The HOMES rebate — formally the Home Efficiency Rebates — is a federally funded, state-administered rebate for whole-home energy-saving upgrades. It was created by the Inflation Reduction Act of 2022 (Public Law 117-169), which appropriated roughly $4.3 billion and directed it to state energy offices through the U.S. Department of Energy's State and Community Energy Programs office. Unlike a tax credit claimed on a federal return, HOMES pays a rebate administered locally, and each state designs and launches its own version within DOE guidelines. The defining feature is that the rebate scales with the energy savings a project delivers, not with a single piece of equipment.
HOMES ties the rebate to modeled or measured whole-home energy reduction. A retrofit that cuts modeled energy use by at least 20% qualifies for a base rebate of up to $2,000, and one reaching at least 35% can earn up to $4,000. For low- and moderate-income households, those amounts roughly double, up to $8,000. Because the metric is whole-home savings rather than a device, a high-efficiency heat pump often anchors a qualifying project when paired with the home's existing envelope, but the rebate depends on the savings calculation, not on the equipment alone. HOMES and the companion HEAR program cannot both pay for the same single measure — a household chooses one path per upgrade to avoid double-dipping.
HOMES is active in concept and funded, but availability depends entirely on the state. The Inflation Reduction Act's funding remains authorized through September 30, 2031 or until depleted, and the One Big Beautiful Bill Act of 2025 — which repealed the Section 25C and Section 25D tax credits — did not terminate HOMES or HEAR. What varies is rollout: each state energy office had to submit a plan to the DOE, build a contractor and software infrastructure, and open applications. By early 2026, some states were paying rebates while others had approved plans but were not yet accepting applications, and a few had not launched. A buyer must check the specific state energy office for current program status before counting on a HOMES rebate.
For a 2026 buyer, HOMES is potentially valuable but cannot be assumed. With the federal Section 25C and Section 25D tax credits expired, HOMES is one of the few federal-origin incentives left for an HVAC upgrade — but only where the buyer's state has launched it. Where it is live, a heat-pump-centered retrofit that meaningfully cuts modeled home energy use can earn up to $4,000, or up to $8,000 for an income-qualified household, and that can sometimes layer on top of a utility rebate. Because the savings calculation, the income tiers, and the no-double-dip rule against HEAR are specific, confirm eligibility with the state energy office and the program-registered contractor before relying on the amount.