Inflation Reduction Act HVAC Rebate Programs
HEEHR and HOMES

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Rebates Information

HEEHR: High Efficiency Electric Home Rebate

  • Income-based rebate program.
  • Designed for point-of-sale rebates of up to an $8,000 for qualified low-and-medium income homeowners for the purchase and installation of qualifying ENERGY STAR® heat pumps.
  • Up to $500 contractor incentive per project to perform electrification projects in low and moderate-income households.

Eligibility for the HEEHR rebate is income-based and the rebate values aren’t guaranteed for every household.


Product Criteria

All ENERGY STAR Certified heat pumps, when part of new construction, replacement of non-electric appliance, or first-time purchases, are eligible for this rebate program. Households with existing electric resistance heating cannot receive HEEHR rebates for a replacement heat pump. However, these customers may qualify for the HOMES rebate.


Potential Rebate Values

Pending individual state programs funding, consumers may qualify for income-depending rebates of the following:

  • Up to $8,000 for all-electric ENERGY STAR heat pumps to eligible homeowners and other qualifying individuals.
  • Up to $1,600 insulation, air sealing, and ventilation.
  • Up to $4,000 for electric load service center.
  • Up to $2,500 for electric wiring.
  • The maximum rebate is $14,000 per household.

Income Table

Rebate Details

HEEHR is designed for customers to receive the equivalent of the rebate through a point-of-sale discount.

The full value of the rebate is mandated to be passed directly to the consumer. HVAC professionals should utilize their state-authorized HEEHR calculator, when available, to determine qualifying rebate amounts.





HOMES: Home Energy Performance-Based Whole-House Rebate Program

The Inflation Reduction Act created the HOMES rebate program to encourage all home-owners (not restricted by income) to upgrade efficiency and retrofit their home’s energy use through electrification.

The retrofit rebate incentive is up to $2,000 for modeled energy savings between 20% and 35%, and up to $4,000 for 35% or greater modeled energy savings, but these incentives are doubled for low and moderate-income households.*

  • Single family high-income households who do not qualify for HEEHR discounts because of income limitations may qualify for a modeled energy savings rebate of up to $4,000.
  • The HOMES retrofit rebate may benefit low and moderate-income households* with inefficient electric resistance heating since replacing this type of equipment does not qualify for the point-of-sale HEEHR discounts.

* Low-income households mean an individual or family with a total income less than 80% of the median income of where they reside, as per Housing and Urban Development guidelines.


Rebate Details

The HOMES rebate program is designed for performance-based market incentives to be paid to contractors, installers, or home performance companies. To qualify for rebates, each home energy efficiency retrofit will require:

  • A certificate provided by the contractor and certified by a third party to the homeowner
  • Details the work performed, the equipment and materials installed, and the projected energy savings or energy generation to support accurate valuation of the retrofit


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