The Inflation Reduction Act (IRA) created two major rebate programs for energy-efficient home appliances: Home Electrification and Appliance Rebates (HEAR/HEEHRA) and Home Efficiency Rebates (HER). Combined, these provide up to $14,000 per household for electric appliances and up to $8,000 for whole-home efficiency improvements.
17 steps across 2 sections
1. Steps Process
- Check your state's program status — IRA rebates are rolling out state by state. Check your state energy office website or use the Rewiring America tool at rewiringamerica.org/app/ira-calculator to ...
- Determine income eligibility — HEAR rebates are income-based:
- Under 80% Area Median Income (AMI): Up to 100% of project cost covered
- 80-150% AMI: Up to 50% of project cost covered
- Over 150% AMI: Not eligible for HEAR rebates (but eligible for tax credits)
- Identify qualifying upgrades — HEAR covers: heat pump HVAC (up to $8,000), heat pump water heater (up to $1,750), electric stove/cooktop (up to $840), heat pump dryer (up to $840), electrical panel...
- Check tax credits too — Separate IRA tax credits (25C) provide 30% of cost for: heat pumps (up to $2,000/year), water heaters ($2,000/year), insulation/air sealing ($1,200/year), windows ($600/year...
- Find a qualified contractor — Many programs require using approved contractors. Check your state program's contractor directory.
- Apply for rebates — Process varies by state. Some offer point-of-sale rebates (discount at purchase), others require post-purchase applications. Keep all receipts and documentation.
- Stack incentives — You can often combine IRA rebates + IRA tax credits + utility rebates + manufacturer rebates for maximum savings. Check each program's stacking rules.
2. Key Details
- HEAR total household cap: $14,000 in rebates
- HER program: Up to $8,000 for whole-home efficiency improvements
- IRA tax credits (25C): 30% of cost, various caps per item, available through 2032
- Some state programs are already fully reserved (e.g., California HEEHRA as of early 2026)
- Energy Star appliances also qualify for utility rebates (separate from IRA)
- Federal appliance rebates can stack with state and utility programs
- Programs have finite funding — apply early when available
Common Mistakes
- Assuming the program is available in your state (check first — rollout varies)
- Not checking income eligibility for HEAR rebates
- Missing the stacking opportunity (combining rebates + tax credits + utility i...
- Buying appliances before checking if your state requires pre-approval
- Not keeping receipts and product documentation
Pro Tips
- Use rewiringamerica.org/app/ira-calculator for a personalized savings estimate
- Heat pumps offer the biggest rebate ($8,000) and provide both heating and coo...
- Even above-income-limit households can get significant savings through 25C ta...
- Many utilities offer additional rebates for Energy Star appliances — check wi...
- The 25C tax credits reset annually, so you can spread upgrades across multipl...