By Timothy Gardner

WASHINGTON The Department of Energy said on Thursday it is accepting applications from states and territories for $8.5 billion in rebate programs for upgrades in U.S. homes that aim to lower energy bills and increase energy efficiency.

The rebates for items including insulation, heat pumps, and efficient appliances will be available to consumers after states and territories apply for and get funds from the department. The two rebate programs were funded by President Joe Biden's Inflation Reduction Act that fellow Democrats in Congress passed last year without a single Republican vote.

The rebate programs will save up to $1 billion a year in energy costs and support about 50,000 jobs in construction, manufacturing and other businesses, the department said.

"We expect these rebates will start to be available to consumers in some states as early as the end of this year and continuing on a rolling basis in 2024," depending how quickly states and territories move, David Turk, the deputy U.S. energy secretary, told reporters.

When asked whether he was concerned that some states with Republican governors would decline to apply for the funds, Turk said the administration hopes that "all our partners across the country" would see it in their interest to benefit from the program.

The Home Efficiency Rebates program offers $4.3 billion in formula grants to state energy offices to cut the upfront costs for whole-home energy efficiency upgrades in single and multi-family homes.

The Home Electrification and Appliance Rebates program offers $4.275 billion to states to reduce the costs of efficient electric technologies, and $225 million of similar grants to tribes.

Turk said low-income families could save up to $14,000 with the rebates on purchases that will increase energy efficiency. Consumers receiving the rebates will not be required to report the value of them as income, the Energy Department said.

(Reporting by Timothy Gardner; Editing by Conor Humphries)