June 2025 update: Rebates from the HEEHRA rebate program for single-family homes are no longer available in California. Availability in other states may differ. Check your state's energy office website for current status. No new funding for this program is expected given the policies of the Trump Administration. Sign up with QuitCarbon for free, expert advice on available rebates for your home.
Though HEEHRA funding is gone, you can claim federal tax credits for home energy upgrades for projects completed by December 31, 2025. Combining tax credits with robust state and local rebates significantly lowers the cost of home energy upgrades. Time to claim these incentives is limited, making now perhaps the best time to install new appliances that improve home comfort and save you money.
Combining Rebates and Tax Credits for Maximum Savings
State and local rebate programs can be combined with the Energy Efficient Home Improvement Credit (the 25C tax credit), offering significant cost reductions for home upgrades. Here's how it works:
- Rebates like TECH California are applied as discounts to the purchase price of eligible appliances or home improvements. These rebates are not taxable.
- After applying the rebate, you can claim the 25C tax credit on the reduced cost of the upgrade. For example, if you receive a $1,500 rebate on a $5,000 heat pump installation, your tax credit would apply to the remaining $3,500. With the 25C tax credit covering 30% of eligible costs, you could get a credit of $1050, further reducing the cost to $2,450.
Important limitations:
- 25C tax credits are capped at $2,000 and can only be claimed for either a Heat Pump or Heat Pump Water Heater.
- The combination of rebates and tax credits cannot exceed the total cost of the project.
Start Planning Now
Although the rebates won’t be retroactive, it’s smart to start planning your projects now. QuitCarbon will keep you informed of state-specific details and help you take full advantage of the savings once these programs launch. Reach out to our team to get started on your path to an electrified, energy-efficient home.
Major Rebates for Home Upgrades
The IRA has designated $8.8 billion for the Department of Energy’s (DOE) Home Energy Rebates programs. These programs aim to make home electrification and energy efficiency upgrades more affordable.
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HEAR/HEEHRA
If your household earns less than 150% of the Area Median Income (AMI), you could be eligible for up to $14,000 in rebates through the federal Home Electrification and Appliances Rebates (HEAR) Program. (In California, this program is administered through the High-Efficiency Electric Home Rebate Act (HEEHRA). You can look up your AMI here.- Heat pumps – up to $8,000
- Electrical panel upgrades – up to $4,000
- Heat pump water heaters – up to $1,750
- Additional incentives for other energy-saving appliances
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HER/HOMES
The Home Efficiency Rebates (HER) program—in California, known as Homeowners Managing Energy Savings (HOMES)—offers rebates ranging from $2,000 to $7,000 for energy-saving retrofits. The amount depends on the percentage of energy savings, with greater rebates available for those earning less than 80% of AMI.