Home Owner Managing Energy Savings Rebate Program (2026)
HOMES — the Home Owner Managing Energy Savings Rebate Program — is the second IRA home-energy rebate program. Where HEEHRA targets specific electric appliances, HOMES rewards whole-home performance. Modeled or measured energy savings of 20% or more qualify for rebates up to $8,000 per household, doubled for households below 80% AMI. The program runs through state energy offices and pairs naturally with HEEHRA.
What this credit covers
Performance-based whole-home retrofit rebate. Tied to modeled or measured energy savings. Income-amplified for households below 80% AMI.
- Whole-home retrofits with modeled or measured energy savings ≥20%
- Insulation, air sealing, HVAC upgrades, windows, doors as part of a package
Eligibility quick check
What energy savings threshold qualifies?
20% modeled or measured savings unlocks the base rebate. 35%+ unlocks the higher tier ($4,000 / $8,000 income-amplified).
Modeled vs. measured savings — what is the difference?
Modeled = energy modeling software predicts savings before install. Measured = utility bills 12 months pre/post show actual reduction. Most homeowners use modeled.
Can I combine HOMES with HEEHRA?
Yes, but not on the same equipment. A heat pump goes through HEEHRA; the insulation and air-sealing package goes through HOMES.
How to claim HOMES on your tax return
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Hire a qualified energy auditor
BPI- or RESNET-certified contractor performs whole-home modeling and identifies the retrofit package.
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Enroll through state energy office
Most state portals require pre-approval before work starts. Funds reserve from state allocation.
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Complete the retrofit package
Insulation, air sealing, HVAC, windows — bundled to hit the 20% or 35% savings threshold.
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Verify post-install
Modeled approach: contractor submits final modeling report. Measured approach: 12-month bill comparison.
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Receive rebate
Most states issue HOMES as point-of-sale (contractor handles), some issue post-completion check.
Stacking with state and utility programs
HOMES + 25C is the most powerful stack for whole-home retrofits — they target the same upgrades but the IRS does not consider HOMES to reduce the 25C basis (state rebate exclusion).