Every layer of savings
in the right order.
Point-of-sale first. Mail-in second. Federal credits last on what's left. The sequencing matters — applying in the wrong order costs homeowners thousands.
How does rebate stacking actually work?
Rebate stacking combines federal tax credits, state HEEHRA rebates, state tax incentives, and utility programs into one payout on a single electrification project. After OBBBA repealed most federal credits, stackable savings now come mostly from state and utility programs. Smart stacking can offset fifty to ninety percent of heat pump installation cost.
The four layers
A modern rebate stack pulls from four distinct program types. Each runs on its own rules, but the outcomes combine into one net install cost for the homeowner.
- Federal layer. Post-OBBBA, this is thin: 25D geothermal (30%) for ground-source systems, commercial 48E ITC for third-party-owned solar/battery. Air-source heat pumps get $0 from the federal government in 2026.
- State HEEHRA layer. Up to $14,000/household in the handful of states where HEEHRA has launched. Paid as a point-of-sale rebate — reduces what appears on your installer's invoice.
- State tax credit layer. Independent of HEEHRA. Example: Massachusetts Residential Energy Credit pays 15% up to $1,000 of residential solar/heat pump installs, carries forward unused credits.
- Utility layer. The messiest and often largest. Mass Save, NYSERDA Clean Heat, PG&E electrification, etc. Rules vary wildly by utility, often exceeding federal credit amounts in high-incentive territories.
The application order
Sequencing is where homeowners leave money on the table. Apply in this order:
- 1. Point-of-sale rebates first. HEEHRA and utility instant rebates are applied by the installer at invoice time — they reduce the gross cost before any other math runs.
- 2. Post-install mail-in rebates next. Most utility rebates are post-install. File the paperwork on the reduced invoice amount from step 1.
- 3. State tax credits at tax time. Apply to the post-rebate net. Most state credits care about out-of-pocket spent, not gross invoice.
- 4. Federal credits last. Any federal credit (25D geothermal only, in most cases) applies to the absolute net after everything else — and you cannot double-dip on money that was already rebated.
What can kill a stack
Three common pitfalls:
- Income cap surprises. HEEHRA caps at 150% AMI. Some state credits are uncapped but utility programs often have their own income tiers. The ElectrifyAtlas finder reconciles all caps at once.
- Equipment spec mismatches. HEEHRA requires ENERGY STAR Most Efficient tier — some "ENERGY STAR certified" units don't qualify. Utility rebates often require AHRI-certified ratings above the minimum.
- Timing gaps. Some rebates expire at fiscal year-end. If your install crosses a state fiscal boundary, you may lose an entire year of state funding availability.
See your sequenced stack
Every program you qualify for, in the order to apply them.
Apply it to real projects
Application-order deep dives and whole-home ROI scenarios where stacking really moves the math.
Run the full stack for your ZIP.
Federal, state, HEEHRA, utility — layered and sequenced in one lookup.