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Who’s Eligible for the High-Efficiency Electric Home Rebate Act?

Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite image between a hand photography and a 3D background.

President Biden signed the Inflation Reduction Act (IRA) into law in August 2022. While the act is a far-ranging initiative for fighting climate change, homeowners’ most direct and immediate advantages for Dallas and Plano, TX, are the tax credits and rebates they can receive when buying emissions-reducing products and services.

Within the IRA is the High-Efficiency Electric Home Rebate Act (HEEHRA) that applies to the act’s heat pump incentive program. The savings it provides will reach communities across Texas, lowering expenses through reduced energy costs and rebates received for purchasing energy-efficient appliances, including heat pumps. Rebates are also available for repairs and improvements that increase energy efficiency.

Some of the federal incentives are available immediately. Others won’t kick in until January 1, 2023, and still, more will roll out over the next one to two years.

To learn more about the IRA or HEEHRA, contact the Total Air team online or call 972-881-0020.

Who Is Eligible for the HEEHRA Rebate?

The IRA’s total rebate allocation to Texas will be $690,029,570. Any taxpayer qualifies for federal tax credits. Whether you qualify for a state HEEHRA rebate depends on income.


  • Households with incomes less than 80% of Texas’ median household income are eligible for 100% of the available rebates.
  • Households with 80% to 150% of the state’s median income are eligible for 50% of the available rebates.
  • Households with more than 150% of Texas’ median income are not eligible.

How Much Are the HEEHRA Tax Credits?

The HEEHRA Act is a 10-year rebate program that supports low- and moderate-income households who elect to electrify.

The program:

  • Designated $4.275 billion in rebate funds distributed by Texas State Energy Offices and $225 million allocated by Tribal Governments.
  • Establishes point-of-sale rebates up to $14,400 per household for consumers who invest in “qualified electrification projects,” including heat pumps, heat pump water heaters, heat pump clothes dryers, and more.
  • Covers 100% of the costs low-income households pay for electrification projects and 50% of the expenses for moderate-income families.
  • Incentivizes contractors to perform electrification projects in low to moderate-income Texas communities.

Experts estimate that most U.S. households would save an average of $500 per year, and low and moderate-income households would see savings of anywhere between $377 and $493 on average.

Which Services Are Eligible for HEEHRA Credits?

The largest credits in the IRA are available for heat pumps. These high-efficiency and cost-effective systems cool and heat homes in place of air conditioners, boilers, and furnaces. It can be a sustainable way to control your home’s indoor temperature when paired with clean electricity sources. The new incentives could make buying and installing a heat pump much more affordable for Dallas and Plano homeowners, even if they’re on a limited budget.

Households that choose to invest in a heat pump can expect to get in return:

  1. A tax credit of 30% on the total cost you pay for the heat pump, including labor costs, up to $2,000.
  2. Up to $1,750 for heat pump water heaters.
  3. Up to $8,000 for heat pumps for space heating and cooling.
  4. Up to $840 for heat pump clothes dryers.

Incentives number 2 and 3 come in the form of a state-administered rebate on any heat pump model.

Steps to Getting a Rebate

You can claim federal tax credits on your federal income tax return. The Texas state government will manage the HEEHRA rebates, but how the rebates will be implemented has yet to be determined. However, a line in the act suggests that states make the rebates accessible at the point of sale. This would immediately reduce how much consumers pay from the start instead of making them wait months for a rebate check to arrive.

The Inflation Reduction Act is the most significant clean energy investment in the United States. Its strategic incentives will make transitioning to cleaner energy easier for most Texas residents. If you’re ready to invest in a heat pump for your Dallas or Plano, TX, home, Total Air & Heat is here to help. Our quality heat pump services ensure the comfort of your home and family.

Contact our team online or call us at 972-881-0020 to learn more about HEEHRA or to schedule friendly and dependable HVAC services!

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