HARDI State Issues: South Dakota Rejects IRA Funds for Statewide Electrification Rebate Programs

South Dakota has chosen not to participate in the Inflation Reduction Act (IRA) Home Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEAR) programs. According to the Department of Energy (DOE) Application Tracker, South Dakota is the first state to opt out of using the federal funds from the IRA to create a statewide HEAR or HOMES program. States had until August 16th, 2024, to inform DOE of its intention to apply for the allocation of IRA funds. Funds allocated to opt-out states will be reallocated to other participating states. If a state participates, the HOMES and HEAR rebate program application deadline is January 31, 2025. DOE had also set a deadline of May 31, 2024, to apply for early administrative funding. Twenty-six states have applied to the DOE for full funding to launch their HEAR and/or HOMES programs. Fifty-one states and territories have applied to DOE for early administrative or full program funding. These states and territories have applied for $3.6 billion in funding.

Last year it was expected that Florida, Iowa, and South Dakota would not take the IRA funds, in no small part because of the ongoing presidential primaries. Now that the primaries have finished, Florida has applied for funding. You can see the complete list of states applying for rebate funds and their announced rollouts here.

Utilize IRA Funds with HARDI's IRA Toolkit

HARDI created the IRA Toolkit to help distributors and contractors take full advantage of available IRA funds. This toolkit provides the essential information needed to engage your contractor customers with new and existing programs and guide them in educating their clients on applying for rebates. Explore HARDI's IRA resources to see the status of your state and learn how to take advantage of the incentives in your area.