MAXIMIZE YOUR SAVINGS: INFLATION REDUCTION ACT APPLIANCE REBATES EXPLAINED
The Home Electrification and Appliance Rebate program (HEAR) is a key initiative of the Inflation Reduction Act, designed to boost energy efficiency and reduce residential carbon emissions. Eligible participants can save up to $14,000 on energy-saving appliances and services, including up to $1,680 for select electric cooking and laundry appliances.
WHAT ENERGY EFFICIENT APPLIANCE REBATES ARE THERE?
The Home Electrification and Appliance Rebate (HEAR), is one part of the larger Home Energy Rebates program. HEAR covers energy-efficient electric appliances including select heat pumps, water heaters, cooktops, stoves, ovens and dryers. It may also cover some installation or retrofit costs, totaling up to $14,000 in rebates specifically for low and moderate-income households. Unlike a tax credit, the rebates are applied at the point-of-sale through participating retailers and contractors, resulting in immediate savings.
The program is administered at the state level, ensuring flexibility and responsiveness to local energy needs and infrastructure. Read on to learn more about how you may be able to save on appliances through the HEAR initiative.
ARE THE ENERGY STAR APPLIANCE REBATES AVAILABLE IN MY STATE?
As of December 2024, the following states and territories have HEAR rebates for ENERGY STAR-certified appliances available:Arizona, California, Colorado, D.C., Georgia, Maine, Michigan, New Mexico, New York, Rhode Island and Wisconsin. Several other states have approved applications or are in the process of submitting them. You can check the status of rebate availability in your state through the energy.gov tracker.
WHAT KIND OF APPLIANCES ARE ELIGIBLE FOR FEDERAL REBATES?
The HEAR program offers specific rebate caps for various eligible appliances or energy efficiency upgrades. Appliances must be ENERGY STAR-Certified and include select models from the following categories:
| APPLIANCE OR SERVICE | MAXIMUM REBATE AMOUNT* |
|---|---|
| Heat Pump Water Heater | $1,750 |
Heat Pump for Space Heating/Cooling |
$8,000 |
Electric Cooktop, Range or Oven |
$840 |
Electric Heat Pump Clothes Dryer |
$840 |
Electrical load service center (electrical panel) |
$4,000 |
| Electrical Wiring | $2,500 |
| Insulation, air sealing, ventilation | $1,600 |
*Maximum rebate amounts may depend on additional eligibility requirements.
Eligible appliances from Maytag brand include select electric cooktops, ranges and ovens.
Note that a single household cannot receive more than $14,000 in total rebate funds across all eligible appliances and services under the Home Electrification and Appliance Rebate (HEAR) program. This means that while individual appliances have maximum rebate amounts, the cumulative rebates for a household are capped at $14,000.
SHOP ELECTRIC RANGES FROM MAYTAG BRAND*
*Model eligibility for rebates varies by state
WHO IS ELIGIBLE FOR FEDERAL APPLIANCE REBATES?
The basic federal qualifications for the HEAR program include homeownership and an income less than 150% of your local area median income (AMI). However, the maximum rebate amount you may qualify for depends on whether you fall under low or moderate income.
| HOUSEHOLD INCOME LEVEL | MAXIMUM COOKING OR LAUNDRY APPLIANCE REBATE | MAXIMUM REBATE AMOUNT |
|---|---|---|
| Low = < 80% AMI$1,680 | $1,680 | 100% of project costs up to $14,000 |
Moderate = < 150% AMI |
$840 | 50% of project costs up to $14,000 |
Homeownership includes single- or multi-family homes, ownership of rental properties, or new construction.
States and other local governments may have additional requirements so it’s important to check your state’s energy office to review all eligibility criteria.
APPLICATION PROCESS
The application process may vary by state, but generally involves:
Pre-qualifying by checking eligibility through your state's energy office
Researching eligible appliances and services
Purchasing qualified appliances if the rebate is active in your state and all local requirements are met
Be sure to understand the process for applying the rebate in your state before making any purchases as retroactive rebates are not generally available.
SHOP ELECTRIC COOKTOPS FROM MAYTAG BRAND*
*Model eligibility for rebates varies by state
SHOULD I SWITCH TO ELECTRIC APPLIANCES?
Switching to electric appliances with HEAR can help you conserve energy, cut down on utility costs, and lessen your environmental footprint. But, deciding between gas vs electric appliances may depend on your individual household requirements and preferences. With different installation requirements, benefits and price points, converting your gas stove to electric or replacing a gas dryer with an electric heat pump model may or may not be the best option for you.
WHAT’S THE DIFFERENCE BETWEEN FEDERAL APPLIANCE REBATES VS TAX CREDITS?
Federal appliance rebates and tax credits are two different types of financial incentives for energy-efficient purchases, but they differ in several key ways:
1. Timing of benefit:
Rebates: Typically provide immediate savings at the point of sale or shortly after purchase. The HEAR rebate should be applied at the point of purchase for immediate cost reductions.
Tax credits: Reduce your tax liability when you file your annual tax return, which could be months after the purchase.
2. Application process:
Rebates: Often require application through state energy offices or participating retailers.
Tax credits: Claimed on your federal tax return using specific IRS forms.
3. Eligibility:
Rebates: Often have income restrictions and may be limited to certain states or regions.
Tax credits: Generally available to all taxpayers who meet the criteria, regardless of location.
The Home Electrification and Appliance Rebate (HEAR) program is an example of a federal rebate program, administered at the state level, offering immediate savings on energy-efficient appliances and services. For more details, visit the Home Energy Rebates frequently asked questions page.
