Federal Rebate Guide · Updated April 2026

HEAR Rebate 2026: Up to $14,000 for Home Electrification Upgrades

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.

How much is the HEAR rebate for each appliance?

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%.

ItemMax RebateNotes
Heat Pump HVAC$8,000Air-source or ground-source. Must replace fossil fuel system.
Heat Pump Water Heater$1,750Must be Energy Star certified.
Electric Stove / Cooktop$840Induction or electric, replacing gas.
Electric Dryer$840Heat pump dryer preferred.
Electrical Panel Upgrade$4,000200-amp panel + necessary wiring.
Electric Wiring$2,500Wiring upgrades to support new appliances.
Insulation + Air Sealing$1,600Paired with electrification projects.
Combined Maximum$14,000Per household

Who qualifies for HEAR rebates based on income?

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:

Below 80% AMI

100%

of eligible costs, up to per-item caps

80–150% AMI

50%

of eligible costs, up to per-item caps

Above 150% AMI

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.

Which states have HEAR open right now?

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.

How is HEAR different from the federal heat pump tax credit?

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 RebateSection 25C Tax Credit
Status (2026)Active — funded through 2031Terminated (OBBB, for post-2025 installs)
TypePoint-of-sale rebateTax credit (filed annually)
Max for Heat Pump$8,000$2,000/year (2025 and earlier only)
Income Limit150% AMINone
When You Get $At purchaseWhen you file taxes
Can Stack?Only with 25C for 2025-or-earlier installsOnly 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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