The HEEHRA rebate program is one of the most valuable homeowner benefits buried inside the Inflation Reduction Act — and most people have never heard of it. If you're planning a heat pump, water heater, or EV charger this year, you could be leaving up to $14,000 on the table. Here's exactly which states have money right now, which are already out, and how to find out whether your household qualifies.
Disclaimer: HEEHRA rebate program details are based on DOE program documentation and state energy office data as of May 2026. Program funding, eligibility rules, and application portals change frequently. California's HEEHRA program exhausted its full allocation February 24, 2026. Always confirm current program status with your state energy office before purchasing equipment. This guide does not constitute financial or legal advice.
Key Takeaways
- HEEHRA (IRA Section 50122) provides point-of-sale rebates up to $14,000 per household for qualifying low- and moderate-income homeowners
- Approximately 23 states had active programs as of March 2026, per DOE tracking
- California exhausted its entire HEEHRA allocation on February 24, 2026 — the program is closed there with no new applications accepted
- Oregon is launching its program in spring 2026; several other states are still in setup
- Households under 80% of area median income receive 100% of the rebate cap; 80-150% AMI households receive 50%
What Is HEEHRA and Who Runs It?
HEEHRA — the High-Efficiency Electric Home Rebate Act — is Section 50122 of the Inflation Reduction Act. Unlike the Section 25C and 30C tax credits, HEEHRA is a rebate program, not a tax credit. That means the discount comes off your purchase price at the point of sale, rather than showing up as a credit when you file your taxes. Congress funded it with $4.3 billion and directed each state's energy office to administer the money. The DOE published program guidance and released funds to states on a rolling basis through 2023-2024, which is why program launch dates vary so widely.
The program is sometimes called HEAR (Home Electrification and Appliance Rebates) or simply "IRA electrification rebates." If you see any of those names on your state energy office's website, they're referring to the same program.
What Equipment Qualifies?
Each rebate is capped at a specific dollar amount per item. Here are the federal maximums:
| Equipment Type | Max Federal Rebate | Notes |
|---|---|---|
| Heat pump HVAC system | $8,000 | Space heating and cooling; ENERGY STAR required |
| Electrical panel upgrade | $4,000 | Service upgrade required for electrification upgrades |
| Heat pump water heater | $1,750 | ENERGY STAR certified models only |
| Insulation & air sealing | $1,600 | Must be combined with another qualifying upgrade in most states |
| Level 2 EV charging equipment | $1,320 | 240V EVSE hardware only; does not cover installation labor in all states |
| Electric stove, range, or cooktop | $840 | Induction and radiant electric models both qualify |
| Electric dryer | $840 | Heat pump dryers qualify; standard electric dryers may vary by state |
| Maximum per household (lifetime) | $14,000 | Total across all items; income tier determines percentage received |
States set their own rules within those federal caps. Some states pay 100% of the cap for moderate-income households; others set lower state maximums or restrict which equipment qualifies in their first program year.
How Do Income Tiers Work?
Your household income relative to your area median income (AMI) determines how much of each rebate you receive. AMI varies by metro area and household size — a household of four in San Jose has a different AMI than the same family in rural Ohio.
| Household Income (as % of AMI) | Rebate Percentage | Max Possible Rebate |
|---|---|---|
| Under 80% AMI | 100% of applicable cap | Up to $14,000 |
| 80% to 150% AMI | 50% of applicable cap | Up to $7,000 |
| Over 150% AMI | Not eligible | $0 |
To find your local AMI, use the HUD AMI lookup tool. Your state energy office may also provide an income screener directly in the application portal. The 150% AMI cutoff is higher than it sounds — in many metros, a household earning $100,000-$130,000 per year still qualifies for the 50% tier.
If you're planning a heat pump installation, run through our Heat Pump Cost Calculator first to understand total project cost before checking your rebate eligibility.
Which States Have Active Programs Right Now?
This is where the picture gets complicated. States received federal allocations at different times and launched programs at their own pace. As of May 2026, roughly 23 states have active programs. The table below covers the most-populated states and key early movers. For states not listed, check your state energy office directly — several mid-size states are in late-stage setup as of this writing.
| State | Program Status | Max Household Rebate | Apply At |
|---|---|---|---|
| California | Closed — funds exhausted Feb 24, 2026 | N/A (program ended) | energy.ca.gov (archived) |
| New York | Active | Up to $14,000 (income-qualified) | nyserda.ny.gov |
| Michigan | Active | Up to $14,000 | michigan.gov/egle |
| Wisconsin | Active | Up to $14,000 | focusonenergy.com |
| Colorado | Active | Up to $14,000 | energyoffice.colorado.gov |
| Massachusetts | Active | Up to $14,000 | masssave.com |
| Rhode Island | Active | Up to $14,000 | energy.ri.gov |
| Washington | Active | Up to $14,000 | commerce.wa.gov |
| Oregon | Launching spring 2026 | Up to $14,000 (estimated) | oregon.gov/energy |
| Illinois | Active | Up to $14,000 | illinois.gov/dceo |
| Georgia | Active | Up to $14,000 | gefa.georgia.gov |
| Hawaii | Active | Up to $14,000 | energy.hawaii.gov |
| Texas | Not yet launched | Allocation pending | seco.cpa.texas.gov |
| Florida | Not yet launched | Allocation pending | floridadep.gov/energy |
| Arizona | Active | Up to $14,000 | azcommerce.com/energy |
Status as of May 2026, based on DOE state program tracking and individual state energy office reporting. Texas and Florida received federal allocations but had not launched consumer-facing portals as of this writing.
What Happened in California?
California's HEEHRA program exhausted its entire funding allocation on February 24, 2026 — less than three months after fully launching. The state received one of the largest federal allocations given its population, but demand far outpaced supply. The California Energy Commission confirmed the program closure on its website; no new applications are being accepted and there is no waitlist.
California homeowners who missed the window should check two alternatives. First, the TECH Clean California program provides heat pump incentives through utilities and is not part of HEEHRA funding. Second, the federal Section 25C credit (30% of heat pump equipment and installation, up to $2,000/year) is still active through 2032 and is not income-restricted. California residents qualify for 25C regardless of HEEHRA's closure.
According to Intelligent Living's March 2026 survey of DOE state program data, California's rapid depletion is the most prominent warning sign for homeowners in states with newly launched programs — funding can close faster than expected.
Does HEEHRA Stack with the Section 25C Tax Credit?
Yes. HEEHRA rebates and the Section 25C Energy Efficient Home Improvement Credit can apply to the same project, but the math requires attention. The IRS restricts the 25C credit to the net cost after rebates. If your heat pump costs $10,000 installed and you receive an $8,000 HEEHRA rebate, your net cost is $2,000. The 25C credit (30%) then applies to that $2,000, yielding a $600 credit rather than $3,000.
That's still $8,600 in total savings on a $10,000 project. For households under 80% AMI, the combined benefit can cover essentially the full cost of a heat pump HVAC system.
The Section 25C credit is not income-restricted. Households above 150% AMI who don't qualify for HEEHRA at all can still claim 25C on the full project cost, worth up to $2,000 per year through 2032.
Use our Heat Pump Cost Calculator to model your specific project cost, then compare the stacked incentive value across both programs before getting installer quotes.
The HOMES Program: A Companion Rebate Worth Knowing
IRA Section 50121 created a second rebate program alongside HEEHRA. The HOMES Program (Home Owner Managing Energy Savings) pays based on how much energy your home saves after upgrades — not on the specific equipment you install. This makes it broader in scope but harder to predict in value.
The DOE set two tiers:
- $2,000 rebate for homes that achieve 20-35% whole-home energy savings
- $4,000 rebate for homes that achieve 35%+ whole-home energy savings
Income-qualified households can receive double those amounts. Unlike HEEHRA, HOMES requires a certified energy audit before and after the project to verify the savings. Not all states have launched HOMES separately from HEEHRA. If your state runs both programs, they can stack for households who complete a major efficiency project like adding insulation, air sealing, and a heat pump together.
How to Apply: What to Do Before Calling a Contractor
The most common mistake homeowners make is purchasing equipment before checking program rules. Several states, including California's now-closed program, required pre-approval before installation. Buying first and then applying often disqualifies you entirely.
Here's the right sequence:
Find your state energy office and confirm program status.
Start at the DOE’s state energy office directory and click through to your state. Look specifically for a HEEHRA, HEAR, or “electrification rebate” program. If the portal is live, bookmark it before doing anything else.
Check your income eligibility against local AMI.
Use HUD’s income limits data to find the 80% and 150% AMI thresholds for your county and household size. Many state portals include their own income screener — use whichever is more specific.
Submit a pre-approval application before purchasing anything.
Most active programs issue a reservation or pre-approval letter that locks in your rebate amount for 60-120 days. This letter also tells contractors you’re rebate-eligible, which helps with quotes.
Get at least three installer quotes, mentioning the rebate.
Tell each contractor you have a HEEHRA pre-approval. In most states, the rebate is applied at point of sale by the participating contractor — you pay the net price, not the full price. Ask each contractor whether they’re a program participant before scheduling work.
See your total project cost before you call a contractor
Enter your home’s details and get an instant heat pump cost estimate — no email required.
Adding an EV charger to your project? Our EV Charger Cost Calculator models hardware and installation costs so you know your true out-of-pocket before the HEEHRA rebate of up to $1,320 is applied.
Bottom Line
HEEHRA can cover a substantial portion of a heat pump installation, panel upgrade, or EV charger — but only if your state has active funding and you apply before purchasing. California's program closed in under three months, which shows how quickly allocations disappear when demand is high. If your state's program is active right now, treat that status as perishable.
Households under 80% AMI stand to gain the most: up to $14,000 in point-of-sale rebates stacked on top of the Section 25C tax credit means a heat pump HVAC and water heater combination could cost near zero out of pocket in some states. Moderate-income households (80-150% AMI) still capture half those amounts. Over 150% AMI, 25C is your main federal tool and it runs through 2032.
Check your state energy office today. The programs that are open right now won't stay open forever.
Related Guides
- Heat Pump vs. Gas Furnace in 2026: True Cost Comparison — Side-by-side operating cost analysis that helps you calculate the actual savings before applying for rebates.
- Whole-Home Electrification Guide 2026 — How to sequence heat pump, EV charger, solar, and water heater upgrades to maximize every available incentive.
- EV Charger Installation Cost Guide — Full cost breakdown for Level 2 charger hardware and installation before the HEEHRA rebate and Section 30C credit are applied.
- Home Battery Storage Cost in 2026 — Battery storage sits outside HEEHRA coverage in most states — this guide covers what you’ll pay and which state programs do exist.
Sources
- DOE — High-Efficiency Electric Home Rebate Act (HEEHRA) overview
- DOE — State Energy Offices directory
- HUD — Income Limits and AMI data
- Intelligent Living — DOE state HEEHRA program status, March 2026
- California Energy Commission — HEEHRA program closure notice
- IRS — Energy Efficient Home Improvement Credit (Section 25C)
- NYSERDA — New York clean energy and electrification rebates
- MassSave — Massachusetts electrification rebate programs
