2024 Heat Pump Rebates for Maryland Homeowners

Those looking to upgrade to an energy-efficient heat pump will be happy to learn that thanks to the Inflation Reduction Act (IRA), Maryland families may qualify for special savings through the HEEHRA rebate program.

But what exactly is HEEHRA, how can homeowners qualify, and how much will your savings be? We answer these questions and more below.

What Is HEEHRA?

As of August 2022, the IRA established a special tax incentive program called the High-Efficiency Electric Home Rebate Act (HEEHRA).

Through this rebate program, low- to moderate-income (LMI) families may qualify for special incentives to make energy-efficient upgrades, such as heat pump installations and replacements, more accessible and affordable.

Maryland received guidance on establishing the HEEHRA program from the U.S. Department of Energy (DOE) in July 2023, and rebates are expected to become available by early 2024.

Any qualifying heat pump installations or replacements performed from Jan. 1, 2023, to Dec. 31, 2032, are eligible for special savings under the program.

Who Qualifies for HEEHRA Rebates?

HEEHRA was designed with LMI households in mind, with each family qualifying for a different savings amount depending on how their income level compares to the area’s median income (AMI).

Here’s how eligibility works:

• Low-income households: Families earning less than 80% AMI may qualify for 100% of the cost of heat pump installations in their home.
• Moderate-income households: Families earning 80%–150% AMI may qualify for 50% of the cost of heat pump installations in their home.
• Other households: Families earning more than 150% AMI may qualify for 30% of the cost of heat pump installations in their home.

To understand your eligibility for program benefits, it’s best to consult with a knowledgeable tax professional who can guide you through the qualifications and assess your rebate amount properly.

How Much Will My HEEHRA Heat Pump Rebate Be?

Your HEEHRA rebate will depend on your income level, with each LMI household receiving different guidance on their total rebate amounts. Here’s what you can expect:

• Low-income households: Qualify for 100% of heat pump installation cost coverage (up to $8,000).
• Moderate-income households: Qualify for 50% of heat pump installation cost coverage (up to $4,000).
• Other households: Qualify for 30% of heat pump installation cost coverage (up to $2,400).

Plan Ahead With McCrea Heating & Air Conditioning

As the HEEHRA program rebates begin to roll out, McCrea Heating & Air Conditioning expects an influx of heat pump installation and replacement appointments on the immediate horizon.

That said, it’s important to prepare ahead of time and beat potential system shortages by scheduling your installation or replacement early.

At McCrea, we offer customers a wide selection of qualifying heat pump systems to help them satisfy rebate requirements while enjoying the ongoing benefits of enhanced energy efficiency, monthly utility savings, and reliable home comfort.

Consult with our team to learn about your heat pump installation options by calling 301-304-8789 today.