States forge ahead with Inflation Reduction Act energy rebates — so far, South Dakota is the only one to opt out
Owngarden | Moment | Getty Images
A handful of states have rolled out rebates to consumers who make their homes more energy-efficient, just months after New York became the first state to do so, in May.
Meanwhile, South Dakota officials in August declined the federal funding, which is tied to two new programs created by the Inflation Reduction Act, a landmark climate law enacted in 2022.
The IRA earmarked $8.8 billion for consumers via two Home Energy Rebates programs.
Consumers can access up to $8,000 of Home Efficiency Rebates, and up to $14,000 of Home Electrification and Appliance Rebates.
More from Personal Finance:
Take a look inside a $1.1 million ‘zero emissions’ home
How EVs and gasoline cars compare on total cost
How to buy renewable energy from your electric utility
Together, the two rebate programs aim to defray — or in some cases fully offset — the cost of retrofitting homes and upgrading appliances to be more energy-efficient. Such tweaks can help consumers cut their utility bills while also reducing planet-warming carbon emissions, officials said.
The two programs have varying rules that determine which consumers are eligible and how much money they can access. In some cases, rebates will depend on household income and a home’s overall energy reduction.
Nearly every state has indicated it will launch a rebate program for residents, according to a U.S. Department of Energy spokesperson.
State officials had an August deadline to officially decline the federal funds. They have a Jan. 31, 2025 deadline to submit a program application to the DOE.
South Dakota is the only state so far to have signaled publicly that it won’t administer the rebates.
“With good faith, we did look into this,” Jim Terwilliger, commissioner of the South Dakota Bureau of Finance and Management, said during a July 30 appropriations hearing. “We just don’t believe that it’s the right thing for South Dakota.”
Here are the states that have applied
States, which administer the federal funds, have some leeway relative to program design. They must apply for funding and can distribute rebates to consumers after their application is approved.
New York launched the first phase of its rebates May 30.
Five others — Arizona, Maine, New Mexico, Rhode Island and Wisconsin — have since launched rebate programs, too, according to U.S. Department of Energy data as of Sept. 24.
“I’m expecting more and more to roll out,” said Kara Saul-Rinaldi, president and CEO of AnnDyl Policy Group, a consulting firm focused on climate and energy policy.
Many more states, as well as Washington, D.C., have submitted applications or had them approved, according to DOE data: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Michigan, Minnesota, New Jersey, New Hampshire, Massachusetts, North Carolina, Oregon, Tennessee, Vermont, Washington and West Virginia.
Together, these 26 states plus the District of Columbia have applied for $4 billion in total funding so far, the DOE said.
The rebates are a new program, and “complex government programs like these take time and coordination to set up,” according to a DOE spokesperson.
“The Inflation Reduction Act put states in charge of designing and implementing Home Energy Rebate programs that fit their local needs,” the spokesperson wrote in an e-mail. “As each state has different resources and capabilities, each state’s timeline will be different.”
South Dakota is not participating
South Dakota Gov. Kristi Noem at the Republican National Convention on July 15, 2024.
Scott Olson | Getty Images News | Getty Images
However, South Dakota officials in August signaled they wouldn’t participate, the lone state so far to decline the federal rebate funding.
“South Dakota will have no part in facilitating the Green New Deal,” Ian Fury, a spokesperson for Gov. Kristi Noem, a Republican, said in an e-mailed statement.
States had an Aug. 16, 2024 deadline to officially decline the funds.
“We don’t think the administrative burden and the expense of administering a program like that is the appropriate thing to do, and we generally disagree with the policy,” Terwilliger, of the South Dakota Bureau of Finance and Management, said in a July hearing.
The Inflation Reduction Act allows states to use up to 20% of its funding for administrative purposes.
Fifty-one states and territories have applied to DOE for early administrative funding, the agency said.
The $68.6 million of federal money that had been set aside for South Dakota rebates will be redistributed among participating states.
Fury also noted this isn’t the first time South Dakota has rejected federal spending. It was the only state to reject extended unemployment benefits in 2020 during the Covid-19 pandemic, Fury said.
The Green New Deal is a climate-change policy initiative supported by congressional Democrats starting around 2019. Bipartisan legislation to create an energy rebate program had existed almost a decade earlier, like the Home Star Energy Retrofit Act in 2010.
The concept of consumer rebates tied to energy efficiency “predates the Green New Deal by many years,” said Saul-Rinaldi.
Florida reverses course
It appears Florida officials reversed course from their original stance on the rebates.
Republican Gov. Ron DeSantis in 2023 had vetoed the state’s authority to spend about $5 million of federal funds to administer the energy rebate program. At the time, a spokesperson for the state’s Department of Agriculture and Consumer Services told CNBC that Florida wouldn’t be applying for the rebates as a result.
Florida Gov. Ron DeSantis at the Republican National Convention on July 16, 2024.
Robert Gauthier | Los Angeles Times | Getty Images
Now, Florida is preparing for a soft launch of the rebate programs in late 2024 and a full launch in early 2025, according to information on a state website.
A spokesperson for the Department of Agriculture and Consumer Services didn’t return a request for comment on the change in position.
‘Every state is approaching [its program] differently’
At a high level, consumers will be able to get the rebates at the point of sale, when they buy an appliance directly from a retailer or from a qualified contractor who’s helping a household complete an efficiency project.
“Every state is approaching [its program] differently, for many reasons,” Saul-Rinaldi said.
Many are rolling them out in phases. For example, New Mexico is starting by offering a $1,600 rebate for low-income consumers in single-family homes who buy insulation from a participating retailer.
Similar to other states, qualifying New Mexico residents will be able to later access additional rebates such as:
- $8,000 for an ENERGY STAR-certified electric heat pump for space heating and cooling;
- $4,000 for an electrical panel;
- $2,500 for electrical wiring;
- $1,750 for an ENERGY STAR-certified electric heat pump water heater;
- $1,600 for air sealing; and
- $840 for an ENERGY STAR-certified electric heat pump clothes dryer and/or an electric stove.
Consumers and contractors should consult their state energy department website to learn more about their specific programs and eligibility, Saul-Rinaldi said.
The U.S. Energy Department suggests households don’t wait to accomplish necessary home energy upgrades or projects if their state hasn’t formally rolled out rebates. They may be eligible for other federal programs, “including tax credits, the Weatherization Assistance Program, and other state, local, and utility programs,” the agency said.
Twitter CEO Jack Dorsey testifies during a remote video hearing held by subcommittees of the U.S. House of Representatives Energy and Commerce Committee on “Social Media’s Role in Promoting Extremism and Misinformation” in Washington, U.S., March 25, 2021.
Handout | Via Reuters
Block jumped more than 5% on Monday, leading a rally in shares of fintech companies as analysts downplayed the threat of JPMorgan Chase’s reported plan to charge data aggregators for access to customer financial information.
The recovery followed steep declines on Friday, after Bloomberg reported that JPMorgan had circulated pricing sheets outlining potential fees for aggregators like Plaid and Yodlee, which connect fintech platforms to users’ bank data.
In a note to clients on Monday, Evercore ISI analysts said the potential new expenses were “far from a ‘business model-breaking’ cost increase.”
In addition to Block’s rise, PayPal climbed 3.5% on Monday after sliding Friday. Robinhood and Shift4 recorded modest gains.
Broader market momentum helped fuel some of the rebound. The Nasdaq closed at a record, and crypto rallied, with bitcoin climbing past $123,000. Ether, solana, and other altcoins also gained.
Evercore ISI’s analysts said that even if JPMorgan’s changes were implemented, the most immediate effect would be a slight bump in the cost of one-time account setups — perhaps 50 to 60 cents.
Morgan Stanley echoed that view, writing that any impact would be “negligible,” especially for large fintechs that rely more on debit, credit, or stored balances than bank account pulls for transactions.
PayPal doesn’t anticipate much short-term impact, according to a person with knowledge of the issue. The person, who asked not to be named in order to speak about private financial matters, noted that PayPal relies on aggregators primarily for account verification and already has long-term pricing contracts in place.
While smaller fintechs that depend heavily on automated clearing house (ACH) rails or Open Banking frameworks for onboarding and compliance may face real pressure if the fees take effect, analysts said the larger platforms are largely insulated.
WATCH: Congress moves to redraw $3.7 trillion crypto market rules, opening door to Wall Street
The global EV market is still charging ahead. According to new numbers from global research firm Rho Motion, 9.1 million EVs were sold worldwide in the first half of 2025, up 28% compared to the same period last year. But not every region is accelerating at the same pace.
China and Europe are doing the heavy lifting
More than half of the world’s EVs this year have been bought in China. That market hit 5.5 million sales in the first six months of 2025 – a 32% jump year-over-year. Around half of new cars bought in China are now electric.
While some Chinese cities’ subsidies have dried up, Rho Motion expects momentum to pick back up later in the year as more funding is released.
In Europe, 2 million EVs were sold in the first half of the year, up 26%. Battery electric vehicle (BEV) sales also rose 26%, thanks in part to affordable models like the Renault 4 (pictured) and 5 entering the market. Plug-in hybrids (PHEVs) weren’t far behind, growing 27% year-to-date. Chinese automakers are leaning into PHEVs as a way to work around the EU’s new tariffs on BEVs.
Spain is leading the pack with EV sales soaring 85% so far this year. Its generous MOVES III incentive program was extended in April and has kept sales strong. The UK and Germany are also seeing solid growth – 32% and 40%, respectively. France, however, is slumping. With subsidies cut, EV sales there have dropped 13%.
North America is stuck in the slow lane
Things aren’t looking quite as bright in North America. EV sales in the US, Canada, and Mexico are up just 3% so far this year.
Mexico is the one bright spot, with a 20% boost. The US is up 6%. But Canada is down a whopping 23%.
And things could get bumpier. On July 4, Trump signed Congress’s big bill into law, which axes all the Inflation Reduction Act EV tax credits. Those consumer credits for EVs now officially end on September 30.
Just over half of the EVs sold in the US this year qualified for those credits. Rho Motion predicts a rush in Q3 before the subsidies disappear – and a decline in sales after that.
Rho Motion data manager Charles Lester said, “With Trump’s latest cuts in his ‘Big Beautiful Bill,’ the US could struggle to see any growth in the EV market overall in 2025.”
Global EV sales snapshot, H1 2025 vs H1 2024
- Global: 9.1 million (+28%)
- China: 5.5 million (+32%)
- Europe: 2.0 million (+26%)
- North America: 0.9 million (+3%)
- Rest of world: 0.7 million (+40%)
Read more: China breaks records as global EV sales hit 7.2 million in 2025
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
Lucid’s electric sedan can drive further, charge faster, and packs more advanced tech than most of the competition. That might explain why it’s leading the segment. The Lucid Air remained the best-selling luxury EV sedan in the US after widening its lead in the Q2.
The Lucid Air is America’s best-selling luxury EV sedan
The 2025 Lucid Air Pure arrived as the “World’s most efficient car” with an EPA-estimated range of 420 miles and a record 146 MPGe.
It just set a new Guinness World Record last week for the longest journey by an electric car after travelling 749 miles (1,205 km) on a single charge.
That record was set in the range-topping Lucid Air Grand Touring model, which is rated for up to 512 miles of EPA-estimated range. On the WLTP scale, it’s rated at 597 miles (960 km). Either way, it still crushed the estimates.
According to second-quarter sales data, released by Kelley Blue Book on Monday, the Lucid Air is still America’s best-selling luxury EV.
Lucid sold 2,630 Air models in Q2, up 10% from the previous year. Through the first half of 2025, Lucid Air sales are up 17% with 5,094 units sold.
Tesla, on the other hand, only sold 1,435 Model Ss during the quarter, 71% fewer than it did in Q2 2024. Tesla Model S sales in the US are down 70% through the first half of the year at 2,715.
Although Porsche Taycan sales were up 32% with 1,064 models sold, the significantly upgraded 2025 model year was expected to see even more demand. Porsche has 2,083 Taycans in the US this year, up just 1% from 2024.
Other luxury EV sedans, such as the BMW i5 (1,434), i7 (820), and the Mercedes EQS (498), experienced steep double-digit sales declines year-over-year.
And it’s not just electric luxury sedans. The Lucid Air is currently outselling many gas-powered vehicles in its segment.
Lucid’s first electric SUV, the Gravity, is also rolling out. Although only five were sold in the second quarter, Lucid is quickly scaling production. Lucid aims to produce 20,000 vehicles this year, more than double the roughly 9,000 it built in 2024.
Earlier today, Lucid’s interim CEO, Marc Winterhoff, confirmed during an interview with Bloomberg that the company expects higher Gravity output in the second half of the year.
The interview was at the grand opening of Panasonic’s new battery cell plant in De Soto, Kansas. Winterhoff said Lucid will start using new cells from the facility, but not until next year.
Lucid’s CEO stressed the importance of establishing a local supply chain, as policy changes under the Trump Administration are taking effect. Lucid and Panasonic are collaborating to localize EV materials, such as graphite. Last month, Lucid secured a multi-year supply agreement with Graphite One for US-sourced Graphite.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike