CUB gets a lot of questions from consumers wondering when they’ll be able to enjoy appliance rebates offered through the Inflation Reduction Act (IRA). We’ve got information about where Illinois is in the process of launching that rebate program–as well as some proposed changes to it.
The IRA, federal legislation that the president signed into law in 2022, contains several tax credits and rebates helping consumers to improve their home’s energy efficiency and enjoy the benefits of electrification. Some provisions are available to Illinois consumers now, including:
- Home Energy Efficiency and Weatherization Tax Credit: Allows consumers to claim up to $1,200 a year until 2033 for energy efficiency upgrades, such as home energy audits and electric panel upgrades. It provides a separate $2,000 one-time tax credit for space or water heater upgrades.
- Clean Energy Tax Credit: Allows consumers to receive up to 30 percent of project costs back for rooftop solar, geothermal heat pumps, or battery storage. Additionally, there is a $7,500 income-qualified tax credit available for new electric vehicles.
However, so far, Illinois has not implemented another IRA provision: the Home Electrification and Appliance Rebate (HEAR). In order to receive federal funding and launch the rebate program, each state must submit an application and receive approval by the U.S. Department of Energy (DOE). The Illinois Environmental Protection Agency (Office of Energy) submitted its HEAR application in the summer of 2024, and it’s currently awaiting DOE approval.
While we wait, here’s more information about the program as well as changes to the incentives that will be offered:
A big advantage of the HEAR rebate is that – unlike the tax credits we describe above – it’s accessible even if you don’t owe federal taxes. Under the HEAR program, Illinois consumers will be able to receive rebates of up to $14,000 on home electrification projects, and the program will give them the flexibility to mix and match from different rebate categories. For example, a consumer could receive multiple rebates–such as up to $840 for an electric stove and up to $8,000 for an electric heat pump–until they hit the $14,000 cap.
Once it gets the OK to launch the program, the Illinois EPA plans to modify the income qualifications so that lower median income households can access program funds first.
Initially, the program was designed for consumers at or below 80 percent to 150 percent of the Area Median Income (AMI). Consumers at 80 percent AMI or less were able to take advantage of rebates covering the full cost of a project, up to the $14,000 cap. Anyone who fell at 81 percent to 150 percent AMI were eligible to have half of the project cost covered, up to the $14,000 cap.
But Illinois has proposed changing eligibility to lower-income households (80 percent AMI or lower) only and adjusting funding distribution, based on demand and interest.
Another important detail: Unlike with programs in other states, the Illinois EPA has said they are not planning to issue retroactive rebates through this program. This is different from other states’ programs, so it’s important to note this when planning your energy efficiency upgrades.
As part of the application process, each state must hold at least one public workshop on the proposed rebate program for feedback from community members. Illinois has not held its public workshop yet, although it is expected to happen in 2025.
CUB will keep consumers updated and let consumers know the date of the workshop. For more information, sign up for the Illinois EPA’s Home Energy Rebate Updates emails.
