Massachusetts Heat Pump Rebates & Incentives (2026)
There are no federal heat pump tax credits in 2026. Massachusetts homeowners now rely on Mass Save rebates — up to $8,500 for whole-home installations, or up to $25,000 for income-qualified households, plus 0% financing and a seasonal electric rate discount worth ~$540 per winter. This guide covers all major Massachusetts heat pump incentives available in 2026, including Mass Save, HEAR, HOMES, and utility-specific programs. Here's what's actually available.
Last verified: March 22, 2026
Rates and program availability may change after this date.
Massachusetts
Open
Mass Save heat pump rebates are active and recently restructured. Whole-home rebates reach $2,650/ton (max $8,500) with income-based adders. Partial-home rebates are $1,125/ton. A $500 sizing bonus and $500 weatherization bonus are available. R-410A refrigerant systems are excluded — must use R-32 or R-454B. Federal tax credits (25C/25D) ended December 31, 2025. HEAR funding is being delivered through Mass Save for households ≤60% AMI.
Short Version
✓ Mass Save rebates — up to $8,500
Whole-home air-source heat pumps at $2,650/ton. Ground-source up to $13,500. HPWH $750 instant. R-32 or R-454B refrigerant required — R-410A no longer eligible.
✓ Income-qualified — up to $25,000
Enhanced rebates for households at or below 60% state median income. Lowest-income households may qualify for no-cost installation with full project management.
✓ Total potential savings
$8,500 (above 150% AMI) to $25,000+ (below 60% SMI). Full electrification packages with weatherization, HEAT Loan, and AECs can reach ~$35,000 total incentives.
✗ Federal tax credits expired
Section 25C ($2,000/year) and Section 25D (30% for geothermal) both ended December 31, 2025. No replacement legislation proposed.
⚠ Rebates are declining annually
Whole-home dropped from $3,000/ton in 2025 to $2,650/ton in 2026, with ~$2,500/ton projected for 2027. The DPU cut the Mass Save plan by $500M. Earlier action means higher savings.
Federal Tax Credits Ended
Section 25C (Energy Efficient Home Improvement Credit) provided 30% up to $2,000/year for heat pumps and heat pump water heaters. Section 25D (Residential Clean Energy Credit) provided 30% with no dollar cap for geothermal installations. Both were terminated by the One Big Beautiful Bill Act, signed July 4, 2025. The IRS confirmed the credits apply only to property placed in service through December 31, 2025. Many websites still incorrectly list these credits as available through 2032. Full details on federal credit expiration →
With federal credits gone, Mass Save is the entire incentive program for Massachusetts homeowners. There are no state tax credits for heat pumps. The state's value comes from high rebate amounts, 0% financing, and the seasonal electric rate — all delivered through Mass Save.
Mass Save Heat Pump Rebates
Mass Save — the statewide program funded by Eversource, National Grid, Cape Light Compact, Unitil, Berkshire Gas, and Liberty Utilities — offers three tiers of air-source heat pump rebates in 2026. All systems must be ENERGY STAR Cold Climate certified, appear on the Mass Save Qualified Products List, and use next-generation refrigerants (R-32 or R-454B). R-410A systems are no longer eligible as of January 1, 2026.
Air-Source Heat Pump Rebates
| Tier | Per-Ton Rebate | Per-Home Cap | Key Requirement |
|---|---|---|---|
| Whole-home | $2,650/ton | $8,500 | Remove/disconnect fossil fuel system; home must be sufficiently weatherized |
| Partial-home | $1,125/ton | $8,500 | Integrated controls from QPL; fossil fuel backup switches at ≤30°F (gas/oil) or ≤5°F (propane) |
| Basic | $250/ton | $2,500 | Replacing existing heat pump, additions under 500 sq ft, or previously unconditioned spaces |
Partial-home installations can earn two additional bonuses: a $500 sizing bonus when sized via ACCA Manual J to meet 90–120% of total heating load, and a $500 weatherization bonus when recommended insulation and air sealing are completed within 12 months.
Ground-Source & Water Heating
| Equipment | Rebate | Notes |
|---|---|---|
| Ground-source HP (whole-home) | $13,500 flat | Down from $15,000 in 2025 |
| Ground-source HP (partial) | $2,000/ton (cap $13,500) | Cape Light Compact cap is $15,000 |
| Heat pump water heater | $750 instant | Point-of-sale via participating retailers — no mail-in claim |
Income-Qualified Enhanced Rebates
Mass Save dramatically increases rebate values for lower-income households. A family of four earning $132,764 or less may qualify. Households enrolled in SNAP, MassHealth, LIHEAP, or fuel assistance may auto-qualify without income documentation.
| Equipment | Standard | Income-Qualified |
|---|---|---|
| Air-source HP (whole/partial) | Up to $8,500 | Up to $16,000 |
| Air-source HP (lowest income, turnkey) | — | Up to no cost |
| Ground-source HP | $13,500 | Up to $25,000 |
| Weatherization | 75% off | No-cost (100%) |
| Electrical panel upgrades | Not covered | Up to 100% covered |
✓ Best candidates for Massachusetts heat pumps
Income-qualified households (below 60% SMI) eligible for no-cost turnkey installation. Oil or propane heating households converting to whole-home heat pumps ($2,650/ton tier). Homeowners ready to act in 2026 before rebates decline further. Households already weatherized or built after 2000 (fastest path to whole-home tier).
HEAR & HOMES: Authorized But Not Yet Live
Massachusetts was allocated $145.9 million in IRA funding — $72.8M for Home Electrification and Appliance Rebates (HEAR) and $73.2M for the Home Efficiency Rebates (HOMES) program. The Department of Energy Resources (DOER) is integrating HEAR directly into Mass Save's existing income-eligible programs, so there will be no separate application process.
⚠ HEAR not yet launched for individual homeowners
As of March 22, 2026, HEAR has not fully launched for standard homeowner applications. When active, HEAR could provide up to $8,000 per household for heat pumps for households at or below 80% of Area Median Income (AMI). Check masssave.com for updates.
The HOMES allocation is split between a Municipal Light Plant program (~$25M for 50 communities not covered by Mass Save) and an Affordable Housing Decarbonization Grant Program (~$45M for deed-restricted affordable rental housing). Neither is available to individual homeowners in standard Mass Save territory.
Massachusetts HEAR integration approach
Unlike most states launching HEAR as a standalone program, Massachusetts is layering HEAR funding into the existing Mass Save income-eligible framework. This means no separate application — but it also means HEAR benefits are limited to households already qualifying for Mass Save's enhanced tier (at or below 60% SMI). Households between 60–80% AMI may need to wait for full HEAR deployment.
Utilities: Same Base Rebates, Some Differences
All four major utility program administrators deliver Mass Save rebates at identical standard amounts. There are no utility-specific add-on rebates beyond the Mass Save framework. Key differences are in supplementary programs and territory-specific offerings.
| Utility | HP Rebate | Unique Feature |
|---|---|---|
| Eversource | Standard Mass Save | Barrier mitigation up to $7,000 (knob-and-tube, vermiculite) |
| National Grid | Standard Mass Save | No unique add-on programs |
| Cape Light Compact | Standard Mass Save | GSHP partial cap $15,000 (vs $13,500); 80–100% for income-qualified |
| Unitil | Standard Mass Save | No unique programs |
How Programs Stack
Mass Save rebates stack with the HEAT Loan (0% APR), Alternative Energy Credits, the 6.25% sales tax exemption, and the seasonal electric rate. You cannot combine multiple Mass Save rebate types on the same piece of equipment. Federal tax credits are no longer available. When HEAR launches, it will stack for income-eligible households only.
Above 150% AMI — Whole-Home Ducted ASHP (3 ton)
- Mass Save whole-home rebate: $7,950 (3 × $2,650)
- Sales tax exemption (6.25%): ~$625
- Alternative Energy Credits: ~$400
- HEAT Loan (0% APR, up to $25,000): covers remaining cost
- Seasonal electric rate: ~$540/winter ongoing
Realistic maximum: ~$8,975
80–150% AMI — Partial-Home ASHP (3 ton) with bonuses
- Mass Save partial-home rebate: $3,375 (3 × $1,125)
- Sizing bonus: $500
- Weatherization bonus: $500
- Sales tax exemption: ~$625
- Alternative Energy Credits: ~$400
- HEAT Loan (0% APR): covers remaining cost
Realistic maximum: ~$5,400
Below 60% SMI — Income-Qualified Whole-Home ASHP
- Mass Save enhanced rebate: up to $16,000
- Weatherization: no-cost (100% covered)
- Electrical panel upgrade: 100% covered
- HEAR (when launched): up to $8,000 additional
- HEAT Loan: typically unnecessary at this tier
Realistic maximum: ~$25,000+ (potentially no cost)
What you'll actually pay
For a typical 3-ton whole-home ASHP installation (~$18,000–$22,000 installed), expect $9,000 to $14,000 out of pocket for households above 150% AMI after Mass Save rebate, sales tax exemption, and AECs. The HEAT Loan covers the remainder at 0% interest. Income-qualified households pay significantly less — potentially nothing.
Massachusetts does not offer a state tax credit for heat pumps. The primary financial tools beyond rebates are the HEAT Loan, AECs, and the seasonal electric rate.
Weatherization & Additional Perks
Whole-home rebates require the home to be sufficiently weatherized — built after 2000, past weatherization completed, or less than $1,000 in remaining weatherization needs. Mass Save covers 75% of weatherization costs for standard households and 100% for income-eligible households. A no-cost Home Energy Assessment (call 866-527-7283) identifies what's needed.
Seasonal heat pump electric rate (~$540/winter)
Since November 2025, Eversource, National Grid, and Unitil offer reduced distribution and transmission charges for heat pump households from November 1 through April 30. Over 100,000 customers were auto-enrolled — those who installed heat pumps through Mass Save since January 2019. A Switchbox/Acadia Center analysis found 64% of Massachusetts households would save money switching to a heat pump under these rates.
0% HEAT Loan — up to $25,000
Covers costs remaining after rebates at 0% APR. Terms are income-tiered: 7 years at or below 135% state median income, 5 years for 135–300% SMI, and 3 years above 300% SMI. The Massachusetts Community Climate Bank also offers the Energy Saver Home Loan (0.5–2% interest, up to $100,000, 20-year terms) for households up to 135% AMI.
Sales tax exemption (6.25%)
Heat pump equipment is exempt from the 6.25% Massachusetts sales tax under MGL 64H.6(dd). Applied at the point of purchase. Stacks with all other incentives.
Alternative Energy Credits (AECs)
Earned through the DOER's Alternative Energy Portfolio Standard and pre-minted for 10 years upfront. Current market value: approximately $300–$500 for an air-source heat pump and $900–$1,200 for a ground-source system. The application is complex — DOER recommends working through an AEC aggregator.
Climate Context
Massachusetts is a cold-climate state where heat pumps must handle extended sub-zero periods. Mass Save requires ENERGY STAR Cold Climate certification for all rebate-eligible systems. Modern cold-climate heat pumps maintain rated output down to 5°F and continue operating below –13°F.
| City | ASHRAE 99% Design Temp | Primary Heating Fuel |
|---|---|---|
| Boston | 9°F | Natural gas |
| Worcester | 4°F | Natural gas / oil |
| Springfield | 5°F | Natural gas / oil |
| Cape Cod | 12°F | Oil / propane |
Households displacing oil or propane see the strongest economics — oil heating costs $2,500–$3,500 per winter in Massachusetts, while a properly sized cold-climate heat pump with the seasonal electric rate can cut that significantly. Natural gas conversions offer smaller savings but still benefit from the whole-home rebate tier. For more on how heat pumps pair with home batteries, see our battery guide.
⚠ Common mistake: skipping weatherization
Installing a heat pump in a poorly insulated Massachusetts home wastes money twice — the system runs harder, and you miss the whole-home rebate tier ($2,650/ton vs $1,125/ton). Schedule the free Home Energy Assessment first. If weatherization is needed, Mass Save covers 75–100% of the cost and the $500 weatherization bonus applies to partial-home installs.
How to Apply
Confirm eligibility at masssave.com
Use the online pre-verification tool. Enter your utility account number to confirm your home is in a participating territory.
Schedule a no-cost Home Energy Assessment
Call 866-527-7283. Whole-home rebates require the home to be sufficiently weatherized (built after 2000, past weatherization completed, or less than $1,000 in remaining work).
Find a qualifying contractor
Use the Heat Pump Installer Network (HPIN) at masssave.com. Only HPIN-enrolled contractors can process rebates.
Purchase, install, and submit rebate form
Install eligible equipment between January 1 and December 31, 2026. Submit the rebate form online or by mail with required documentation by February 28, 2027.
What to Watch
HEAR launch timing
When DOER finalizes DOE approval and fully launches HEAR through Mass Save, income-eligible households will gain access to an additional $8,000 in federal point-of-sale rebates.
IRA funding runway
Massachusetts's $145.9M allocation is authorized but the federal funding environment remains uncertain. Program availability depends on continued DOE disbursement.
Rebates trending downward
Whole-home dropped from $3,000/ton in 2025 to $2,650/ton in 2026, with ~$2,500/ton projected for 2027. The DPU cut the 2025–2027 Mass Save plan by $500M (from $5B to $4.5B), with the entire reduction from the residential program.
Clean Heat Standard delayed
Originally set for 2026, now postponed to no earlier than 2028. Would have required heating fuel suppliers to earn clean heat credits — potentially creating additional incentive pathways.
Frequently Asked Questions
What heat pump rebates are available in Massachusetts in 2026?
Mass Save offers up to $8,500 for whole-home air-source heat pump installations ($2,650 per ton), up to $13,500 for ground-source systems, and $750 for heat pump water heaters. Income-qualified households can receive up to $16,000–$25,000, and the lowest-income households may qualify for no-cost installation. Federal tax credits (25C/25D) ended December 31, 2025.
Can I stack Mass Save rebates with other incentives in Massachusetts?
Yes. Mass Save rebates stack with the HEAT Loan (0% APR, up to $25,000), Alternative Energy Credits, the 6.25% sales tax exemption on heat pump equipment, and the seasonal heat pump electric rate. You cannot combine multiple Mass Save rebate types on the same piece of equipment. Federal tax credits are no longer available to stack.
What is the seasonal heat pump electric rate in Massachusetts?
Since November 2025, Eversource, National Grid, and Unitil offer reduced distribution and transmission charges for heat pump households from November 1 through April 30 each year. The DPU estimates average savings of approximately $540 per winter. Customers who installed heat pumps through Mass Save since January 2019 were auto-enrolled.
Who administers Massachusetts heat pump rebate programs?
Mass Save is administered jointly by Eversource, National Grid, Cape Light Compact, Unitil, Berkshire Gas, and Liberty Utilities. All four major electric utilities deliver identical standard rebate amounts. The Department of Energy Resources (DOER) oversees IRA-funded HEAR and HOMES programs, which are being integrated into Mass Save.
Are R-410A heat pumps eligible for Mass Save rebates in 2026?
No. As of January 1, 2026, R-410A refrigerant systems are no longer eligible for Mass Save heat pump rebates. Only systems using next-generation refrigerants (R-32 or R-454B) qualify. All eligible systems must also be ENERGY STAR Cold Climate certified and appear on the Mass Save Qualified Products List.
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Massachusetts homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Mass Save rebate amounts, income thresholds, and program terms are set by the program administrators and may change during the plan year. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with Mass Save (masssave.com or 866-527-7283) and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)