Florida Homeowners Gain Energy-Efficient Upgrade Tax Breaks as DeSantis Accepts $346M in Federal Rebates

Florida homeowners looking to cut utility bills through energy-efficient upgrades now have a stronger combination of state and federal tax relief after Governor Ron DeSantis accepted nearly $346 million in Inflation Reduction Act (IRA) rebate funding on June 12, 2024. The decision, folded into the state's $116.5 billion 2024-2025 budget signed in June, reverses the governor's previous posture after he had vetoed the legislature's implementation funding for the rebates in 2023.

The federal allocation funds two programs established under the 2022 Inflation Reduction Act: the Home Efficiency Rebates (HOMES), which pay households based on modeled or measured energy savings from retrofits such as insulation, air sealing, and HVAC upgrades, and the Home Electrification and Appliance Rebates (HEEHRA), which cover up to $14,000 per low- or moderate-income household for swapping gas appliances for electric heat pumps, heat-pump water heaters, induction stoves, electrical panel upgrades, and related wiring. Low-income households can receive up to 100 percent of project costs; moderate-income households can receive up to 50 percent.

The nearly $117.5 billion budget plan that originally earmarked the IRA dollars was approved by both houses of the Florida Legislature on March 8, 2024, setting up the governor's June decision. DeSantis trimmed roughly $1 billion from the legislature's proposal before signing, but the energy rebate funds survived.

The rebates stack with Florida's ongoing ENERGY STAR Appliances Sales Tax Exemption, which exempts qualifying new ENERGY STAR-rated refrigerators, water heaters, washers, dryers, and dehumidifiers from state sales tax. The current year-long holiday ran from July 1, 2023 through June 30, 2024 under the tax package signed by the governor in 2023, and the state has periodically extended the exemption through subsequent budget bills.

Homeowners should note that while Florida's acceptance of the federal funds is now official, the rebates are administered through the Florida Department of Agriculture and Consumer Services in coordination with the U.S. Department of Energy, and application portals and contractor networks are being stood up over a rolling schedule. Federal tax credits under IRA Sections 25C (Energy Efficient Home Improvement Credit, up to $3,200 per year) and 25D (Residential Clean Energy Credit, 30 percent of solar and battery costs) remain available to Florida taxpayers on their federal returns regardless of state program status.

For Florida homeowners planning energy retrofits, the June 12, 2024 announcement means a previously stalled funding stream is now moving, and pairing a HEEHRA or HOMES rebate with an ENERGY STAR tax-holiday purchase and a federal 25C credit can meaningfully reduce the out-of-pocket cost of a heat-pump HVAC, heat-pump water heater, or whole-home efficiency package.