What thermostats qualify for the HEAR $250 rebate?

The HEAR smart thermostat rebate requires an ENERGY STAR certified smart thermostat. The most widely eligible models include the Nest Learning Thermostat (all generations), Ecobee SmartThermostat series, Honeywell Home T6 Pro and T9, Emerson Sensi models, and Johnson Controls TEC3000 series. Standard programmable thermostats do not qualify — the thermostat must be 'smart' (Wi-Fi connected, learning or adaptive controls) and hold ENERGY STAR certification.

Is the smart thermostat a standalone HEAR measure, or must it be installed with another measure?

In most state HEAR programs, the smart thermostat is a standalone measure — it does not require installation alongside a heat pump or other HEAR measure. However, some state programs have bundled the smart thermostat measure with HVAC equipment replacement, requiring it to be installed on or alongside a new heat pump system. Check your specific state program to confirm whether standalone smart thermostat applications are accepted.

Does the HEAR $250 thermostat rebate stack with the 25C tax credit?

Yes, with important limitations. The 25C tax credit includes a $150/year credit for ENERGY STAR certified smart thermostats. For LMI households (≤80% AMI) receiving 100% HEAR coverage, there is no remaining cost basis for 25C. For moderate income households (80-150% AMI) receiving 50% HEAR coverage, the remaining 50% can support a 25C claim of 30% of net cost — up to $150. For households above 150% AMI, only the 25C credit applies.

Does a smart thermostat have to be installed by a licensed contractor to qualify for HEAR?

This varies by state. Some state programs require contractor installation by an enrolled HEAR contractor; others allow homeowner self-installation with a receipt. The key is that an enrolled HEAR contractor must be associated with the application — even if the homeowner installs it themselves, the contractor who certifies the application must be enrolled. In practice, most HEAR smart thermostat applications involve HVAC contractors who install them as part of a larger project.

What is the C-wire requirement for smart thermostat installation?

Most smart thermostats require a C-wire (common wire) for continuous power. Many older homes lack a C-wire — they have only the R, Y, G, W wires for standard thermostat function. Solutions include: (1) installing a C-wire adapter like the Nest Power Connector, (2) running a new C-wire from the air handler to the thermostat, or (3) choosing a battery-powered smart thermostat model that doesn't require C-wire (some Ecobee and Honeywell models). The C-wire adapter or new wire run adds labor cost that is included in the HEAR rebate cost basis.

HEAR Rebate for Smart Thermostats: $250 Guide (2026)

The IRA Practitioner Brief — Updated April 2026

The HEAR program offers up to $250 for ENERGY STAR certified smart thermostats — the smallest single HEAR measure, but one of the simplest to document and approve. This guide covers which thermostats qualify, C-wire requirements, state activation status, how the $250 fits into a larger HEAR project, and how to stack with the 25C tax credit.

Smart Thermostat Rebate at a Glance

$250

Max rebate (≤80% AMI)

$125

Max rebate (80–150% AMI)

100%

Cost coverage (LMI tier)

50%

Cost coverage (moderate tier)

$150

25C tax credit (additional)

$14,000

HEAR household cap (all measures)

Highest-leverage at scale: At $250, the smart thermostat is the smallest HEAR rebate — but it's also the easiest application to prepare and approve. For HVAC contractors doing heat pump installations (which always pair with a thermostat), adding the smart thermostat to the HEAR application is low documentation overhead for $250 in additional rebate value per job.

Qualifying Smart Thermostats

The HEAR program requires ENERGY STAR certified smart thermostats. Standard programmable thermostats do not qualify. A qualifying smart thermostat must have Wi-Fi connectivity and learning or adaptive features that qualify it for ENERGY STAR certification.

Brand / Model	ENERGY STAR Certified?	C-Wire Required?	Notes
Google Nest Learning Thermostat (3rd/4th gen)	Yes	C-wire or Nest Power Connector	Most widely recognized brand; 4th gen has Matter support; Nest Power Connector available for no-C-wire installations
Google Nest Thermostat E	Yes	No (battery-powered option)	Slightly simpler than Learning Thermostat; battery option avoids C-wire issue
Ecobee SmartThermostat Premium	Yes	No (Power Extender Kit included)	Includes Power Extender Kit for no-C-wire installations; built-in Alexa; room sensors available
Ecobee SmartThermostat Enhanced	Yes	No (Power Extender Kit)	Value tier; Power Extender Kit included; ENERGY STAR certified
Honeywell Home T9	Yes	C-wire recommended	Room sensors compatible; flexible scheduling; widely available through HVAC distributors
Honeywell Home T6 Pro (Wi-Fi)	Yes	C-wire recommended	Contractor-friendly; simple installation; popular in HVAC trade channels
Emerson Sensi Touch 2	Yes	C-wire recommended	ENERGY STAR certified; simple app; compatible with heat pumps including emergency heat wiring (O/B)
Johnson Controls TEC3000 (Wi-Fi)	Yes	C-wire required	Commercial-grade; common in light commercial installations; ENERGY STAR certified
Standard programmable thermostat	No — not ENERGY STAR smart	N/A	Does not qualify regardless of scheduling features; must be smart/connected
Manual (non-programmable) thermostat	No	N/A	Does not qualify

Verify at energystar.gov before installation: The ENERGY STAR smart thermostat list changes periodically. Model versions matter — a previous generation may not hold certification while the current generation does. Search the specific model at energystar.gov/productfinder before ordering.

C-Wire (Common Wire) Installation

The C-wire issue is the most common installation complication for smart thermostats in older homes. Most pre-2000 homes were wired with 4-wire thermostat cable, which lacks the C-wire needed to continuously power a smart thermostat's Wi-Fi and display.

Options for Homes Without C-Wire

Solution	Cost (approx.)	Best For
Nest Power Connector (adapter)	~$25 (parts only)	Nest thermostats; installs at air handler; no new wire needed
Ecobee Power Extender Kit	Included with Ecobee	Ecobee thermostats; installs at air handler; no new wire needed
Run new 5-wire thermostat cable	$50–$200 labor + materials	Any thermostat brand; most reliable long-term solution; labor is included in HEAR cost basis
Choose battery-powered model	N/A (built-in)	Select Nest Thermostat E models; avoids C-wire entirely

Labor costs associated with C-wire adapter installation or running new thermostat wire are included in the project cost basis for the HEAR smart thermostat rebate. Document the C-wire solution on the installation invoice.

Heat Pump Thermostat Wiring

Heat pump thermostats require additional wiring considerations beyond standard gas-heat thermostats. HVAC contractors installing smart thermostats on new heat pump systems need to account for the O/B reversing valve wire.

O/B wire: Heat pump thermostats require an O or B wire to control the reversing valve (cooling vs. heating mode). Most smart thermostats support this, but the installation setting (O or B, depending on the heat pump brand) must be configured correctly.
Emergency heat (aux heat): Heat pump thermostats typically have an E or AUX terminal for electric resistance backup heat — this must be wired and configured when the system has backup heating.
Single-stage vs. multi-stage: High-efficiency heat pumps may have multiple stages or variable-speed capability. Ensure the selected smart thermostat supports the staging configuration of the installed heat pump.
Compatibility check: Use the thermostat manufacturer's compatibility tool (Nest, Ecobee, Honeywell all have these) before installation to confirm the specific heat pump model is supported.

State Program Activation

State	Thermostat Measure Active?	Standalone Application?	Notes
Massachusetts	Yes	Yes — standalone	MassSave accepts standalone smart thermostat HEAR applications; ENERGY STAR certified required
New York	Yes	Yes — standalone	NY Homes Clean Energy; standalone accepted; ENERGY STAR required
Maryland	Yes	Bundled preferred	Maryland EmPOWER HEAR; thermostat active; most applications bundled with HVAC
Colorado	Yes	Yes	CO HEAR; standalone accepted; ENERGY STAR required
Illinois	Yes	Verify per administrator	ComEd/Ameren; thermostat measure active; standalone vs. bundled varies by utility
Rhode Island	Yes	Yes	RI Energy; standalone accepted
Maine	Yes	Yes	Efficiency Maine; standalone accepted
Minnesota	Verify	Verify	MN HEAR; thermostat activation verify with CEE/utility
Wisconsin	Verify	Verify	Focus Energy; verify current thermostat measure status
Vermont	Yes	Yes	Efficiency Vermont; standalone accepted
New Mexico	Verify	Verify	NM HEAR; verify with NMED
Washington DC	Yes	Yes	DC DOEE; standalone accepted
California	Via utility programs	Varies	CA utilities (PG&E, SCE, SDG&E) offer smart thermostat rebates directly; not via federal HEAR measure

HEAR + 25C Stacking for Smart Thermostats

Household Income Tier	HEAR Benefit	25C Benefit	Combined
≤80% AMI (LMI)	$250 (100% of cost)	$0 (no remaining cost basis)	$250 total
80–150% AMI (moderate)	$125 (50% of cost)	Up to $45 (30% of remaining 50%)	~$170 total
>150% AMI (above threshold)	$0 (HEAR not available)	$150 (30% of cost, up to $500 thermostat)	$150 total (25C only)

25C for above-income clients: Homeowners above 150% AMI don't qualify for HEAR but do qualify for the 25C credit. For a $250 smart thermostat, 25C provides 30% = $75. For a $500 smart thermostat installed with labor, 25C provides $150 (the 25C cap for thermostats). Direct above-income clients to 25C — it's a simpler pathway with no income verification required.

Utility Rebates That Stack with HEAR

Many utilities offer their own smart thermostat rebates independent of HEAR. These stack with the HEAR rebate on a gross-vs-net basis (utility rebate reduces cost first; HEAR applies to net cost).

Utility / Program	Typical Rebate	Notes
MassSave (MA)	$75–$100	Mass utilities offer thermostat rebates through MassSave; stacks with HEAR on net-cost basis
Con Edison (NY)	$50–$75	Utility rebate; HEAR applies to net cost after utility rebate
PG&E (CA)	$75–$150	CA utility rebate programs (not HEAR); check current program
Xcel Energy (CO, MN)	$25–$75	Varies by state/program; can stack with HEAR in CO
Consumers Energy (MI)	$25–$50	MiHER stacking rules still developing; verify

Where Smart Thermostat Fits in a Full HEAR Project

The $250 thermostat rebate fits easily within any HEAR project budget — it never pushes a project over the $14,000 cap on its own. It's most valuable as a standard add-on to heat pump HVAC installations.

Heat pump HVAC project: A new heat pump without a smart thermostat is a missed opportunity. The thermostat is always part of the installation anyway — HEAR documentation is the only incremental step.
Heat pump + smart thermostat + panel + wiring: $8,000 + $250 + $4,000 + $2,500 = $14,750 → capped at $14,000. Plan measure amounts to stay under cap.
Standalone thermostat upgrade: For households that have already upgraded other equipment and have remaining HEAR capacity, a standalone thermostat application is the easiest type of HEAR application to prepare and approve.

Pre-Submission Checklist — Smart Thermostat HEAR Application

Confirmed smart thermostat measure is active in applicant's state program
Confirmed whether state allows standalone thermostat applications or requires bundling with HVAC
Specific thermostat model verified as ENERGY STAR certified (search at energystar.gov, not retail claims)
Invoice includes: thermostat brand/model, ENERGY STAR certification number, date of installation
C-wire solution documented if applicable (adapter, new wire run, battery model)
If installed on heat pump: O/B wiring and heat pump compatibility confirmed
Contractor enrolled in state HEAR program before installation date
Income documentation current (prior-year tax return or qualifying government benefit letter)
If state requires pre-approval: pre-approval obtained before ordering or installing
Utility rebate (if applicable) documented separately — HEAR applied to net cost after utility rebate

Related HEAR Guides

Cold Climate Heat Pump HEAR Guide — $8,000 rebate; smart thermostat is always part of a heat pump project
Complete HEAR Equipment Guide — All measures, all amounts, state activation status
25C Tax Credit Guide — $150 thermostat credit for above-income clients; no income limit
Stacking HEAR + Utility Rebates — How utility thermostat rebates interact with HEAR
Invoice Requirements Guide — What documentation the thermostat invoice must include
State Tracker — Which states have HEAR live
The IRA Practitioner Brief — Home

The IRA Practitioner Brief — Free weekly newsletter for home performance contractors, HVAC installers, and housing organizations navigating HEAR and HOMES.

Subscribe free at ira-practitioner-brief.vercel.app