Low- and moderate-income households can qualify

Unlike the electrification tax credits, the Electrification Rebates are only available to low- and moderate-income households.

So, how do you know if you’re considered “low income” or “moderate income” for the Electrification Rebates? Eligibility is determined by where you live and how big your family is. 

Compared to the “Area Median Income” (AMI) for your region, any household with income less than 80 percent of AMI is considered low-income, and any household with income between 80 percent and 150 percent of AMI is considered moderate-income. 

Want to know where you fall? Use Rewiring America’s calculator to determine if your household income might qualify you for the Electrification Rebates. 

Note that these income limits are federal guidelines, but some states might choose to apply more restrictive limits. High-income households cannot qualify for Electrification Rebates, but they can qualify for the IRA’s electrification tax credits. 

Rebate amounts differ based on your income level 

Whether you’re low- or moderate-income will affect how much you can get back in rebates. 

Low-income households could have 100% of their project costs covered by rebates (up to the individual upgrade caps, and up to the $14,000 overall limit). Moderate-income households could have up to 50% of their project costs covered by rebates, up to the same caps. 

Different states have different criteria 

Each state has the ability to distribute the rebate money in different ways based on how they design the program. We can’t guarantee whether you’re eligible for rebates or how much you may get back. 

Your state may take available funds and split them equally between low- and moderate-income households, or they may set aside a larger percentage of the funds for lower-income households. In some states, it is likely that all of the rebate money will be set aside for low-income households and moderate-income households will not qualify. 

The Department of Energy website provides updates on state-by-state rollouts. We will also share updated program information for your state via our email list.

Your landlord may qualify

Renters do not qualify for the Electrification Rebates, but landlords do qualify. 

To learn about the potential benefits of encouraging your landlord to electrify—for you and for them—check out our guide to talking to your landlord about electrification.

The following table describes the primary qualification criteria for each upgrade. States may include requirements that are more restrictive than these federal guidelines.

Visit the ENERGY STAR site to learn more about the certification. To see a list of appliances that qualify, see ENERGY STAR’s Product Finder website. 

The Electrification Rebates can be claimed along with tax credits for the same project, although you should consult with your personal tax advisor for details. The Electrification Rebates cannot be combined with the Efficiency Rebates (or any other federal grant or rebate) for the same single upgrade (e.g., a heat pump), but the two programs can be stacked for different upgrades within the same home (e.g., heat pump and weatherization).

The rebate will be calculated based on your income level and the total amount of the retail purchase or contractor invoice, and the rebate will be deducted from your bill. You will not receive cash. 

For example, let’s say that your state provides a rebate of $500 for electric/induction stoves.  You will be able to purchase a qualifying stove with a sticker price of $1,300 for only $800 since $1,300-$500=$800. But if your state program decided to provide the maximum $840 rebate for stoves, you would only pay $460. You should not be required to pay upfront and wait for reimbursement. 

Each state will create a website with more information about how to apply once their program becomes available. We will share links to these resources as they become available. Each state will be required to maintain a list of qualifying contractors.

Rebates will not be available retroactively. This means that if you make a qualifying purchase before the rebates in your state are available, you will not be able to claim a rebate.