HEEHRA Rebate Calculator

What Is the HEEHRA Program?

The HEEHRA program helps households switch from fossil-fuel appliances to efficient electric options. Instead of waiting until tax season, eligible households receive rebates at the time of purchase.

The rebates are:

• Income-based
• Capped by equipment category
• Limited by a total household maximum
• Administered by State Energy Offices
• Guided by the U.S. Department of Energy

Programs are rolling out in 2024–2025 depending on the state.

How the HEEHRA Rebate Calculator Works

The calculator estimates your rebate based on five main factors:

1. Your state
2. Household size
3. Annual household income
4. Rural location status
5. Equipment selected

Let’s break each one down.

1. Area Median Income (AMI)

The calculator starts with your state’s base Area Median Income (AMI).

Each state has a different base AMI. For example:

• California: $95,000
• Texas: $75,000
• New York: $95,000
• Mississippi: $55,000

Then it adjusts that number based on household size using a multiplier.

Household Size Multipliers

• 1 person: 1.00
• 2 people: 1.28
• 3 people: 1.52
• 4 people: 1.76
• 5 people: 2.00
• 6 people: 2.24
• 7 people: 2.48
• 8+ people: 2.72

Example

If you live in Texas (base AMI $75,000) and have 4 people:

Adjusted AMI = $75,000 × 1.76 = $132,000

The calculator then compares your income to this adjusted AMI.

2. Income Eligibility Tiers

Your income determines your rebate level.

Tier 1 – Low Income (≤ 80% of AMI)

• You qualify for 100% of equipment costs
• Rebates apply up to category maximums
• Strongest benefit level

Tier 2 – Moderate Income (80–150% of AMI)

• You qualify for 50% of equipment costs
• Still capped by category limits

Not Eligible (>150% of AMI)

• No HEEHRA rebate
• You may still qualify for federal tax credits such as 25C or 25D

The calculator shows:

• Your adjusted AMI
• Your income as a percentage of AMI
• Your eligibility tier

This makes it easy to see where you stand.

3. Rural Bonus

If your home is in a rural area, the total household rebate cap increases by 20%.

Standard maximum household rebate:
$14,000

Rural maximum household rebate:
$16,800

The calculator automatically applies this increase if:

• You select “Yes” for rural area, or
• Your state includes a rural bonus flag

4. Eligible Equipment and Rebate Caps

The calculator includes all major HEEHRA categories.

Heat Pump (Space Conditioning)

• Ducted air-source
• Ductless mini-split
• Geothermal
• Maximum rebate: $8,000

Heat pumps often provide the highest impact and the largest rebate.

Heat Pump Water Heater

• Standard
• Premium
• Maximum rebate: $1,750

Electrical Upgrades

These support electrification.

• Panel upgrade: up to $4,000
• Wiring: up to $2,500

If your panel cannot handle new electric equipment, this category matters.

Weatherization

• Air sealing
• Insulation
• Comprehensive improvements
• Maximum rebate: $1,600

Weatherization reduces energy waste and improves comfort.

Electric Cooking Appliances

• Standard electric range
• Induction cooktop
• Maximum rebate: $840

Heat Pump Clothes Dryer

• Standard
• Premium
• Maximum rebate: $840

How the Calculator Computes Rebates

The logic follows these steps:

1. Calculate adjusted AMI
2. Determine income percentage
3. Assign rebate rate (100%, 50%, or 0%)
4. Apply category caps
5. Apply household cap ($14,000 or rural-adjusted)
6. Ensure rebates never exceed actual equipment cost

Finally, it shows:

• Total project cost
• Total HEEHRA rebates
• Net cost after rebates

This makes planning much easier.

Example Scenario

Let’s say:

• State: Colorado
• Household size: 3
• Income: $60,000
• Not rural
• Install ducted heat pump ($4,500)
• Install heat pump water heater ($2,800)

Step 1: Adjust AMI
Colorado base AMI = $85,000
Multiplier for 3 people = 1.52
Adjusted AMI = $129,200

Step 2: Income ratio
$60,000 ÷ $129,200 = 46%

That is below 80%, so Tier 1 applies.

Step 3: Rebates

• Heat pump rebate: $4,500
• Water heater rebate: $1,750 (capped)

Total rebate: $6,250

Net project cost:
$7,300 – $6,250 = $1,050

That is a major reduction.

Why the HEEHRA Rebate Calculator Is Useful

Home upgrades are expensive. A geothermal system alone can cost $22,000. Without a tool, it is hard to estimate savings.

The calculator helps you:

• Understand eligibility instantly
• Compare equipment options
• Plan upgrades strategically
• Prioritize high-impact improvements
• Estimate net out-of-pocket costs

It turns complex rebate rules into clear numbers.

Important Things to Remember

• Rebates are provided at point of sale
• Income eligibility is based on AMI
• Programs launch at different times by state
• Household cap limits total rebate
• Rebates cannot exceed actual cost

Always confirm details with your State Energy Office.