Last updated: March 29, 2026
HEAR program status: PENDING — Texas has not yet received DOE approval for HEAR (Home Electrification and Appliance Rebates) program administration. Note: The 25C and 25D federal tax credits were terminated December 31, 2025 (OBBBA). Utility rebates from Oncor, CenterPoint, and others remain available.
Even without a state HEAR program, Texas homeowners installing heat pumps, heat pump water heaters, insulation, and solar can access significant federal incentives:
| Program | Eligible Measure | Max Benefit | Income Limit |
|---|---|---|---|
| 25C Federal Tax Credit | Heat pump HVAC (air source) | $2,000/yr (30% of cost) | None |
| 25C Federal Tax Credit | Heat pump water heater | $600/yr (30% of cost) | None |
| 25C Federal Tax Credit | Insulation & air sealing | $1,200/yr (30% of cost) | None |
| 25C Federal Tax Credit | Electrical panel upgrade | $600/yr (30% of cost) | None |
| 25C Federal Tax Credit | Windows & skylights | $600/yr (30% of cost) | None |
| 25D Federal Tax Credit | Solar PV system | 30% of cost (no cap) | None |
| 25D Federal Tax Credit | Battery storage (standalone) | 30% of cost (no cap) | None |
| Maximum 25C annual credit (combined) | $3,200/year | ||
Several Texas utilities offer rebate programs that work independently of federal IRA programs:
| Utility | Service Territory | Notable Rebates |
|---|---|---|
| Oncor | North Texas, Dallas-Fort Worth | Heat pump rebates up to $500, HVAC equipment rebates for qualifying systems |
| CPS Energy | San Antonio | AC/heat pump rebates, smart thermostat rebates, weatherization programs for income-qualified customers |
| Austin Energy | Austin | Rebates for ENERGY STAR heat pumps, weatherization, solar PV; income-qualified programs up to $2,500 |
| Reliant / NRG | Statewide (retail) | Smart thermostat and efficiency rebates for customers on qualifying plans |
| TXU Energy | Statewide (retail) | Limited equipment rebates; check current promotions |
Texas utility rebates are independent of IRA HEAR/HOMES programs and are available now. Verify current rebate amounts directly with each utility — these programs change frequently.
Texas will almost certainly have a significant HEAR program when it launches — the state has one of the largest populations of income-qualified households in the country, and federal allocations are based partly on population. Based on other states' implementations:
| 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 (federal maximum) | $14,000 LMI / $7,000 Moderate | ||
These are the federal program maximums. Texas may implement different amounts or priorities. Verify at seco.texas.gov when the program launches.
Texas uses area-based AMI by metro area. The spread between urban and rural Texas is significant:
| Area | 80% AMI (4-person HH, approx.) | 150% AMI (4-person HH, approx.) |
|---|---|---|
| Austin-Round Rock MSA | ~$86,000 | ~$162,000 |
| Dallas-Fort Worth-Arlington MSA | ~$84,000 | ~$157,000 |
| Houston-The Woodlands MSA | ~$79,000 | ~$148,000 |
| San Antonio-New Braunfels MSA | ~$72,000 | ~$135,000 |
| El Paso MSA | ~$61,000 | ~$115,000 |
| Rio Grande Valley (McAllen/Brownsville) | ~$50,000 | ~$94,000 |
| Rural Texas | ~$56,000–$65,000 | ~$105,000–$122,000 |
AMI figures are approximations based on HUD FY2025 data. Verify current area-specific figures at huduser.gov before advising clients.
Texas's congressional delegation is largely opposed to the IRA, and several Texas-based legislators have been vocal about rescinding unspent IRA funding. Practically, this means:
The IRA Practitioner Brief tracks HEAR program launches and changes across all 50 states — including Texas. When SECO announces, you'll hear it here first.