How to Stack All 5 Programs
The IRA programs are designed to complement each other. The key rule: total incentives cannot exceed the cost of the project. Within that limit, you can stack HEAR + HOMES + 25C + 25D + 30C on the same tax year and same home.
Income-qualified: Heat pump + insulation + solar
HEAR — Heat pump$8,000
HEAR — Insulation/air sealing$1,600
25C — Heat pump credit$2,000
25C — Insulation credit$1,200
25D — Solar panels$7,500
Utility — Heat pump rebate$1,200
Total savings$21,500
Below 150% AMI. On $50,000 total project.
Above 150% AMI: Heat pump + solar + EV charger
25C — Heat pump credit$2,000
25D — Solar panels$6,000
30C — EV charger credit$800
Utility — Heat pump rebate$1,200
Total savings$10,000
No HEAR eligibility. On $40,000 total project.
FAQ — IRA Energy Rebates
Are IRA energy rebates taxable income?
HEAR and HOMES rebates are generally not taxable income — the IRS has issued guidance that these rebates reduce your basis in the property rather than constituting income. The 25C, 25D, and 30C tax credits directly reduce tax liability and are not income. State and utility rebates may have different treatment — consult a tax advisor for your specific situation.
What happens if my state runs out of HEAR funds?
HEAR funds are allocated to each state as a lump sum. When a state's allocation is exhausted, new applications are no longer accepted until Congress appropriates additional funds. Some states have waiting lists. If your state's HEAR program is exhausted or not yet launched, you can still access the 25C tax credit (no funding limit — it's a statutory credit), utility rebates, and HOMES rebates.
Do I have to apply for IRA programs before or after installation?
It depends on the program. HEAR rebates require pre-approval in most states — you apply, get approved, then work with a registered contractor who claims the rebate at installation. 25C, 25D, and 30C tax credits are claimed at tax time after installation — no pre-approval needed, just keep receipts. HOMES requires energy modeling before AND after the project.
Can a landlord claim IRA rebates for rental properties?
HEAR rebates are available to both homeowners and renters (with landlord permission), but in practice the rebate goes to the contractor and benefits the renter through reduced installation cost. The 25C, 25D, and 30C tax credits are only for primary or secondary residences — rental properties you don't live in do not qualify. HOMES programs vary by state on rental eligibility.
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This guide is for educational purposes only and does not constitute tax or legal advice. IRA program availability and amounts change. Always verify with your state energy office and IRS.gov before making decisions. Data verified July 2026.