While tax credits are great, they don’t help with the upfront cost of a new HVAC system. That is where the High-Efficiency Electric Home Rebate Act (HEEHRA) comes in. In 2026, this program is the “holy grail” for US homeowners because it provides point-of-sale discounts.
This means the money is taken off your bill immediately at the time of purchase. No waiting for tax season.
1. Are You Eligible? Understanding the 2026 Income Limits
Eligibility for HEEHRA is strictly based on your Area Median Income (AMI). The program is designed to help those who need it most.
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Low-Income Households (<80% of AMI): Eligible for 100% of the project cost, capped at $8,000.
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Moderate-Income Households (80% to 150% of AMI): Eligible for 50% of the project cost, capped at $4,000.
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High-Income Households (>150% of AMI): Not eligible for HEEHRA rebates, but can still claim the Section 25D Tax Credit (as discussed in our main guide to 2026 tax credits).
2. The 2026 HEEHRA Eligibility Map
Every state in the USA now has an active portal as of mid-2026. However, the available funding varies.
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Check Your State Portal: Before signing a contract, visit your state’s Department of Energy website.
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The “Zip Code” Factor: Your AMI is calculated based on where you live. A “moderate income” in San Francisco is very different from a “moderate income” in rural Ohio.
3. What Else Does HEEHRA Cover?
It’s not just for heat pumps. If you are electrifying your home in 2026, you can stack multiple rebates:
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Heat Pump Water Heaters: Up to $1,750.
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Electric Stoves/Cooktops: Up to $840.
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Heat Pump Clothes Dryers: Up to $840.
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Weatherization (Insulation/Sealing): Up to $1,600.
4. Step-by-Step: How to Claim the Rebate
Unlike tax credits, you cannot do this alone. You must follow this 2026 workflow:
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Find a Registered Contractor: The rebate is paid directly to the contractor or the retailer. If they aren’t registered with the state HEEHRA program, you won’t get the discount.
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Verify Your Income: Most states now use an automated verification system where you upload your 2025/2026 tax returns to a secure portal.
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Get the “Net” Invoice: Your contractor will provide an invoice that already has the $4,000 or $8,000 deducted from the total.
Comparison: HEEHRA vs. 25D Tax Credit
| Feature | HEEHRA Rebate | 25D Tax Credit |
| Type of Benefit | Instant Discount (Cash) | Reduction in Tax Owed |
| Income Limit | Yes (Low/Moderate) | None |
| Max Amount | $8,000 | 30% of total (Uncapped) |
| Timing | At point of sale | Annual tax filing |