HEAR — Home Electrification and Appliance Rebates, the program created as HEEHRA by the Inflation Reduction Act of 2022 — is the most generous federal-origin incentive still available to a ductless mini-split buyer in 2026. Where the Section 25C tax credit ended for systems placed in service after December 31, 2025, HEAR is appropriated grant money routed through state energy offices, so the 2025 One Big Beautiful Bill Act did not repeal it. For an income-qualified household it pays up to $8,000 toward an ENERGY STAR electric heat pump — and a ductless mini-split heat pump is exactly that.
HEAR is income-based rather than efficiency-tiered. A household at or below 80% of its area median income can have up to 100% of the project cost covered, up to the caps; a household between 80% and 150% can have up to 50% covered; and a household above 150% of area median income is not eligible. The heat-pump line is capped at $8,000, within a $14,000 total per household across all eligible electrification measures (which also include heat-pump water heaters, electrical-panel upgrades, and wiring). The equipment must be ENERGY STAR-certified, a bar most quality mini-splits clear.
The defining feature — and the catch — is that HEAR is run state by state, not claimed on a federal return. Each state energy office stands up its own program, sets its own portal and participating-contractor list, and opens on its own timeline. As of mid-2026 the rollout is uneven: Arizona's Efficiency Arizona program is live and accepting applications, while Texas (through the State Energy Conservation Office) and Florida (through the Department of Agriculture and Consumer Services) were still in the planning or pre-launch phase. Funding is also finite and first-come; some early states have already reserved or exhausted their allocations, which can pause a program with little notice.
For a qualifying mini-split buyer, the practical path is to check the state's program status before counting HEAR into a budget, use a participating contractor where one is required, and remember that HEAR can often stack on top of a utility rebate (SRP Cool Cash, TEP Efficient Home, Austin Energy, CPS Energy SaveNow) subject to the total-cost caps. Buyers above 150% of area median income get nothing from HEAR and should focus on utility rebates instead.