Last updated: March 30, 2026
HEAR program status: LIVE Opened March 15, 2026 — Administered by the Maryland Energy Administration (MEA).
Maryland's HEAR program opened March 15, 2026 — one of the more recent state launches. Early reports indicate 2–3 week turnaround on reservation approvals, making it one of the faster-processing states right now. If you have Maryland clients ready to move, this is a good window.
Maryland HEAR Program (MEA)
How It Works
- Administered by the Maryland Energy Administration (MEA).
- Point-of-sale model — rebates applied at installation through enrolled contractors, not mail-in reimbursement.
- Income verification uses area-based AMI by county. Maryland has significant AMI variation between the DC suburbs (Montgomery, Prince George's, Howard counties) and rural western and eastern Maryland.
- Contractor enrollment is required before any rebates can be processed.
Maryland HEAR Rebate Amounts
| Measure | LMI (<80% AMI) | Moderate (80–150% AMI) | Above 150% AMI |
|---|
| Heat Pump HVAC (air source) | Up to $8,000 | Up to $4,000 | Not eligible |
| Heat Pump Water Heater | Up to $1,750 | Up to $875 | Not eligible |
| Electric Stove / Induction Range | Up to $840 | Up to $420 | Not eligible |
| Electric Dryer | Up to $840 | Up to $420 | Not eligible |
| Electrical Panel Upgrade | Up to $4,000 | Up to $2,000 | Not eligible |
| Insulation & Air Sealing | Up to $1,600 | Up to $800 | Not eligible |
| Total household cap | $14,000 LMI / $7,000 Moderate |
Maryland AMI Reference (2026)
Maryland uses area-based AMI. The DC suburbs have significantly higher AMI thresholds than other parts of the state.
| Area | 80% AMI (4-person HH, approx.) | 150% AMI (4-person HH, approx.) |
|---|
| Montgomery / Prince George's / Howard / Calvert / Charles | ~$97,000 | ~$182,000 |
| Anne Arundel / Frederick | ~$87,000 | ~$163,000 |
| Baltimore City / County | ~$80,000 | ~$150,000 |
| Harford / Carroll | ~$84,000 | ~$158,000 |
| Western MD (Allegany, Garrett, Washington) | ~$63,000 | ~$118,000 |
| Eastern Shore (Wicomico, Somerset, Worcester, etc.) | ~$61,000 | ~$114,000 |
Verify current AMI tables at mea.maryland.gov or HUD's website. These figures are approximate and updated annually.
DC suburb AMI is unusually high. A household earning $150,000 in Montgomery County falls below 150% AMI and qualifies for partial HEAR rebates — a situation that surprises many practitioners used to other states. Always use county-specific figures for Maryland clients.
Stacking: BGE / Pepco / SMECO + HEAR (25C Expired 12/31/25)
25C Credit Expired (OBBBA): The Section 25C Energy Efficient Home Improvement Credit was terminated by the One Big Beautiful Bill Act, signed July 4, 2025. Improvements installed on or after January 1, 2026 do not qualify. Clients with 2025 installs can still claim on their 2025 tax return. HEAR and HOMES rebates are unaffected.
See historical 25C reference →
Maryland's major utilities (BGE, Pepco, SMECO, Delmarva) have separate rebate programs that stack with HEAR and federal credits.
| Program | Measure | Typical Amount |
|---|
| MEA HEAR | Heat pump HVAC (LMI) | Up to $8,000 |
| MEA HEAR | Heat pump water heater (LMI) | Up to $1,750 |
| BGE Smart Energy Savers (example) | Heat pump HVAC | ~$500–$1,000 |
| BGE rebate | Heat pump water heater | ~$400 |
| 25C Federal Tax Credit | Heat pump HVAC | Up to $2,000 |
| 25C Federal Tax Credit | Water heater + panel | Up to $1,200 |
| Combined potential (LMI household, HVAC + HPWH) | ~$13,350 |
Utility rebate amounts vary by utility and are updated periodically. Verify current BGE, Pepco, SMECO, or Delmarva rebates at the utility's website before quoting clients.
Maryland Practitioner Checklist
- Enroll as a contractor with MEA if you haven't already. Early reports suggest 2–3 week approval times — much faster than some other states right now.
- Use county-specific AMI, not state average. The DC suburb counties are dramatically higher than rural Maryland.
- Check which utility serves the client (BGE, Pepco, SMECO, or Delmarva) for utility-specific rebate programs to stack.
- Apply for HEAR through MEA and utility rebates separately — different applications, can be stacked.
- Advise clients on 25C credits (claim on Form 5695 with tax return — no separate application needed).
Get weekly Maryland program updates
Maryland's program just launched — rules and contractor enrollment requirements will evolve. The IRA Practitioner Brief tracks MEA and all 50 states every week.
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