If you’ve been searching online to find out whether you missed your chance at Inflation Reduction Act (IRA) incentives — you haven’t. While the high-profile federal tax credits that were part of the IRA rebates did expire at the end of 2025, a substantial layer of IRA-funded programs is still very much alive in 2026. These are the HOMES and Home Electrification and Appliances Rebate (HEAR) Program — federally funded but distributed by your state — and for many homeowners, they represent the most valuable home energy incentive they will ever qualify for.
This guide cuts through the confusion. We explain what’s expired, what’s still available, who qualifies, and exactly how to apply.
What Expired at the End of 2025
The IRA, signed into law in August 2022, originally included several tax credit programs that ran through the 2025 tax year. These credits expired December 31, 2025, meaning purchases made in 2026 or later no longer qualify:
- Energy Efficient Home Improvement Credit (Section 25C): Up to $3,200/year for insulation, windows, heat pumps, and more.
- Residential Clean Energy Credit (Section 25D): 30% credit for solar panels, battery storage, and geothermal systems.
- New Energy Efficient Home Credit (Section 45L): For home builders, not directly applicable to most homeowners.
You can verify this on the official IRS Energy Credits page. If you made qualifying purchases in 2025, you could still claim these credits when you file your 2025 taxes.
What’s Still Available: The HOMES and HEAR Programs
The IRA did not just create tax credits — it also allocated $4.3 billion to states to run their own rebate programs. These are distributed through your state energy office, not the IRS, which is why they don’t expire on the same schedule as tax credits. As of early 2026, these programs are actively paying out rebates in many states.
1. HOMES Rebates (Home Efficiency Rebates Program)
The HOMES program rewards homeowners for making whole-home energy efficiency upgrades. It’s available to all income levels, and the rebate amount is tied to how much energy you save — not what you buy. The more you reduce your home’s energy consumption, the more you get back:
- 20–35% energy reduction: Up to $2,000 (up to $4,000 for low-income households)
- 35%+ energy reduction: Up to $4,000 (up to $8,000 for low-income households)
- Whole-home modeled upgrades: Up to $8,000 (up to $16,000 for low-income households)
The program requires a certified home energy auditor to model your upgrades. Learn more at the U.S. Department of Energy’s HOMES program page.
2. HEAR Rebates (Home Electrification and Appliance Rebates)
The HEAR program (also called HEEHRA — High-Efficiency Electric Home Rebate Act) is specifically for low-to-moderate income (LMI) households earning up to 150% of the Area Median Income (AMI). If you qualify, the rebates are extremely generous — covering point-of-sale discounts on specific electric appliances and upgrades:
| Upgrade Type | Max Rebate Amount |
| Heat Pump (HVAC) | Up to $8,000 |
| Heat Pump Water Heater | Up to $1,750 |
| Electric Stove / Cooktop | Up to $840 |
| Electric Dryer | Up to $840 |
| Electrical Panel Upgrade | Up to $4,000 |
| Insulation, Air Sealing, Ventilation | Up to $1,600 |
| EV Charger (Level 2) | Up to $4,000 |
Total maximum HEAR rebates per household can reach $14,000. Check income eligibility using the ENERGY STAR Federal Tax Credits & Rebates page as a starting point.
Which States Are Currently Active?
Not every state program is up and running yet. The DOE releases funds to states on a rolling basis, and each state has its own launch timeline. As of early 2026, states with active programs include Colorado, California, Maine, Rhode Island, New York, and Georgia, among others. Many additional states are expected to open applications mid-2026.
The fastest way to check your state’s status is the official DOE State Rebate Program Tracker. It shows whether your state is accepting applications, in development, or not yet launched.
Don’t Overlook Utility Rebates
Regardless of state program status, your local utility company may offer its own 2026 rebates entirely separate from IRA funding. These programs run year-round and cover many of the same upgrades:
- Heat pumps and central air conditioning systems
- Smart thermostats (often $50–$100 instant rebates)
- Energy Star certified appliances
- Insulation and air sealing
Use the DSIRE database (Database of State Incentives for Renewables & Efficiency) to search every active incentive by ZIP code, including utility rebates.
How to Apply: Step-by-Step
Following these steps will give you the best chance of capturing the maximum available rebates in 2026:
- Step 1 — Check your state’s status: Visit energy.gov/save/rebates to confirm your state’s HOMES or HEAR program is accepting applications.
- Step 2 — Get a home energy audit: A certified auditor will assess your home’s current efficiency and identify the upgrades that will yield the best rebate outcomes.
- Step 3 — Confirm income eligibility: For HEAR, check if your household income falls within 150% of your area’s median income (AMI). Your state energy office can help with this.
- Step 4 — Use qualified contractors: Rebates generally require installation by approved licensed contractors. Ask your state energy office for a list.
- Step 5 — Apply through your state portal: Submit your rebate application and documentation as soon as work is complete. Funds are limited and distributed on a first-come, first-served basis.
Expert Tip: Stack Your Incentives
One of the most powerful strategies in 2026 is stacking IRA rebates with state programs and utility rebates. These incentives are not mutually exclusive. For example, a HEAR rebate on a heat pump can be combined with a utility company rebate from your local electric provider, bringing your total out-of-pocket cost down significantly. Some homeowners in active states are covering 70–80% of upgrade costs through stacked incentives.
Frequently Asked Questions
Is IRA rebates taxable income?
Generally, rebates that reduce the purchase price of equipment are not considered taxable income. However, tax rules are complex and vary by situation. Consult a tax professional in your area for guidance specific to your circumstances.
Can renters access these programs?
Some states are designing programs to include renters or landlords who upgrade rental properties. Check your state’s specific program guidelines for details.
When do HOMES and HEAR funds run out?
These are appropriated funds, not open-ended tax credits. Once a state depletes its allocation, the program closes. Applying sooner rather than later is strongly advised.
Bottom Line
The IRA’s federal tax credits are gone, but the story isn’t over. The HOMES and HEAR rebate programs represent a once-in-a-generation opportunity for homeowners to make deep energy upgrades at dramatically reduced costs. With up to $14,000 available for LMI households and meaningful rebates for all income levels through HOMES, 2026 is still a strong year to act — especially before your state’s allocation runs out.
Start at energy.gov/save to find what’s available in your area, and don’t leave money on the table.
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