2023 Heat Pump Rebates for Texas Homeowners
Thanks to the Inflation Reduction Act (IRA), signed into law in August 2022, homeowners can now take advantage of special rebates for qualifying heat pump systems they choose to install or replace in their homes.
In this blog, we’ll discuss the available heat pump rebates in further detail, including the specifics of the rebate program, eligibility requirements, and total rebate amounts.
What Is HEEHRA?
The IRA established a special point-of-sale rebate program called the High-Efficiency Electric Home Rebate Act (HEEHRA). This 10-year rebate program was specially designed for low- to moderate-income (LMI) households, giving them incentives to switch to more energy-efficient appliances.
Under the program, HEEHRA covers 100% of heat pump installation costs for low-income households and 50% for moderate-income households. Both types of households may receive a total of $14,000 in rebates for all electrification projects they pursue in their homes.
When Do HEEHRA Rebates Start?
According to the U.S. Department of Energy (DOE), HEEHRA rebates are expected to become available by late 2023 or early 2024. The DOE passed guidance to each state in July 2023 for program implementation, so families may be able to claim their rebates as early as the new year.
Who Is Eligible for HEEHRA Heat Pump Rebates?
Since the program is designed for LMI households, only certain families are eligible to receive the HEEHRA rebates. Households that are below 150% of the area’s median income (AMI) may qualify; however, they must satisfy the following eligibility requirements:
- Low-income households: Less than 80% AMI
- Moderate-income households: 80%–150% AMI
- Multifamily buildings: Must have ≥ 50% LMI residents to qualify
To check if you qualify for the rebates, you can use the U.S. Department of Housing and Urban Development’s income limit tool to check the AMI for your county.
How Much Will My HEEHRA Heat Pump Rebate Be?
The total amount of your rebate will depend on your household’s income level. Under the HEEHRA program, homeowners may receive a maximum rebate of $8,000 for qualifying heat pump installations and replacements.
Here’s how much you can expect to receive for your heat pump rebate based on your income:
- Low-income households: 100% of the cost (up to $8,000)
- Moderate-income households: 50% of the cost (up to $4,000)
How Can I Prepare?
While the rebates may not be available yet, there are several steps you can take to prepare for your heat pump installation or replacement now, so you’re ready to take advantage of these incentives.
Here’s what you can do:
- Conduct an energy audit: Consider hiring an auditor to inspect your home and recommend the best energy upgrades.
- Research heat pump products: We expect that homeowners will be eager to take advantage of the program, which could cause inventory shortages, so stay prepared by knowing what heat pump products you want in advance.
- Choose a trusted contractor: When you’re ready to install a new heat pump in your home, trust SM Air to get the job done right. We have access to the highest quality heat pump systems, ensuring you receive the most advanced solutions for your home.
Contact SM Air to improve your home’s energy efficiency and learn more about the HEEHRA heat pump rebate.
Call (512) 212-4777 to request heat pump installation or replacement today.