The Inflation Reduction Act funds two Home Energy Rebate programs, and both can pay for upgrades in multifamily buildings. They work very differently. One pays for the energy savings your whole building achieves. The other pays a set amount per unit for specific electric equipment. Choosing the right one starts with understanding how each works.
Rebate amounts below are examples and federal maximums. Each state runs its own program and sets its own amounts, so check the details for your state.
HER: rebates based on whole-building savings
The Home Efficiency Rebates program (HER, called HOMES in some states) is performance-based. An energy assessment models how much energy your building will save after the upgrades. The rebate scales with that savings and with residents' incomes.
Here is how Wisconsin's HOMES program pays for multifamily buildings, per unit:
20–34% modeled savings: 100% of costs up to $5,000 for households below 80% AMI; 50% of costs up to $2,000 for households at 80–150% AMI.
35% or more modeled savings: 100% of costs up to $10,000 for households below 80% AMI; 50% of costs up to $4,000 for households at 80–150% AMI.
HER works well when a building needs several improvements at once, such as insulation, air sealing, ventilation and new heating and cooling. Because it rewards total savings, it's not tied to one type of equipment.
HEEHR: per-unit rebates for electric equipment
The High-Efficiency Electric Home Rebates program (HEEHR, formerly HEAR) has a federal maximum of $14,000 per unit for specific equipment, and each state sets its own amounts within that limit. Each upgrade has its own federal maximum:
Heat pump for heating and cooling: $8,000
Electrical panel: $4,000
Electrical wiring: $2,500
Heat pump water heater: $1,750
Insulation, air sealing and ventilation: $1,600
Electric stove, cooktop or range: $840
Heat pump clothes dryer: $840
For low-income households, HEEHR can cover up to 100% of costs, and up to 50% for moderate-income households. Since September 2026, HEEHR covers only upgrades from existing electric equipment to more efficient electric equipment.
How to choose
Your building is heated with electricity (baseboard, electric furnace, older heat pumps): HEEHR is often the most direct path.
Your building is heated with gas, or needs envelope work: HER is usually the better fit, since it rewards total savings.
Your state sets its own rules. In Colorado, for example, HER serves buildings of 50,000 square feet or more, while HEEHR serves smaller multifamily buildings.
You generally can't use both programs for the same upgrade. That's why the program choice matters before any work begins.
Let us run the numbers
Liberty Home Comfort is a registered contractor in Georgia, Wisconsin and Colorado. We'll review your building, model the options and recommend the program that delivers the most value. Check your property's eligibility.
