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Massachusetts HVAC Rebates & Incentives (2026)

By MassHVAC Editorial Team Reviewed by MassHVAC Editorial Team Last updated

What's on the table in 2026 (the short version)

  • Mass Save whole-home heat pump rebate: $2,650/ton, capped at $8,500 per home — down from $3,000/ton in 2025.
  • Mass Save partial-home rebate: $1,125/ton, capped at $8,500.
  • New Basic rebate tier: $250/ton, capped at $2,500 — for heat pump replacement or small unconditioned spaces.
  • HEAT Loan: 0% APR up to $25,000, term length tiered by income (84/60/36 months).
  • IRA-funded HEAR rebates: up to $8,000/household for income-qualified heat pump installs (≤80% AMI) — separate from Mass Save and from the expired federal credits.
  • R-410A heat pumps: removed from the Mass Save HPQPL as of January 1, 2026 — new installs use R-32 or R-454B.
  • Federal Section 25C ($2,000) and 25D (30% geothermal) tax credits: ended December 31, 2025 and have not been reinstated.

Need to act on this? Use the rebate calculator to estimate your number, check which sponsor utility serves your city, or jump to the incentives changelog for the dated record of every program change since 2025.

Massachusetts incentives

The 2026 Mass Save Rebate Tiers

Verified 2026-05-27

Most homes

Whole-Home Heat Pump Rebate

$2,650 /ton

Capped at $8,500 per home

The installed heat pump must be the sole source of heating and cooling for the spaces served. Equipment must be ENERGY STAR Cold Climate certified and listed on the Mass Save Heat Pump Qualified Products List (HPQPL). A Manual J load calculation is needed to qualify for the sizing bonus and is industry-standard practice on Mass Save projects.

Partial-Home / Supplemental Heat Pump Rebate

$1,125 /ton

Capped at $8,500 per home

Heat pump installed alongside an existing primary heating system. Equipment must be on the HPQPL. Lower per-ton rebate reflects supplemental rather than sole-source use.

Basic Heat Pump Rebate

$250 /ton

Capped at $2,500 per home

New for 2026. Applies to replacing an existing heat pump with a new qualified HPQPL-listed heat pump, or conditioning a previously unconditioned space.

+

$500 Right-Sized Equipment Bonus Partial-home

Partial-home installs only. Equipment must be sized to meet 90–120% of the total heating load at the outdoor design temperature, documented via an ACCA Manual J load calculation submitted with the rebate application.

+

$500 Weatherization Bonus Partial-home

Partial-home installs only. Requires a Mass Save Home Energy Assessment plus installation of the recommended weatherization (typically air sealing and insulation) within one year prior to or up to six months after the heat pump installation.

Financing

Mass Save HEAT Loan

0% APR up to $25,000

  • Below 135% of State Median Income: 7 years (84 months)
  • 135%–300% of State Median Income: 5 years (60 months)
  • Over 300% of State Median Income: 3 years (36 months)

Subject to bank underwriting through participating Massachusetts lenders. Covers equipment + installation costs for qualifying high-efficiency upgrades (heat pumps, ductless mini-splits, insulation, water heaters). Households below approximately 81% SMI typically route to Mass Save's no-cost / enhanced-rebate programs rather than the HEAT Loan.

No federal heat pump tax credit applies in 2026.

  • Section 25C Energy Efficient Home Improvement Credit (heat pump portion) (30% of cost up to $2,000 annually for qualifying heat pump installations (inflation reduction act expansion)) ended for property placed in service after 2025-12-31 under the One Big Beautiful Bill Act (P.L. 119-21).
  • Section 25D Residential Clean Energy Credit (geothermal portion) (30% of installed cost for ground-source (geothermal) heat pumps, with no dollar cap) ended for property placed in service after 2025-12-31 under the One Big Beautiful Bill Act (P.L. 119-21).

Status as of 2026-05-27: neither 25C nor 25D has been reinstated or replaced by Congress. Pending bills (e.g. H.R. 616) have not advanced. Pre-2026 §25D installs may carry forward unused credits.

Rebate amounts and eligibility verified 2026-05-27 against primary program documentation. We re-check before any publish.

Get a quote using these rates

Primary source

“Whole-home heat pump rebates: $2,650 per ton, up to $8,500 per home. Eligible projects must use a heat pump as the sole source of heating and cooling for the spaces served and must be on the Heat Pump Qualified Products List.”
—  Accessed

Full rebate tier detail — air-source heat pumps

Whole-Home Heat Pump Rebate

$2,650/ton

Capped at $8,500 per home

The installed heat pump must be the sole source of heating and cooling for the spaces served. Equipment must be ENERGY STAR Cold Climate certified and listed on the Mass Save Heat Pump Qualified Products List (HPQPL). A Manual J load calculation is needed to qualify for the sizing bonus and is industry-standard practice on Mass Save projects.

Down from $3,000/ton in 2025; further reduction (~$2,500/ton) projected for 2027 based on the Three-Year Plan filing.

Source: Mass Save · As of 2026-05-27

Partial-Home / Supplemental Heat Pump Rebate

$1,125/ton

Capped at $8,500 per home

Heat pump installed alongside an existing primary heating system. Equipment must be on the HPQPL. Lower per-ton rebate reflects supplemental rather than sole-source use.

Source: Mass Save · As of 2026-05-27

Basic Heat Pump Rebate

$250/ton

Capped at $2,500 per home

New for 2026. Applies to replacing an existing heat pump with a new qualified HPQPL-listed heat pump, or conditioning a previously unconditioned space.

Source: Mass Save · As of 2026-05-27

Ground-source (geothermal) heat pump rebate tiers

Mass Save administers ground-source (geothermal) heat pump rebates separately from air-source — with a higher cap reflecting the higher installed cost and lifetime efficiency advantage of GSHP. These tiers apply when the heat pump's loop field is buried in the ground (horizontal, vertical-bore, or pond) rather than exchanging heat with outdoor air.

Mass Save Whole-Home Ground-Source (Geothermal) Heat Pump Rebate

$13,500 flat

Single per-home rebate (not per-ton)

Whole-home ground-source heat pump systems that serve as the sole source of heating and cooling for the conditioned space. Equipment must be on the Mass Save HPQPL and installation must be by an HPIN-enrolled installer.

Higher cap than the air-source $8,500 whole-home tier, reflecting the higher installed cost and operating-efficiency advantage of GSHP. Loop installation and drilling are part of the qualifying scope.

Source: Mass Save · As of 2026-05-27

Mass Save Partial-Home Ground-Source (Geothermal) Heat Pump Rebate

$2,000/ton

Capped at $13,500 per home

Partial-home GSHP installs (supplements an existing primary heating system rather than replacing it). Tonnage is calculated from AHRI cooling capacity divided by 12,000 BTUs.

Same $13,500 cap as the whole-home GSHP tier; per-ton scaling applies until the cap is reached.

Source: Mass Save · As of 2026-05-27

Stackable bonuses

Both bonuses below stack with the partial-home heat pump rebate. The sizing bonus requires a Manual J load calculation — read our Manual J explainer to understand the 90–120% load-band rule that determines eligibility.

  • $500 Right-Sized Equipment Bonus. Partial-home installs only. Equipment must be sized to meet 90–120% of the total heating load at the outdoor design temperature, documented via an ACCA Manual J load calculation submitted with the rebate application.
  • $500 Weatherization Bonus. Partial-home installs only. Requires a Mass Save Home Energy Assessment plus installation of the recommended weatherization (typically air sealing and insulation) within one year prior to or up to six months after the heat pump installation.

The Mass Save HEAT Loan (now SMI-tiered)

The Mass Save HEAT Loan offers 0% APR financing up to $25,000. As of January 1, 2025, the term length is tiered by State Median Income (SMI):

  • Below 135% of State Median Income: 7 years (84 months)
  • 135%–300% of State Median Income: 5 years (60 months)
  • Over 300% of State Median Income: 3 years (36 months)

Subject to bank underwriting through participating Massachusetts lenders. Covers equipment + installation costs for qualifying high-efficiency upgrades (heat pumps, ductless mini-splits, insulation, water heaters). Households below approximately 81% SMI typically route to Mass Save's no-cost / enhanced-rebate programs rather than the HEAT Loan. The full HEAT Loan guide covers underwriting, monthly payment math on a typical install, and how the program differs from the parallel MLP Zero-Interest Loan for residents of Municipal Light Plant communities.

Enhanced rebates for income-qualified households

Households below approximately 135% of State Median Income (SMI) qualify for materially higher rebate caps and, below 60% SMI, for no-cost turnkey installation. These programs replace — not stack on top of — the standard $8,500 cap. The full pathway breakdown — Enhanced, HEAR, and Turnkey, and how they stack — lives in the income-qualified heat pump guide; also confirm your eligibility with the Mass Save eligibility guide.

  • Enhanced Air Source Heat Pump (Whole-Home): up to $16,000. Households between approximately 60% and 135% of State Median Income (SMI) on the moderate-income track. Replaces the standard $8,500 cap with up to $16,000 for whole-home air-source heat pump systems. Mass Save reference.
  • Enhanced Ground Source (Geothermal) Heat Pump: up to $25,000. Households between approximately 60% and 135% of SMI on the moderate-income track. Customer account limit: maximum $25,000 across all enhanced incentive offerings. Replaces the standard heat pump rebate caps with up to $25,000 for ground-source (geothermal) systems. Mass Save reference.
  • No-Cost Turnkey Heat Pump Program. Households at or below 60% of State Median Income. Eligible households can receive no-cost project management, contractor oversight, and equipment installation — Mass Save effectively covers the install end-to-end. Apply through the Income Eligible Programs portal. Mass Save reference.

IRA-funded rebates (HEAR + HOMES) — still active

The federal Inflation Reduction Act rebate programs are separate from the expired tax credits and are still flowing. Massachusetts received approximately $145.9 million in IRA rebate funding ($72.8M HEAR + $73.2M HOMES). Because these are appropriations, not tax credits, they were not affected by the One Big Beautiful Bill Act. Both stack with standard Mass Save rebates. The HEAR program deep-dive walks through eligibility, stacking math, and the application sequence.

  • HEAR (Home Electrification & Appliance Rebates) — Heat Pump — up to $8,000 USD per household (federal program design; actual MA delivery routes through Mass Save income-eligible programs). Households at or below 80% of Area Median Income (AMI). Massachusetts has NOT launched HEAR as a standalone consumer rebate — Mass Save's own IRA page (verified 2026-05-27) confirms that DOER and the Mass Save sponsors are integrating HEAR funding into existing no-cost / enhanced income-eligible offerings rather than running it as a separately-claimable $8,000 rebate. Eligible households should apply through the Mass Save income-eligible pathway after completing a Home Energy Assessment. Funded by federal Inflation Reduction Act appropriations (not the expired 25C tax credit, which OBBBA terminated). HEAR funds survive OBBBA because they are appropriations, not tax credits. The $8,000 figure reflects the federal program cap; in Massachusetts the practical benefit typically arrives as a higher-cap Mass Save income-eligible offering (Enhanced ASHP up to $16,000 / Enhanced GSHP up to $25,000) rather than as a separate $8,000 stacked on top of standard rebates. MA received ~$71.8M in HEAR allocations; DOER administers and continues to develop the integration framework. Mass Save IRA page.
  • HOMES (Home Efficiency Rebates) — whole-home retrofit — up to $8,000 USD per household (varies by modeled energy savings and income tier). Open to all Massachusetts households; deeper rebates for those below 80% AMI. Delivered through the Mass Save Deep Energy Retrofit pathway. Requires modeled or measured energy-savings verification. IRA-funded appropriation; survives the OBBBA changes. Less directly relevant to standalone heat pump installs, more relevant to deep-retrofit projects that include weatherization + electrification together. Mass Save IRA page.

HEAR runs through the Mass Save income-eligible pathway via MassCEC; HOMES runs through the Mass Save Deep Energy Retrofit pathway. A Mass Save Home Energy Assessment (4–6 week lead time) is required first in both cases.

Federal tax credits: a settled history

The federal §25C Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps) and §25D Residential Clean Energy Credit (30% for ground-source heat pumps, no cap) both ended for property placed in service after December 31, 2025. Both had been extended through 2032 under the Inflation Reduction Act before the One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) terminated them early.

As of 2026-05-27, neither credit has been reinstated, extended, or replaced. Pending bills — notably H.R. 616 (which would raise the 25C cap to $4,000) — have not advanced out of committee. Massachusetts has not created a state-level bridge credit. If a competing site is still advertising these credits as available, that information is out of date.

  • Section 25C Energy Efficient Home Improvement Credit (heat pump portion). 30% of cost up to $2,000 annually for qualifying heat pump installations (Inflation Reduction Act expansion). Repealed early by the One Big Beautiful Bill Act (Public Law 119-21, 139 Stat. 72, July 4, 2025). The credit had been scheduled to run through 2032 under the IRA; it terminates for property placed in service after December 31, 2025. No credit allowed for property placed in service after December 31, 2025. IRS reference.
  • Section 25D Residential Clean Energy Credit (geothermal portion). 30% of installed cost for ground-source (geothermal) heat pumps, with no dollar cap. Also terminated early by the One Big Beautiful Bill Act for expenditures made after December 31, 2025. No credit allowed for expenditures made after December 31, 2025 (where expenditures are treated as made when the original installation is completed). Pre-2026 installs may carry forward unused credits into later tax years. IRS reference.

Refrigerant rules for 2026 installs

Effective January 1, 2026, EPA rules prohibit installation of new residential and light-commercial heat pump systems using refrigerants with GWPs greater than 700. R-410A units were removed from the Mass Save Heat Pump Qualified Products List on that date. New rebate-qualifying installations must use R-32 or R-454B refrigerant.

Exceptions to the January 1, 2026 R-410A cutoff:

  • Variable refrigerant flow (VRF) systems: R-410A permitted through January 1, 2027.
  • Factory-charged self-contained products (e.g., window units, packaged terminal heat pumps): R-410A permitted through January 1, 2028.

Mass Save HPQPL reference.

Mass Save sponsors (six total)

Use the Mass Save sponsors directory to look up the electric and gas sponsor for your specific Massachusetts city. The six sponsors are:

Customers of Municipal Light Plants (MLPs) — including Belmont, Braintree, Reading, Wakefield, Concord, Hingham, Holyoke, Mansfield, Marblehead, Middleborough, Norwood, Peabody, Shrewsbury, Taunton, Wellesley, Westfield, and roughly 25 others — do not participate in Mass Save. They rely on their own MLP rebate program (e.g. BELD Heat Pump Rebate up to $3,000 in Braintree). See the MLP section in the sponsors directory for the full roster.

MLP residents have a parallel zero-interest loan

Because MLP residents cannot access the Mass Save HEAT Loan, the Commonwealth offers the Massachusetts MLP Zero-Interest Energy Efficiency Loan: 0% APR financing up to $25,000 for qualifying energy efficiency upgrades, including heat pumps. DPU-approved zero-interest loan up to $25,000 for qualifying energy efficiency upgrades, including heat pumps. Apply through your local MLP. This is the MLP equivalent of the Mass Save HEAT Loan, not a stacking option. Mass.gov reference.

All rebate figures on this page were verified 2026-05-27 against the primary sources cited. Mass Save program rates have changed annually for the past three years; we re-verify before any refresh. See the incentives changelog for the full dated record of every rate change, federal credit expiration, and refrigerant cutoff we've tracked since 2025.

Use rebates against a specific HVAC service

Deeper guides on Massachusetts incentives

Estimate your number

Frequently Asked Questions

How much is the Mass Save heat pump rebate in 2026?
The Mass Save whole-home heat pump rebate in 2026 is $2,650 per ton, capped at $8,500 per home. The lower partial-home tier pays $1,125 per ton (same $8,500 cap), and a new basic tier pays $250 per ton (capped at $2,500).
Do I still get a federal tax credit for a heat pump?
No. The federal Section 25C heat pump credit and the Section 25D geothermal credit both expired December 31, 2025 under the One Big Beautiful Bill Act. Property placed in service after that date does not qualify.
What is the Mass Save HEAT Loan?
The Mass Save HEAT Loan is a 0% APR loan up to $25,000 for qualifying energy efficiency upgrades, including heat pumps, ductless mini-splits, and insulation. It is offered through participating Massachusetts banks and subject to standard credit underwriting.
Which utilities qualify for Mass Save rebates in Massachusetts?
Mass Save is sponsored by Eversource, National Grid, Unitil, Cape Light Compact, Berkshire Gas, and Liberty Utilities. Customers of Municipal Light Plants (e.g. Belmont, Braintree, Reading) do not participate in Mass Save and rely on their MLP's own rebate programs.
What refrigerant do 2026 heat pumps use in Massachusetts?
R-32 or R-454B. As of January 1, 2026, R-410A heat pumps were removed from the Mass Save Heat Pump Qualified Products List, so new rebate-eligible installs must use one of the newer lower-GWP refrigerants.
Do I need a Manual J load calculation to get the Mass Save rebate?
Yes. Mass Save effectively requires a Manual J load calculation for whole-home heat pump rebate qualification. Rule-of-thumb sizing forfeits the rebate and frequently leads to oversizing, which hurts efficiency and short-cycles the equipment.

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