The Home Electrification and Appliance Rebates (HEAR) program is also known as the High-Efficiency Electric Home Rebate Act (HEEHRA) in some states. It’s one of the federal rebate programs included in the Inflation Reduction Act of 2022 to encourage energy efficiency. States that applied and received funding will administer this program.
The Department of Energy (DOE) recommends the HEAR program for households that have an income that is average or below average in their area. This rebate program prioritizes helping low or middle-income households that earn less than 150% of the average median income (AMI) for their area.
Don’t automatically think you don’t qualify because of the “low and moderate-income” phrasing. In some parts of the country, 150% of AMI is more than $140,000.
The HEAR program offers rebates for projects related to home electrification. The table below lists eligible upgrades and the associated rebate.
| Appliance | Maximum Rebate |
| Electric heat pump | $8,000 |
| Electric wiring upgrades | $2,500 |
| Circuit breaker box upgrades | $4,000 |
| Insulation, air sealing, duct sealing, and ventilation | $1,600 |
| Electric heat pump water heater | $1,750 |
| Electric stove, induction cooktop, range, oven, or heat pump clothes dryer | $840 |
It’s important to know that these are point-of-sale rebates, meaning the rebate is deducted from the upfront price you pay for a qualified upgrade. You do not receive money back.
The highest HEAR rebates are associated with the electrification of heat. This program provides eligible households with up to $14,000 in rebates if you’re upgrading from a non-heat pump HVAC system. It may cover up to 100% of costs for lower-income families and up to 50% for moderate-income families. These incentives are separate and distinct from the 25C tax credits which you may have learned are sunsetting at the end of 2025.
Visit energy.gov for more details.
Check your state’s energy department website to see if your state is participating in this program yet. Active programs may have a calculator for you to see what rebates you might qualify for. If the program isn’t active yet, you can sign up for email updates.
A full list is below. States without a link either did not apply for funding or do not have a rebate website.
The IRS does not consider point-of-sale rebates to be taxable income.
Many utility companies across the United States offer heat pump rebates for energy-efficient systems. It’s up to each company what to offer, if anything. You can go to your energy provider’s website to search for what’s available. They may offer rebates on other energy-efficient appliances, as well.
By opting to purchase energy-efficient systems, you are helping to reduce the load on the power grid. Some utility companies will reward you for that.
HVAC manufacturers may offer rebates on select high-efficiency heat pumps. Frequently, these offers are available in the fall and the spring, so if you don’t see this rebate offer on a website, ask your dealer about it. If you can wait a few months, you might be able to save several hundred dollars more.
Our savings tool also indexes local utility rebates to show you the total savings for your area.
If it’s time for HVAC replacement, consider a new energy-efficient heat pump heating and cooling system. It can save you money on your energy bills, and you may be eligible for rebates. Your local Trane dealer can help you find the system that’s right for your home.
Anne Fonda, Content Writer
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Josef Hejda, Electrification Commercialization Leader
Electrification is the move away from burning fossil fuels and toward electric heating.
Electric heat pumps heat and cool your home efficiently, saving you money and reducing carbon emissions.
The Energy Efficient Home Improvement Credit can help you pay for energy-efficient upgrades to your home, including your HVAC system.
Dealers can answer questions, help you find the right products for your home, and repair your system.
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