programs SECO

Inflation Reduction Act Rebates and Tax Credits

The Inflation Reduction Act (IRA) provides support for clean energy through these programs:

Inflation Reduction Act Rebates

Authorized by the IRA, the Home Energy Performance-Based, Whole House (HOMES) rebate program and the Home Electrification and Application Rebate (HEAR) program will provide residential energy efficiency and beneficial electrification rebates to Texans. The U.S. Department of Energy (DOE) allocated $690 million to Texas for the State Energy Conservation Office (SECO) to implement and administer the programs.

The HOMES and HEAR rebate programs are currently not available. SECO intends to apply for the federal funds that have been allocated to Texas. In anticipation of needing a third-party program administrator to manage these programs, SECO will apply for early administrative funds from the DOE. Applications for the rebate programs should be available in Summer 2025.

HOMES Rebate Program

The HOMES rebate program incentivizes whole-home retrofits in both single-family and multifamily dwelling units. Efficiency rebates are available to households of any income level, but rebate amounts are doubled for low- and moderate-income households. For the HOMES program, the rebate amounts will be determined based on energy savings using either a modeled or measured savings method. The modeled savings pathway will provide a rebate amount based on the estimated energy savings particular to a home at the time of the retrofit installation. The measured savings pathway will calculate rebates based on the actual energy savings after a certain period following the installation of the retrofit.

HEAR Rebate Program

The HEAR program is an appliance rebate program. The DOE has not determined which specific appliances will qualify but has indicated they will be ENERGY STAR® certified. Electrification rebates are available only to low- or moderate-income (LMI) households, as identified by Area Median Income (AMI). The rebate amounts are set by the IRA and are specifically targeted to LMI households.

Key DOE Milestones

  • May 31, 2024 - Early administrative funding applications submitted on May 14, 2024
  • August 16, 2024 - Notice of Intent to apply for or decline funds
  • January 31, 2025 - Application deadline


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Inflation Reduction Act Tax Credits

Learn more from the Department of Energy.

Equipment Type Tax Credit Available for 2022 Tax Year Updated Tax Credit Available for 2023-2032 Tax Years
Home Clean Electricity Products
Solar (electricity) 30% of cost
Fuel Cells 30% of cost
Wind Turbine 30% of cost
Battery Storage N/A 30% of cost
Heating, Cooling and Water Heating
Heat pumps $300 30% of cost, up to $2,000 per year
Heat pump water heaters $300 30% of cost, up to $2,000 per year
Biomass stoves $300 30% of cost, up to $2,000 per year
Geothermal heat pumps 30% of cost
Solar (water heating) 30% of cost
Efficient air conditioners* $300 30% of cost, up to $600
Efficient heating equipment* $300 30% of cost, up to $600
Efficient water heating equipment* $150 30% of cost, up to $600
Other Energy Efficiency Upgrades
Electric panel or circuit upgrades for new electric equipment* N/A 30% of cost, up to $600
Insulation materials* 10% of cost 30% of cost
Windows, including skylights* 10% of cost 30% of cost, up to $600
Exterior doors* 10% of cost 30% of cost, up to $500 for doors (up to $250 each)
Home Energy Audits* N/A 30% of cost, up to $150
Home Electric Vehicle Charger 30% of cost, up to $1,000 30% of cost, up to $1,000 **

* Subject to cap of $1,200/year
** The IRS will soon publish further information on eligibility requirements related to home electric vehicle chargers, but we know that credits are intended for residents in non-urban or low-income communities.

Still have questions? Visit the White House Guidance on Tax Credits and Rebates for Families (PDF), which includes information on solar, energy efficient home appliances, heating and cooling systems and electric vehicles. Your local utility or municipality may have additional incentives available.