The Home Electrification and Appliance Rebates (HEAR) program provides up to $14,000 in point-of-sale rebates for switching to efficient electric appliances — heat pumps, electric panels, wiring, stoves, and dryers. Unlike tax credits, HEAR discounts are applied at the time of purchase. Here's everything you need to know.
HEAR provides per-item rebates up to a combined maximum of $14,000 per household. The amount you receive depends on your income level — households below 80% AMI get the full rebate amounts shown below, while 80-150% AMI households receive 50%.
| Item | Max Rebate | Notes |
|---|---|---|
| Heat Pump HVAC | $8,000 | Air-source or ground-source. Must replace fossil fuel system. |
| Heat Pump Water Heater | $1,750 | Must be Energy Star certified. |
| Electric Stove / Cooktop | $840 | Induction or electric, replacing gas. |
| Electric Dryer | $840 | Heat pump dryer preferred. |
| Electrical Panel Upgrade | $4,000 | 200-amp panel + necessary wiring. |
| Electric Wiring | $2,500 | Wiring upgrades to support new appliances. |
| Insulation + Air Sealing | $1,600 | Paired with electrification projects. |
| Combined Maximum | $14,000 | Per household |
HEAR is specifically designed for low-to-moderate income households. Your eligibility and rebate amount depend on your household income relative to your area's median:
100%
of eligible costs, up to per-item caps
50%
of eligible costs, up to per-item caps
Not eligible
But federal tax credits still apply
Above 150% AMI and looking at the federal tax credits as a fallback?
IRC §25C (Energy Efficient Home Improvement Credit — the $2,000 heat pump credit) and §25D (Residential Clean Energy Credit — the 30% solar credit) were terminated for property placed in service after December 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, July 2025). If you completed work in 2025 you can still claim on your 2025 return, but for new work in 2026+ these federal credits are no longer available. Check your state HOMES program and any local utility rebates — those are unaffected.
HEAR is rolling out state-by-state, and many states are still launching or waitlisted. Because HEAR is a point-of-sale rebate (not a tax credit), it requires retailer and contractor participation, which adds complexity to state rollouts.
Historically there were two separate federal programs for heat pumps: the HEAR rebate (point-of-sale, state-administered) and the Section 25C tax credit (annual filing, IRS). As of 2026, only HEAR is still active — Section 25C was terminated for installs placed in service after December 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, July 2025).
| HEAR Rebate | Section 25C Tax Credit | |
|---|---|---|
| Status (2026) | Active — funded through 2031 | Terminated (OBBB, for post-2025 installs) |
| Type | Point-of-sale rebate | Tax credit (filed annually) |
| Max for Heat Pump | $8,000 | $2,000/year (2025 and earlier only) |
| Income Limit | 150% AMI | None |
| When You Get $ | At purchase | When you file taxes |
| Can Stack? | Only with 25C for 2025-or-earlier installs | Only with HEAR for 2025-or-earlier installs |
For installations completed on or before December 31, 2025, a low-income household could stack HEAR ($8,000) + §25C ($2,000) for up to $10,000 toward a heat pump. For installations in 2026 or later, only the HEAR rebate applies — the federal 25C tax credit is no longer available.
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