Home energy rebates by state: what is still available

By Dana Whitlock. Updated October 13, 2026. How we work.

Checked October 13, 2026

Checked October 13, 2026. No federal tax credit covers a new furnace, air conditioner, heat pump or water heater installed in 2026. The federal rebate programs that states run are open in only some places, and their rules are tighter than when they were announced. For anyone swapping a gas appliance for a heat pump, a new federal HEAR rebate is generally off the table since September 1, 2026.

The table below this guide gives the status of both rebate programs in all 50 states and DC, with a link to each state's official page. Read these notes first. The statuses make more sense with them.

The two federal rebate programs

The 2022 Inflation Reduction Act funded two home energy rebate programs. Washington supplies the money. Each state energy office designs, launches and runs its own version, which is why availability is so uneven.

HEAR, the Home Electrification and Appliance Rebates program (written in the law as the High-Efficiency Electric Home Rebate Program), pays toward specific electric equipment: heat pumps for heating and cooling, heat pump water heaters, electrical panels, wiring, and insulation and air sealing. Income decides the amount. Households under 80 percent of area median income can get up to the full cost, households between 80 and 150 percent can get up to half, and households above 150 percent are not eligible. DOE describes rebates of up to a household total of $14,000, applied at the point of sale through participating contractors or retailers. The law caps a heat pump for heating and cooling at up to $8,000 and a heat pump water heater at up to $1,750. States may set lower caps.

HOMES, the Home Efficiency Rebates program (formally the Home Owner Managing Energy Savings program), pays for measured or modeled whole-home energy savings instead of specific equipment. DOE's page says HOMES is open to households at every income level, with a minimum savings threshold of 20 percent and higher rebates allowed for lower-income households. A furnace or AC swap alone rarely clears that bar. HOMES is built for bundled upgrades.

The 2026 change: no HEAR money to replace fossil-fuel appliances

On May 29, 2026, the U.S. Department of Energy issued updated HEAR program guidance that states had to put in place by September 1, 2026. North Carolina's state energy office summarizes the result: rebates will no longer be allowed for the replacement of gas or any other fossil fuel appliances, and fuel switching projects are not allowed. The new rules apply to all existing and new HEAR applications that had not reached rebate reservation status by September 1, 2026.

Rhode Island's energy office puts it more bluntly: equipment rebates are no longer available for switching from a fossil fuel appliance to an electric one.

Two other pieces of the change affect homeowners. Electric-to-electric upgrades are now allowed, so trading an old electric resistance water heater or an aging heat pump for a more efficient electric unit can qualify where a state program is running. And some states now require insulation or air sealing alongside a HEAR heat pump project. Each office is rolling out the guidance on its own schedule, so read your state's page for its exact rules.

Federal tax credits ended after 2025

The two federal tax credits that used to cover this equipment are gone for anything installed in 2026. The IRS says you can claim the Energy Efficient Home Improvement Credit (section 25C) for improvements made through December 31, 2025. For the Residential Clean Energy Credit (section 25D), the IRS states that the credit is not available for any property placed in service after December 31, 2025.

A 2026 quote that still lists a federal tax credit for a heat pump, furnace, AC or water heater has an error in it. Ask the contractor to take it out of the price comparison.

How to read the state table

Each state gets a status for HEAR and one for HOMES, taken from the state energy office's own page on October 13, 2026. The labels mean this:

• Launched: taking applications statewide.
• Launched, limited: open only to some households, regions, income groups or property types, or through a pilot.
• Announced, not launched: the state has a plan or a page but isn't paying rebates yet.
• Paused: no new applications for now. The state page usually says why.
• Not participating: the state turned down the funding.
• Unclear: the official page gave no clear status, or wouldn't load when checked.

Where things stood when checked

For HEAR, the October 2026 check found 3 states fully launched, 6 launched in a limited form, 4 paused, 23 announced but not launched and 15 unclear. For HOMES, 4 were launched, 4 launched in a limited form, 1 paused, 24 announced but not launched and 18 unclear. Most homeowners can't get either federal rebate today. Those who can usually face income limits and, for HEAR, the new no-fuel-switching rule.

Several states also run their own programs, and many utilities run theirs, outside HEAR and HOMES. Where the official page showed a statewide program, the table lists it. For efficient AC, heat pumps and water heaters, utility rebates are often the most dependable money around, so look at your electric and gas utility's site too.

Checking your own state

• Open your state's row in the table and follow the link to the state energy office page. Look for a date on the page.
• Confirm whether HEAR is open in your area and whether your household income qualifies. Expect to show proof of income or enrollment in a qualifying assistance program.
• When a heat pump is replacing a gas furnace or gas water heater, assume HEAR won't pay unless the state page says your application was reserved before September 1, 2026.
• Ask whether you need pre-approval before work starts. Many programs won't pay for equipment that's already in.
• Ask each contractor which programs they're approved to file for, and check your utility's offers.
• Keep the AHRI certificate, model numbers and invoice. Rebate applications often ask for all of them.