IRA HEAR Rebates — Up to $14,000
The High-Efficiency Electric Home Rebate Act (HEAR) created point-of-sale rebates for qualifying electric appliances and systems. For households at or below 80% AMI, rebates cover 100% of costs up to category maximums: heat pump (space heating/cooling) up to $8,000; electric panel upgrade up to $4,000; weatherization (insulation, air sealing, ventilation) up to $1,600; heat pump water heater up to $1,750; electric stove or cooktop up to $840; heat pump dryer up to $840; electric wiring up to $2,500. Combined maximum: $14,000 per household. Administered through state energy offices — check your state's current program status at energysaver.gov.
HOMES Rebates for Whole-Home Savings
The HOMES (Home Owner Managing Energy Savings) rebate program reimburses households based on measured energy savings from whole-home efficiency improvements. For households at or below 80% AMI: up to 80% of project cost, capped at $8,000. For moderate-income households: up to 50% of cost, capped at $4,000. Work must achieve minimum measured savings thresholds. Also administered through state energy offices — not all states have deployed HOMES yet, check your state's current availability.
25C Tax Credit — Up to $3,200/Year
The IRA's expanded 25C Energy Efficient Home Improvement Tax Credit runs through 2032 and provides: 30% of cost of qualifying improvements; $1,200/year cap for insulation, air sealing, windows, and doors combined; $2,000/year for heat pumps or heat pump water heaters; $600/year for other HVAC/water heating equipment. Total annual cap: $3,200. The credit resets annually — you can claim it each year. Most valuable for households with federal tax liability; very low-income households with little tax owed get less value from credits vs direct rebates.
Utility-Funded Efficiency Programs
Most major electric utilities operate low-income efficiency programs funded through universal service charges — separate from LIHEAP, don't exhaust when LIHEAP does. Call the customer service number on your bill and ask specifically about "low-income energy efficiency programs" and "appliance exchange programs." Common offerings: free LED lighting, free energy audit, free or discounted efficient appliances, smart thermostats, and bill discount programs (ongoing % reductions for low-income customers). These programs are available year-round and often have higher income limits than LIHEAP.
Heat Pump Focus in 2026
Heat pumps — which provide both heating and cooling at significantly higher efficiency — are a focus of multiple 2026 programs. HEAR: up to $8,000 rebate. WAP: increasingly installing heat pumps as the cost-effective measure in moderate climates. 25C: $2,000 tax credit. Utility rebates: many utilities offer separate incentives. For a household replacing an aging furnace or adding cooling, stacking HEAR + WAP + 25C + utility rebates can make heat pump installation at minimal or zero net cost for low-income households.
How to Stack Programs for Maximum Benefit
A practical sequence for maximizing efficiency assistance: (1) Apply for WAP — the comprehensive professional whole-home foundation. (2) Check state energy office for current IRA HOMES/HEAR availability. (3) Apply for LIHEAP simultaneously for immediate bill relief. (4) Call your utility for their low-income program — LED, appliances, thermostats. (5) If you pay income taxes, consult a tax preparer about 25C credits for qualifying work. The Weatherization Savings Calculator estimates combined savings from multiple measures. The Energy Assistance Estimator identifies LIHEAP and WAP eligibility for your household.