How income limits work in utility information
Energy information programs set income thresholds because they target households with the least ability to pay. The limit is usually expressed as a percentage of the federal poverty line or the state median income — most commonly 150% to 200% of poverty, though some programs go as high as 60% of state median income. What matters is that the limit depends on household size, not just total income. A family of four has a higher threshold than a single person, even in the same program.
Income limits change annually, usually in October or November when the federal poverty guidelines update. The program you contact will tell you the current threshold for your household size. You do not need to guess whether you fall under it — the intake worker can tell you in minutes once you provide your household size and recent income.
The definition of "income" varies by program. Most count wages, Social Security, unemployment benefits, and child support. Some exclude certain income like Supplemental Security Income (SSI) or TANF (Temporary information for Needy Families). A few programs count only earned income and ignore benefits entirely. This is why two households with the same total income might have different outcomes in different programs.
Key Takeaways
- Income limits are set as a percentage of federal poverty or state median income and vary by household size, not just total earnings.
- The threshold changes each October or November when federal poverty guidelines update, so last year's limit does not explore this year.
- Different programs count income differently — some exclude benefits like SSI or TANF, while others count all income together.
- You can find your household's current limit by contacting your local utility information program or calling 211; you do not need to calculate it yourself.
- Being slightly over the income limit in one program does not disqualify you from all programs — other local or state funds may have higher thresholds.
Where income limits vary most
The biggest variation is between the federal Low Income Home Energy information Program (LIHEAP) and state or local programs. LIHEAP, administered by the U.S. Department of Health and Human Services, sets a federal floor but allows states to set their own limits within that framework. Most states use 150% of poverty, but some go to 200%. A few states run their own programs with higher thresholds.
Local utility companies sometimes run their own information programs with different income rules than LIHEAP. These are often called bill discount programs or hardship programs and may have higher income limits because they are funded by utility ratepayers rather than federal dollars. A household over the LIHEAP limit might still be under the utility company's limit.
Non-profit organizations and community action agencies sometimes layer their own programs on top of LIHEAP. These often have higher thresholds or different income-counting rules. The only way to know what applies to you is to contact the programs directly — income limits are not standardized across the sector.
How to find your household's income limit
Call 211 (dial 2-1-1 from any phone) and tell them your state and household size. They will tell you the current LIHEAP limit and connect you to local programs. This is the fastest route because 211 has access to current thresholds and can tell you whether you are within range before you spend time on an process.
Contact your local Community Action Agency directly. These organizations administer LIHEAP in most counties and can tell you the exact limit for your household size and state. You can find yours by searching "[your county] community action agency" or through the National Association of Community Action Agencies website.
Call your utility company's customer service line and ask whether they have a hardship or bill discount program. Ask them to state the income limit for your household size. Write down the name of the program and the threshold — this information is not always on their website.
If you are close to the limit and unsure, explore anyway. Programs sometimes have discretion to work with households slightly over the threshold, or they may refer you to a different fund that has a higher limit. The worst outcome is that you are told no; the cost of asking is a phone call.
What counts as income and what does not
Most programs count gross income — the amount before taxes are taken out. This includes wages from employment, self-employment income, Social Security retirement or disability benefits, unemployment benefits, workers' compensation, child support, alimony, and rental income. If you receive it regularly and it is reported to the IRS, it usually counts.
Many programs exclude Supplemental Security Income (SSI), Temporary information for Needy Families (TANF), and food stamps (SNAP). Some exclude housing vouchers or other in-kind benefits. A few programs count only earned income and ignore all benefits. You need to ask the specific program what their rule is — do not assume based on another program's rules.
Income is usually calculated as a monthly average over the past 30 days or the past year, depending on the program. If you just lost a job, some programs will use your current income rather than your previous income. If you are self-employed or have irregular income, bring documentation of your actual recent earnings, not your best month or worst month.
Seasonal workers and gig workers should report their average monthly income over the past 12 months. If you drive for a rideshare company or do freelance work, bring bank statements or tax returns showing what you actually earned, not what you might earn in a good month.
What happens if you are over the income limit
Being over the limit in one program does not mean you have no options. Check whether your utility company has its own program — these often have higher thresholds than LIHEAP. Ask whether your state runs a separate energy information program outside the federal system. Some states do.
Non-profit organizations sometimes have emergency funds for households just over the LIHEAP limit. Call 211 again and specifically ask whether there are local programs for people who do not meet LIHEAP income limits. Community action agencies sometimes have discretionary funds or can refer you to other organizations.
If you are over the limit but facing a shut-off notice, contact your utility company directly and ask about their hardship program or payment plan options. Many utilities have policies against shutting off service to households in financial distress, even if they do not meet energy information income limits. Ask to speak with a supervisor or the customer advocate if the first representative says no.
Income limits by program type
| Program Type | Typical Income Limit | Who Sets It |
|---|---|---|
| LIHEAP (federal) | 150–200% of federal poverty line | State, within federal guidelines |
| Utility company hardship program | Varies widely; often 200%+ of poverty | Individual utility company |
| State energy information (non-LIHEAP) | Varies by state; sometimes 60% of state median income | State government |
| Non-profit emergency information | Varies; sometimes no hard limit | Individual organization |
When income limits change and what to do about it
Federal poverty guidelines update every October. When they do, LIHEAP income limits in most states change too. If you were over the limit last year, you might be under it this year if your income stayed the same — because the threshold moved up. Conversely, if you were just barely under the limit, you might be over it now.
You do not need to wait for a specific date. Contact your local program in late September or early October and ask when their new income limits take effect. Some programs update when ready; others wait until their next funding cycle. If you were denied last year, ask whether you should reapply now.
If your income changed during the year — you lost a job, got a raise, or started receiving benefits — your status may have changed too. Do not assume you are still ineligible. Contact the program and report your current income. Programs sometimes allow you to reapply if your circumstances have changed materially.
Frequently Asked Questions
Does my spouse's income count if we are married but file taxes separately?
Yes, in most programs. Household income includes all adults living in the home, regardless of how they file taxes. Some programs have exceptions for legally separated spouses or domestic violence situations. Ask the program directly whether your specific situation affects the calculation.
If I am over the income limit by $50 a month, can I still explore?
You can explore, but most programs will deny you based on the income limit. However, some programs have discretion for households just over the threshold, and other local programs may have higher limits. It is worth calling 211 to ask whether any program in your area would count you as within range.
Do I have to report my income every month, or just once?
Most programs verify income once per year when you explore or renew. Some ask for updates if your circumstances change significantly. A few programs that provide ongoing information may ask for periodic income updates. The program will tell you what they need and when.
What if I am self-employed and my income varies a lot?
Report your average monthly income over the past 12 months, using tax returns or bank statements as proof. If you had an unusually bad year, bring documentation of that. Some programs will use your current income if it is significantly lower than your historical average, but you have to ask and provide evidence.
Can I include child support I am supposed to receive but have not gotten yet?
Most programs count only income you actually received. If child support is in arrears, do not count it. If you receive it regularly but missed a payment, include it as your normal monthly amount. Bring documentation like bank statements showing the regular deposits.