Federal tax credits, NJ state rebates, and utility programs for homeowners and small businesses in Union County, NJ. These programs reduce the cost of qualifying upgrades — but the rules are specific, they change, and they interact in ways worth understanding before you sign a contractor agreement.
The IRA (August 2022) introduced the largest expansion of residential energy tax credits in decades. Two sections apply directly to Union County homeowners.
30% of the installed cost of qualifying improvements, subject to annual caps that reset each tax year. Spreading upgrades across multiple years can allow a homeowner to claim the cap annually.
| Improvement | Annual Cap | Notes |
|---|---|---|
| Heat pumps (space heating/cooling) | $2,000 | Shared cap with heat pump water heaters |
| Heat pump water heaters | $2,000 | Shared cap with heat pumps |
| Central AC, furnaces, boilers | $600 | Must meet efficiency thresholds |
| Insulation and air sealing | $1,200 | Shared cap with windows, doors, panel |
| Exterior windows and skylights | $600 | Must be ENERGY STAR certified |
| Exterior doors | $500 | Must be ENERGY STAR certified |
| Electrical panel upgrades | $600 | Only when required to support a qualifying upgrade |
§25C is a nonrefundable tax credit. It reduces your federal income tax liability dollar-for-dollar but does not generate a refund. If you owe less federal tax than the credit amount, the remainder is forfeited — it does not carry forward. No income limit applies.
30% of the cost of qualifying clean energy equipment. No dollar cap. Unused credits carry forward to future tax years — unlike §25C.
No cap. Typical Union County installation ($12,000–$20,000) yields $3,600–$6,000 in federal credits before NJ incentives.
Must charge from a qualifying clean energy source. Batteries charging solely from the grid do not qualify.
Must meet ENERGY STAR requirements. Installation costs typically $15,000–$30,000 before credits.
At least 50% of the home's water heating must come from solar energy to qualify.
Administered by the NJ Board of Public Utilities (BPU). State rebates stack on top of federal credits. Eligibility rules and rebate amounts change; verify at njcleanenergy.com.
Rebates for insulation, air sealing, and HVAC upgrades following a whole-home energy assessment by a BPI- or RESNET-certified contractor. Typical rebates range from several hundred to several thousand dollars depending on measures completed.
HPwES rebates require an assessment by a BPI- or RESNET-certified contractor — not a sustainability management assessment like ours. If your goal is HPwES rebates specifically, you will need a certified energy auditor. Our assessment helps you determine whether that investment is warranted before you spend $400–$700 on the audit.
Free weatherization, HVAC replacement, and appliance upgrades for households at or below 400% of the federal poverty level. Administered by the utility companies (PSE&G, JCP&L). No repayment required. Eligibility and enrollment at njcleanenergy.com/comfort-partners.
The NJ Clean Energy Program offers direct incentives for commercial customers on lighting, HVAC, refrigeration, and building envelope upgrades. Program names, amounts, and eligibility tiers change annually. For current commercial offerings, contact PSE&G's business energy efficiency team or visit njcleanenergy.com/commercial.
PSE&G serves most of Union County. Their programs layer on top of NJ Clean Energy rebates. Specific amounts change regularly — verify at pseg.com/rebates.
ENERGY STAR-certified programmable and smart thermostats. Rebate applied at point of purchase at participating retailers.
Rebates available when replacing an electric resistance water heater. Stacks with §25C federal credit and NJ Clean Energy incentives.
Refrigerators, dishwashers, and washers. Check PSE&G's current offer calendar — promotions are time-limited and inventory-dependent.
PSE&G's program that layers additional incentives on top of HPwES rebates for customers completing qualifying whole-home improvements.
Federal incentives for commercial buildings are more complex than residential. Both require a tax professional to calculate and claim correctly. This is a summary — not a filing guide.
A tax deduction (not a credit) for qualifying energy-efficiency improvements to commercial buildings — lighting, HVAC, building envelope. Requires certification by a qualified energy assessor. Expanded under the IRA. Most relevant for mid-to-large commercial operators; at small-business scale ($150–$300 assessment), the deduction amounts are modest relative to certification costs.
The business-side counterpart to §25D. Applies to commercial solar, wind, battery storage, and fuel cells. 30% base credit, potentially higher with domestic content or energy-community bonus adders. Requires a CPA or tax attorney to structure correctly. Most relevant to businesses making capital investments in on-site renewable generation.
Every Balchunas Sustainability assessment report includes a section mapping the federal, NJ state, and utility incentives the client may qualify for based on their property type, planned improvements, utility provider, and other eligibility factors. Amounts are listed as of the report date, with a verification advisory attached.
The incentive map is informational. It does not constitute tax advice, file on your behalf, or guarantee that any program will approve your application. Programs have application processes, timelines, and pre-approval requirements that vary. Some are first-come, first-served. Your CPA or a certified contractor handles the actual claiming process.
A 15-minute call scopes whether an assessment makes sense and which incentive programs are most relevant to your situation.
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