You probably picture HEEHRA as a single national rebate you claim at tax time, the way the old federal 25C credit worked. In Michigan, that mental model is wrong in almost every detail.
HEEHRA — the federal Home Electrification and Appliance Rebates program — is money Congress sent to the states, and each state runs its own version. In Michigan, the program is administered by EGLE, not the IRS, and the discount lands on your installer's invoice rather than your tax return.
That distinction matters before you buy, because the amount you receive depends on your household income, your county, and which contractor you hire. This is a fact-first walkthrough of the rebate caps, the income tiers, and the rollout timeline that cold-climate Michigan families need before signing a quote.
HEEHRA — formally the federal Home Electrification and Appliance Rebates program — is administered in Michigan by EGLE, the state's energy office, not the IRS. It delivers point-of-sale discounts on heat pumps and other electric upgrades, with amounts tied to your household income relative to your county's area median income.
What Is HEEHRA, and Who Runs It in Michigan?
HEEHRA is one of two rebate programs created by the Inflation Reduction Act and funded through the U.S. Department of Energy. It is sometimes labeled HEAR — the Home Electrification and Appliance Rebates — and it is income-qualified and appliance-specific.
Its sibling program, HOMES (the Home Efficiency Rebates), pays based on modeled or measured whole-home energy savings and is not tied to income. Keep in mind that the two are funded separately, and a single household generally cannot claim both rebates on the same measure.
In Michigan, both programs are administered by EGLE — the Michigan Department of Environment, Great Lakes, and Energy — using the state's federal DOE allocation. EGLE sets the launch sequence, approves participating contractors, and defines how income is verified.
For a broader view of where each state stands, our state-by-state HEEHRA status tracker compares administering agencies and launch phases. Michigan's place in that rollout is the subject of the rest of this guide.
How Much Can Michigan Households Get?
The dollar ceilings are set by federal statute, so Michigan cannot pay more than the national caps — though it can phase in which measures are covered first. The table below lists the maximum rebate per upgrade, as defined by the IRA and DOE.
Federal rules cap HEEHRA heat-pump rebates at up to $8,000, heat-pump water heaters at $1,750, and electric panel upgrades at $4,000, with a combined household limit of $14,000. Michigan cannot exceed these statutory ceilings, though the share you receive depends on your income tier.
| Eligible upgrade | Federal HEEHRA maximum |
|---|---|
| Heat pump (space heating & cooling) | Up to $8,000 |
| Heat pump water heater | Up to $1,750 |
| Electric stove, cooktop, range, or oven | Up to $840 |
| Heat pump clothes dryer | Up to $840 |
| Electric panel / load service center upgrade | Up to $4,000 |
| Electric wiring | Up to $2,500 |
| Insulation, air sealing & ventilation | Up to $1,600 |
| Household maximum (all measures combined) | $14,000 |
Note that these are ceilings, not guaranteed payouts. The actual rebate is the lesser of the cap, your project cost, and the percentage your income tier allows.
For example, a $9,000 cold-climate heat pump is still bounded by the $8,000 line item, and a household in the partial-coverage tier would see its share calculated against that ceiling. This is why the income tiers, not the headline numbers, do most of the work.
Who Qualifies? The Income Limits Explained
HEEHRA does not use a single statewide income number. Instead, it measures your household income against your county's area median income, or AMI, which HUD publishes each year and adjusts for household size.
HEEHRA measures your household income against your county's area median income, then sorts you into one of two bands. Households below 80% of AMI can have up to 100% of eligible costs covered, while those between 80% and 150% qualify for up to 50% and above 150% do not qualify.
| Household income vs. county AMI | HEEHRA cost coverage |
|---|---|
| Below 80% of AMI | Up to 100% of eligible project costs |
| 80% to 150% of AMI | Up to 50% of eligible project costs |
| Above 150% of AMI | Not eligible for HEEHRA |
Because AMI varies widely between, say, Washtenaw County and a rural Upper Peninsula county, two families with identical incomes can land in different tiers. For a deeper breakdown of how the bands work and where common households fall, see our guide to the HEEHRA income tiers.
What's more, the percentage interacts with the dollar cap. A household below 80% of AMI installing an $8,000-plus heat pump can have the full $8,000 covered, while a household at 120% of AMI would see up to half of eligible costs, still bounded by that same ceiling.
What Does "Point-of-Sale" Mean for Michigan Buyers?
One of HEEHRA's defining features is that it is designed as an upfront discount, not a delayed reimbursement. That changes the math for families who cannot float the full project cost and wait.
Point-of-sale means the rebate is subtracted from your invoice up front, rather than reimbursed later or claimed on a tax return. To capture it, your installer must be enrolled in Michigan's program, and your income eligibility is verified before the discount is applied to the job.
This is why the contractor you choose is not a detail you can settle later. If your installer is not enrolled with EGLE, the point-of-sale discount cannot be applied, regardless of whether you qualify.
Be aware that enrolled-contractor lists are built out over time as a program launches. Confirming enrollment before you sign protects you from assuming a rebate that the paperwork will not actually deliver.
When Does the Money Arrive? The Application Timeline
Federal rebate programs do not switch on everywhere at once. Each state submits a plan to DOE, receives approval, and then opens its program in phases — often starting with a single measure or income tier.
Michigan's Home Energy Rebates roll out in phases set by EGLE rather than on a single nationwide launch date. Because timing, enrolled-contractor lists, and final program rules vary by state and can shift, confirm the current status with EGLE before scheduling any installation you expect a rebate to cover.
The practical takeaway is sequencing, not urgency. There is no benefit to rushing an unsuitable system into your home before the program matures, and EGLE's published status page is the authoritative source for what is live today.
This is also where the federal tax-credit picture intersects. With the 25C Energy Efficient Home Improvement Credit landscape having shifted, HEEHRA has become the primary federally funded path for many Michigan households — our explainer on what happened to the 25C tax credit covers that change in detail.
Why Cold-Climate Sizing Matters Before You Buy
Michigan spans DOE climate zones 5 through 7, with the Upper Peninsula among the coldest residential regions in the country. A rebate is only worthwhile if the equipment it discounts actually keeps your house warm in January.
In Michigan's climate zones 5 through 7, a heat pump must be sized for design temperatures that can fall well below zero. Oversizing wastes rebate dollars and causes short-cycling, so a Manual J load calculation and a cold-climate-rated unit matter before you spend the incentive.
A cold-climate heat pump uses a variable-speed inverter compressor to hold capacity at low outdoor temperatures, where a conventional unit would fade. Our walkthrough on cold-climate heat pump sizing explains how design temperature and Manual J drive the right tonnage.
You will also want a plan for the coldest hours, whether that is electric backup heat or a dual-fuel setup. See our breakdown of heat pump backup heat for how that choice affects both comfort and operating cost in a Michigan winter.
Stacking HEEHRA With Michigan Utility Rebates
HEEHRA is rarely the only incentive on the table. Michigan utilities such as Consumers Energy and DTE Energy run their own heat-pump and electrification rebates that may layer on top of the federal program.
The order in which you apply incentives can change your net cost, and some programs reduce eligible cost before others calculate their share. Our rebate stacking application order guide walks through sequencing utility rebates, HEEHRA, and any remaining credits so you do not leave money on the table.
Of course, every program writes its own stacking rules, and they can change between program years. Confirm each one's policy in writing before you commit to a sequence.
A Pre-Purchase Decision Rule
If you are still in the planning phase, the useful order of operations is consistent. First, look up your county's AMI and household size to identify your tier; next, confirm EGLE's current program status and enrolled contractors; then, get a Manual J load calculation from one of those contractors.
Only after those three steps does a specific piece of equipment — and its rebate — become a decision you can make with real numbers. This keeps the incentive in service of the right system, rather than letting a headline dollar figure drive the purchase.
For the full program hierarchy and links to every state guide, the HEEHRA guide hub is the place to start.
Frequently Asked Questions
Is HEEHRA the same as the 25C tax credit?
No. HEEHRA — the federal Home Electrification and Appliance Rebates program — is an upfront, income-qualified rebate administered by Michigan's EGLE, while 25C was a federal income-tax credit claimed with the IRS. A rebate reduces your invoice immediately; a credit reduced your tax bill the following year. They reached different households and operated under different rules, so confirm which path applies to your project today.
How much is the Michigan HEEHRA rebate for a heat pump?
Federal rules cap the heat-pump rebate at up to $8,000 for space heating and cooling. The amount you actually receive depends on your income tier: households below 80% of area median income can have up to 100% of eligible costs covered, and households between 80% and 150% of AMI up to 50%. The $8,000 figure is a ceiling, not a guaranteed payout, and it is bounded by your project cost.
Who administers HEEHRA in Michigan?
Michigan's Home Energy Rebates are administered by EGLE — the Michigan Department of Environment, Great Lakes, and Energy — using the state's federal Department of Energy allocation. EGLE sets the launch timing, approves participating contractors, and defines the income-verification process. Because the program is state-run, details differ from neighboring states, so confirm the current rules and timeline directly with EGLE before you plan around them.
What income qualifies for HEEHRA in Michigan?
Eligibility is measured against your county's area median income (AMI), which HUD publishes annually and which varies by county and household size. Households earning below 80% of AMI fall in the highest-benefit tier, those between 80% and 150% of AMI qualify for partial coverage, and those above 150% are not eligible. There is no single statewide dollar cutoff — look up your county and household size to find your number.
Can I combine HEEHRA with utility or other rebates in Michigan?
Often yes, though stacking rules depend on each program. Michigan utilities such as Consumers Energy and DTE Energy run their own heat-pump and electrification incentives that may layer on top of HEEHRA, and the order you apply them in can change your net cost. Confirm each program's stacking policy in writing before you commit, and review our rebate-stacking guide for sequencing.
This article is for informational purposes and is not financial, tax, legal, or medical advice. Consult a licensed professional (CPA, HVAC contractor, or your state energy office) before acting.