IRA Home Rebates Explained: HOMES and HEEHR Programs State-by-State

What Are the IRA Home Rebates?

The Inflation Reduction Act of 2022 created two major rebate programs for residential energy improvements, totaling $8.8 billion in funding nationwide. Unlike tax credits, these are point-of-sale rebates that reduce your upfront costs immediately.

Program 1: HOMES (Home Owner Managing Energy Savings)

The HOMES program rewards whole-home energy efficiency improvements based on the energy savings achieved:

• 20-34% energy reduction: Up to $2,000 rebate (or $4,000 for low/moderate income)
• 35%+ energy reduction: Up to $4,000 rebate (or $8,000 for low/moderate income)

HOMES rebates can be based on either modeled energy savings (using DOE-approved software) or measured savings (comparing actual utility bills before and after improvements). Qualifying improvements include insulation, air sealing, HVAC upgrades, and whole-home retrofits.

HOMES Funding by State

Each state received HOMES funding based on population. Larger states like California ($604M), Texas ($342M), and New York ($256M) received the most. Even smaller states received tens of millions. Visit our IRA Tracker to see your state exact allocation.

Program 2: HEEHR (High-Efficiency Electric Home Rebate)

The HEEHR program focuses on home electrification for low and moderate-income households (under 150% of area median income). Maximum rebates per household:

• Heat pump (HVAC): Up to $8,000
• Heat pump water heater: Up to $1,750
• Electric stove/cooktop: Up to $840
• Heat pump clothes dryer: Up to $840
• Electrical panel upgrade: Up to $4,000
• Insulation/air sealing: Up to $1,600
• Electric wiring: Up to $2,500

The maximum total HEEHR rebate per household is $14,000. For households at or below 80% of area median income, rebates cover 100% of costs. For households between 80-150% AMI, rebates cover 50% of costs.

How to Get These Rebates

Unlike federal tax credits, IRA rebates are administered by individual states. The process works like this:

1. Your state energy office sets up the program and approves participating contractors
2. You hire a participating contractor for your energy improvement
3. The rebate is applied at the point of sale, reducing your upfront cost
4. The contractor submits paperwork to the state for reimbursement

Key point: You do not file for these rebates on your tax return. They happen automatically through participating contractors and retailers.

State-by-State Rollout Status

States are launching these programs at different times. As of 2026, many states have launched HOMES and HEEHR, while some are still in the planning phase. The funding remains available until September 30, 2031, or until exhausted.

Visit our IRA Tracker page for the latest launch dates, funding amounts, and status for all 50 states and DC.

Can You Stack IRA Rebates with Tax Credits?

Yes, with some limitations. You can use both IRA rebates and federal tax credits for the same project. However, the IRA rebate reduces the cost basis for computing the tax credit. For example:

• You install a $10,000 heat pump
• You receive a $8,000 HEEHR rebate
• Your out-of-pocket cost is $2,000
• The $2,000 federal tax credit applies to the remaining $2,000 (so $600 credit)

Even with this adjustment, the total savings are enormous. A low-income household could pay as little as $1,400 for a $10,000 heat pump system.

Income Qualification

HOMES rebates have two tiers: standard (any income) and enhanced (for households under 80% of area median income). HEEHR rebates are only available to households under 150% of AMI. Income limits vary significantly by location. A household earning $60,000 might qualify in a rural area but not in San Francisco.

Tips for Maximizing IRA Rebates

• Check your state status first: Not all states have launched yet. Use our tracker.
• Use participating contractors: Only approved contractors can process point-of-sale rebates.
• Combine HOMES and HEEHR: You can potentially use both programs for different parts of a whole-home retrofit.
• Act early: Funding is limited and first-come, first-served in many states.
• Document everything: Keep receipts, contractor certifications, and energy audit reports.