Unlock Savings with Heat Pump Rebates and Credits in Mass
Updated January 2025
Are you considering upgrading or installing a heat pump in your Massachusetts home? Great news! Various rebates and credits can significantly reduce the cost. Here’s a detailed overview of the current opportunities:
Air-to-Water Heat Pumps
Air-to-water heat pumps are an efficient solution for heating your home and providing hot water by extracting heat from the air and transferring it to water, suitable for radiators, underfloor systems, and domestic hot water.
Rebates: Up to $16,000 available for high-efficiency air-to-water heat pumps. These rebates are valid through December 31, 2025.
Federal Tax Credits: Available through December 31, 2032, providing further cost reductions.
Enhanced Incentives: Additional rebates for low-to-moderate income households, ensuring more people can benefit from these advanced heating systems.
Eligibility
Existing fuel type must be oil, propane, or electric resistance.
Installation must be done by a contractor from the Mass Save Heat Pump Installer Network.
Weatherization Requirement
Before installing a heat pump, your home must be properly weatherized with adequate insulation and air sealing. This maximizes efficiency and performance.
For more details, visit the Mass Save website.
Air Source Heat Pumps
Air source heat pumps efficiently heat and cool homes by transferring heat between the inside and outside air.
Rebates Effective January 1, 2025:
Whole-Home Systems: Homeowners can receive up to $10,000 in rebates for whole-home systems, which provide comprehensive heating and cooling solutions for the entire home.
Partial-Home Systems: For partial-home systems, rebates are available up to $1,250 per ton. These systems are ideal for supplementing existing heating and cooling solutions or for use in specific areas of the home.
Federal Tax Credits: Qualify under Section 25C and Section 25D through December 31, 2032.
Eligibility
The system must meet efficiency standards and be installed by a qualified contractor.
For details on participation and eligibility, visit the Mass Save website.
Federal Government Incentives
The federal government offers the Energy Efficient Home Improvement Credit (Section 25C):
Tax Credit: 30% of qualifying heat pump costs, up to $2,000 per year, available through December 31, 2032.
Qualifying Expenses: Includes heat pumps, central air conditioners, water heaters, insulation, windows, and more.
Nonrefundable: The credit cannot exceed the amount of taxes owed.
For more information, visit the IRS Energy Efficiency Tax Credit page.
Taking advantage of these rebates and credits makes heat pump installation or upgrades more affordable. By working with qualified professionals and understanding eligibility requirements, you can reduce energy bills, lower your carbon footprint, and enhance your home’s comfort.
At PropertyCraft, we’re committed to keeping you updated on valuable incentives. Whether your goal is to save money, improve efficiency, or contribute to a greener future, we’re here to help you make smart investment decisions.