Low- to Modern-Income Households Can Qualify for Up to $14,000

HEEHR is a rebate program that covers 100% of electrification project costs up to $14,000 for low-income households and 50% of costs up to $14,000 for moderate-income households. Households where income is more than 150% of adjusted median income (AMI) are not eligible. For multifamily, 50% of the households in the building need to meet the income eligibility requirements.

Funds are administered through the state energy offices, which have some leeway on program particulars. HEEHR will be available sometime in the second half of 2024. This is subject to the Department of Energy (DOE) and individual states for implementation time lines.



Qualified improvements Accordion Toggle

Qualified electrification projects include heat pump HVAC systems (air pump and geothermal), heat pump water heaters, electric stoves and cooktops, heat pump clothes dryers. Projects can also include enabling measures such as upgrading circuit panels, insulation, air sealing, ventilation, and wiring. Products must be ENERGY STAR® compliant. Project costs covered include both purchase and installation expenses.

Following are the maximum rebates you as a homeowner can possibly claim from the HEEHR program:

  • Heat pumps = $8,000
  • Electric service upgrades = $4,000
  • Electric wiring upgrades = $2,500
  • Insulation, leakage sealing, ventilation = $1,600
  • Installation maximum = $500

HEEHR rebates can stack with federal energy efficiency and electrification tax credits (e.g., 25C). Note: HEEHR rebates cannot be combined with HOMES rebates.

Potential rebates Accordion Toggle

Following is the breakdown of the HEEHR rebate incentives, including the breakdown of potential tax credits for homeowners:

IRA Program

High Efficiency Electric Homes Rebate

Rebate (Point of Sale - TBD)

Eligible Claim Dates
TBD by each state and territory Energy Office with guidance from DOE, IRS/Treasury

HVAC Credits / Rebates

Up to:

Heat Pumps = $8,000

Elec Service Upgrade = $4,000

Electric Wiring Upgrade = $2,500

Insulation, Leakage Sealing, Ventilation = $1,600

Installation Maximum = $50050% of the project cost

Cannot exceed $14,000 in combined rebates

Qualified Products

AC, Split = 15.2 SEER2, 12.0 EER2

AC, PAC = 15.2 SEER2, 11.5 EER2

Heat Pump, Split = 15.2 SEER2, 11.7 EER2, 7.8 HSPF2

Heat Pump, PAC = 15.2 SEER2, 10.6 EER2, 7.2 HSPF2


Rebate based on AMI

100% Rebate if AMI < 80%

50% Rebate if AMI 80% to 150%

0.0% Rebate if AMI > 150%


Rebates are per household

Cannot be combined with HOMES

Products must meet the SEER2, EER2, and HSPF2 requirements outlined by ENERGY STAR® to qualify for the HEEHR rebate.

Following are requirements for air conditioning and heat pump systems:

Energy-Efficiency Criteria for Certified Residential Central Air Conditioners

Product Type SEER2 EER2
CAC Split Systems ≥15.2 ≥12.0
CAC Single Packaged Equipment ≥15.2 ≥11.5

*Including gas/electric package central AC units

Energy-Efficiency Criteria for Certified Residential Heat Pumps

Product Type SEER2 EER2 HSPF2
HP Split Systems ≥15.2 ≥11.7 ≥7.8
HP Single Packaged Equipment* ≥15.2 ≥10.6 ≥7.2

*Including gas/electric heat pumps, which are not eligible for the Cold Climate designation.

Energy-Efficiency Criteria for Certified Residential Cold Climate Heat Pumps

Product Type SEER2 EER2
HP Split Systems (Non-Ducted) ≥15.2 ≥8.5
HP Split Systems (Ducted) ≥15.2 ≥8.1
HP Single Packaged Equipment* ≥15.2 ≥8.1

*Excludes gas/electric package heat pumps, which are not eligible for the Cold Climate designation.

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Home Energy Rebates Program: State Status Tracker Accordion Toggle

Updated February 16th, 2024

As part of the Inflation Reduction Act, states were given the option to apply for federal funding to support the High-Efficiency Electric Home Rebate (HEEHR) and the Home Owner Managing Energy Savings (HOMES): Rebate Programs. States have the option to opt out of the programs if they wish or apply for federal funds. To see your states application status, and learn more about the program see the link below.

Home Energy Rebates Program: Status of State Applications | Department of Energy External URL
Disclaimer: Please be aware that funds are administered by the state and participation is voluntary on a state-by-state basis. Be sure to check if you state is participating in the Rebate Programs. Fund distribution is subject to the DOE and individual state implementation timelines. The advice offered here is intended as a basic guide only and not to be used as, or substituted for, professional tax preparation advice. We strongly advise you seek professional support for assistance and advise you to consult with a certified tax preparation specialist or CPA as appropriate.

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