Inflation Reduction Act Frequently Asked Questions

The Inflation Reduction Act (IRA) of 2022 established two programs that help households purchase products and make home improvements to lower energy bills. The State of Texas is designing these programs, pending approval by the U.S. Department of Energy (DOE).

The Home Efficiency Rebates (HOMES) program will provide rebates to encourage households to make whole-home energy saving upgrades. Households of all income levels will be eligible to participate, including single-family homes and multifamily buildings. Rebate amounts up to $8,000 will be based on household income level and the expected energy savings.

The Home Electrification and Appliance Rebate (HEAR) program will help income-qualified households by providing rebates for specific efficient electrical appliances and supporting upgrades. Rebates will be determined based on technology and can range up to $14,000 per household.

The HOMES and HEAR Rebate programs will help eligible single-family and multi-family households pay for home energy upgrades. Covered improvements may include appliances, insulation, air sealing, weatherization, and other upgrades. The final list of eligible items and rebate amounts is still being decided.

Homeowners, renters, and rental property owners who meet federal and state requirements may qualify. The programs will serve both single-family and multifamily properties. Final eligibility rules will be confirmed after DOE approval.

Proposed income eligibility:

• HOMES: expected to be available to all income levels.
• HEAR: expected to be available to low- and moderate-income households, as defined by the programs.

Income eligibility will be determined based on Area Median Income (AMI) which will vary by county and household size. Low-income households will be defined as those earning less than 80% of the AMI. Moderate-income households earn between 80% and 150% of the AMI.

AMI is determined annually by the U.S. Department of Housing and Urban Development (HUD) based on Census Bureau data and represents the median income for a specific metropolitan area or county. You can find the AMI for your specific area using HUD’s website.

Households may qualify for up to $8,000 in rebates. The amount will depend on expected energy savings and household income. To qualify, the upgrades must reduce the home’s energy use by at least 20%. Final program requirements still need approval from the DOE.

HEAR will target low- and moderate-income households. The household’s income level will determine the rebate amount per upgrade and the percentage of costs covered.

The rebate amounts will be fixed based on the equipment installed and set by the IRA. Rebates available for qualified projects (electric appliances shall be ENERGY STAR® certified) will include:

• Heat pump for space heating and cooling, up to $8,000
• Heat pump water heater, up to $1,750
• Electric stove/cooktop, up to $840
• Heat pump clothes dryer, up to $840
• Breaker panel box replacement, up to $4,000
• Electric wiring, up to $2,500
• Weatherization, up to $1,600

All rebate levels and eligible measures remain subject to final program approval.

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 (APTIM) to design and carry out the programs. This work is part of the program development phase and will result in a final proposal submitted to the DOE for approval.

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 work with local partners, community organizations and contractors to make sure the rebate programs are easy for residents to use and accessible statewide.

The programs are being designed during the fall of 2026. A launch date has not been set and will depend on DOE approval of the final program design.

Texas is unable to accept receipts for rebate reimbursement. The program is still in the design and approval phase, and no applications or reimbursements can be processed at this time.

First, the rebates programs must be officially launched. Then, applicants must submit an application to participate in the rebate program. The Implementer must approve the application. If the applicant is approved, qualified energy efficient products will then be purchased and installed. At this point, the applicant will submit receipts for reimbursement.

This response does not consider retail rebates.

The Texas HOMES and HEAR Rebate programs are still being designed, and final eligibility requirements have not yet been established.

While federal law allows for potential retroactive reimbursement for HOMES projects initiated on or after August 16, 2022, any project would ultimately need to meet all federal and future state requirements. Because program rules are still being finalized, projects initiated or completed before the official program launch are unlikely to qualify for reimbursement.

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Please check back for updates. If you have a comment you wish to submit for consideration, fill out the Texas HOMES and HEAR Comment Form. The comment form will remain open through the end of August.