The Inflation Reduction Act is full of incentives to help American families go electric. This page explains the programs in the Inflation Reduction Act and provides an update on their status.
What is the Inflation Reduction Act (IRA)?
The Inflation Reduction Act is the largest clean energy investment America has ever made, with strategic incentives to make the transition to clean energy and a decarbonized life easy and financially smart. Its home energy offerings include upfront discounts, tax credits, and low-cost financing that together provide a substantial pot of money for every household to electrify the machines they rely on — the cars they drive, how they heat the air and water in their homes, cook their food, dry their clothes and get their power — regardless of income level.
What are the Home Electrification and Appliance Rebates (HEAR)?
The Home Electrification and Appliance Rebates (HEAR) or “electrification rebates” make it more affordable for more Americans to install electric appliances and complete electrification upgrades for their homes. These rebates are for select electric appliances and upgrades and will roll out state by state, with most arriving in or after 2025.
To learn more about electrification rebate eligibility and funding, visit our electrification rebates guide.
What are the Home Efficiency Rebates (HER)?
The Home Efficiency Rebates (HER) or "efficiency rebates" are designed to reward energy efficiency retrofits that are modeled to achieve, or have achieved, verifiable minimum energy use reductions. These rebates are for based modeled energy savings or measured energy savings and most programs will come online in or after 2025.
To learn more about efficiency rebate eligibility and funding, visit our efficiency rebates guide.
What about tax credits?
Recent purchases of new and used electric vehicles, heat pumps, heat pump water heaters, and other electric upgrades may be eligible for tax credits.
To learn more about tax credit eligibility, check out our most recent tax credit guide.
What is the status of the rebate programs roll out?
As of September 20, 2024, electrification rebates are available in Arizona, New Mexico, New York, and Rhode Island.
The Department of Energy (DOE) has approved electrification rebate programs in California, Hawaii, Maine, Rhode Island, Indiana, New Mexico, Washington, and Wisconsin, and these states are working on launching their rebate programs.
Efficiency rebates are now available in Wisconsin. DOE has approved efficiency programs in New Mexico and Indiana.
For the latest program updates, see the DOE's map.
What benefits does the IRA offer to contractors and manufacturers?
To learn more about the incentives and funding in the IRA available for contractors and manufacturers, download our IRA Fact Sheets.