Your Guide to Energy-Efficient Tax Credits, Rebates, and Savings in Oklahoma and Texas
Saving money on energy costs doesn’t have to mean sacrificing comfort—thanks to tax credits, rebates, and energy-efficient upgrades, you can lower your bills while improving your home. From small changes like LED lighting and smart thermostats to bigger investments like solar panels or a high-efficiency HVAC system, there are plenty of ways to boost efficiency and cut costs. Many federal, state, and local programs offer financial incentives to help offset the upfront costs, so be sure to check with the IRS, state agencies, and your utility provider for available savings. With the right upgrades and incentives, you can enjoy a more efficient home while keeping more money in your pocket.
For more than 40 years, Home Creations has been building homes with energy efficiency in mind. From building strategies and techniques that ensure maximum efficiency to construction materials that exceed regulatory standards, our homes are among some of the most beautiful, durable, and environmentally-conscious in the country. What’s more, with paid closing costs and smart, energy-saving features that come standard, Home Creations makes it easy and affordable to embrace energy efficiency and get the most return on your investment.
Federal Tax Credits for Energy Efficiency
The federal government offers two main tax credits for homeowners making energy-efficient upgrades: the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit. These credits can help offset the costs of certain home improvements that reduce energy consumption and promote sustainability.
1. Energy Efficient Home Improvement Credit
This tax credit allows homeowners to claim up to 30% of the cost of eligible improvements, with a maximum credit of $1,200 per year. Some specific limits apply, including:
Exterior doors: Up to $250 per door, with a total limit of $500.
Windows and skylights: Up to $600.
Home energy audits: Up to $150.
Heat pumps, water heaters, and biomass stoves: A separate annual limit of $2,000 applies to these upgrades.
These improvements must meet specific energy efficiency standards, such as those set by Energy Star or the International Energy Conservation Code (IECC). The tax credit applies to improvements made through 2032.
For more details, visit the IRS guide on Energy Efficient Home Improvement Credits.
2. Residential Clean Energy Credit
Thinking about going solar? This credit might be the push you need. Homeowners can claim 30% of the cost of installing eligible clean energy systems, including:
Solar panels
Solar water heaters
Wind turbines
Geothermal heat pumps
Battery storage systems (at least 3 kWh capacity, eligible starting in 2023)
There is no annual maximum or lifetime limit for this credit. For more information, visit the IRS Residential Clean Energy Credit page.
Oklahoma and Texas Residential Rebates
In addition to federal tax credits, Oklahoma and Texas residents can take advantage of rebates and incentives from local utility companies. These rebates help offset the cost of upgrading to energy-efficient appliances and home systems.
Oklahoma Natural Gas Residential Rebates
Oklahoma Natural Gas offers rebates on high-efficiency natural gas appliances, including:
Tankless water heaters: Up to $1,100
Standard natural gas water heaters: Up to $850
High-efficiency furnaces: Up to $550
Natural gas clothes dryers: Up to $450
Ranges & Ovens: Up to $100
For full details, visit Oklahoma Natural Gas Rebates.
Texas Gas Service Residential Rebates
Texas Gas Service also offers similar rebates on high-efficiency natural gas appliances, including:
Tankless water heaters: Up to $650
Standard natural gas water heaters: Up to $400
High-efficiency furnaces: Up to $675
Natural gas clothes dryers: Up to $225
For full details, visit Texas Gas Service Rebates.
OG&E Residential Energy Efficiency Rebates
Oklahoma Gas & Electric (OG&E) offers rebates to customers who upgrade their homes with energy-efficient improvements. Eligible upgrades include:
HVAC replacements
Smart thermostats
Insulation improvements
To learn more, check out OG&E’s rebate programs.
Texas Electric Company Rebates
With the deregulation of electricity in Texas, there are now numerous electricity providers. Each provider may have their own incentives for making energy efficient improvements to your home. Be sure to check with your electric utility to take advantage of all the rebate programs they offer.
Documentation You Need to Claim Tax Credits and Rebates
Before you start picturing that extra money in your pocket, make sure you have the right paperwork. You don’t want to miss out on savings because you tossed a receipt!
Here’s some of what you’ll need to claim these tax credits and rebates:
Receipts and invoices as proof of purchase for materials and labor.
Installation records, including documentation showing when and where the upgrades were installed.
Product certifications. Look for Energy Star labels or National Fenestration Rating Council (NFRC) labels to confirm energy efficiency standards.
Utility rebate confirmation. If applying for a rebate, save any emails or forms from your utility provider confirming your eligibility.
Be sure to call or visit the website of the applicable organization as well to be sure you have all the required documentation to claim your money.
6 Simple Ways to Improve Your Home’s Energy Efficiency
Even if you’re not ready for a major upgrade–or you don’t qualify for any energy efficient tax credits or rebates–small changes can make a big difference in your energy bills.
Here are 6 easy and cost-effective ways to improve your home’s efficiency.
Upgrade to LED bulbs. They use up to 90% less energy than traditional bulbs and last much longer. Plus, no more burnt-out bulbs in your hallway.
Use a programmable thermostat. Set it to lower the heat or air conditioning when you’re away, which can save up to 10% on heating and cooling costs.
Seal air leaks. Check windows, doors, and attics for drafts and use caulk or weatherstripping to keep your home insulated.
Improve insulation. Adding insulation in your attic, walls, and basement can prevent heat loss and reduce heating and cooling costs. A well-insulated home stays cozy in winter and cool in summer.
Maintain your HVAC system. Change filters regularly and schedule annual maintenance to keep it running efficiently. Think of it like a tune-up for your car—it keeps things running smoothly.
Use energy-efficient appliances. Look for appliances with the Energy Star label to ensure they meet high efficiency standards.
Home Creations: Energy Efficiency Made Easy
At Home Creations, energy efficiency comes standard in every one of our beautiful custom homes. From Low-E windows, R-44 attic insulation, and radiant barrier decking to efficient HVACs, smart thermostats, and tankless water heaters, a Home Creations home makes it easy to step into energy efficiency and start realizing the savings.
With Home Creations, your dream home can be beautiful, efficient, and comfortable while still being affordable. Contact one of our Home Creations New Home Consultants today and ask about all the ways we work hard to make your forever home fit within your budget and stay friendly to the environment.
