In May 2026, the U.S. Department of Energy issued new guidance for both Home Energy Rebate programs. States had until September 1, 2026 to put the changes in place. If you own or manage an apartment building, some of these changes affect what you can upgrade, and how. Here is what's different and what it means for your property.
The appliance rebate program has a new name
The Home Electrification and Appliance Rebates program (HEAR) is now officially the High-Efficiency Electric Home Rebates program (HEEHR). Some states still use the old name on their websites. It is the same program, with a federal maximum of $14,000 per unit for qualifying electric upgrades. Each state sets its own rebate amounts within that limit, so actual amounts vary by state.
HEEHR no longer pays to replace gas equipment
This is the biggest change for owners. HEEHR rebates now cover only upgrades from existing electric equipment to more efficient electric equipment. Replacing a gas furnace, boiler or water heater with a heat pump no longer qualifies under HEEHR.
For buildings already heated with electricity, this is good news. Electric baseboard heat, electric furnaces, older electric heat pumps and electric resistance water heaters are exactly what the program now targets.
Buildings heated with gas still have a path. The Home Efficiency Rebates program (HER, called HOMES in some states) pays for whole-building upgrades based on modeled energy savings. Depending on your state's program design, that can include major system upgrades.
Insulation and air sealing come first
Under HEEHR, insulation and air sealing must now be addressed before heating and cooling upgrades, unless the building already meets your state's standard. That generally makes the heat pumps you install more effective, so expect your assessment to look at the building envelope first.
More flexibility for owners
Several changes make the programs easier to use:
Multiple buildings count as one project. The definition of a multifamily building now includes apartment complexes made up of several buildings.
Common areas can qualify under HER when the upgrade benefits residents through energy savings, cost savings or health and safety.
Expanded categorical eligibility. More types of tenant-based housing assistance now count toward income qualification.
Combination washer-dryers that meet ENERGY STAR now qualify as heat pump clothes dryers.
Warranties and necessary accessories can be covered by rebate funds.
What hasn't changed
The core rule for multifamily buildings still applies: at least 50% of occupied units must be low- or moderate-income. The federal rebate maximums are also unchanged. Projects that already had an approved rebate reservation can still move forward.
What to do next
If you were planning a gas-to-heat-pump project under HEAR, don't write it off. It may fit HER instead, or the building may have electric equipment that now qualifies. Liberty Home Comfort can review your building and match it to the right program. See if your property qualifies.
