JO
Jaret Olson
Red Seal Refrigeration Mechanic, Red Seal Plumber, Class A Gas Fitter
Last Updated
October 18, 2026
Read Time
9 min read

HEEHR (Formerly HEAR) Heat Pump Rebate Eligibility Explained

The federal Home Electrification and Appliance Rebates program has had several names: HEEHRA in the Inflation Reduction Act, HEAR in most state programs, and now HEEHR after the Department of Energy's Program Notice 26-2. Whatever it's called, it's the rebate behind most "up to $8,000 for a heat pump" headlines.

The rules changed significantly in 2026. Here is who qualifies now.

The Short Version

  • It's a point-of-sale rebate, taken off your invoice by an approved contractor, not a tax credit. You don't need tax liability.
  • It's income-qualified: households at or below 150% of area median income (AMI).
  • It covers up to $8,000 for a heat pump, within a household total of $14,000 across all eligible upgrades.
  • Since DOE Program Notice 26-2 (effective May 29, 2026; states had to comply by September 1, 2026), it no longer covers fuel-switching. Replacing a gas, oil, or propane furnace with a heat pump doesn't qualify.
  • It's run by each state, and most states still haven't opened it. Availability is the real limit.

Step 1: Do You Income-Qualify?

Eligibility is based on your household income compared with your area median income (AMI), which varies by county and household size. It's not the federal poverty level.

Household incomeRebate coversHeat pump cap
Below 80% of AMI100% of eligible costs$8,000
80%–150% of AMI50% of eligible costs$8,000
Above 150% of AMINot eligible—

The moderate-income tier gets the same $8,000 cap. It just covers half the cost, so you'd need a $16,000 eligible project to reach the full $8,000. Some states also limit their programs further. New Mexico, for example, currently serves only households below 80% of AMI.

Many states accept enrolment in programs like SNAP, Medicaid, or LIHEAP as proof of income instead of tax documents. Check your state's income verification options.

Step 2: Does Your Project Qualify?

After Program Notice 26-2, the heat pump rebate applies to:

  • Replacing existing electric heating or cooling — electric baseboard, an electric furnace, an old heat pump, or central AC — with a qualifying heat pump.
  • New construction, where states include it.
  • Adding a heat pump while keeping your existing gas furnace (dual fuel), where your state allows it.

It does not apply to:

  • Removing a gas, oil, or propane furnace and replacing it with a heat pump.

Some states also require insulation or air sealing first, or bundle the heat pump with other upgrades.

The Full List of Caps

UpgradeMaximum
Heat pump (space heating and cooling)$8,000
Electrical panel / service upgrade$4,000
Electrical wiring$2,500
Insulation, air sealing, and ventilation$1,600
Heat pump water heater$1,750
Electric or induction stove$840
Heat pump clothes dryer$840
Household total$14,000

The panel upgrade money matters: if a load calculation shows your panel can't carry the heat pump, up to $4,000 of the service upgrade can be covered too.

Step 3: Is Your State's Program Open?

HEEHR is federally funded but every state designs and launches its own program. As of our October 2026 check:

  • Open: Arizona, Indiana, Michigan (some districts paused), New Mexico (low income only), New York, North Carolina, West Virginia, Wisconsin.
  • Exhausted, paused, or no heat pumps: includes California (fully reserved), Georgia (paused), and Rhode Island (no heat pumps in its program).
  • Opted out: Florida and South Dakota.
  • Not yet launched: most remaining states.

Status changes month to month. Each state page on this site shows its current status and the date we last verified it. See the state-by-state rebate list.

Step 4: How to Apply

  1. Check your state program's site for eligibility and approved contractors. Don't start work first. Most programs require approval before installation, and costs incurred before approval usually aren't eligible.
  2. Verify your income through the state's portal.
  3. Use a participating contractor. The rebate is applied on the invoice, so only enrolled contractors can offer it.
  4. Keep your paperwork. States may audit installations.
Technical detail: HEEHR vs HOMES vs 25C

The Inflation Reduction Act created two state-run rebate programs. HEEHR (section 50122) pays fixed amounts per upgrade for income-qualified households, which is what this guide covers. HOMES, often called HER (section 50121), pays based on modelled or measured whole-home energy savings and is open to any income. Some states coordinate the two, and you usually can't claim both for the same upgrade.

The federal 25C tax credit for heat pumps expired December 31, 2025, and isn't available for 2026 installations.

Frequently Asked Questions

Can I get the $8,000 heat pump rebate if I heat with gas?

Not for replacing the furnace. Since Program Notice 26-2, fossil-fuel-to-heat-pump conversions don't qualify. Adding a heat pump while keeping the furnace (dual fuel) may qualify where your state allows it. Gas-heated homes should also check utility rebates.

Is the moderate-income rebate $4,000?

No. Households at 80%–150% of AMI get 50% of eligible costs up to the same $8,000 cap. Many websites incorrectly list $4,000.

Is HEEHR a tax credit?

No. It's a point-of-sale rebate applied by a participating contractor. You don't need to owe taxes to benefit.

Can I combine HEEHR with utility rebates?

Often, yes. Rules vary by state and utility, and some programs limit stacking so the total doesn't exceed your cost. Ask the state program and your utility before you sign.

Next Steps

Find out whether you'll need the panel upgrade before you apply:

→ Run Your Free Panel Capacity Audit