National Overview
The U.S. rebate landscape — four stacking tiers
Energy-efficiency rebates in the U.S. are layered across four tiers. A homeowner upgrading a single piece of equipment can typically claim from at least three of the four simultaneously — the math compounds fast.
| Tier | Source | Typical size | Income test? |
|---|---|---|---|
| 1 | Federal tax credits (25C, 25D) | $600–$3,200/yr (25C) or 30% uncapped (25D) | No |
| 2 | Federal DOE rebates (HOMES, HEAR) | $2,000–$14,000 stacked | HEAR only (≤150% AMI) |
| 3 | State energy office rebates | $200–$5,000+ depending on state | Varies |
| 4 | Utility / co-op programs | $50–$2,000 per measure | Generally no |
How stacking works
Here's a concrete example for a single ducted heat pump install costing $14,000 in a Tier-A state for an 80-150% AMI household:
- Federal 25C credit: $2,000 (the heat pump category cap)
- DOE HEAR rebate: $7,000 (50% of project cost, up to $8,000 cap)
- State program: $1,000 (varies; example uses CT/MA/NJ-typical level)
- Utility rebate: $1,500 (typical investor-owned utility rebate for cold-climate heat pump)
- Stacked total: $11,500 — homeowner out of pocket: $2,500
Geographic generosity heatmap
Not all states are equal. The states with the most generous state-level programs (Tier A on this site) tend to also have aggressive utility programs because of long-running state energy mandates:
- Most generous (Tier A): CA, NY, MA, NJ, MN, CO, OR, VT, WA, IL, MD, RI, CT, ME, DC
- Moderate (Tier B): TX, FL, GA, NC, VA, OH, MI, PA, AZ, NV, WI, NM, IA, HI
- Federal-driven (Tier C): AL, AK, AR, DE, ID, IN, KS, KY, LA, MS, MO, MT, NE, NH, ND, OK, SC, SD, TN, UT, WV, WY
Even Tier C states still have access to the full federal stack (25C + 25D + HOMES + HEAR). The difference is whether your state layers its own programs on top.
Important: HOMES vs HEAR — pick one per upgrade
The two big DOE rebate programs (HOMES and HEAR) are funded separately and can both be claimed by the same household — but generally not on the same dollar of project cost. A home doing a heat pump + insulation upgrade might claim HEAR for the heat pump and HOMES for the insulation. Your state energy office sets the exact rules.
What to do next
Pick your state to see the specific stack of state + utility programs layered on top of federal. Or browse federal programs to understand the foundational tier.