Will HEAR Rebates Survive? What Colorado Homeowners Need to Know About H.R. 4758

On February 25, 2026, the U.S. House of Representatives passed the Homeowner Energy Freedom Act (H.R. 4758) by a vote of 210 to 199. If it becomes law, it would eliminate the HEAR rebate program that currently provides income-qualified Colorado households up to $8,000 for heat pump installations.

This article breaks down what the bill does, who supports and opposes it, whether it's likely to become law, and what it means for Colorado homeowners who are using or considering HEAR rebates.

The bill repeals three programs created by the Inflation Reduction Act (IRA) of 2022 and rescinds any remaining unobligated funds. Combined, these programs represent $5.7 billion in federal spending.

What it does NOT touch

The Home Efficiency Rebates program (HOMES/HER, IRA Section 50121, $4.3 billion) is not targeted by this bill. HOMES provides performance-based rebates for whole-home energy savings improvements - a different program from HEAR's equipment-specific rebates.

State and utility rebate programs are also unaffected. Xcel Energy rebates, United Power rebates, and the Colorado state heat pump tax credit are funded by different sources and are not touched by H.R. 4758.

The House passed H.R. 4758 on February 25, 2026 almost entirely along party lines.

The bill was sponsored by Rep. Craig Goldman (R-TX), with co-sponsors Rep. Jake Ellzey (R-TX) and Rep. Dan Crenshaw (R-TX). The sole Republican to vote against was Rep. Brian Fitzpatrick of Pennsylvania.

H.R. 4758 was introduced on July 25, 2025, reported out of the House Committee on Energy and Commerce, and brought to the floor under a closed rule (no amendments allowed) on February 24, 2026.

Supporters

The bill's sponsors frame it as a cost reduction measure for homebuyers and a pushback against federal energy mandates. From Rep. Goldman's press release:

“Costly regulations imposed by the Biden Administration have driven up the price of homes. I’m proud to lead the Homeowner Energy Freedom Act, a bill that could reduce the costs of new homes by up to $31,000.”

House Energy and Commerce Committee Chairman Brett Guthrie (R-KY) described the bill as ending “expensive building code mandates that push homeownership out of reach for millions of hardworking families.”

The National Association of Home Builders (NAHB) supports the bill, viewing it as deregulation that lowers construction costs.

Opponents

Energy efficiency advocates and environmental groups argue the bill strips benefits from the households it claims to protect. Jennifer Layke, Director at the American Council for an Energy-Efficient Economy (ACEEE), stated:

“These rebates are beginning to help families around the country make home energy upgrades that cut their utility bills. Pulling the rug out from under this program as so many face rising energy costs is callous.”

Opponents also note that HEAR is specifically designed for low- and moderate-income households (under 150% AMI), meaning the repeal would disproportionately affect the families least able to absorb higher energy costs.

As of March 2026, 13 states have launched active HEAR programs out of 54 eligible jurisdictions. Two states (Idaho and South Dakota) rejected their allocations. The remaining states are still in the process of launching ( Atlas Buildings Hub).

Probably not - but there is a companion bill. GovTrack gives H.R. 4758 a 34% chance of being enacted. As of March 16, 2026, no Senate vote has been scheduled on the House-passed version.

Sen. Tim Sheehy (R-MT) has introduced companion legislation in the Senate with similar provisions. However, a standalone Senate vote faces significant obstacles:

That said, the bill could also be folded into a larger reconciliation package, which would only need a simple majority to pass. This is how the One Big Beautiful Bill Act ended the 25C tax credit in 2025 - by bundling it into a budget bill. Worth watching, not worth panicking over.

Colorado is one of 13 states with an active HEAR program. The Colorado Energy Office (CEO) launched HEAR for single-family homes in November 2025. The program is administered by CLEAResult and funded by the federal Department of Energy.

In a March 2026 contractor newsletter, the Colorado Energy Office directly addressed H.R. 4758:

“Based on current information, we do not believe this presents a major concern for contractors.”

CEO outlined three key points:

As of early March 2026, the HEAR program in Colorado has over 100 approved contractors in the registered network, with projects across the Front Range. The most popular project types have been electrical wiring, cold-climate heat pump installations, and electrical panel upgrades.

The Colorado Energy Office also confirmed that rebate payments to contractors have started and will ramp up throughout 2026.

This is the key legal distinction. Federal grant money moves through three stages:

H.R. 4758 explicitly rescinds only unobligated balances - money that hasn't been legally committed yet. Colorado's HEAR funds have been fully obligated, meaning the federal government has a binding contract to provide them.

Clawing back obligated funds would require the Department of Energy to breach its own contracts with state energy offices - something with no precedent in federal energy rebate programs. Even if the bill passed and was signed, Colorado's committed funds would be on solid legal footing.

HEAR is active. It is available. If you qualify, there is no reason to wait.

The program is processing applications, payments to contractors have started, and Colorado's funding is legally committed. The legislative threat is real but distant - the Senate hasn't scheduled a vote, and Colorado's money is protected by obligation status regardless.

If you're a Colorado homeowner with household income at or below 150% of Area Median Income, HEAR can cover a significant portion of a heat pump installation:

HEAR rebates are applied as a point-of-sale discount through participating contractors - you don't pay upfront and wait for a check. Income verification happens through the state portal before work begins.

HEAR also stacks with Xcel Energy rebates and the Colorado state tax credit. We handle the paperwork for all applicable programs.

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