Last updated: June 4, 2026
Your furnace, air conditioner, water heater, stove, or electrical panel may need work now, but the new IRA rebate rules can feel like a locked door: one program is open in some states, closed or not launched in others, and contractors may be giving different answers.
This guide explains the two main federal home energy rebate programs created by the Inflation Reduction Act: HEAR and HOMES. They are real programs, but they are not automatic checks and they are not the same in every state. The safe path is to check your state program first, confirm your income tier, get any required approval before work starts, and use the contractor or retailer rules your state requires.
Quick answer for homeowners
HEAR helps income-qualified households with specific electric upgrades, such as heat pumps, heat pump water heaters, electric cooking, heat pump dryers, wiring, panels, insulation, air sealing, and ventilation. The federal maximum is up to $14,000 per household, but your state may offer fewer items, lower caps, phased access, or a waitlist. ENERGY STAR’s HEAR rebate table lists the federal maximums.
HOMES helps pay for whole-home energy savings projects. It is not just a coupon for one appliance. The project must meet a measured or modeled energy savings target. ENERGY STAR’s HOMES rebate table explains the federal savings thresholds and maximum rebate levels.
The U.S. Department of Energy says states, territories, and Tribes run these rebate programs and decide which products are available locally. Start at the DOE rebate hub, then check your state energy office or approved state program site.
HEAR vs. HOMES: the simple difference
Many people search for “IRA rebates” and find a mix of names. HEAR is also called the Home Electrification and Appliance Rebates program. HOMES is also called the Home Efficiency Rebates program or whole-home energy savings rebates. The names matter because the rules are different.
| Question | HEAR | HOMES |
|---|---|---|
| Main purpose | Specific electric appliances and electrical work | Whole-home energy savings project |
| Who can qualify under federal rules? | Low- and moderate-income households under 150% of area median income | All income levels can be eligible, but lower-income households can receive larger rebates |
| Common project type | Heat pump, heat pump water heater, panel, wiring, electric stove, heat pump dryer | Insulation, air sealing, HVAC, water heating, or combined work that reaches energy savings targets |
| How savings are proved | Usually by eligible product, income tier, and state approval | By modeled or measured energy savings |
| When discount may appear | Often at the point of sale or through an approved contractor path | May be an upfront discount, rebate reservation, or post-work rebate depending on state design |
| Can states narrow the rules? | Yes. States may limit items, household types, contractor paths, or launch phases | Yes. States choose program design, savings method, approved tools, and local steps |
The most important difference is this: HEAR usually starts with the item you want to install, while HOMES starts with how much energy your home can save. A household may be able to use both programs for different parts of a larger plan, but the same technology upgrade or same project cannot be double-counted under both programs.
If your home is unsafe today
Do not wait for a rebate if there is a safety danger. A rebate program may take weeks or months, and some states require approval before work begins. If you smell gas, see sparks, have carbon monoxide alarms going off, have no safe heat in dangerous cold, or have an electrical panel that is hot, smoking, buzzing, or burning, leave the area and call emergency services or your utility’s emergency line.
For non-emergency but urgent energy problems, call your utility, your local weatherization provider, and your local energy assistance office. The LIHEAP office finder can help you find local energy assistance contacts, and 211 can help locate local utility, shelter, food, or emergency aid referrals.
Federal maximum rebate amounts
These are federal maximums, not promises. Your state can be narrower. Your actual rebate may depend on income, project cost, funding still available, approved products, inspections, contractor rules, and whether your state has launched that part of the program.
HEAR maximums for eligible homes
Under the federal HEAR structure, households under 80% of area median income may be able to receive up to 100% of eligible project costs, up to the item cap. Households from 80% to 150% of area median income may be limited to no more than 50% of eligible costs. Households at or above 150% of area median income are not eligible for HEAR under the federal rule.
| HEAR upgrade | Federal maximum | Plain-English note |
|---|---|---|
| Heat pump for heating and cooling | Up to $8,000 | May replace or reduce use of older heating and cooling equipment |
| Heat pump water heater | Up to $1,750 | Must meet program product rules |
| Electric stove, cooktop, range, or oven | Up to $840 | Some states may allow retail purchase paths |
| Electric heat pump clothes dryer | Up to $840 | Check state rules before buying |
| Insulation, air sealing, and ventilation | Up to $1,600 | May be required before larger equipment upgrades |
| Electric load service center or panel | Up to $4,000 | Often needs an electrician, permit, or load calculation |
| Electric wiring | Up to $2,500 | May be needed to safely add new electric equipment |
| Combined HEAR total | Up to $14,000 | Combined cap does not mean every home receives the full amount |
HOMES maximums for whole-home savings
HOMES is based on energy savings. Under the federal table, a single-family project with modeled energy savings of 20% to less than 35% can be eligible for the lesser of $2,000 or 50% of project costs. If modeled savings reach at least 35%, the federal maximum can rise to the lesser of $4,000 or 50% of project costs. For low-income households, the higher modeled-savings tier can rise to the lesser of $8,000 or 80% of project cost. Multifamily rules have per-unit and per-building caps.
Measured savings can also qualify if the project reaches at least 15% measured energy savings. States choose whether to use modeled savings, measured savings, or both. Some programs require specific modeling tools, energy audits, post-work verification, and utility data.
Practical tip: If your home is drafty, poorly insulated, or has leaky ducts, ask about HOMES or weatherization before replacing equipment. DOE’s home upgrades guide notes that assessments can help identify the best path and that several upgrades may qualify for rebates or credits when available.
How income is usually checked
Most HEAR decisions depend on your household income compared with area median income, often called AMI. AMI is not one national number. It changes by county or metro area and by household size. HUD posts the official HUD income limits, but many state rebate sites provide their own lookup table or calculator to make the process easier.
States may ask for proof such as recent pay stubs, a tax return, Social Security or pension letters, unemployment records, disability benefit letters, rental income records, or a zero-income statement. Some states may also use participation in other programs to help verify income. Do not assume your benefit letter is enough; ask the state rebate program what it accepts.
- You may have a stronger HEAR path if your household is below 80% AMI.
- You may still have a HEAR path if your household is between 80% and 150% AMI, but the rebate may cover a smaller share.
- You should not count on HEAR if your household is at or above 150% AMI, unless your state has a separate non-HEAR program.
- You may still have a HOMES path above 150% AMI if your state allows it and your project meets savings rules.
Why your state answer may be different from your neighbor’s
The federal law created the funding structure, but states, territories, and Tribes run the programs. That means rollout timing, application portals, approved contractors, eligible products, income verification, and reservation systems can be different across state lines.
As of NASEO’s May 4, 2026 update, its state launch list showed HOMES program launches in places such as the District of Columbia, Georgia, Indiana, Michigan, New York, North Carolina, and Wisconsin. The same update showed HEAR launches in places such as Arizona, California, Colorado, the District of Columbia, Georgia, Indiana, Maine, Michigan, New Mexico, New York, North Carolina, Rhode Island, and Wisconsin. This can change, so treat that list as a starting point and confirm on your own state energy office page before signing a contract.
Some states open in phases. A state may start with low-income households, specific counties, manufactured homes, multifamily buildings, retail appliance rebates, or contractor-only projects. A state may also pause reservations if the first funding round is used up.
How to apply without losing the rebate
The safest rule is simple: do not buy equipment or sign a binding installation contract until you know your state’s rules. HEAR usually is not retroactive for items bought before the state program allows them. DOE has explained that retroactive treatment is limited to certain HOMES projects that began on or after August 16, 2022 and meet state and federal requirements; DOE also states that the law did not provide retroactive HEAR rebates. Check DOE’s retroactive rebate update before assuming an old project can qualify.
- Find your state program. Start with the DOE rebate hub, your state energy office, or the NASEO launch list.
- Check program status. Look for “open,” “paused,” “waitlist,” “pilot,” “contractor-only,” or “coming soon.”
- Check income tier. Use the state’s AMI tool or ask what proof is accepted.
- Ask what work is allowed. Do not assume every federal item is offered in your state.
- Ask who must apply. In some states the homeowner applies; in others the contractor, retailer, or program implementer handles the rebate.
- Reserve the rebate if required. Get written confirmation before work begins.
- Keep every record. Save estimates, product model numbers, AHRI or ENERGY STAR proof if requested, permits, invoices, inspection documents, and rebate approval notices.
Call script: state rebate office
Hello, I am checking whether HEAR or HOMES rebates are open in my state. My ZIP code is [ZIP]. I own or rent a [single-family home/manufactured home/unit in a multifamily building]. I am considering [heat pump/panel/insulation/water heater]. Do I need approval before work starts, and where can I find the approved contractor or retailer list?
Contractor and product rules
These rebates often require more than a normal estimate. HEAR work may need an approved contractor, eligible product, proper permit, and program reservation. HOMES work may need an energy assessment, modeling, utility data, and post-work verification. If the contractor says, “Everyone qualifies,” ask for the state program page that proves it.
For heat pumps, water heaters, dryers, cooking equipment, insulation, and other products, states may require ENERGY STAR certification, specific efficiency levels, or listed product models. ENERGY STAR’s Product Finder can help you check product categories, but your state’s rebate list is still the final local rule.
Ask the contractor for the full price before the rebate, the rebate amount, who receives the rebate, what you owe at signing, what happens if the rebate is denied, and whether the estimate includes permits, electrical work, disposal, duct repairs, patching, or needed code work.
Call script: contractor
Before I sign, please show me the state rebate rule for this job. Are you approved for this program? Who submits the rebate application? Is the rebate reserved before installation? If the rebate is denied, am I responsible for the full price? Please put that answer in writing.
Do not sign only because a salesperson says the rebate will cover it. The Treasury Department’s rebate tax explainer says rebates reduce the purchase price and that federal rebates and tax credits have limits. The rebate cannot exceed the project cost, and HEAR and HOMES cannot be used together for the same technology upgrade or same project.
What about tax credits?
Tax credits are separate from HEAR and HOMES rebates. A rebate usually lowers the price of the project. A tax credit is claimed later on a tax return if the work qualifies and the taxpayer has enough tax liability. For 2026 planning, be careful: the IRS says the Energy Efficient Home Improvement Credit can be claimed for qualifying improvements made through December 31, 2025, and the 2025 instructions say you cannot claim that credit for property placed in service after December 31, 2025. Check the IRS energy credit page before relying on any salesperson’s 2026 tax-credit claim.
If you are filing for a prior eligible tax year, the IRS says homeowners use IRS Form 5695 for residential energy credits. HomeRepairGrants.org is not tax advice, so ask a qualified tax professional or the IRS if you are unsure.
Common mistakes that can cost you the rebate
- Buying too early. Some rebates must be reserved before purchase or installation.
- Using the wrong contractor path. A licensed contractor may still not be an approved rebate contractor.
- Assuming the federal maximum is your state amount. States may offer fewer items or phase access.
- Skipping electrical review. Heat pumps, dryers, stoves, and water heaters may need panel or wiring work.
- Ignoring health and safety problems. Mold, asbestos, knob-and-tube wiring, roof leaks, or unsafe combustion equipment can delay work.
- Not saving model numbers. Programs may need exact product proof.
- Letting a contractor control all paperwork. Keep copies in your own files.
- Confusing rebates with loans. A rebate should not turn into surprise financing.
Backup options if your state is not ready
If your state program is not open, your repair may still have other paths. The Weatherization Assistance Program can help eligible low-income households reduce energy costs and improve health and safety. USA.gov’s weatherization overview explains the federal program, but local agencies handle applications.
LIHEAP may help with heating and cooling bills, energy crisis assistance, and sometimes weatherization or energy-related repairs. Use the LIHEAP office finder to locate your state or local office. You can also call 211 and ask for utility assistance, weatherization intake, local nonprofit repair help, and emergency cooling or heating help.
If you must finance part of the work, compare safer options before taking contractor-arranged financing. HUD’s home repair financing page explains that homeowners should understand loan terms and repayment before proceeding with home improvements.
Call script: utility or weatherization
I am trying to lower my energy bills and may need [insulation/air sealing/heat pump/water heater help]. I am also checking HEAR and HOMES rebates. Do you have a weatherization program, utility rebate, energy audit, or referral to an approved local provider?
Call script: 211
I need help finding local energy assistance and weatherization resources. My ZIP code is [ZIP]. I have [high bills/no heat/unsafe cooling/old equipment]. Can you give me contacts for LIHEAP, weatherization, utility assistance, and nonprofit home repair programs?
Scam and high-pressure sales warnings
Be careful with door-to-door sales, “today only” prices, promises that the government will cover the full job, or pressure to sign financing before your rebate is approved. The FTC’s contractor scam guide warns that dishonest contractors may overcharge, do poor work, damage homes, or take money without doing the job.
- Do not pay the full job upfront.
- Do not sign blank forms.
- Do not rely on verbal rebate promises.
- Do not give your Social Security number to a contractor unless the official state rebate process clearly requires it and you know how it will be protected.
- Check licenses, insurance, complaint history, and permit requirements.
- Get the rebate denial rule in writing before signing.
If you are denied, waitlisted, or delayed
First, ask for the reason in writing. A denial may be caused by income tier, missing documents, ineligible product, wrong contractor, project started too early, funding pause, address mismatch, landlord approval, or a savings model that did not meet the HOMES threshold.
Second, ask whether there is a correction period, appeal, reconsideration, or waitlist. Some programs may let you upload missing documents or choose a different eligible product. Others may require a new application when funding reopens.
Third, protect your housing and safety. If the delay leaves you without safe heat, cooling, hot water, or power, call your utility, local emergency assistance office, weatherization provider, 211, and local code or health department if conditions are dangerous.
Short glossary
AMI: Area median income. It compares your household income with local income levels for your area and household size.
Point of sale: A discount applied when you buy the product or when the approved contractor bills the job, instead of waiting for a later reimbursement.
Modeled savings: An estimate made before work starts using approved software or program rules.
Measured savings: Savings shown after work is complete, often using energy use data.
Rebate reservation: Written approval that funds are set aside for your project if you finish the required steps.
FAQs
Are HEAR and HOMES rebates open everywhere?
No. States, territories, and Tribes are rolling them out on different schedules. Some are open, some are phased, and some may pause or waitlist new applications.
Can I get the full $14,000 HEAR rebate?
Maybe, but do not count on it. The $14,000 figure is a federal combined maximum. Your state must offer the relevant items, you must qualify by income, the project must meet cost and product rules, and funds must be available.
Can renters use these rebates?
Federal materials include rented homes, single-family homes, multifamily homes, and manufactured housing as possible eligible housing types. State rules and landlord approval can affect what is actually available.
Can I buy now and get paid back later?
Usually you should not assume that. HEAR is generally not retroactive. Some HOMES projects that began on or after August 16, 2022 may qualify only if they meet state and federal rules.
Can I use HEAR and HOMES together?
You cannot use both rebates for the same technology upgrade or same project. In some cases, a larger plan may use different incentives for different parts, but the state program must allow it and the paperwork must be clear.
What should I do first?
Find your state program page, check whether your project type is open, confirm your income tier, and ask whether approval is required before purchase or installation.
About This Guide
This HomeRepairGrants.org guide uses official federal, state, local, and high-trust nonprofit/community sources mentioned in the article, including DOE, ENERGY STAR, Treasury, IRS, HUD, HHS/LIHEAP, NASEO, 211, FTC, and state energy office materials.
HomeRepairGrants.org is not a government agency, does not guarantee eligibility, and is not legal, financial, tax, medical, insurance, disability-rights, or government-agency advice.
Corrections: Email info@homerepairgrants.org with corrections.
Update note
Next review: August 17, 2026