HEEHRA Rebates 2026: Up to $14,000 in IRA Home Energy Rebates
The High-Efficiency Electric Home Rebate Act offers upfront cash rebates — not tax credits — for heat pumps, EV chargers, electrical panels and more. No tax liability needed. Here's who qualifies, what's covered, and how to access the money.
Muhammad founded KilowattKit after spending hours trying to decode confusing electricity bills and realising there were no clear, jargon-free tools for ordinary homeowners. He researches energy rates, solar payback, EV charging, and heat pump economics across the US, UK, Canada, and Australia — sourcing every figure directly from official government and regulatory data.
HEEHRA at a Glance
Why HEEHRA Is Different from the Solar Tax Credit
The federal solar Investment Tax Credit (ITC) was powerful — but it only ever helped if you owed federal income taxes, and it ended on 31 December 2025. HEEHRA works differently: it's an upfront rebate that needs no tax liability at all, which is exactly why it matters more than ever now that the tax credits have expired. Here's how the two approaches compare.
Investment Tax Credit (30% ITC) — ended 31 Dec 2025
- Reduced your tax bill after filing
- Required federal tax liability to use
- Carryforward if credit exceeded liability
- Covered solar panels, batteries, installation
- No longer available for 2026 installs (systems placed in service by 31 Dec 2025 can still claim it on the 2025 return)
HEEHRA Rebates
- Reduces your upfront purchase cost
- No tax liability needed — it's a rebate
- Applied at point of sale by contractor
- Covers appliances, heat pumps, chargers, panels
- Income-limited (under 150% AMI)
What's Covered: Full Rebate Schedule
| Upgrade | Max rebate | Notes |
|---|---|---|
| Heat pump (HVAC) | $8,000 | Largest single rebate — replaces gas furnace or AC |
| Electrical panel upgrade | $4,000 | Enables EV charger, heat pump, and solar-ready homes |
| EV charger (Level 2) | $2,500 | Home charging station installation |
| Heat pump water heater | $1,750 | Replaces traditional gas or electric water heater |
| Insulation & air sealing | $1,600 | Weatherisation, draught-proofing, attic insulation |
| Electric stove / cooktop / oven | $840 | Induction and standard electric both qualify |
| Electric clothes dryer | $840 | Heat pump dryers also eligible |
| Total maximum | $14,000 | Combined cap across all upgrades |
Income Limits: How Much You Can Claim
HEEHRA rebate amounts depend on your household income compared to the Area Median Income (AMI) for your county or metropolitan area. AMI varies by location — the threshold for a household of four in San Francisco is very different from rural Mississippi.
| Household income | Rebate level | Example: $8,000 heat pump |
|---|---|---|
| ≤80% AMI | 100% of cost (up to cap) | Up to $8,000 rebate |
| 80–150% AMI | 50% of cost (up to cap) | Up to $4,000 rebate |
| >150% AMI | Not eligible for HEEHRA | Use 25C tax credit instead |
Check your AMI at huduser.gov/portal/datasets/il.html or ask your state energy office. AMI figures are updated annually by HUD.
Worked example: Full electrification upgrade
A household at 75% AMI undertakes a full home electrification project:
How to Access HEEHRA Rebates
Visit your state energy office website or home.energy.gov to confirm HEEHRA is active in your state and which upgrade categories are currently funded.
Look up the AMI for your county at HUD's website. Compare your household income to the 80% and 150% AMI thresholds to determine your rebate percentage.
Only contractors enrolled in your state's HEEHRA programme can apply the point-of-sale rebate. Your state energy office maintains a list of participating installers.
Once the contractor confirms your eligibility, the rebate is deducted from your invoice upfront — you never see the full cost. The contractor then claims reimbursement from the state.
HEEHRA doesn't cover solar panels, and the 30% federal solar ITC ended on 31 December 2025. Our federal solar credit guide explains what that means for a 2026 purchase and which state incentives still apply.