programs SECO

Inflation Reduction Act Rebates and Tax Credits

Inflation Reduction Act (IRA) Rebates

Authorized by the IRA, the Home Energy Performance-Based, Whole House (HOMES) rebate program and the Home Electrification and Appliances 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.

News and Announcements

In response to Addendum No. 2 Request for Proposal (RFP No. 907-25-1902KW), the Texas Comptroller of Public Accounts (CPA) has partnered with APTIM Federal Services, LLC to design and implement two major energy rebate programs for Texans. These programs — the HOMES Program and the HEAR Program — were created under the federal Inflation Reduction Act to help families lower their energy bills while also upgrading their homes.

As a national company with extensive experience operating large‑scale energy programs across the country, the APTIM team includes experts in program management, customer support, outreach, technology and energy efficiency. In Texas, APTIM will collaborate with local partners, community organizations and contractors to ensure the rebate programs are easy for residents to use and accessible statewide.

Current Status

APTIM will work with SECO to begin preparing for the successful launch of both programs by completing key early-phase planning tasks over the next several months. These tasks include gathering community input, developing the computer systems that will process rebates, planning customer service support, building online tools, and preparing required reports for the DOE.

Next Steps

During this early work, SECO will create foundational resources such as a public online portal, a call center plan and contractor training materials. SECO also will draft timelines for a rollout and prepare a formal implementation plan as well, which also must receive DOE approval before rebates can begin for homeowners and renters across Texas.

Timeline

CPA anticipates this early work to continue through fall 2026, though the timeline depends on federal review and approval. Once DOE approval is secured, the programs will move into the full launch phase and families across Texas will be able to apply for rebates.

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.

Resources

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Inflation Reduction Act Tax Credits

Learn more from the Department of Energy's Home Upgrades.

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 National Association of State Energy Officials’ Energy Efficient Home Improvement Credit (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.