You probably picture HEEHRA the way you pictured the old 25C tax credit — a line you fill in at tax time and recover months later. However, HEEHRA works almost nothing like a tax credit.
It is a point-of-sale rebate program, funded federally but run by each state, that lowers the price of qualifying electrification work before you pay. In Wisconsin, that distinction changes how — and when — the money reaches your project.
Wisconsin's rollout is live but thinly documented for homeowners, with rebate amounts, income tiers, and equipment rules scattered across federal statute and state program pages. This guide consolidates what is verifiable today, and flags what you should confirm with the state before committing.
Yes. Wisconsin administers HEEHRA — the federal Home Electrification and Appliance Rebate program funded by the Inflation Reduction Act — through its state energy office. Eligible households can receive point-of-sale rebates of up to $14,000 for heat pumps, water heaters, electrical panels, and weatherization, with the percentage covered scaled to household income.
What Is HEEHRA, And How Does Wisconsin Administer It?
HEEHRA — the High-Efficiency Electric Home Rebate Act, administered federally as the Home Electrification and Appliance Rebates (HEAR) program — was funded by the Inflation Reduction Act of 2022. Congress allocated the money, but the U.S. Department of Energy distributes it to states, which design and operate their own programs.
In Wisconsin, that responsibility sits with the state energy office under the Public Service Commission of Wisconsin. Accordingly, the application portal, approved-contractor network, and go-live timing are all set at the state level, even though the dollar caps come from federal law.
This is the single most important thing to understand about HEEHRA in any state. The rebate amounts are federal and uniform, but eligibility verification, contractor enrollment, and disbursement are Wisconsin-specific — so you can see how the state stacks up in our HEEHRA state-by-state status tracker.
HEEHRA Rebate Amounts In Wisconsin
Wisconsin's HEEHRA rebates mirror the federal per-measure caps set by the Inflation Reduction Act. The table below lists the maximum rebate for each qualifying category, capped at a combined $14,000 per household.
| Qualifying Measure | Federal HEEHRA Cap |
|---|---|
| Air-source 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 |
| Electrical panel / load center upgrade | Up to $4,000 |
| Electrical wiring | Up to $2,500 |
| Insulation, air sealing & ventilation | Up to $1,600 |
| Maximum per household | $14,000 |
Under HEEHRA's federal caps, a qualifying ENERGY STAR heat pump for space heating and cooling can earn up to $8,000. Households below 80% of area median income may have 100% of project cost covered, while those between 80% and 150% receive 50%.
Keep in mind that these are ceilings, not guaranteed payouts. The actual rebate depends on your income tier and the real cost of the installed equipment — whichever is lower governs.
Income Limits — The 80% And 150% AMI Tiers
HEEHRA is means-tested, and Wisconsin applies the federal two-tier structure based on area median income, or AMI. HUD publishes AMI figures for every county and household size, so the threshold for a family of four in Dane County differs from one in rural Price County.
| Income Tier (AMI) | Share of Project Cost Covered |
|---|---|
| Below 80% AMI | 100% (up to each cap) |
| 80%–150% AMI | 50% (up to each cap) |
| Above 150% AMI | Not eligible for HEEHRA |
HEEHRA eligibility is tiered by area median income (AMI), which HUD sets for each Wisconsin county and household size. Households under 80% AMI qualify for full rebates up to the caps, those from 80% to 150% AMI qualify for half, and above 150% AMI the program does not apply.
For a fuller breakdown of how these brackets are calculated and where the cliffs fall, see our explainer on HEEHRA income tiers. Note that AMI is not the same as the federal poverty line, and it is not your taxable income in isolation.
We are not publishing Wisconsin's specific county dollar thresholds here because HUD revises them annually. Confirm your bracket against the current-year figures through the state portal before you assume eligibility.
Qualifying Equipment — What Actually Counts
HEEHRA does not reimburse just any efficient appliance. Qualifying equipment must meet program specifications — generally ENERGY STAR certification or equivalent — and the work must be professionally installed, not DIY, to draw the rebate.
Qualifying upgrades include ENERGY STAR heat pumps, heat pump water heaters, heat pump clothes dryers, electric stoves and cooktops, plus enabling work like electrical panel upgrades, wiring, insulation, air sealing, and ventilation. Each category carries its own federal cap within the $14,000 household total.
Heat Pumps For Space Heating And Cooling
The headline measure is the air-source heat pump, eligible for up to $8,000. To qualify in a climate like Wisconsin's, the unit needs to hold rated capacity at low outdoor temperatures, which is where cold-climate-rated equipment earns its premium.
This is also where a contractor-skeptical eye pays off. A unit sized by rule-of-thumb "tonnage per square foot" rather than a proper Manual J load calculation will either short-cycle or lean on backup heat strips — so review our guidance on cold-climate heat pump sizing before signing a proposal.
Heat Pump Water Heaters
A heat pump water heater qualifies for up to $1,750 and is often the highest-ROI single measure in the program. These units move heat rather than generate it, running roughly two to three times more efficiently than a standard electric resistance tank.
For the mechanics of how they perform in an unconditioned Wisconsin basement, see our breakdown of heat pump water heaters.
Electric Stoves, Cooktops, And Dryers
Switching from gas to an electric or induction stove, cooktop, range, or oven qualifies for up to $840. A heat pump clothes dryer carries the same $840 cap.
These appliance measures are modest individually, but they help a household reach the $14,000 ceiling when bundled with the larger mechanical upgrades.
Electrical Panel And Wiring Upgrades
Older Wisconsin homes frequently run 100-amp or smaller service that cannot support a heat pump plus an induction range plus an EV charger. HEEHRA addresses this with up to $4,000 toward an electrical panel (load center) upgrade and up to $2,500 toward associated wiring.
These "enabling" measures matter because they remove the most common physical barrier to electrification. Without panel headroom, the rest of the project stalls.
Insulation, Air Sealing, And Ventilation
Up to $1,600 is available for insulation, air sealing, and ventilation. In a cold climate, this is not an afterthought — a tighter, better-insulated envelope lowers the heating load, which in turn lets you install a smaller, cheaper heat pump.
Done in the right order, weatherization first can shrink the mechanical system you need. That sequencing is part of why load calculations should precede equipment selection.
Why Cold-Climate Sizing Matters More In Wisconsin
Wisconsin design temperatures run brutally low — much of the state sits at a 99% winter design temperature near -10°F to -15°F, and the far north colder still. A heat pump that performs beautifully in Tennessee can be undersized for a Green Bay January.
This is the technical heart of a Wisconsin electrification project, and it is where the rebate money is most easily wasted. An oversized unit cycles inefficiently, while an undersized one runs expensive backup resistance heat through the coldest weeks.
Therefore, insist on a Manual J load calculation tied to your county's design temperature, and ask for the heat pump's rated capacity and COP at 5°F and 17°F — not just its nameplate tonnage. The rebate buys the hardware, but only correct sizing makes it pay off.
Wisconsin's HEEHRA rebate is tied to equipment and installation quality, not to a contractor's sizing shortcut. Before accepting any heat pump proposal, request the Manual J worksheet, the AHRI certificate for the matched system, and the low-temperature capacity table — these three documents separate a system that earns its rebate from one that disappoints by February.
Stacking HEEHRA With Focus on Energy And Utility Rebates
HEEHRA is not Wisconsin's only incentive. The statewide Focus on Energy program and individual utilities offer their own heat pump and weatherization rebates, and these can generally be combined with HEEHRA.
However, there is a federal guardrail: you cannot use two federal rebate programs to cover the same project cost. HEEHRA and the separate HOMES (performance-based) rebate program, for instance, cannot double-dip on identical dollars.
The order in which you apply determines your total benefit, since some programs calculate their incentive off the post-rebate or pre-rebate price. For the mechanics of sequencing, see our guide to rebate stacking and application order.
Generally yes — HEEHRA is designed to stack with Wisconsin's Focus on Energy incentives and individual utility rebates, though you cannot claim two federal rebates on the same dollar of cost. Sequencing the applications correctly determines how much total support a project receives.
How HEEHRA Compares To The Federal Tax-Credit Path
For years, the 25C tax credit was the default federal route for heat pump buyers. That landscape shifted — our coverage of what happened to 25C details the change, and our 25C vs HEEHRA decision tree walks through which path fits which household.
Broadly, HEEHRA favors low-to-moderate-income households with its upfront, percentage-of-cost structure, while a tax credit favored those with enough tax liability to absorb it. For many Wisconsin households today, the point-of-sale rebate is the more accessible mechanism.
It is also worth noting what did not survive: the federal residential solar tax credit (the ITC) expired on December 31, 2025. State and utility solar programs continue, but the federal credit does not — so do not budget a solar project around it.
What Steps Should I Take To Use HEEHRA In Wisconsin?
Because the program is point-of-sale, the process runs through approved contractors and retailers rather than your tax filing. Here is the practical sequence most Wisconsin households will follow:
- Confirm the program is enrolling. Verify current go-live and funding status through Wisconsin's state energy office portal, since state programs open in phases and can pause when allocations run low.
- Check your income tier. Compare your household income against the current HUD AMI figure for your county and household size to learn whether you fall under 80%, between 80% and 150%, or above.
- Get a load calculation, not a guess. Require a Manual J and a cold-climate-rated equipment proposal before committing to any heat pump.
- Use a participating contractor. The rebate is applied at the point of sale, so the installer must be enrolled in Wisconsin's program for the discount to appear.
- Plan the stack. Coordinate HEEHRA with Focus on Energy and your utility's rebates in the right order to maximize total support.
Because HEEHRA is point-of-sale, the rebate is applied as an upfront discount through a participating contractor or retailer rather than claimed later on a tax return. Verifying current enrollment status and the approved-contractor list through Wisconsin's state energy office portal is the practical first step.
Frequently Asked Questions
How much can a Wisconsin household get from HEEHRA?
HEEHRA caps total rebates at $14,000 per household, drawn from federal per-measure limits set by the Inflation Reduction Act: up to $8,000 for an air-source heat pump, $1,750 for a heat pump water heater, $4,000 for an electrical panel upgrade, $2,500 for wiring, $1,600 for insulation and air sealing, and $840 each for an electric stove or heat pump dryer. Households under 80% of area median income can have 100% of cost covered; those from 80% to 150% receive 50%.
What are the HEEHRA income limits in Wisconsin?
Eligibility is based on area median income (AMI), which HUD sets annually for each Wisconsin county and household size. Households earning under 80% of AMI qualify for the full rebate up to each measure's cap, and households from 80% to 150% of AMI qualify for 50% of project cost. Households above 150% of AMI are not eligible for HEEHRA, though they may compare other paths such as utility and Focus on Energy rebates. Because HUD updates AMI figures each year, confirm your county's current threshold before assuming a tier.
What equipment qualifies for HEEHRA rebates?
Qualifying measures include ENERGY STAR air-source heat pumps, heat pump water heaters, heat pump clothes dryers, and electric or induction stoves, cooktops, ranges, and ovens. The program also funds the enabling work that makes electrification possible: electrical panel (load center) upgrades, branch wiring, insulation, air sealing, and ventilation. Equipment generally must meet ENERGY STAR or equivalent specifications, and it must be professionally installed rather than self-purchased to draw the rebate. Each category has its own cap within the $14,000 household maximum.
Can HEEHRA be combined with Focus on Energy rebates in Wisconsin?
Generally yes. HEEHRA is designed to stack with Wisconsin's statewide Focus on Energy program and with individual utility rebates, which can meaningfully increase total support for a heat pump or weatherization project. The key restriction is federal: a single project cost cannot be covered by two federal rebate programs at once, so HEEHRA and the separate HOMES performance rebate cannot double-dip on the same dollars. Application order matters, because some programs calculate their incentive from the pre- or post-rebate price.
Is HEEHRA a tax credit like 25C?
No. Unlike the 25C tax credit, which you claimed on a federal return after paying full price, HEEHRA is a point-of-sale rebate that lowers the purchase price upfront through a participating contractor or retailer. It is funded federally but administered by Wisconsin's state energy office, so timing and enrollment are set at the state level. This upfront structure makes HEEHRA especially useful for low- and moderate-income households that may not have enough tax liability to benefit fully from a credit.
Putting Your Wisconsin Project Together
Wisconsin's HEEHRA program can cover a substantial share of a whole-home electrification project — but only when the equipment is sized right and the applications are sequenced well. Explore the full HEEHRA state guide or run the numbers with our heat pump load calculator to see where your household lands.
This article is for informational purposes and is not financial, tax, or legal advice. Consult a licensed professional (CPA, HVAC contractor, or your state energy office) before acting.