IRA HEAR Program

Definition

HEAR is one of two IRA electrification rebate programs (the other is HOMES, which is performance-based). HEAR is income-qualified and rebate amounts depend on household income relative to the area median income (AMI):

• Under 80% AMI: rebate covers up to 100% of project cost, capped at $14,000 per household across all eligible measures
• 80-150% AMI: rebate covers up to 50% of project cost, same $14,000 cap

Heat pump caps within the $14,000 envelope: up to $8,000 for an air-source or ground-source heat pump for space heating; up to $1,750 for a heat pump water heater; up to $4,000 for an electrical panel upgrade if needed to support electrification; up to $1,600 for insulation, air sealing, and ventilation; up to $2,500 for electrical wiring.

Texas administers the program through the State Energy Conservation Office (SECO). Rollout dates and final program rules continue to evolve — verify current status at the SECO HEAR page before counting on the rebate at the estimate stage.

Why it matters in Austin

HEAR is income-qualified, so it doesn't apply to every Austin household. Where it does apply, it can dramatically change the math on electrifying — a low-income household replacing a gas furnace with a heat pump can see the federal rebate cover most or all of the upgrade cost, especially when stacked with Austin Energy rebates and the IRA 25C tax credit.

HEAR rebates are paid up-front by the contractor and reimbursed by the state — they don't require waiting for tax season. Cheap Cold Air handles the rebate paperwork for qualifying households as part of the install.