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Get a Free QuoteTexas was allocated $607 million in federal Inflation Reduction Act funds for home energy rebates — including up to $8,000 for heat pumps. As of April 2026, the State Energy Conservation Office (SECO) has not launched either program. Not a single dollar has reached Texas homeowners. Here is the current status and what you can get right now instead.
$607M
Allocated to Texas
$0
Distributed to Homeowners
$0
Federal 25C Credit (Expired)
$300-3K
Utility Rebates (Active NOW)
Status as of April 2026: Neither the HOMES nor HEEHR rebate program is accepting applications in Texas. SECO has not published a launch date. The federal Section 25C heat pump tax credit ($2,000) was repealed by the OBBBA, effective for 2026 installations. The only heat pump rebates currently available to Texas homeowners are through local utility programs (Austin Energy, Oncor, CPS Energy, CenterPoint).
The Inflation Reduction Act of 2022 created two rebate programs for home energy efficiency and electrification. Texas was allocated $607 million — one of the largest state allocations in the country. Here is how it breaks down.
Eligible: All income levels
$340M
TX Allocation
Not launched
Performance-based whole-home energy efficiency rebates. Available to all income levels. Rebates based on modeled or measured energy savings: up to $2,000 (general households) or $4,000 (LMI households) for single-family retrofits achieving 20-35% energy reduction. Up to $4,000/$8,000 for 35%+ reduction.
Eligible: LMI households only (<150% AMI)
$267M
TX Allocation
Not launched
Point-of-sale rebates for specific electrification equipment. Limited to low- and moderate-income (LMI) households only (below 150% area median income). Up to $8,000 for heat pump HVAC, $1,750 for heat pump water heater, $840 for electric stove, $500 for electric panel upgrade, up to $14,000 total per household.
Why This Matters: $607M Could Fund ~75,000 Heat Pump Installations
At an average HEEHR rebate of $8,000 per household, the $267M HEEHR allocation alone could fund approximately 33,000 heat pump installations for low- and moderate-income Texas households. The $340M HOMES program could fund an additional 42,000+ whole-home retrofits at average rebate levels. Combined, this is enough to significantly improve energy efficiency in 75,000+ Texas homes. Instead, the money sits unallocated while Texas homeowners pay full price — or worse, keep running inefficient gas furnaces through Texas summers and winters.
These are the rebate amounts Texas homeowners could receive if SECO launches the programs. These amounts are based on federal IRA guidelines — actual Texas program details have not been published.
| Equipment | HOMES Rebate | HEEHR Rebate | Notes |
|---|---|---|---|
| Heat pump HVAC system | Up to $4,000-$8,000 (varies by savings %) | Up to $8,000 | HEEHR only for LMI households |
| Heat pump water heater | Included in whole-home savings calc | Up to $1,750 | Must be ENERGY STAR certified |
| Electrical panel upgrade | Included in whole-home savings calc | Up to $4,000 | For 200A service upgrade |
| Insulation & air sealing | Up to $1,600 | Up to $1,600 | Core component of both programs |
| Electric stove/cooktop | N/A | Up to $840 | Gas-to-electric conversion |
| Electric dryer | N/A | Up to $840 | Gas-to-electric conversion |
| Maximum per household | $2,000-$8,000 | Up to $14,000 | Cannot combine HOMES + HEEHR for same measures |
The rebate amounts above are based on federal IRA program guidelines. Texas has not published its own program rules, income thresholds, equipment lists, or application processes. Actual rebate amounts when/if the programs launch could differ from federal maximums. States have discretion in how they structure their programs within federal guidelines.
A chronological look at how $607 million in Texas home energy rebates went from allocation to limbo.
IRA allocates $8.8B nationwide for home energy rebates: $4.3B for HOMES, $4.5B for HEEHR. Texas receives $607M total.
US Department of Energy publishes program requirements and application guidelines for state energy offices.
Texas State Energy Conservation Office (SECO), part of the Comptroller's office, submits program plans for both HOMES and HEEHR funding.
SECO issues request for proposals (RFP) for a third-party administrator to manage program implementation, contractor network, and rebate processing.
The One Big Beautiful Bill Act repeals Section 25C (heat pump tax credit), Section 25D (solar tax credit), Section 30D (EV credit), and modifies IRA provisions. Creates significant uncertainty about whether unobligated IRA funds will be clawed back.
SECO continues program development but has not announced a launch date, opened applications, or published program guidelines for consumers or contractors. No confirmed timeline.
As of April 2026, neither the HOMES nor HEEHR rebate program is accepting applications in Texas. SECO has not published a launch date or confirmed that the programs will proceed.
The One Big Beautiful Bill Act (OBBBA) created significant uncertainty about the future of unspent IRA funds. Here is what we know and what remains unclear.
While Texas has not launched, several other states are already distributing IRA rebates. New York, California, Maine, Wisconsin, Colorado, and New Mexico have all launched one or both programs. These states acted quickly to obligate their federal funds — making them more resistant to potential rescission. Texas's slow pace puts its $607M allocation at comparatively higher risk.
Don't wait for programs that may never launch. These Texas utility rebates are funded, active, and processing applications today.
Austin metro
Up to $3,000
Power Saver heat pump rebate: $800-$3,000 based on SEER2 rating and system capacity. Ductless mini-split: $300-$800. Available to Austin Energy residential customers. No income requirement for base rebate. Additional rebates for income-qualified customers.
DFW, North/Central/West TX
$300-$600
Oncor Standard Offer Program (SOP) rebates: $300 for SEER2 15+ heat pump, $600 for SEER2 16+ or ENERGY STAR Most Efficient. Applied through participating contractors. Available in Oncor service territory (DFW, Waco, Midland-Odessa, and more).
San Antonio
$100-$275/ton
Casa Verde program: $100-$275 per ton of cooling capacity for qualifying heat pumps. A typical 3-ton residential system: $300-$825 total rebate. Additional rebates available for income-eligible customers through the weatherization program.
Houston metro
~$500
HVAC efficiency rebates through CenterPoint Standard Offer Program: approximately $500 for qualifying high-efficiency heat pump systems. Available in CenterPoint service territory (Houston metro). Applied through participating HVAC contractors.
Nationwide (expired)
$0 (Expired)
The Section 25C Energy Efficient Home Improvement Credit was repealed by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. The credit provided up to $2,000 for heat pump systems. It is no longer available for any equipment installed in 2026 or later.
A side-by-side comparison of the bird in hand (utility rebates) versus the bird in the bush (IRA programs that may never materialize).
| Category | Available NOW | IRA (If Launched) | Reality Check |
|---|---|---|---|
| Heat pump HVAC rebate | $300-$3,000 (utility) | Up to $8,000 (HEEHR/LMI) | Utility rebates are real and active today |
| Federal tax credit | $0 (25C expired) | N/A (separate program) | 25C repealed by OBBBA July 2025 |
| Income eligibility | All income levels (utility) | HEEHR: LMI only. HOMES: All. | Utility rebates have no income requirement |
| Application process | Apply through contractor at time of install | TBD — SECO has not published guidelines | Utility rebates are well-established processes |
| Timeline to receive rebate | 4-8 weeks after install | Unknown — program not launched | No SECO timeline published |
| Risk of not receiving | Low — funded and active | High — program may never launch | OBBBA may claw back unspent IRA funds |
| Heat pump savings start | Immediately after installation | Only after program launches (if ever) | Every month waiting = lost savings |
The economic case for installing a heat pump now — without waiting for IRA rebates — is overwhelming. Here are seven reasons to act today.
SECO has shown no urgency after 3+ years. OBBBA may enable clawback of unobligated funds. Several policy analysts consider Texas one of the highest-risk states for losing its IRA allocation.
Texas heat pump owners save $40-125 per month compared to straight AC + gas furnace setups. If you wait 12 months for an IRA rebate that never comes, you have lost $480-$1,500 in energy savings you could have already captured.
Austin Energy ($3,000), Oncor ($300-$600), CPS Energy ($300-$825), CenterPoint (~$500) — these are real rebates available today. They are not guaranteed to continue indefinitely. Utility rebate budgets are allocated annually.
HVAC equipment and installation labor costs have increased 8-15% since 2022. Supply chain pressures, tariffs on imported components, and labor shortages continue to push prices up. Today's price is likely the lowest you will see.
Texas HVAC installers are fully booked June through September. If you wait until summer to decide, you may face 4-8 week installation backlogs. Schedule your heat pump installation during spring for fastest turnaround and best contractor availability.
Modern heat pumps with SEER2 ratings of 15-20+ are dramatically more efficient than older AC systems (SEER 10-14). In Texas, where cooling accounts for 40-50% of annual energy costs, upgrading to a high-efficiency heat pump delivers immediate, year-round savings.
The Bottom Line on Waiting
If SECO launches the IRA programs, you may be able to apply retroactively for equipment already installed — some states allow this. But there is no guarantee Texas will. What IS guaranteed: every month you run an inefficient HVAC system costs you $40-125 more than a modern heat pump. Over a 12-month wait, that is $480-$1,500 in real savings lost — potentially more than the utility rebate you can claim today. Act on what is real, not what is hypothetical.
Even without IRA rebates or the 25C tax credit, pairing a heat pump with rooftop solar creates compelling economics in Texas. Solar offsets the electricity the heat pump uses — and Texas has some of the best solar resources in the country.
$500-$1,500/yr
Average annual savings vs. traditional AC + gas furnace in Texas. Higher SEER2 = more savings. Modern heat pumps are 2-3x more efficient than gas furnaces for heating in Texas's mild winters.
80-100%
A properly sized solar system (8-12 kW) can offset 80-100% of a Texas home's electricity usage — including the heat pump. You can power your HVAC with your own roof.
24/7
Add a battery and your heat pump runs during outages. After Winter Storm Uri and rolling blackouts, energy independence is not a luxury in Texas — it is a necessity.
Texas utility rebates are real, funded, and available today. A modern heat pump starts saving you money the day it is installed — $500-$1,500 per year in energy savings, plus rebates of $300-$3,000 depending on your utility. NuWatt installs high-efficiency heat pumps across Texas.
We will update this page if SECO announces a launch date for the IRA programs.
Last updated: April 2026
Sources: DOE IRA program data, Texas SECO, OBBBA (P.L. 119-XXX), Austin Energy, Oncor, CPS Energy, CenterPoint Energy