Wisconsin IRA Rebates 2026

HEAR Program Guide — Administered by Focus on Energy
HEAR: LIVE — December 2024

Wisconsin launched HEAR on December 18, 2024, making it one of the earlier Midwestern states to go live. The Public Service Commission of Wisconsin selected Focus on Energy to administer both HEAR and HOMES programs. Wisconsin's income threshold is 150% AMI — higher than most states — which means a larger share of households qualify for some rebate level.

Contents

  1. Program Overview and Administrator
  2. HEAR Rebate Amounts
  3. Income Limits by Metro Area
  4. Contractor Enrollment
  5. WE Energies and Alliant Energy Stacking
  6. Worked Stacking Example
  7. What Goes Wrong
  8. HOMES Program Status

Program Overview and Administrator

Administrator: Focus on Energy (chosen by PSC of Wisconsin). focusonenergy.com/ira-hear

HEAR Phase 1 Launch: December 18, 2024 (contractor-installed equipment)

HEAR Phase 2 Launch: September 30, 2025 (store-purchase appliances)

Eligible housing: Single-family homes and multifamily buildings for Wisconsin residents

Income cutoff: 150% AMI — households above this threshold are ineligible for any HEAR rebate

Wisconsin uses 150% AMI as the upper eligibility cutoff (most states use 150% but enforce it less explicitly). This is unusual in that it's clearly stated: above 150% AMI = no rebate. Below 80% AMI = 100% of project costs. 80–150% AMI = 50% of project costs. Both are subject to the $14,000 aggregate cap.

HEAR Rebate Amounts

Equipment Maximum Rebate Installation Method
Heat pump (heating & cooling system) $8,000 Contractor only
Heat pump water heater $1,750 Contractor or store purchase
Electrical panel upgrade $4,000 Contractor only
Electrical wiring $2,500 Contractor only
Insulation, ventilation, air sealing $1,600 Contractor only
Heat pump clothes dryer $840 Store purchase or contractor
Electric stove/cooktop/range/oven $840 Store purchase or contractor
Combined maximum $14,000

LMI households (below 80% AMI): rebates cover 100% of project costs up to the per-item and aggregate caps above.

Moderate-income households (80–150% AMI): rebates cover 50% of project costs up to the same caps.

Income Limits by Metro Area

Wisconsin's HEAR income limits are based on HUD Area Median Income (AMI) by county. The critical threshold is 80% AMI — below it, rebates cover 100% of cost. Use these estimates as a screening tool; verify current limits using the HUD AMI lookup tool at huduser.gov.

Metro Area Est. Median Family Income 80% AMI (family of 4) 150% AMI (family of 4)
Milwaukee-Waukesha MSA ~$80,000 ~$64,000 ~$120,000
Madison (Dane County) ~$95,000 ~$76,000 ~$142,500
Green Bay (Brown County) ~$75,000 ~$60,000 ~$112,500
Racine/Kenosha ~$74,000 ~$59,000 ~$111,000
Appleton / Fox Cities ~$80,000 ~$64,000 ~$120,000
Rural Wisconsin ~$65,000 ~$52,000 ~$97,500

Wisconsin has a substantial manufacturing and trades workforce. Many working-class households in Milwaukee, Racine, and Green Bay fall under 80% AMI — especially 1–2 person households and households with a single earner. These clients qualify for the 100% rebate tier.

Contractor Enrollment

To participate in Wisconsin HEAR, contractors must be enrolled as a Focus on Energy Trade Ally and IRA-registered. The key requirements:

Wisconsin does not publish specific BPI certification requirements for contractor enrollment as of May 2026, but ENERGY STAR certification of installed equipment is required for all rebate-eligible measures.

Store-purchase rebates (heat pump water heater, dryer, stove) are processed online after purchase. The homeowner applies, not the contractor — but contractors should inform clients about this pathway and help them document purchase receipts and ENERGY STAR certification at time of purchase.

WE Energies and Alliant Energy Stacking

Wisconsin has two major utilities serving the most HEAR-active territory, each with their own rebate programs that stack with Focus on Energy HEAR:

WE Energies / Wisconsin Gas (Focus on Energy partner)

Serves Milwaukee metro and southeastern Wisconsin — the highest-population HEAR territory.

Alliant Energy (Wisconsin Power and Light)

Serves south-central Wisconsin, including parts of Madison corridor.

Xcel Energy (Northern States Power)

Serves western and northern Wisconsin including Eau Claire, La Crosse, and the twin cities area.

25C Federal Tax Credit — Expired December 31, 2025 (OBBBA)

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 →

Federal tax credits under 25C stack with HEAR for any HEAR-eligible household:

Worked Stacking Example

Milwaukee LMI household — Heat pump + HPWH + panel upgrade

Household income: $54,000 (family of 4 in Milwaukee — well under 80% AMI). Installing ducted heat pump, HPWH, and electrical panel upgrade to support them.

Incentive Source Item Amount
Focus on Energy HEAR (LMI 100%) Heat pump HVAC $8,000
Focus on Energy HEAR (LMI 100%) Heat pump water heater $1,750
Focus on Energy HEAR (LMI 100%) Panel upgrade $4,000
WE Energies rebate Heat pump HVAC $400
WE Energies rebate Heat pump water heater $150
25C tax credit Heat pump HVAC + HPWH $2,000*
Total incentives ~$16,300

*25C credit requires sufficient tax liability. Project cost assumption: heat pump $10K + HPWH $1,500 + panel $4,500 = ~$16,000 total. Net cost to client: ~$0 before 25C; panel upgrade fully covered.

The HEAR aggregate cap applies: The combined HEAR rebate cannot exceed $14,000 per household. In the example above, HEAR totals $13,750 — just under the cap. Adding insulation to the project would exceed the cap. Plan the scope with the $14K ceiling in mind.

What Goes Wrong in Wisconsin HEAR Applications

Non-Trade Ally installation

All contractor-installed measures must be performed by a registered Focus on Energy Trade Ally IRA contractor. Work performed before enrollment or by a non-enrolled contractor will be denied. Enroll before quoting any project with HEAR in scope.

Equipment ineligibility

The heat pump must be ENERGY STAR certified. Wisconsin is cold-climate territory — cold-climate rated heat pumps (NEEP list) are strongly preferred and sometimes required for the highest rebate tiers. Standard ENERGY STAR certification alone may not cover HVAC systems in northern Wisconsin's climate zone (5A–6A). Verify equipment against both the ENERGY STAR list and the NEEP cold-climate ASHP list before quoting.

Incorrect income tier determination

Wisconsin uses gross household income for the prior 12 months. Income documentation must match the household composition on the application. Self-employed income requires Schedule C or business tax return, not just a bank statement.

Store-purchase confusion

Clients sometimes assume the contractor handles the store-purchase rebate (HPWH, dryer, stove). They don't — the homeowner applies directly. Provide clients with the Focus on Energy application link at time of purchase and walk them through the documentation requirements.

HOMES Program Status in Wisconsin

Wisconsin HOMES is administered by Focus on Energy alongside HEAR. Key points for practitioners:

The Wisconsin opportunity: Western and northern Wisconsin still has significant oil and propane heating stock (20–30% of rural homes). These conversions hit HOMES thresholds and may stack HEAR + HOMES + 25C + WE Energies/Alliant rebates for LMI households. Total stack in strong scenarios can reach $18,000+.

Weekly Wisconsin HEAR and HOMES updates

The IRA Practitioner Brief tracks Focus on Energy program changes, processing timelines, and equipment eligibility updates weekly. Free for the first three issues.

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