Maximizing Your Home Investment with Incentives

Federal, state, and local incentives* make energy-efficient upgrades and new construction more affordable across the Midwest. Homeowners in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota can access rebates, state incentives, and federal tax credits for improvements like advanced insulation, efficient windows, and high-performance HVAC systems.

These programs can significantly offset upgrade costs, enhancing home comfort, reducing energy bills, and boosting long-term value. With incentives at high levels, now is an ideal time to invest in energy-efficient improvements for your home.

State Incentives

The Midwest offers a range of tax incentives* and rebates to encourage energy-efficient and sustainable new construction for homeowners and builders. Here’s an overview of common incentives across the region, covering Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota:

Many Midwest states offer rebate programs for energy-efficient construction practices. These rebates typically cover improvements such as insulation, energy-efficient windows, and high-efficiency HVAC systems. Programs often come from state energy departments or utilities, providing financial support to make homes more energy-efficient from the start.

Numerous utilities across the Midwest offer rebates specifically for new home construction that includes energy-efficient appliances, natural gas systems, or advanced thermostats. By adopting high-efficiency technology early, homeowners can often offset initial costs.

Utility providers like Xcel Energy and Alliant Energy have specific programs for building homes that exceed standard energy codes, typically by at least 10%. Homes meeting these standards can receive cash incentives and support through programs like RESNET’s Home Energy Rating System (HERS), which helps qualify homes for rebates.

For developers working on affordable housing, the Low-Income Housing Tax Credit (LIHTC) is available federally and is managed by state housing authorities. This credit provides federal tax relief for developers building affordable rental housing, which can also include new construction projects in rural and urban areas across the Midwest.

Under the IRA, homeowners in the Midwest can access federal tax credits for energy-efficient upgrades that apply to new construction, such as heat pumps, energy-efficient windows, and enhanced insulation. These credits can cover a percentage of qualifying upgrade costs, reducing overall expenses while supporting energy efficiency.

Several Midwest states and counties offer property tax rebates to stimulate new residential construction. These programs provide rebates on property taxes for newly constructed homes, especially in rural and underserved areas, helping to expand housing availability.

While these incentives offer significant savings, it’s important to remember that they can change frequently. To maximize your benefits, we recommend checking with local government offices, utility providers, or energy authorities to confirm the latest programs available and determine what you may qualify for. Staying informed on current incentives can help make energy-efficient, sustainable construction more accessible and affordable, promoting long-term savings and quality housing across the Midwest.

*Disclaimer: Wolf River Construction is not a tax professional, and the information provided is for general guidance only. We recommend consulting with a qualified accountant or tax advisor to determine which tax credits and incentives you may qualify for based on your specific circumstances.