Federal Rebates You May Not Know About — Yet
While some federal tax credits have expired, two major rebate programs created by the Inflation Reduction Act are just now launching across the country. These are not tax credits — they’re direct rebates that reduce your upfront costs, sometimes before you even pay.
The Two Programs
Home Efficiency Rebates (HER): Available to all homeowners. Rebates of $2,000 to $4,000 (or up to $8,000 for low-income households) for whole-home energy improvements that reduce energy use by 20-35% or more. This can include insulation, air sealing, HVAC upgrades, and more — as long as the overall project meets the energy savings threshold.
Home Electrification and Appliance Rebates (HEAR): Targeted at low-to-moderate income households. Provides point-of-sale rebates for specific upgrades including heat pumps (up to $8,000), heat pump water heaters (up to $1,750), electrical panel upgrades (up to $4,000), insulation (up to $1,600), and electric stoves/cooktops (up to $840).
The Catch: It’s State by State
Each state had to apply to the Department of Energy and design its own program. This means rollout timelines vary significantly. Some states launched in late 2025. Others are expected to launch throughout 2026. A few may take longer.
These rebates are not retroactive — you can only claim them for work done after your state’s program launches. So before starting a major renovation, check if your state’s program is live.
How to Check Your State
The Department of Energy maintains an updated list of state program statuses. Visit energy.gov/scep/home-energy-rebates-programs to see if your state’s program is active.
You can also contact your state energy office directly — they can tell you the exact launch date, eligibility requirements, and how to apply.
Can You Stack These With Tax Credits?
In most cases, yes. The federal tax credit (Section 25C) and the state rebates are separate programs. A homeowner could potentially install a qualifying heat pump, receive a HEAR rebate from their state, AND claim the $2,000 federal tax credit — significantly reducing the total cost of the upgrade.
However, the combined benefits cannot exceed the total cost of the project. Consult your state program guidelines for specific stacking rules.
Sources: U.S. Department of Energy (energy.gov); National Housing Trust IRA Rebates Guide; ENERGY STAR. This article is for informational purposes only.
