Income levels are determined based on Area Median Income (AMI) which is determined by location (county) and household size. Income is determined by adding up the gross incomes for all the household members in a dwelling. The U.S. Department of Housing and Urban Development updates AMI Tables each year. The most current AMI Table for Minnesota is available on the 2025 Area Median Income Look-Up Table (.pdf).

Updated on 06/27/25

Yes, rental properties are included as part of the IRA rebate programs. Renters will be able to participate if their landlord gives permission. Collaboration between landlords and applicants who are renters will be important to the programs. Both the HOMES and HEAR programs are required to spend a portion of funds on multifamily buildings. Minnesota is in the process of determining the procedures for rental properties.

Updated on 08/19/24

Household income is defined as the gross income for all adults living in the household added together. Gross income is all income before taxes and deductions are taken out. A household’s income will determine what income category a household falls in to when compared to their county’s area median income (less than 80% AMI, between 80%-150% AMI or above 150% AMI). The most current AMI Table for Minnesota is available on the 2025 Area Median Income Look-Up Table (.pdf).

Updated on 7/23/25

Wage statements like pay stubs and certain tax documents will be accepted. A full list of qualified income documents will be available before program launch. 

Updated on 7/23/25

Categorical eligibility is an alternative way to verify income eligibility for the rebate programs. Commerce will accept proof of enrollment in select programs as an alternative to requiring proof of income documents. If at least one person in the household is currently enrolled in one of the following programs, the household will be categorically eligible for rebates at the low-income level of <80% AMI.  

• Energy Assistance Program (EAP)
• Food Distribution Program on Indian Reservations (FDPIR)
• Head Start
• Housing Improvement Program (HIP)
• Housing Opportunities for Persons with AIDS
• Lifeline Support for Affordable Communications (Lifeline)
• Medicaid (a.k.a, Medical Assistance)
• National School Lunch Program – Free (NSLP)
• Supplemental Nutrition Assistance Program (SNAP)
• Supplemental Security Income (SSI)

Additional programs may be added. 

Updated on 7/23/25

HEAR program: Per federal guidelines rebates under the HEAR program cannot be made retroactively available. Minnesota does not have flexibility to change this.

HOMES program: Unlikely. Federal guidelines say rebates may be made retroactively to the date the Inflation Reduction Act passed (August 16, 2022). However until program design is complete for the HOMES rebate, we cannot guarantee who will qualify for a retroactive rebate when we begin providing rebates.

Updated on 08/19/24

There are other state programs and resources available for Minnesota households that need to start home energy upgrades. Commerce does not recommend that households wait to accomplish needed home energy upgrades or projects. Households looking for home energy upgrade assistance today cannot yet access these rebates but may be eligible for other programs, including tax credits, the Weatherization Assistance Program, and other state, local, and utility programs.

Updated on 08/19/24

Per federal guidelines, an energy assessment is required for every single-family home and multifamily building receiving Home Efficiency Rebates (HOMES). States are required to establish basic requirements to ensure each home assessment complies with additional requirements. Because these requirements are still being determined, we cannot guarantee an energy assessment completed before program launch will qualify.

For the HEAR program, a limited home assessment is required prior to installation of electric heat pumps for space heating and cooling.

State rebate programs may have their own requirements as well.

Updated on 08/19/24

The State Heat Pump Rebate Program is designed to supply additional rebate funds to a household that earns a rebate for a heat pump for space heating and cooling through either the HOMES or HEAR rebates. To be eligible for the State Heat Pump Rebate, applicants must first apply and receive a federal HOMES or HEAR rebate.

The Residential Electrical Panel Grants do not depend on an application to the HOMES or HEAR rebate programs. They can be applied to separately, or co-fund upgrades from the federal programs. Learn more about leveraging other funding sources with Home Energy Rebates.

Both the state Residential Electrical Panel Grants and Heat Pump rebates will utilize the same application system as the federal programs and thus will likely begin at the same time or after the launch of the federal programs.

Updated on 08/19/24

A household cannot receive a rebate from both HEAR and HOMES for the same upgrades. However, a household can receive both a HEAR and a HOMES rebate if they are for different measures/equipment.

Updated on 08/19/24

Home Energy assessment requirements vary based on the program and the upgrade: 

HOMES: A home energy assessment is required for every single family home and multifamily building, prior to installing any energy upgrades. For single family homes and 2-4 unit multifamily buildings, the energy assessment must use BPI-2400 compliant software with energy modeling.

For multifamily buildings with 5+ units, contractors must complete an ASHRAE Standard Level 2 audit and run an energy model through DOE-approved software.

HEAR: A limited home assessment is required prior to installation of cold climate air source heat pumps for space heating and cooling.

STATE HEAT PUMP REBATE: A home energy assessment performed by a Building Analyst Technician is required. Qualified audits that have taken place within the last 18 months count. If the auditor recommends insulation and air sealing work, that work needs to be completed before the heat pump can be installed. 

More information on energy assessments and qualified providers will be published when available.

Updated on 7/23/25

The following projects will be eligible for self-installs: heat pump water heaters, heat pump clothes dryers, electric stoves/cooktops/ranges. For upgrades purchased at participating retailers, the rebate will be an instant discount at the point of sale. For upgrades installed by a contractor, the rebate is an instant discount on the invoice from a contractor.  

Updated on 7/23/25

The following projects must be installed by a program-approved contractor to be eligible: heat pumps for space heating and cooling, insulation and air sealing, electric panels, and electric wiring. For these projects, the rebate is an instant discount on the invoice from the contractor.

Updated on 7/23/25

Minnesota Department of Commerce is establishing a qualified contractor network to ensure all participating contractors meet program standards and provide high-quality work to consumers. Specific contractor criteria are being developed with input from stakeholders and will be shared as they become available. Commerce is working with utilities and other existing networks to ensure consumers have access to contractors across the state.

Updated on 7/23/25

Yes. State code requires Manual J calculations for all HVAC upgrades. All programs must comply with state and local code and permit requirements.

Updated on 7/23/25

The Home Energy Rebates Program defines a multifamily building as a single building containing at least two (2) dwelling units used for residential purposes. This includes apartment buildings, duplexes, and condos.

Updated on 7/23/25

A detached or semi-detached building containing a single dwelling unit. This includes single family homes, townhomes, and twin homes.

Updated on 7/23/25

The Department of Energy (DOE) also has a Frequently Asked Questions (FAQ) page where you can see answers to common questions about the Home Energy Rebate Programs. Visit the DOE FAQ page.

Updated on 08/19/24