The Inflation Reduction Act funds two major home-energy rebate programs — HEEHRA (electrification rebates) and HOMES (whole-home efficiency rebates) — totaling up to $14,000 per eligible household. The rebates are administered by each state, which is why the rollout schedule varies.
HEEHRA: Up to $14,000 for electrification
- Up to $8,000 for a heat pump (heating + cooling)
- Up to $1,750 for a heat pump water heater
- Up to $840 for an electric stove or heat pump dryer
- Up to $4,000 for an electrical panel upgrade
- Up to $2,500 for electrical wiring
- Up to $1,600 for insulation, air sealing, and ventilation
HOMES: Performance-based whole-home rebates
HOMES pays based on measured or modeled energy savings — up to $4,000 for retrofits achieving 35%+ energy reduction, doubled to $8,000 for low-income households.
Income limits
- Under 80% of Area Median Income: rebates cover up to 100% of project cost
- 80–150% AMI: rebates cover up to 50% of project cost
- Over 150% AMI: not eligible for HEEHRA, but federal tax credits still apply
How to claim
- 01Check your state's energy office — every state administers its own portal and rolls out at different times
- 02Verify household income against the local AMI for your county
- 03Use a state-approved contractor (most states require this; DIY usually doesn't qualify)
- 04Submit pre-approval before the work starts (required in most states)
- 05Submit final invoice and equipment specs to receive the rebate (often issued at point of sale)
Stack with federal tax credits
The Energy Efficient Home Improvement Credit (25C) and Residential Clean Energy Credit (25D) can be claimed in addition to rebates — same project, two pots of money. Keep all receipts and Manufacturer Certification Statements.