HEAR Program Guide 2026: Up to $14,000 in Appliance Rebates
What Is the HEAR Program?
The Home Electrification and Appliance Rebates program, known as HEAR (originally called HEEHRA), is a $4.5 billion federal rebate initiative funded through the Inflation Reduction Act. It pays for a portion—or in some cases all—of the cost of switching to efficient electric appliances in your home.
Unlike tax credits that require you to file a return and wait for a refund, HEAR rebates are applied as point-of-sale discounts. That means the rebate is subtracted from your purchase price at checkout, either at a participating retailer or through an approved contractor. You pay less upfront, period.
The program targets low- and moderate-income households specifically. If your household earns 80% or less of your area median income (AMI), you qualify for the full rebate amounts. Households between 80% and 150% AMI get half. Above 150% AMI? HEAR is off the table—but the HOMES program may still have options for you.
Each state runs its own version of HEAR using the federal funding. That means timelines, approved retailers, and application processes vary depending on where you live. As of February 2026, twelve states plus Washington D.C. have active HEAR programs, with more launching throughout the year.
Use our rebate calculator to see exactly how much you could save based on your state, income, and the appliances you need. For a broader look at all available programs, see our complete 2026 energy rebates guide.
A Brief History: From HEEHRA to HEAR
When President Biden signed the Inflation Reduction Act in August 2022, the program was called the High-Efficiency Electric Home Rebate Act, or HEEHRA. The DOE later renamed it to Home Electrification and Appliance Rebates (HEAR) to better describe what the program actually does. You will still see both names used interchangeably in state program materials, news articles, and contractor marketing. They refer to the same rebates, the same dollar amounts, and the same eligibility rules.
The program took several years to reach consumers because each state had to submit an implementation plan to the DOE, get it approved, set up a retailer network, and build an income verification system. The first states went live in late 2024, with the majority of launches happening in 2025 and 2026.
Which Appliances Are Covered?
HEAR covers seven categories of electric equipment and home upgrades. Each has its own per-item rebate cap. Here is every eligible item and its maximum rebate amount:
| Appliance / Upgrade | Max Rebate | Details |
|---|---|---|
| Heat Pump HVAC | $8,000 | Replaces furnace or central AC with an electric heat pump for heating and cooling. Includes split systems, packaged units, and ducted mini-splits. |
| Electrical Panel Upgrade | $4,000 | Upgrade to a 200-amp (or higher) panel to support electrification. Includes breaker box and associated labor. |
| Wiring Upgrade | $2,500 | New or upgraded wiring required to support new electric appliances. Covers 240V circuits for stoves, dryers, HVAC, and water heaters. |
| Heat Pump Water Heater | $1,750 | Replaces gas or electric resistance water heaters with heat pump technology. 2–3x more efficient than conventional units. |
| Insulation & Weatherization | $1,600 | Attic, wall, and floor insulation plus air sealing. Includes materials and installation labor. |
| Electric Stove / Cooktop | $840 | Induction cooktops and electric ranges. Must replace a gas or propane cooking appliance. |
| Heat Pump Clothes Dryer | $840 | Ventless heat pump dryers that use 50% less energy than conventional electric dryers. |
The maximum per-household total across all items is $14,000 for low-income households and $7,000 for moderate-income households. You can mix and match any combination of eligible items up to your cap.
A practical example: a household at 70% AMI could claim a heat pump HVAC ($8,000), a heat pump water heater ($1,750), an electric stove ($840), insulation ($1,600), and wiring ($2,500)—totaling $14,690 in individual caps, but the actual payout stops at the $14,000 household cap.
Income Requirements and Rebate Amounts
HEAR eligibility and rebate amounts are tied to your area median income (AMI). AMI varies by county or metro area, so a household earning $60,000 in rural Kansas and one earning $60,000 in San Francisco fall into very different tiers.
| Income Tier | Household Income | Coverage | Max Total Rebate |
|---|---|---|---|
| Low Income | ≤80% of AMI | 100% of eligible costs | $14,000 |
| Moderate Income | 80–150% of AMI | 50% of eligible costs | $7,000 |
| Above Moderate | >150% of AMI | Not eligible | $0 |
For the low-income tier, "100% of eligible costs" means exactly that. If a qualified heat pump water heater costs $1,500 installed, the rebate covers $1,500. If it costs $2,200, the rebate covers $1,750 (the per-item cap), and you pay the remaining $450.
For the moderate tier at 50% coverage, the math works differently. That same $1,500 water heater gets a rebate of $750 (50% of cost), even though the per-item cap is $1,750. If the water heater costs $4,000, the rebate covers $1,750—the per-item cap kicks in before the 50% calculation.
How to Determine Your AMI Tier
AMI figures are published annually by HUD and adjusted for household size. A family of four has a higher AMI threshold than a single person in the same area. Most state HEAR programs will verify your income during the application process using tax returns or other documentation.
To get a quick estimate, check HUD's income limits tool or use our income eligibility guide for step-by-step instructions.
How Point-of-Sale Rebates Work
The defining feature of HEAR is the point-of-sale model. Traditional rebate programs make you pay full price, submit paperwork, and wait weeks or months for a check. HEAR eliminates that lag.
The Process
- Verify eligibility. Before purchasing, confirm your income tier qualifies for HEAR in your state. Some states do this through an online portal; others verify at the retailer or contractor level.
- Shop at a participating retailer or hire an approved contractor. Not every store or installer participates. Your state program maintains a list of approved vendors that have been set up to process HEAR discounts.
- The discount is applied at checkout. The rebate amount is subtracted from your total. You pay the reduced amount. The retailer or contractor is reimbursed by the state program.
- Keep your receipt. Your receipt serves as proof of the rebate and the equipment purchased. Some states also issue a rebate confirmation number.
This model is a deliberate design choice. Low-income households often lack the cash to pay full price and wait for reimbursement. Point-of-sale removes that barrier entirely.
What Happens Behind the Scenes
When the retailer or contractor applies the HEAR discount, they are effectively fronting the rebate amount. They then submit a claim to the state program administrator for reimbursement. This is why only approved vendors can offer the discount—they have a contractual relationship with the state and a verified process for getting paid back.
For you as the homeowner, the mechanics are invisible. You see a lower price at checkout, you pay it, and you walk away with your new appliance. The retailer handles all the back-end paperwork.
One thing to watch: the retailer or contractor handles the paperwork for the rebate claim, but you are responsible for providing accurate income documentation. Misrepresenting your income level can result in the rebate being clawed back. Most states also set a deadline for completing purchases once pre-approved, typically 60 to 90 days.
HEAR Program Status by State
HEAR funding flows from the federal government to individual states, which design and administer their own programs. That means each state has its own launch timeline, application portal, and list of participating retailers.
As of February 2026, here is where things stand:
| State | Status | Notes |
|---|---|---|
| Arizona | Live | Accepting applications statewide through approved contractors |
| California | Live | Running through the TECH Clean California platform |
| Colorado | Live | Administered by the Colorado Energy Office |
| District of Columbia | Live | Available through DC Sustainable Energy Utility |
| Georgia | Live | Managed by Georgia Environmental Finance Authority |
| Maine | Live | Efficiency Maine administering the program |
| Michigan | Live | Applications open through state energy office |
| New Mexico | Live | Program run by the NM Energy, Minerals and Natural Resources Dept. |
| New York | Live | NYSERDA managing applications and approved contractors |
| North Carolina | Live | Administered by the NC Dept. of Environmental Quality |
| Rhode Island | Live | Rhode Island Energy running the program |
| Wisconsin | Live | Focus on Energy handling applications |
Most remaining states have submitted their HEAR implementation plans to the DOE and are expected to launch programs throughout 2026. Visit your state rebates page for the latest status and links to your state's official program.
Funding is allocated to each state based on population and energy burden. Once a state's allocation runs out, the program closes in that state. Early applicants get priority, so if your state is live, there is no advantage in waiting.
What If My State Is Not Live Yet?
If your state has not launched its HEAR program, you have two options. First, wait—most states are expected to go live by the end of 2026. Second, look at other available incentives. The 2026 energy rebates guide covers all federal and state programs, including tax credits that are available nationwide right now regardless of HEAR status. The Section 25C tax credit, for example, provides up to $2,000 for heat pumps and does not depend on state program launches.
How to Apply for HEAR Rebates
The exact application process depends on your state, but the general steps are consistent across programs:
Step 1: Check Your Eligibility
Gather your household income information (most recent tax return or pay stubs) and look up your county's AMI limits. Our income eligibility guide explains how to find your AMI percentage. You need to be at or below 150% AMI to qualify.
Step 2: Identify What You Need
Review the list of covered appliances and figure out which upgrades make sense for your home. Prioritize high-impact swaps: if you have a 15-year-old gas furnace, a heat pump HVAC replacement at up to $8,000 in rebates is the biggest single item available.
Step 3: Find a Participating Retailer or Contractor
Your state program website lists approved retailers and contractors. These vendors have agreed to process point-of-sale HEAR discounts and handle the rebate paperwork on your behalf. Using a non-participating vendor means you miss the instant discount.
Step 4: Get Pre-Approved (If Required)
Some states require income verification before you shop. Others let the retailer verify eligibility at the point of sale. Check your state's specific process. Having documentation ready—tax returns, utility bills, proof of address—speeds things up regardless.
Step 5: Purchase and Install
Buy your qualified equipment through the participating vendor. The HEAR discount is applied at checkout. For contractor-installed items (heat pumps, panels, insulation), the rebate reduces your invoice total.
Step 6: Keep Records
Save all receipts, invoices, and any rebate confirmation numbers. If you claim additional HEAR rebates later (up to your household cap), you will need to show what you have already received.
HOMES vs HEAR: Key Differences
The Inflation Reduction Act created two separate residential rebate programs: HEAR and HOMES. They share the same income-based structure but work in fundamentally different ways.
| Feature | HEAR | HOMES |
|---|---|---|
| Focus | Specific electric appliances and upgrades | Whole-home energy efficiency |
| Federal Funding | $4.5 billion | $4.3 billion |
| Rebate Type | Point-of-sale discount | Post-project rebate |
| Max Rebate (Low Income) | $14,000 | $8,000 |
| Max Rebate (Moderate Income) | $7,000 | $4,000 |
| Eligibility Threshold | ≤150% AMI | No income cap (all homeowners eligible) |
| Measurement | Per-appliance caps | Based on verified energy savings (%) |
| Application | At participating retailer/contractor | Through state energy office after project |
The biggest practical difference: HEAR is for buying specific equipment at a discount. HOMES is for broader retrofit projects where you prove a certain percentage of energy savings across your whole house.
If your household income exceeds 150% AMI, HEAR is not available to you, but HOMES still is. See our HOMES program guide for details.
Good news for households under 150% AMI: you can potentially use both programs, as long as the same expense is not double-claimed. More on that below.
Can You Stack HEAR with Other Rebates?
Yes, but with rules. HEAR rebates can be combined with other incentives as long as the total rebate amount does not exceed the cost of the equipment or project. Here is how stacking works in practice:
HEAR + Federal Tax Credits (25C)
The federal energy efficiency tax credit (Section 25C) covers up to 30% of the cost of qualifying equipment, with annual caps ($2,000 for heat pumps, $600 for other items). You can claim both a HEAR rebate and the 25C credit on the same purchase. However, the 25C credit is calculated on your out-of-pocket cost after the HEAR rebate is applied.
Example: You buy a $10,000 heat pump. HEAR covers $8,000. Your out-of-pocket cost is $2,000. The 25C credit is 30% of $2,000 = $600. Total savings: $8,600 out of $10,000.
HEAR + HOMES
You can use both programs, but not for the same item. If HEAR covers your heat pump, HOMES cannot also cover that heat pump. However, HOMES could cover a broader retrofit project (air sealing, duct work) that does not overlap with your HEAR-funded appliances.
HEAR + State/Utility Rebates
Many states and utilities offer their own rebate programs for energy-efficient equipment. Stacking these with HEAR is generally allowed, but the total combined rebates cannot exceed the purchase price. Check your state program's rules, as some explicitly prohibit combining with specific local programs.
HEAR + Weatherization Assistance Program (WAP)
WAP is a separate federal program for very low-income households. DOE guidance permits combining HEAR and WAP benefits, making this one of the most powerful stacking opportunities for eligible households.
For a complete breakdown of all stacking scenarios, see our rebate stacking guide.
Finding Qualified Products and Contractors
Not every heat pump or electric stove qualifies for HEAR rebates. Products must meet specific efficiency standards, and contractors must be approved by your state program.
Product Requirements
The DOE sets minimum efficiency standards for HEAR-eligible equipment. In general:
- Heat pump HVAC: Must be ENERGY STAR certified. Look for SEER2 ratings of 16+ and HSPF2 of 9+.
- Heat pump water heaters: ENERGY STAR certified with a Uniform Energy Factor (UEF) of 2.2 or higher.
- Electric stoves/cooktops: Induction cooktops are always eligible. Standard electric resistance cooktops depend on state rules.
- Heat pump dryers: ENERGY STAR certified. These use a closed-loop heat exchange system.
- Insulation: Must meet or exceed IECC 2021 standards for your climate zone.
- Electrical panels: 200-amp or higher service capacity. Must be installed by a licensed electrician.
Your state program may publish a specific list of qualifying product models. When shopping, confirm with the retailer that the exact model you want is HEAR-eligible.
Finding Contractors
For installed items (heat pumps, panels, insulation, wiring), you typically need a contractor approved by your state HEAR program. Here is how to find one:
- Visit your state's HEAR program website (linked on your state rebates page).
- Use their contractor directory or search tool.
- Verify the contractor is licensed, insured, and specifically approved for HEAR point-of-sale processing.
- Get at least two quotes. HEAR does not regulate pricing, so costs vary.
A qualified contractor should be able to tell you exactly how much the HEAR rebate will reduce your invoice before work begins. If they cannot explain the HEAR discount clearly, find someone who can.
Timing and Availability
HEAR funding is finite. Each state received a fixed allocation from the $4.5 billion federal pot, and once that money is spent, the program ends in that state. There is no guarantee of additional funding rounds. States with high demand—California, New York, Michigan—could exhaust their allocations faster than rural states with smaller populations.
If you are eligible and your state program is accepting applications, the best time to act is now. Waiting for prices to drop or for more contractors to join the network means competing with more applicants for a shrinking pool of funds. The rebate amounts are fixed by law, so the discount you get today is the same one available six months from now—assuming funds last that long.
Use our individual calculators—heat pump, water heater, electric stove, electrical panel, and insulation—to estimate your specific savings before contacting a contractor.