depending on if you are an electric or natural gas customer and rebates must meet certain requirements. For more information please visit: Efficiency Rebates and Incentives for Homeowners (northwesternenergy.com).
• Montana-Dakota Utilities – Montana-Dakota Utilities offers rebates for furnace replacements, programmable thermostats, and LED lighting. For more information please visit: Savings for Your Home – Montana-Dakota Utilities Company.
• Electric Cooperatives – Montana electric co-ops often have rebate programs available to their members. Please visit your co-op’s website to determine if a program exists in your area.

Heat Pump Water Heater Pilot Rebate Programs

• Bozeman – The City of Bozeman is offering a $500 rebate program for water customers who install a qualifying electric heat pump water heater. For more information please visit: Heat Pump Water Heater Rebate | City Of Bozeman.
• Missoula – The City of Missoula and Missoula County are partnering to offer a $500 rebate for heat pump water heaters for projects completed in Missoula County. For more information please visit: Heat Pump Water Heater Rebates | Missoula, MT – Official Website.

Federal Energy Efficiency Tax Credits

Tax credits for various measures including air source heat pumps, heat pump water heaters, insulation, and more are currently available. Tax credit eligible measures must meet certain efficiency ratings. Please consult with your accountant or tax preparer to see if you qualify for a tax credit. For more information please visit: Tax Credits for Homeowners | ENERGY STAR and About Form 5695, Residential Energy Credits | Internal Revenue Service (irs.gov).

Weatherization Assistance Program

The Weatherization Assistance Program helps participants improve the heating efficiency of their homes, reduce their energy consumption, and lower energy bills. Participation is dependent on family size and income. The program is managed by the Montana Department of Health and Human Services (DPHHS), which also manages programs assisting with winter energy bills and water bills. For general program information, visit: DPHHS Weatherization Assistance Program. To find your local eligibility office, visit: DPHHS Local and Tribal Weatherization Offices.

Alternative Energy Revolving Loan Program

DEQ provides low-interest loans for projects investing in alternative energy systems and energy conservation measures in Montana. For more information on project qualifications and financing, visit: MT Alternative Energy and Revolving Loan Program.

DEQ provides low-interest loans for projects investing in alternative energy systems and energy conservation measures in Montana. For more information on project qualifications and financing, visit: MT Alternative Energy and Revolving Loan Program.

To learn more about heat pump technology and whether it might be a fit for your home, please visit: Heat Pump Systems | Department of Energy.

To learn more about heat pump water heater technology and whether it might be a fit for your home, please visit: Heat Pump Water Heaters | Department of Energy.

To read additional FAQs from the Department of Energy, please visit: Home Energy Rebates Frequently Asked Questions | Department of Energy.