IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM

The Home Electrification Rebate program, funded by the Inflation Reduction Act, provides point-of-sale rebates for electrification projects in single-family and multifamily residential units for low- and moderate-income households. The program allocates $4.5 billion, with $4.275 billion for state energy offices and $225 million for tribal governments. To maximize impact, the guide recommends training contractors on new technologies like heat pump water heaters and induction cooktops, simplifying the 'stacking' of multiple incentives, and prioritizing low-income households by setting spending goals of 40% to 80% of funding. It also suggests using zero-interest, long-term loans for Low Income Housing Tax Credit (LIHTC) properties to avoid tax complications and implementing tenant protections to prevent rent increases following upgrades.

• The Home Electrification Rebate program provides a total of $4.5 billion, split between $4.275 billion for state energy offices and $225 million for tribal governments, to support electrification in single-family and multifamily residential units.
• Rebate eligibility is restricted to low-income households (below 80% Area Median Income), who receive 100% cost coverage, and moderate-income households (80%–150% AMI), who receive 50% cost coverage. The maximum total consumer rebate is $14,000, with specific caps for technologies such as $8,000 for Heat Pump HVAC and $1,750 for Heat Pump Water Heaters.
• To increase program success, states should utilize the $200 million State-Based Home Energy Efficiency Contractor Training Grant to address labor shortages and ensure contractors are comfortable recommending newer technologies like cold-weather heat pumps and induction cooktops.
• To ensure equitable access, the guide recommends that states set measurable goals to spend at least 40%—and ideally 60%–80%—of program funding on low-income households, as these households cannot benefit from the uncapped Energy Efficient Home Improvement tax credits (25C).
• For affordable housing utilizing Low Income Housing Tax Credit (LIHTC), the guide suggests providing zero-interest, long-term loans instead of rebates to prevent the funds from being treated as taxable income or reducing the property's eligible basis.

APA

RMI (2023). IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM. https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf

Chicago

RMI. IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM. 2023. https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf.

Wikipedia

{{cite report |author=RMI |title=IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM |date=February 2023 |url=https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023implementation, author = {{RMI}}, title = {{IMPLEMENTATION GUIDANCE FOR STATES: HOME ELECTRIFICATION REBATE PROGRAM}}, institution = {RMI}, year = {2023}, month = feb, url = {https://rmi.org/app/uploads/dlm_uploads/2023/02/home_electrification_rebate.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }