HOMES & HEAR Program Status 2026: Which States Are Open?
When the federal government passed the Inflation Reduction Act back in 2022, it carved out $8.8 billion specifically for home energy rebates — $4.3 billion for HOMES (Home Owner Managing Energy Savings) and $4.5 billion for HEAR (High-Efficiency Electric Home Rebate Act). That money is still out there in 2026, but the window is closing faster than most homeowners realize. Two states have already returned their allocations, and several others are burning through funds at a pace that suggests they'll exhaust their programs before the end of the year.
If you've been sitting on an upgrade project — a heat pump installation, new insulation, or upgraded electrical panel — this is the article you need to read before you book a contractor.
The Difference Between HOMES and HEAR
Before getting into state-by-state status, it helps to understand what each program actually covers, because the two operate on completely different logic.
HOMES is performance-based. You get a rebate based on how much energy your home saves after the upgrade — modeled or measured. A house that cuts energy use by 20% qualifies for $2,000. A house that hits 35% or more qualifies for $4,000. For income-qualified households (under 80% of Area Median Income), those caps double to $4,000 and $8,000. Critically, HOMES covers any efficiency upgrade that moves the needle — it's not limited to specific appliances.
HEAR works differently. It's a point-of-sale discount tied to specific equipment categories. A qualified heat pump for space heating gets you up to $8,000. A heat pump water heater earns up to $1,750. Electrical panel upgrades qualify for up to $4,000. The program is income-gated — you need to be at or below 150% of Area Median Income to participate, and the highest rebate tiers are reserved for households under 80% AMI. Total HEAR benefits per household are capped at $14,000.
Both programs flow through state energy offices, which is why you can't apply federally — you apply through your state's designated program administrator. Use the state rebates index to find your state's active portal.
State-by-State Status as of February 2026
The table below reflects reported program status based on state energy office announcements and DOE tracking. "Open" means accepting applications. "Pending" means the state has its allocation but hasn't launched publicly. "Paused" means the state temporarily stopped accepting applications, usually due to demand outpacing processing capacity. "Returned" means the state sent its allocation back to the DOE.
| State | HOMES Status | HEAR Status | Notes |
|---|---|---|---|
| California | Open | Open | Running through TECH Clean California; high demand |
| New York | Open | Open | Administered via NYSERDA; income verification required |
| Texas | Pending | Pending | SECO working on program design; no launch date announced |
| Florida | Returned | Returned | State declined to participate; returned full allocation to DOE |
| South Dakota | Returned | Returned | Returned allocation; no state program launched |
| Colorado | Open | Open | Running through Energy Office; rural areas see faster approvals |
| Michigan | Open | Open | EGLE administering; strong contractor network |
| Massachusetts | Open | Open | MassSave integration; one of most mature programs |
| Illinois | Open | Paused | HEAR paused for system upgrade; expected to reopen Q2 2026 |
| Georgia | Pending | Pending | Program design phase; no firm launch date |
| Arizona | Open | Open | APS and SRP utility coordination ongoing |
| Washington | Open | Open | Strong solar and heat pump uptake; funds depleting faster than projected |
| Oregon | Open | Open | Energy Trust partnership; HEAR waitlist forming |
| Minnesota | Open | Open | Extreme-cold climate bonus for cold-climate heat pumps |
| Virginia | Open | Pending | HEAR program design not finalized |
If your state isn't listed here, check your state energy office directly or use the rebates index which is updated monthly.
Why Florida and South Dakota Returned Their Funds
The two states that returned allocations did so for different reasons, but neither decision was a surprise to anyone watching state energy politics closely.
Florida's return was ideological. The state administration had made clear its opposition to federally subsidized electrification programs, and when DOE made it clear that the IRA programs came with reporting and compliance requirements tied to decarbonization goals, Florida opted out entirely. Homeowners in Florida are left without access to either program unless the returned funds get reallocated — which can happen, but hasn't been formally announced as of February 2026.
South Dakota's situation was more logistical. The state energy office had limited administrative capacity and determined that setting up the program infrastructure would cost more than the rebates would return in economic benefit to the state. A small population spread across a large geographic area with relatively mild energy prices made the math difficult.
If you're in one of these states, you're not completely out of options. The stacking rebates guide covers utility rebate programs and manufacturer incentives that can partially fill the gap. And for heat pump projects specifically, the heat pump rebates guide includes utility program listings by state.
States Where Funds Are Running Low
Several states that launched early are showing signs of fund exhaustion. Washington, Oregon, and Massachusetts have all seen application volumes significantly higher than initial projections. Massachusetts in particular — which had a head start because MassSave was already administering similar programs — processed thousands of applications in the first two quarters of the program.
Washington's HEAR program had allocated roughly 60% of its funds as of late 2025, with heat pump applications making up the bulk of the spending. The heat pump rebate calculator can give you a sense of the rebate amounts that are driving this volume — a qualifying household in Washington replacing an oil furnace with a cold-climate heat pump can receive the full $8,000 HEAR rebate plus state credits.
If you're in a high-depletion state, waiting is the wrong move. These programs don't get refilled once they run out.
How to Apply: The Steps That Actually Matter
The application process varies by state, but the common bottlenecks are consistent. Here's what tends to slow people down and how to get ahead of it:
Step 1: Confirm eligibility before spending money. Check income limits for HEAR (150% AMI cutoff) and verify your state's program is open. The income eligibility guide has AMI tables by county.
Step 2: Find a qualified contractor. Most states require that work be performed by a contractor registered with the program. The contractor registration requirement catches a lot of people off guard — you can't hire your cousin who does HVAC and expect the rebate to go through. Ask your state energy office for the registered contractor list before getting quotes.
Step 3: Get a pre-approval if your state offers it. Some states (California, Michigan, Colorado) allow homeowners to apply for a rebate reservation before the work starts. This protects you from doing the work and then finding out the funds ran out.
Step 4: Gather documentation in advance. You'll typically need proof of income (for income-tiered rebates), your home's address and utility account number, and the contractor's quotes. Having these ready before you open the application cuts days off the process.
Step 5: Submit immediately after project completion. Don't wait. Most states have a 30–90 day submission window from project completion, and many process on a first-in-first-out basis even within the window.
For a full walkthrough of which upgrades stack best together, the rebate stacking guide covers the optimal sequencing for maximizing both HOMES and HEAR benefits on a single project.
What Happens to Returned Funds
When a state returns its allocation, the DOE doesn't simply eliminate the money. Under the IRA's provisions, returned funds can be reallocated to other states that have demonstrated high program demand and administrative capacity. The exact reallocation process hasn't been publicly detailed by DOE, but advocacy groups have been pushing for a transparent reallocation process that prioritizes high-demand states.
If you're tracking the broader policy landscape — including the IRA funding freeze that's created uncertainty around disbursement timelines — the OBBB energy changes guide has current information on what's been legislatively altered versus what remains intact. The short answer: HOMES and HEAR funding was appropriated by Congress and has survived intact, but administrative delays at DOE have slowed some state programs.
The First-Come-First-Served Reality
No federal or state document will explicitly tell you "the money runs out fast, apply now" — but the data is unambiguous. Programs that launched in early 2024 are already showing significant depletion rates. Unlike the 2025 energy tax credits that were eliminated by the OBBB, HOMES and HEAR have fixed appropriations that don't renew annually. When the money's gone, it's gone.
The rebate calculator on the homepage lets you run a quick estimate of what you'd receive for specific upgrades in your state. That's a useful first step for deciding whether the rebate amount justifies accelerating a project you were planning to defer.
Run the numbers. If the rebate makes a project pencil out that wouldn't otherwise, the time to move is before your state's waitlist closes — not after.