Last updated: April 11, 2026
Income eligibility is the variable that determines whether a client gets the full $14,000 HEAR rebate stack or $7,000 — or nothing at all. How that income is verified determines how long the process takes and what documentation you need before walking into a client meeting.
This guide covers how income verification actually works in the 12 states where HEAR is live as of April 2026. The state-by-state breakdown in Issue #5 of The IRA Practitioner Brief covers edge cases, audit triggers, and the variable income problem in detail — this page covers the framework every practitioner needs first.
HEAR divides eligible households into two categories based on their income relative to Area Median Income (AMI):
| Tier | Income Level | Rebate Multiplier | Max Household Rebate |
|---|---|---|---|
| LMI (Low-to-Moderate Income) | Below 80% of AMI | 100% of eligible project cost | $14,000 |
| Moderate Income | 80%–150% of AMI | 50% of eligible project cost | $7,000 |
| Above 150% AMI | Above 150% of AMI | Not eligible | $0 |
The difference between LMI and Moderate tier is significant: an LMI household getting a heat pump HVAC installation can access up to $8,000; a Moderate household caps at $4,000 for the same measure. Getting the income tier right before quoting a project matters for client expectations.
AMI is published annually by the U.S. Department of Housing and Urban Development (HUD). It varies by Metropolitan Statistical Area (MSA) and non-metro county. Here's the correct process:
Some states publish their own AMI calculators that pull from HUD data — Colorado's Energy Office has one, as does NYSERDA for New York. These are generally reliable but always verify the underlying HUD figure for audit purposes.
HUD's published AMI figures are for a 4-person household by default. The actual income limit for a given household depends on the number of people in it:
| Household Size | Approximate AMI Adjustment Factor | Example (100% AMI = $90,000) |
|---|---|---|
| 1 person | ~70% | $63,000 |
| 2 persons | ~80% | $72,000 |
| 3 persons | ~90% | $81,000 |
| 4 persons | 100% (base) | $90,000 |
| 5 persons | ~108% | $97,200 |
| 6 persons | ~116% | $104,400 |
| 8 persons | ~132% | $118,800 |
These are approximate HUD adjustment factors. Some state HEAR programs use the exact HUD household-size-adjusted limits rather than just the 4-person figure. Use HUD's published income limits table directly for household-size-specific thresholds — don't calculate from the 4-person figure manually if you can look it up.
States have wide latitude in how they implement income verification. The two approaches are meaningfully different for practitioners:
The homeowner signs a form stating their income tier. No tax returns, W-2s, or pay stubs are submitted at the time of application. The administrator accepts the attestation at face value and may audit a percentage of applications afterward.
The homeowner submits income documentation — typically a prior year federal tax return, W-2(s), or benefit award letters — to the program administrator as part of the application. Income is verified before rebate approval.
| State | Method | Key Notes |
|---|---|---|
| New York (NYSERDA) | Self-Attestation | Homeowner self-reports via NYSERDA portal. NYSERDA may audit; accurate attestation is legally required. No tax returns at time of application. |
| Massachusetts (Mass Save) | Document-Based | Income documentation required — typically prior year tax return or benefit letter. Mass Save has a dedicated income verification process; expect 1–2 weeks for review. |
| Maryland (MEA) | Self-Attestation | MEA uses self-attestation with a checkbox on the contractor-submitted application. Maryland's 1–2 week processing is partly because income review is minimal upfront. |
| Colorado (CREA / UniColorado) | Self-Attestation | Homeowners self-report via the Colorado Energy Office portal. Colorado also publishes its own AMI calculator tool — use it for pre-screening. Note: Front Range (Region 1) funding exhausted as of April 2026. |
| Illinois (ComEd / Nicor) | Document-Based | ComEd and Nicor use utility billing data to cross-reference addresses and may request income documentation for LMI qualification. The process is typically handled through the utility's existing low-income program framework. |
| Washington (WA Commerce) | Document-Based | WA Commerce requires income documentation for LMI tier. Seattle City Light has a separate income verification process for its Clean Heat Program. Clients in SCL territory may go through two separate income reviews. |
| Michigan (Michigan Saves) | Self-Attestation | Michigan Saves uses self-attestation with spot audits. Documentation may be requested post-approval. Utility billing data is sometimes used as a cross-check. |
| North Carolina (NC DEQ / Energy Saver NC) | Document-Based | NC DEQ requires income verification documentation. The program works with lower-income households — expect documentation requirements similar to affordable housing programs. |
| Georgia (GEFA) | Document-Based | GEFA requires documentary evidence for income qualification. Prior year tax return or SNAP/Medicaid enrollment documentation is accepted. Georgia's program prioritizes LMI households, so income verification is a central step. |
| Indiana (Indiana Energy Saver / OED) | Document-Based | Income documentation is submitted to the Regional General Contractor (RGC) as part of the project package. The RGC reviews and submits to OED. Expect 2–3 weeks for income verification review within the overall project timeline. |
| Wisconsin (Focus on Energy) | Self-Attestation | Focus on Energy uses self-attestation for initial qualification. May request documentation for audit. Income verification for store-purchase rebates (HPWH, stove, dryer) is handled separately from contractor-installed measures. |
| Arizona (AZ Commerce Authority) | Document-Based | Arizona's soft-launch HEAR program requires documentation as part of the mail-in application process. This is one of the more documentation-heavy states given the mail-in model. |
The definition of "income" for HEAR eligibility varies slightly by state but generally follows these principles:
Variable income — gig work, seasonal employment, freelance, self-employment — creates complications that fixed-salary clients don't have. Here's the practitioner's guide:
If a client's income is close to the 80% or 150% AMI threshold, verify carefully before advising them of their tier. A client at 79% AMI gets the full rebate stack; at 81% AMI, they get half. A $2,000 swing in income documentation can mean a $4,000 difference in rebates. Use the HUD income table for their household size — don't estimate.
Before the client meeting, run through this sequence:
Issue #5 of The IRA Practitioner Brief covers every live state in depth: the exact audit trigger patterns, how to handle household composition edge cases, categorical eligibility by state, and the variable income documentation that each administrator actually accepts. Plus, the income self-attestation scripts that protect you from client disputes if the income tier later turns out to be wrong.