Thinking about upgrading your vehicle, home, or building for energy efficiency and clean fuels?

Now is the time to take advantage of incentives before they expire!

Every step to reduce greenhouse gas emissions and improve energy efficiency builds a safer, healthier, and more sustainable Mercer Island community, and brings us closer to achieving the goals set in the City’s Climate Action Plan.

Learn more about federal incentives and check out the summary below to review amounts and deadlines.

Electric Vehicles (EVs)

Many new and used EVs are eligible for at-the-dealer discounts of up to $7,500 off a new EV and up to $4,000 off a used EV if purchased before September 30, 2025 (check eligibility on the IRS website).

Home Energy Improvements

Improving the insulation and electrifying your home can make it more comfortable and can be cost-effective. Energy efficiency projects such as insulation; upgrades to doors, windows, and electrical panels; home energy audits; and electric heat pumps and water heaters can receive up to 30% of costs or $1,200 in federal tax credits if completed by December 31, 2025 (check eligibility on the IRS website). You can also receive rebates from PSE for weatherization (check out their program, here)

Electric heat pumps, which typically use one-third the energy of other home heating systems, are a particularly impactful swap. A 2-in-1, they can heat your home in the winter and cool it during the summer, replacing both a gas furnace and an air conditioning unit. Through our Energy Smart Eastside program, you can combine federal tax incentives (for projects completed by December 31, 2025) with local rebates to save up to $8,600 on an electric heat pump and receive support in connecting with contractors. Income restrictions apply.

Solar Panels

Maybe you received a solar panel assessment through Solarize Eastside and are on the fence about installation. Now is the time to act! Homeowners can receive a federal tax credit of up to 30% of eligible costs of purchasing and installing solar panels for projects completed by December 31, 2025. Although Mercer Island’s Solarize Eastside program has closed, there’s still time to install rooftop solar panels and make other energy efficiency upgrades to your home. This federal tax credit also applies to solar water heaters, geothermal heat pumps, and battery storage above 3 kilowatt hours (check eligibility on the IRS website). PSE also offers their Flex Battery program to provide incentives for home energy storage.

Disclaimer: Everyone’s tax situation is different! Please review details for credits on the IRS clean vehicle and clean energy website and consult a tax professional to confirm that you qualify for tax rebates.