HEAR Rebate Eligible Equipment — 2026 Practitioner Reference

Last updated: April 2026 | Based on federal IRA Section 50121; state programs may vary

The HEAR program covers eight categories of home electrification upgrades. Each category has a dollar cap, an efficiency standard, and application requirements that vary by state. This is the practitioner's reference for what qualifies, what doesn't, and what gets applications flagged for review.

HEAR Rebate Amounts by Equipment Category

Equipment-by-Equipment: Standards, Gotchas, and Tips

Heat Pump HVAC (up to $8,000)

What qualifies: Air-source heat pumps (ducted or mini-split), ground-source/geothermal heat pumps. Both heating-only and combined heating/cooling systems qualify. The system must meet CEE Advanced Tier efficiency requirements or be listed on the ENERGY STAR Most Efficient registry. In Climate Zones 5–7, many states require cold-climate heat pumps with demonstrated performance at 5°F.

Common mistakes: Quoting the $8,000 maximum before verifying the installed cost exceeds $8,000 at 100% coverage. For a $7,000 installed heat pump and a ≤80% AMI household, the rebate is $7,000 — not $8,000. For an 80–150% AMI household with the same system, it's $3,500 (50% of $7,000). Also: geothermal heat pumps often have higher installation costs and can max out the $8,000 cap, but require additional documentation around ground loop installation.

Heat Pump Water Heater (up to $1,750)

What qualifies: ENERGY STAR certified HPWHs with Uniform Energy Factor (UEF) ≥ 2.0. Most 50-gallon and larger models from major brands (Rheem ProTerra, AO Smith Voltex, Bradford White AeroTherm, Stiebel Eltron) qualify. Smaller 30-40 gallon units may not meet the UEF threshold — verify the specific model on the ENERGY STAR product finder at energystar.gov.

Common mistakes: Installing a HPWH in an unconditioned space (garage, uninsulated basement) where the ambient temperature falls below 40°F in winter — HPWHs typically can't operate below 37-40°F and switch to resistance heating, drastically reducing efficiency and potentially losing ENERGY STAR ratings for field purposes. Also: some state programs require minimum first-hour rating or tank size minimums beyond just UEF. Check state program specs before ordering equipment.

The $2,000 25C cap interaction: The 25C tax credit for HPWHs shares a $2,000 annual cap with heat pump HVAC. If a client installs both in the same year, the combined 25C credit is capped at $2,000. See our 25C stacking guide for calculation examples.

Electric Panel Upgrade (up to $4,000)

What qualifies: Replacement or upgrade of the main service panel to support electrification. Most state programs require: (1) the panel is being upgraded in connection with another HEAR-eligible measure, (2) the new panel is 200A or greater, and (3) the work is permitted and performed by a licensed electrician.

Common mistakes: Applying for panel upgrades as standalone projects — in most states, a panel upgrade without a concurrent heat pump, HPWH, or other HEAR measure is not eligible. This is the most frequent reason for HEAR application denial on panel work. Also: some states cap the panel rebate lower than the federal $4,000 — verify with your state program before quoting.

Wiring as a separate measure: Electric wiring needed to support eligible upgrades can be claimed separately (up to $2,500) — this is in addition to, not part of, the panel upgrade cap. Many practitioners miss the wiring rebate entirely.

Weatherization — Insulation & Air Sealing (up to $1,600)

What qualifies: Bulk insulation (batts, blown-in, spray foam) and air sealing materials that meet IECC standards. Most state programs require a blower door test before and after installation to document air leakage improvement. The pre-test is often conducted during the mandatory home energy audit; the post-test must be conducted after installation.

Common mistakes: Installing insulation before scheduling the pre-test — without a documented pre-installation blower door result, the post-test improvement cannot be measured, and the application will be denied or require re-testing. Lock in the pre-test first. Also: insulation must be installed by an enrolled contractor, not as DIY work — even if the homeowner purchases the materials and installs them.

Induction Range / Electric Stove (up to $840)

What qualifies: Induction cooktops, induction ranges, electric stoves that meet CEE Top Tier or ENERGY STAR specifications. The measure must replace a gas or propane cooking appliance in most state programs. Some states have not activated this measure — check your specific state program before including stove/cooktop upgrades in proposals.

States with this measure activated: Massachusetts, New York, Maryland, and several others. States with this measure NOT yet activated include many Southern and Western state programs that launched with a narrower measure set. Always verify.

Heat Pump Clothes Dryer (up to $840)

Heat pump dryers (which use a refrigerant loop to recycle heat rather than electric resistance) qualify as an eligible HEAR measure where states have opted in. The dryer must be ENERGY STAR certified. This is one of the less commonly claimed HEAR measures — most clients prioritize HVAC and water heaters — but for comprehensive electrification projects it adds up to $840 that many practitioners leave on the table.

Home Energy Audit (up to $150)

Many state programs require a pre-installation home energy audit conducted by a certified auditor (BPI, RESNET, or state-equivalent credential) before other HEAR measures can be installed. Where required, this audit is often a prerequisite for the rest of the HEAR application — which means the audit must be completed, documented, and attached to the application before the equipment installation happens. The $150 rebate cap is modest, but the audit itself is the gateway to the larger measures.

Measures That Do NOT Qualify for HEAR

Application Requirements All Measures Share

Regardless of which measure your client is applying for, every HEAR application requires:

• Enrolled contractor — The installing contractor must be enrolled in the state HEAR program before the installation begins (retroactive applications are generally not accepted)
• Income verification — AMI documentation or self-attestation (varies by state) must be completed before the application, not after — see our income verification guide
• Pre-installation documentation — Photographs of existing equipment (dated), existing equipment model and serial numbers, and the pre-installation condition of the space
• Post-installation documentation — Photographs, permit/inspection records where required, and the installed equipment's model, serial number, and performance specs
• Manufacturer certification statement — Documentation that the installed equipment meets the required efficiency standard (CEE, ENERGY STAR, UEF, etc.)
• Pricing integrity compliance — The project cannot be priced materially higher for HEAR-eligible clients than for comparable non-rebate clients (DOE pricing integrity rule)

State-Specific Variations to Watch

States can set additional requirements or lower caps within the federal parameters. Common state-specific variations include:

• Higher efficiency minimums — Some states require higher SEER2/HSPF2 ratings than the federal floor (e.g., MA requires higher cold-climate performance specifications)
• Narrower eligible measures — Not all states have activated induction ranges, heat pump dryers, or all weatherization sub-measures
• Lower per-measure caps — Some states cap the HPWH or insulation rebate below the federal maximum
• Combined caps — A few states cap the combined HVAC + HPWH rebate rather than treating them independently
• Waiting lists — States running low on HEAR allocation (CO Front Range, CA) may have waitlists rather than active enrollment

Related Resources

• HEAR Contractor Enrollment Guide — State-by-state enrollment requirements for all 12 live states
• Income Verification Guide — Self-attestation vs. document-based requirements by state
• 25C Tax Credit Guide — How to stack federal credits with HEAR rebates
• Stacking HEAR + Utility Rebates — Gross vs. net cost rules and state utility programs
• Cold Climate Heat Pump Requirements — ENERGY STAR v6.1, NEEP CCAHP specs, state-by-state requirements, and model verification for CZ5+ states
• Heat Pump Water Heater HEAR Guide — $1,750 rebate, UEF requirements, installation space rules, brand qualification, and utility stacking
• Insulation & Air Sealing HEAR Guide — $1,600 combined max, Blower Door requirements, BPI certification, R-value minimums, and combustion safety testing
• Electrical Panel Upgrade HEAR Guide — $4,000 rebate, standalone vs. bundled rules, load calculation, utility coordination, and state-by-state notes
• Electric Stove & Induction Range HEAR Guide — $840 rebate, induction vs. resistance requirements by state, fossil fuel replacement rules, cookware compatibility, and pre-submission checklist
• Electric Dryer HEAR Guide — $840 rebate, heat pump dryer vs. resistance electric requirements by state, ventless installation, brand certification, and pre-submission checklist
• Electric Wiring HEAR Guide — $2,500 rebate, how it differs from the panel upgrade measure, NEC dedicated circuit specs by appliance, invoice split strategy, and permit requirements
• Windows & Doors HEAR Guide — $800/$400 rebate, ENERGY STAR Most Efficient vs. standard ENERGY STAR distinction, U-factor by climate zone, NFRC label documentation, and 25C stacking
• Smart Thermostat HEAR Guide — $250 rebate, qualifying models (Nest, Ecobee, Honeywell), C-wire requirements, heat pump wiring, and state activation status
• HEAR Application Mistakes — 12 reasons projects get rejected, pre-submission checklist
• HEAR vs. HOMES — When to use which program
• State Tracker — Which states have HEAR live
• HEAR/HOMES Glossary — 35 key program terms defined (AMI, pre-approval, reservation, POS rebate, and more)
• The IRA Practitioner Brief — Home