The IRA home energy rebate calculator estimates your federal tax credits (Section 25C) and HEEHRA rebates for 2026 home energy upgrades. Enter your household income, filing status, and planned projects to see total available savings — stacking both programs can cover $10,000-$14,000+ on a full electrification project.
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How to Use the IRA Home Energy Rebates in 2026
The Inflation Reduction Act (IRA) created two separate home energy incentive programs: the Section 25C tax credits and the HEEHRA (High-Efficiency Electric Home Rebate Act) rebates. Understanding how they stack helps you maximize total savings on electrification projects.
Section 25C Tax Credits (All Income Levels)
The 25C credit covers 30% of installation costs for qualifying equipment, with annual caps: $2,000 for heat pump HVAC or water heaters, $1,200 for insulation/windows/doors/panels. These are non-refundable credits — they reduce federal tax owed dollar-for-dollar, but you need sufficient tax liability to use them fully. The cap resets each calendar year, so spreading projects across two tax years can double your credit.
HEEHRA Rebates (Income-Based)
HEEHRA provides upfront rebates funded through state energy offices. Maximum amounts: heat pump HVAC ($8,000), heat pump water heater ($1,750), insulation/air sealing ($1,600), electrical panel upgrade ($4,000), wiring/EV charger circuit ($2,500), induction stove ($840). Total HEEHRA cap is $14,000 per household. At 100% below 80% AMI, 50% for 80-150% AMI, nothing above 150% AMI.
Stacking Both Programs
You can receive both a 25C tax credit AND a HEEHRA rebate on the same project. Example: a $12,000 heat pump HVAC installation for a moderate-income household (80-150% AMI) could receive: $2,000 in 25C tax credit + $4,000 HEEHRA rebate (50% of $8,000 max) = $6,000 in total incentives, bringing net cost to $6,000.
How to Claim
File IRS Form 5695 with your federal return to claim 25C credits. Keep receipts showing equipment model numbers, installation dates, and contractor details. HEEHRA rebates are claimed through your state's energy program — typically at point-of-sale through participating contractors or as a reimbursement application. Programs vary by state; check your state energy office for current availability.
FAQ
Is this IRA rebate calculator free?
Yes, completely free with no signup required. Estimates are based on 2026 IRA tax credit and HEEHRA rebate program rules. Always verify final amounts with a tax professional or your state energy office.
What is the difference between IRA tax credits and HEEHRA rebates?
IRA tax credits (Section 25C) reduce your federal income tax dollar-for-dollar. They're available to all income levels but require tax liability to use. HEEHRA rebates (High-Efficiency Electric Home Rebate Act) are point-of-sale discounts available at purchase or as direct payments for low- and moderate-income households (below 150% Area Median Income).
What income qualifies for full HEEHRA rebates?
Households below 80% of the Area Median Income (AMI) for their area qualify for 100% of HEEHRA rebates. Households between 80-150% AMI qualify for 50% of maximum rebates. Above 150% AMI, only the IRA tax credits apply. The AMI varies by county — check HUD's income limits database or your state energy office for your specific AMI.
How much is the heat pump tax credit for 2026?
The federal 25C tax credit covers 30% of qualified heat pump HVAC installation costs, up to $2,000 per year. This is separate from the HEEHRA rebate of up to $8,000 for heat pump HVAC. You can stack both: a $15,000 heat pump system could receive $2,000 tax credit plus $8,000 HEEHRA rebate = $10,000 in total incentives.
Can I combine multiple projects and get rebates for all of them?
Yes. HEEHRA has a total cap of $14,000 per household per year across all projects. The IRA tax credits have a $1,200 annual cap for weatherization (insulation/windows/doors) plus a separate $2,000 cap for heat pumps and water heaters. You can claim both categories in the same tax year.
When do these rebates expire?
IRA tax credits (Section 25C) run through December 31, 2032. HEEHRA rebates are funded as a block grant to states; availability depends on your state's program status. Many states launched programs in 2024-2025. Check your state's energy office for current availability.
Is my data safe?
Yes. All calculations run in your browser. No income or personal data is transmitted or stored.