IRA Home Energy Rebates: HEAR and HOMES

Quick Comparison of HEAR and HOMES

Where the Programs Stand in 2026

The Department of Energy program page says home energy rebates are available in select states. It directs households to their state or territory energy office for current eligibility and application details.

The latest public launch table available when this guide was checked was the NASEO rebate tracker, dated May 4, 2026. It listed active HOMES programs in the District of Columbia, Georgia, Indiana, Michigan, New York, North Carolina, and Wisconsin. It listed active HEEHR programs in Arizona, California, Colorado, the District of Columbia, Georgia, Indiana, Maine, Michigan, New Mexico, New York, North Carolina, Rhode Island, and Wisconsin.

That list is a snapshot, not a promise that every household or every type of project can apply. Some launches cover only single-family homes, selected counties, affordable multifamily properties, certain income groups, or a short list of products. New programs may also have opened since the tracker date. Use the state energy office directory to reach the office for your location.

What These Rebates Are – and Are Not

• They are rebates. The benefit usually reduces an approved purchase or project cost. It may be paid to a retailer, contractor, building owner, or other approved participant instead of being sent to you as unrestricted cash.
• They normally do not have scheduled repayment. A properly issued rebate is not a loan, deferred loan, or forgivable loan.
• They are not a general repair grant. They will not normally pay for a roof replacement, foundation repair, sewer line, mold cleanup, or room addition unless a specific cost is allowed as part of an approved energy project.
• They are not automatic. A product being energy efficient does not prove that it qualifies under your local program.
• They are not always reimbursement programs. Some states use instant retail discounts, some use approved contractors, and some require reservation or approval before work.

If the main problem is a roof, unsafe structure, plumbing failure, or another non-energy repair, start with a broader home repair assistance guide instead of assuming an energy rebate will pay for it.

HEAR or HEEHR: Rebates for Electric Upgrades

Many state websites still call this program HEAR, meaning Home Electrification and Appliance Rebates. Current federal materials often use HEEHR, meaning High-Efficiency Electric Home Rebate. Both names refer to the Section 50122 rebate stream. States may use other names, such as HARP or a state-branded energy saver program.

HEAR is an income-limited rebate. Under the federal baseline, a household below 80% of area median income may receive up to 100% of eligible project cost, subject to the item caps. A household from 80% through 150% of area median income may receive up to 50% of eligible project cost, again subject to the caps. A household above 150% of area median income is not eligible for this federal rebate.

The federal caps come from 42 U.S.C. 18795a. They are maximums, not guaranteed awards. A state can offer fewer categories, use a phased launch, require an approved contractor, or set extra product and property rules.

For example, a lower-income household does not automatically receive an $8,000 heat pump rebate. If the eligible heat pump project costs $6,500, the rebate cannot exceed the eligible cost. If the quote includes non-eligible repairs, premium options, financing fees, or work outside the approved scope, the household may owe those costs.

HOMES: Rebates Based on Whole-Home Energy Savings

HOMES stands for Home Owner Managing Energy Savings. It is a performance rebate. The main question is not whether you bought one approved appliance. The question is whether an approved package of improvements is expected to reduce the home’s total energy use by enough.

Possible measures can include insulation, air sealing, duct work, heating and cooling equipment, water heating, appliances, and other work that an approved energy model counts. Your state may focus on only some measures. A home energy assessment is usually needed before the scope and rebate can be confirmed.

Federal law also allows a measured-savings path for projects that achieve at least 15% savings. The payment uses a state formula tied to measured energy savings and project cost. Not every state offers every path.

The statutory baseline and completion date appear in 42 U.S.C. 18795. Qualifying HOMES retrofits must be completed no later than September 30, 2031. State funds, reservation periods, or application rounds can end sooner.

Several launched states have raised their HOMES limits above the federal baseline for certain households. That is why a national chart cannot tell you the final amount. State rules control the actual application, approved contractors, income verification, assessment method, and payment.

HOMES is not a promise that a modeled 35% reduction will produce exactly the same drop on every future utility bill. Weather, energy prices, household size, thermostat settings, and appliance use affect actual bills.

Which Rebate May Fit Your Project?

HEAR or HEEHR may fit a listed heat pump, water heater, cooking appliance, dryer, insulation package, panel, or wiring project. HOMES may fit a package such as air sealing, insulation, ducts, and HVAC that can meet a whole-home savings target.

A single upgrade cannot receive both a HOMES rebate and another federal grant or rebate. Separate measures may sometimes use separate programs if the administrator approves the cost split. The DOE stacking guidance explains the restrictions. Ask the official program to compare both routes before work starts.

Who May Qualify?

The program may check your address, household income, property type, ownership or landlord permission, equipment, contractor, and approval date. A state can also limit a launch to certain counties, income groups, single-family homes, manufactured homes, or multifamily properties.

Area median income: AMI changes by county or metro area and household size. Read the AMI explanation, then use the table named by your official program. The HUD income limits page is a reference, but the rebate administrator decides the correct year and accepted proof. It may request tax returns, pay stubs, benefit letters, or proof of an approved income-tested program.

Renters and multifamily homes: Renters may benefit, but permanent work normally needs owner approval. Ask who applies, who receives the rebate, whether the current phase includes rentals, and whether the owner may pass costs to tenants.

Manufactured homes: Some states include them. Confirm title, park or landowner permission, electrical capacity, and approved-contractor rules.

Tribal households: HEEHR has a Tribal route that may be separate from the state program. Contact the Tribal housing or energy office and check the DOE rebate resources.

How to Apply Without Losing the Rebate

1. Find the official program. Use your state, territory, or Tribal energy office and verify the authorized administrator.
2. Check the live rules. Confirm that your ZIP code, income band, property type, and exact upgrade are included now.
3. Ask what must happen first. You may need income approval, a reservation, an energy assessment, or an assigned contractor before purchase.
4. Use the required sales path. A generally licensed contractor may still be ineligible if the rebate requires an enrolled contractor or retailer.
5. Get an itemized written price. Show equipment, labor, permits, rebate, other incentives, financing, and your final cost.
6. Complete inspections and keep records. Save approvals, invoices, model numbers, permits, proof of payment, and final inspection or test results.

Common documents: identification, address proof, deed or lease, landlord permission, household list, income proof, utility bills, photos of existing equipment, contractor scope, permits, and reservation records. Use the repair document checklist if ownership or income records may delay you.

What Happens After Approval?

HEAR may use a coupon, retail discount, approved contractor, or direct-install service. HOMES usually includes an assessment, approved scope, installation, and final quality or savings check.

Before work, confirm the reservation deadline, who pays permits and code repairs, whether you must pay upfront, what happens if final savings are lower, and who handles the warranty. The rebate is not a loan, but separate contractor financing may place a lien on the home. Read the rate, fees, total payments, and security terms before signing.

Work Already Completed and Emergency Replacements

HEAR or HEEHR is not retroactive. Work completed before the required local approval normally will not qualify.

HOMES has a narrow retroactive path. Federal law allows certain retrofits begun on or after August 16, 2022, but they still must meet state and federal savings, documentation, and verification rules. The DOE retroactivity guidance explains the limits. Do not assume a past project qualifies.

For an unsafe equipment failure, protect the household first. Ask about emergency utility, LIHEAP, or weatherization help instead of waiting for a rebate.

Can You Combine Rebates, Tax Help, and Other Programs?

Sometimes, but the same cost cannot be paid twice. Tell every program about all expected funding and get the cost split in writing. HEAR and HOMES cannot both pay for the same upgrade. Utility rebates or weatherization may be added when the administrators approve them and total assistance does not exceed eligible cost.

IRS Announcement 2024-19 treats DOE home energy rebates as purchase-price adjustments rather than taxable income. The rebate reduces the cost used for a related tax credit. The Energy Efficient Home Improvement Credit is not available for property placed in service after December 31, 2025, as confirmed in the Form 5695 instructions. See the updated home energy tax credit guide for 2025 work.

If Your State Program Is Closed or Delayed

Do not wait on one rebate if the home is unsafe or the current launch does not fit. Try these routes:

• Weatherization Assistance Program: An income-based service, not cash. Find the local provider through the DOE application page.
• LIHEAP: Mainly bill and crisis assistance; some agencies coordinate heating help. Use the LIHEAP eligibility tool.
• Utility rebates: Check the electric and gas utility before purchase.
• Local repair programs: Search city, county, housing, and nonprofit help using the guide to find local programs.
• Local referrals: Call 211 where available.

On a waitlist, ask whether the application stays active, when documents expire, and whether a new funding round needs a new application.

A Simple Action Plan

1. Write down the exact upgrade or safety problem.
2. Check the official state or Tribal portal.
3. Confirm income, property, contractor, and preapproval rules.
4. Get a written final-cost estimate before signing.
5. Apply for utility or weatherization help for the remaining eligible cost.

When the rebate is not open, use the home repair starting guide instead of rushing into high-interest financing.