Inflation Reduction Act Frequently Asked Questions

The Inflation Reduction Act of 2022 established two programs that help households purchase products and make home improvements to lower energy bills. The state of Texas is designing these programs, pending approval by the U.S. Department of Energy (DOE).

The HOMES program will provide rebates to encourage households to make whole-home energy saving upgrades. Households of all income levels will be eligible to participate, including single-family homes and multifamily buildings.

The HEAR program will help income-qualified households by providing rebates for specific efficient electrical appliances and supporting upgrades.

The HOMES and HEAR Rebate programs will help eligible single-family and multifamily households pay for home energy upgrades. Covered improvements may include appliances, insulation, air sealing, weatherization, and other upgrades. The final list of eligible items and rebate amounts is still being decided.

Homeowners, renters and rental property owners who meet federal and state requirements may qualify. The programs will serve both single-family and multifamily properties. Final eligibility rules will be confirmed after DOE approval.

Federal program guidelines restrict HEAR program participants to low- and moderate-income households, as defined by the programs.

Income eligibility will be determined based on Area Median Income (AMI), which will vary by county and household size. Low-income households will be defined as those earning less than 80% of the AMI. Moderate-income households earn between 80% and 150% of the AMI.

AMI is determined annually by the U.S. Department of Housing and Urban Development (HUD) based on Census Bureau data and represents the median income for a specific metropolitan area or county. You can find the AMI for your specific area using HUD’s website.

Recommended rebate levels for the Texas HOMES program are currently under review by the DOE. Upon approval, the HOMES rebate levels will be shared via the program website and Texas Home Energy Rebate program guidance documents. The amount will depend on expected energy savings and household income.

Recommended rebate levels for the HEAR program are currently under review by the DOE. Upon approval, the HEAR rebate levels will be shared via the program website and Texas Home Energy Rebate program guidance documents. HEAR will only be available to low- and moderate-income households per federal guidelines. The household’s income level and the equipment installed will determine the rebate amount and the percentage of costs covered.

Federal guidelines for the HEAR program require that electric appliances are ENERGY STAR® certified. Program measures may include

• Heat pump for space heating and cooling
• Heat pump water heater
• Electric stove/cooktop
• Heat pump clothes dryer
• Breaker panel box replacement
• Electric wiring
• Weatherization

All rebate levels and eligible measures remain subject to final DOE program approval.

In response to Addendum No. 2 Request for Proposal (RFP No. 907-25-1902KW), the Texas Comptroller of Public Accounts (CPA) has partnered with APTIM Federal Services, LLC (APTIM) to design and carry out the programs. This work is part of the program development phase and will result in a final proposal submitted to the DOE for approval.

As a national company with extensive experience operating large-scale energy programs across the country, the APTIM team includes experts in program management, customer support, outreach, technology and energy efficiency. In Texas, APTIM will work with local partners, community organizations and contractors to make sure the rebate programs are easy for residents to use and accessible statewide.

The programs are being designed during fall 2026. A launch date has not been set and will depend on DOE approval of the final program design.

Texas is unable to accept receipts for rebate reimbursement. The program is still in the design and approval phase, and no applications or reimbursements can be processed at this time.

First, the rebates programs must be officially launched. Then, applicants must submit an application to participate in the rebate program. The Implementer must approve the application. If the applicant is approved, qualified energy efficient products will then be purchased and installed. At this point, the applicant will submit receipts for reimbursement.

This response does not consider retail rebates.

The Texas HOMES and HEAR Rebate programs are still being designed, and final eligibility requirements have not yet been established.

While federal law allows for potential retroactive reimbursement for HOMES projects initiated on or after Aug.16, 2022, any project would ultimately need to meet all federal and future state requirements. Because program rules are still being finalized, projects initiated or completed before the official program launch are unlikely to qualify for reimbursement.

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Please check back for updates. If you have a comment you wish to submit for consideration, fill out the Texas HOMES and HEAR Comment Form. The comment form will remain open through the end of September.

Yes, renters are eligible to participate with the permission of their landlord.

Both the HOMES and HEAR programs are required to spend a portion of funds on multifamily buildings.

Income levels are determined based on AMI, which is determined by location (county) and household size. Income is determined by adding up the gross income for all the household members in a dwelling. HUD updates AMI tables each year.

Texas' program allocation must be spent by Sept. 30, 2031.