Massachusetts Heat Pump Rebates 2026 — Mass Save + HEAT Loan After Federal 25C Expired

The 2026 Massachusetts heat pump landscape — what’s changed and what still works

Two things happened in late 2025 that every Massachusetts homeowner shopping heat pumps needs to understand before calling a contractor: the federal Energy Efficient Home Improvement Credit (IRS 25C) expired on December 31, 2025, and the full weight of the incentive picture now rests on the state’s own programs. The good news is that Massachusetts runs what most energy policy analysts consider the most comprehensive state-level heat pump incentive structure in the country. The federal sunset hurts less here than in most states.

Mass Save is the umbrella program that most homeowners encounter first. It’s administered by a consortium of Massachusetts investor-owned utilities — Eversource, National Grid, and Cape Light Compact — and it covers cold-climate air source heat pumps, ground source systems, and heat pump water heaters. Incentive amounts flow through a statewide network of Mass Save–approved HVAC contractors, typically reducing your installation invoice rather than requiring a separate rebate application.

On top of the standard Mass Save rebates, the income-eligible tier of Mass Save is Massachusetts’s vehicle for the federal HEEHRA (High-Efficiency Electric Home Rebate Act) funding from the Inflation Reduction Act. For households below 80% of Area Median Income, the program can cover 100% of installation costs up to a cap. For households between 80% and 150% AMI — the moderate-income tier — it covers 50% of project costs.

There’s also the Mass Save HEAT Loan: 0% interest financing available for qualifying heat pump installations, with repayment terms that spread the residual cost over years. This is a financing tool, not a grant, but for households that don’t qualify for the income-eligible tier, it’s one of the most accessible paths to a manageable upfront cost.

One critical carve-out before we go further: roughly 40 Massachusetts towns are served by Municipal Light Plants (MLPs) — local, publicly owned utilities that are explicitly excluded from the Mass Save program. If you live in an MLP town, you are not served by Eversource, National Grid, or Cape Light Compact, and the standard Mass Save rebates do not apply to you. We’ll cover this in detail below.

Important note on source availability: All three primary Mass Save program pages (rebates, income-eligible, HEAT Loan) returned 403 access errors when we verified sources for this page in May 2026. The program figures below are drawn from Mass Save’s publicly documented 2025–2027 Three-Year Plan, verified via state energy policy references. Verify current amounts directly at masssave.com before making any installation decision — amounts in the 2025–2027 Three-Year Plan are subject to change at the program’s annual budget cycle.

The programs, walked through one by one

Mass Save — standard cold-climate ASHP incentives

Mass Save’s core heat pump rebate program uses a per-project structure tied to the type of heating fuel being replaced and whether the installation converts the whole home versus a partial zone.

Whole-home conversion (replacing oil, propane, or gas heat with a heat pump as the primary system):

• Standard market-rate incentive: up to $10,000 per whole-home installation
• Geothermal (ground source) systems: up to $15,000

What “whole-home” requires: The system must become the primary heating source for the home, not a supplemental zone added alongside an existing fossil fuel system. Mass Save reviewers verify this at inspection.

Equipment requirement: Cold-climate rating is mandatory. Mass Save defines qualifying systems as those that maintain rated capacity at temperatures at or below 5°F. For the Berkshires and western Massachusetts (IECC zone 6A), a unit rated to −13°F or lower is the practical standard for adequate heating on the coldest design days.

Status: The Mass Save program operates under a Three-Year Efficiency Plan approved by the Massachusetts Department of Public Utilities. The current plan runs 2025–2027. Incentive amounts are set at the start of each plan cycle and can be adjusted at the DPU’s direction. Verify current figures directly at masssave.com before committing to a project timeline.

Note on source access: The official masssave.com rebate pages were inaccessible (HTTP 403) at time of writing. Program amounts above reflect the 2025 publicly documented plan; verify directly before applying.

Mass Save Income-Eligible Program — the HEEHRA pathway

This is where the math changes most dramatically for lower- and moderate-income households. Massachusetts channels its federal HEEHRA funding through Mass Save’s Income-Eligible Program, which uses HUD Area Median Income (AMI) thresholds to determine coverage:

Low-income tier (household income at or below 80% of county AMI):

• 100% of qualifying installation costs covered, up to program cap
• Cap for whole-home heat pump installation: approximately $8,000 for the HEEHRA-funded component (verify directly — caps follow the federal HEEHRA framework and are subject to change)

Moderate-income tier (household income between 80% and 150% of county AMI):

• 50% of qualifying installation costs covered, up to program cap
• Cap for whole-home heat pump installation: approximately $4,000 for the HEEHRA-funded component

Note that the Income-Eligible Program can layer on top of — or in combination with — the standard Mass Save whole-home rebate. The interaction between these tiers is program-specific and depends on how the installer structures the reservation. Ask your Mass Save contractor to confirm how both benefits apply to your project.

Income verification: Participants must provide income documentation. Acceptable documentation includes recent pay stubs, prior-year tax returns, or benefit award letters (for households receiving qualifying assistance programs). Contact Mass Save directly for current documentation requirements.

Status: Actively accepting applications as of our last verification. Federal HEEHRA funding underpins the income-eligible tier — check current program status at masssave.com/income-eligible-programs before applying, as federal funding levels can shift.

Mass Save HEAT Loan

The Mass Save HEAT Loan is 0% interest financing for qualifying energy efficiency improvements, including heat pump installations. Key terms:

• Interest rate: 0% — no interest for the life of the loan
• Maximum loan amount: up to $25,000 per project
• Repayment term: up to 7 years

The HEAT Loan is offered through a network of Massachusetts-based lenders that have partnered with Mass Save — you don’t go to any bank; you apply through one of the program-approved lenders. Approval depends on standard creditworthiness criteria. Not all applicants are approved.

How it fits with rebates: The rebate reduces your total project cost first. The HEAT Loan then finances whatever is left. For a $15,000 installation with a $10,000 Mass Save rebate and a $2,500 income-eligible benefit, the HEAT Loan would cover the remaining ~$2,500 at 0% for up to 7 years — a payment of about $30/month. Even for moderate-income households who don’t qualify for full income-eligible coverage, the HEAT Loan makes the net cost very manageable.

Important: HEAT Loan eligibility requires using a Mass Save–approved installer. A contractor who is not enrolled in the Mass Save Heat Pump Installer Network cannot generate a HEAT Loan-eligible project reservation.

MassCEC — not a separate program

As of our research in May 2026, MassCEC (Massachusetts Clean Energy Center) does not operate a distinct consumer-facing heat pump rebate program separate from Mass Save. MassCEC previously ran a Clean Heat initiative, but that program has been absorbed into the Mass Save framework administered by the utilities. The masscec.com Clean Heat program page returned a 404 error at time of writing, and no separate consumer heat pump rebate was listed on MassCEC’s main site. If MassCEC launches new direct-to-consumer programming, we’ll update this page. For now: all roads lead to masssave.com.

Municipal Light Plants (MLPs) — the 40-town carve-out

This is the biggest geographic gotcha in Massachusetts’s incentive picture. Roughly 40 towns in Massachusetts are served by Municipal Light Plants rather than the investor-owned utilities (Eversource, National Grid, Cape Light Compact). MLP residents pay their electric bills to their town’s light department, not to Eversource or National Grid — and they are explicitly excluded from the Mass Save program.

Some of the more prominent MLP towns include:

• Concord (served by Concord Light)
• Belmont (served by Belmont Light)
• Reading (served by Reading Municipal Light Department)
• Shrewsbury (served by Shrewsbury Electric)
• Norwood (served by Norwood Light)
• Wellesley (served by Wellesley Municipal Light Plant)
• Hingham (served by Hingham Municipal Lighting Plant)

If you’re in an MLP town, your electric utility has its own rebate programs and efficiency services — which vary significantly by light plant. Some MLPs have robust programs that roughly parallel Mass Save; others offer minimal incentives. Contact your MLP directly before assuming any Mass Save rebate applies to you.

Federal 25C — expired for 2026 installations

The federal IRS Energy Efficient Home Improvement Credit (Section 25C) allowed homeowners to claim up to $2,000 per year for qualifying heat pump installations. It was nonrefundable, meaning it reduced your tax bill but couldn’t generate a refund beyond your tax liability.

The credit expired on December 31, 2025. For 2026 installations, there is no federal tax credit. If you installed a qualifying heat pump in 2023, 2024, or 2025, you can still claim the credit on the relevant year’s return. A 2025 installation is claimable on your 2025 return (filed in spring 2026), but you must report the Qualified Manufacturer Identification Number (QMID) for the equipment on Form 5695. Systems without a QMID on file cannot claim the 2025 credit.

Incentive stack table

Here’s every current Massachusetts program in one view:

Worked example: moderate-income household, eastern Massachusetts

Scenario: A homeowner in Newton, Middlesex County — Eversource territory, IECC zone 5A — with a 1,800 sq ft 1960s ranch. Household of four, income of $130,000. Replacing a gas furnace and window air conditioners with a multi-zone cold-climate heat pump system.

AMI calculation (required step):

Middlesex County falls within the Boston–Cambridge–Newton, MA–NH HUD Metro FMR Area. Per HUD’s FY2024 Income Limits tables (huduser.gov/portal/datasets/il.html), the 4-person median family income for this metro area is approximately $147,000. (Verify the current year’s figure directly at huduser.gov before applying — HUD updates these annually.)

• 4-person AMI (HUD 2024, Boston metro): approximately $147,000
• 80% AMI threshold: 0.80 × $147,000 = approximately $117,600
• 150% AMI threshold: 1.50 × $147,000 = approximately $220,500

A $130,000 household income sits between the 80% threshold ($117,600) and the 150% threshold ($220,500), placing it at approximately 88% of AMI — squarely in the moderate-income tier (80–150% AMI) of Mass Save’s Income-Eligible program and the federal HEEHRA framework.

This household does not qualify for the low-income (≤80% AMI) tier. It does qualify for the moderate-income (80–150% AMI) tier with 50% cost coverage.

Equipment needed: For a 1,800 sq ft home in IECC zone 5A with a gas-heat baseline, a multi-zone system in the 30k–36k BTU range is typical. A fully installed cold-climate multi-zone system in Newton including permits and electrical upgrades typically runs $14,000–$18,000. We’ll use $16,000 as a working midpoint.

Available incentives:

• Federal 25C: $0 — credit expired December 31, 2025.
• Mass Save whole-home incentive: Up to $10,000. Requires a Mass Save Heat Pump Installer Network contractor. The full $10,000 applies to a whole-home conversion where the heat pump replaces the gas furnace as the primary heating system.
• Mass Save Income-Eligible (moderate-income tier, 80–150% AMI): 50% of project cost up to approximately $4,000 HEEHRA-funded cap. At $16,000 project cost, 50% would be $8,000 — but the HEEHRA component is capped at approximately $4,000 for the moderate tier. Verify the exact combined amount with your Mass Save contractor, as the program may apply both the standard incentive and the income-eligible component in specific ways.
• Mass Save HEAT Loan: Available for the residual cost at 0% interest, up to $25,000, 7-year term.

Net cost calculation:

• Install cost: $16,000 (midpoint estimate)
• Mass Save whole-home incentive: −$10,000
• Mass Save income-eligible moderate-income component: −$2,000 to −$4,000 (verify exact interaction with standard incentive)
• Subtotal after grants: $2,000–$4,000
• HEAT Loan available for residual: 0% interest, 7-year term → approximately $24–$48/month on remaining balance

This is one of the most favorable stack profiles in the country for a moderate-income household. Even with 25C gone, a $16,000 installation in Newton can realistically cost $2,000–$4,000 out of pocket (after grants), with the remainder financed at 0% interest.

Practical step: Before anything else, confirm your contractor is enrolled in the Mass Save Heat Pump Installer Network. Search at masssave.com. A well-reviewed contractor who isn’t enrolled costs you the entire Mass Save rebate — this is the single most common mistake in Massachusetts heat pump projects.

Worked example: low-income household, western Massachusetts

Scenario: A homeowner in Northampton, Hampshire County — Eversource territory, IECC zone 5A/6A border. A 1,500 sq ft 1975 cape, modestly insulated. Household of four, income of $55,000. Replacing an oil furnace with a cold-climate heat pump system.

AMI calculation (required step):

Hampshire County falls within the Springfield, MA HUD Metro FMR Area (covering Hampden and Hampshire counties). Per HUD’s FY2024 Income Limits tables (huduser.gov/portal/datasets/il.html), the 4-person median family income for the Springfield metro area is approximately $93,000. (Verify the current year’s figure directly at huduser.gov — HUD updates these annually.)

• 4-person AMI (HUD 2024, Springfield metro/Hampshire County): approximately $93,000
• 80% AMI threshold: 0.80 × $93,000 = approximately $74,400
• 150% AMI threshold: 1.50 × $93,000 = approximately $139,500

A $55,000 household income sits below the 80% threshold ($74,400), placing this household at approximately 59% of AMI — solidly in the low-income tier (≤80% AMI) of Mass Save’s Income-Eligible program and the federal HEEHRA framework.

This household qualifies for 100% coverage of qualifying installation costs under the low-income tier, up to the HEEHRA program cap.

Climate note: Northampton is at the IECC zone 5A/6A boundary. Hampshire County winters regularly see sustained temperatures below 0°F, and the higher-elevation areas of the county cross into zone 6A conditions. For this home, a cold-climate unit rated to at least −13°F is the right specification — not just for rebate eligibility, but for adequate heating performance through January and February.

Equipment needed: For a 1,500 sq ft cape in this climate with an oil-heat baseline, a 24k–30k BTU cold-climate system is typically right-sized. Full installation including permits and any electrical panel upgrade (common in mid-1970s homes in this area) runs approximately $11,000–$14,000. We’ll use $12,500 as a working midpoint.

Available incentives:

• Federal 25C: $0 — credit expired December 31, 2025.
• Mass Save whole-home incentive: Up to $10,000 for the standard rebate tier.
• Mass Save Income-Eligible (low-income tier, ≤80% AMI): 100% of qualifying installation costs, with the HEEHRA-funded component covering up to approximately $8,000. Combined with the standard Mass Save whole-home incentive, the total grant coverage can approach or exceed the full project cost.
• Mass Save HEAT Loan: May not be needed at this tier if grants cover the full project cost. Available if any residual remains.

Net cost calculation:

• Install cost: $12,500 (midpoint estimate)
• Mass Save whole-home incentive: −$10,000
• Mass Save income-eligible low-income component (HEEHRA): −up to $8,000 (applied to remaining project cost after standard incentive, capped at project cost)
• Potential out-of-pocket: $0 (total grant coverage likely exceeds $12,500 project cost)

For a low-income household in Northampton replacing an oil furnace, this is a genuine zero-out-of-pocket pathway. The combined Mass Save whole-home rebate and low-income income-eligible component is designed for exactly this scenario.

The practical caveat: Program caps and the exact interaction between the standard incentive and the income-eligible component depend on how Mass Save structures the reservation for your specific project. Your Mass Save contractor will run the combined incentive calculation. Before assuming zero out-of-pocket, confirm the stacked amounts with the contractor and verify current program caps directly at masssave.com. Funding levels can change within the Three-Year Plan cycle.

Eligibility gotchas unique to Massachusetts

The Mass Save Heat Pump Installer Network is non-negotiable. Mass Save rebates — including the income-eligible tier and HEAT Loan eligibility — flow through contractors enrolled in the Mass Save Heat Pump Installer Network. Homeowners cannot apply independently after installation. The contractor must create the program reservation before installation begins. A contractor who isn’t enrolled, no matter how highly reviewed, means forfeiting the entire incentive stack. Before signing any contract, verify enrollment at masssave.com by searching the contractor name. This is the single highest-stakes step in the Massachusetts heat pump process.

MLP territories are completely excluded from Mass Save. If your electric bill comes from a municipal light department rather than Eversource, National Grid, or Cape Light Compact, you are not in the Mass Save service territory. MLP towns include Concord, Belmont, Reading, Shrewsbury, Norwood, Wellesley, Hingham, and approximately 35 others. To find out if you’re in an MLP town, call the phone number on your electric bill. If you are, contact your light department directly for their heat pump rebate and efficiency programs.

Cold-climate equipment is required for zone 6A — and strongly recommended for zone 5A. For the Berkshires, Franklin County, and western Hampshire County (IECC zone 6A), a non-cold-climate unit will not qualify for Mass Save’s higher incentive tiers and will also fail to heat adequately on the coldest nights. Design temperatures in zone 6A regularly reach −10°F to −20°F. Look for units in the NEEP cold-climate specification: rated to maintain capacity at 5°F or below, with better units rated to −13°F. For eastern Massachusetts (zone 5A), the same cold-climate standard applies for rebate eligibility — and is practically necessary given Boston-area winters.

AMI thresholds vary by county — and vary significantly across Massachusetts. The income tiers for the Mass Save Income-Eligible program use HUD Area Median Income figures specific to your county’s metro area. Eastern Massachusetts (Boston metro) has some of the highest AMI figures in the country; western Massachusetts (Springfield metro) has considerably lower figures. This means a household income that qualifies for the moderate-income tier in Hampshire County might be below the low-income threshold when compared against Boston metro AMI. Verify the current HUD AMI table for your county at huduser.gov before assuming your income tier.

HEAT Loan requires lender approval. The 0% interest HEAT Loan is not guaranteed — it requires a credit check from one of Mass Save’s partner lenders. Applicants with poor credit history may not be approved. If HEAT Loan approval is uncertain, discuss this with your contractor early in the process, as it affects project financing.

Income documentation must be gathered before application. The Mass Save Income-Eligible program requires income verification documents as part of the application. Common required documents include the most recent federal tax return, recent pay stubs, or benefit award letters. Gathering these before scheduling your project reservation avoids delays.

Eligible product picks by Massachusetts climate zone

Massachusetts divides into two meaningfully different IECC climate zones, and the right equipment spec changes depending on which side of the state you’re on.

Eastern and central Massachusetts (zone 5A) — cold-climate required

Greater Boston, the North Shore, the South Shore, and central Massachusetts fall in IECC zone 5A. Winter design temperatures hover around 5–10°F, with cold snaps reaching below 0°F. Standard inverter mini-splits lose significant capacity below 20°F; a cold-climate rated system is the right spec for this climate and the Mass Save rebate requirement.

For a zone 5A retrofit — a 700–1,100 sq ft space, a primary bedroom addition, or a home office conversion — the Mr Cool DIY 24k covers typical single-zone loads and uses a pre-charged DIY line set that a licensed electrician can complete without a specialty refrigerant technician on site.

Berkshires and western Massachusetts (zone 6A) — extended cold-climate spec

The Berkshire Hills, Franklin County, and the higher elevations of Hampshire County are in IECC zone 6A. Winter design temperatures in Pittsfield and the surrounding area regularly reach −10°F to −20°F. This climate demands a unit specifically rated for extended cold — one that maintains useful heating capacity well below 0°F.

The Mr Cool Hyper 18k is built for this operating range, with a rated heating capacity floor of −13°F. For a single zone — a primary bedroom, a study, or a converted mudroom — this is the right fit for zone 6A western Massachusetts.

Whole-home retrofit (either zone) — multi-zone capable

For homeowners doing a full home conversion — replacing a central furnace with a distributed heat pump system covering multiple zones — the 36k BTU multi-zone class is the right starting point for a 1,500–2,200 sq ft home. Multi-zone configurations let you assign separate indoor handlers to different rooms or levels, so you’re not conditioning an empty guest bedroom to the same setpoint as the main living area.

For western Massachusetts whole-home applications in zone 6A, discuss backup heat strategy with your Mass Save contractor. Particularly in Berkshire County, retaining a backup heating source for nights below the heat pump’s design temperature floor is prudent.

What changes after mid-2026

Mass Save operates under the 2025–2027 Three-Year Efficiency Plan approved by the Massachusetts Department of Public Utilities. This plan provides structural funding stability through 2027, which is more durability than most state programs offer. But “funded through 2027” doesn’t mean incentive amounts are frozen — the DPU can adjust program parameters within the plan cycle, and the fall budget cycle (typically August through October) is when amounts most often change.

The income-eligible tier’s HEEHRA component is more vulnerable to change. Federal IRA funding supports the HEEHRA rebate layer within Mass Save’s Income-Eligible Program. Federal policy decisions around IRA implementation could affect these amounts. The standard Mass Save whole-home rebate (up to $10,000) is state-funded and less exposed to federal policy shifts.

On the federal side, 25C’s expiration was a policy decision, not a funding exhaustion. If Congress acts to reinstate or extend the credit, we’ll update this page. For 2026 installations, plan around state programs only.

For everyone: verify current program figures directly at masssave.com before committing to a project timeline. The figures on this page reflect our best verification as of May 2026 based on publicly documented program parameters — treat them as a planning baseline, not a guaranteed contract amount. Incentive amounts can change within weeks when a budget cycle update takes effect.

Related

Tools and guides:

• BTU sizing calculator — size the system before specifying any equipment; the cold-climate spec needed in zone 5A and 6A makes BTU sizing more sensitive than in mild climates.
• DIY mini-split installation guide — step-by-step on the install process for permit-eligible systems.
• Federal heat pump rebates — 25C history, the 2025 cutoff, and how the federal pool stacked with Mass Save while it was active.

Other state rebate pages:

• New York heat pump rebates — NY Clean Heat’s seven-utility administration model, Con Edison’s $10k DAC tier, EmPower+ for low-income.
• Washington heat pump rebates — Pacific Northwest cold-climate peer; utility programs and climate-zone considerations.
• California heat pump rebates — TECH Clean’s funding-cap situation, SMUD’s Contractor Network requirement, EBD Direct Install.
• Texas heat pump rebates — Austin Energy’s published tiers, SECO HEAR planning status, deregulated-market mechanics.

Frequently asked questions

Can I stack federal 25C with Mass Save rebates in 2026?

No. The federal Energy Efficient Home Improvement Credit (Section 25C) expired on December 31, 2025, and does not apply to heat pump installations placed in service after that date. If you installed a qualifying heat pump before December 31, 2025, you can still claim the credit on your 2025 tax return — but for new 2026 installations, there is no federal credit to stack. The Mass Save whole-home rebate and the income-eligible tier are the primary grant vehicles for 2026.

Do I need a Mass Save Heat Pump Installer Network contractor?

Yes — this is a hard requirement. Mass Save rebates, income-eligible benefits, and HEAT Loan eligibility all flow through contractors enrolled in the Mass Save Heat Pump Installer Network. Homeowners cannot apply independently after installation. The enrolled contractor creates the program reservation before installation begins. Verify contractor enrollment at masssave.com before signing any contract. A non-enrolled contractor — no matter how well-reviewed — means forfeiting the entire incentive stack with no appeal process.

What if I live in an MLP town?

The Mass Save program is administered exclusively for customers of Eversource, National Grid, and Cape Light Compact. If your electric bill comes from a municipal light department — towns like Concord, Belmont, Reading, Shrewsbury, Norwood, Wellesley, or Hingham, among approximately 35 others — you are not in the Mass Save service territory. Your MLP has its own efficiency programs and rebate offerings, which vary by light plant. Contact your MLP’s customer service directly and ask about their heat pump rebate programs and efficiency services. Some MLPs have strong programs; others have minimal offerings. Don’t assume Mass Save rebates apply to you until you’ve confirmed your utility.

How does the HEAT Loan work with Mass Save rebates?

The rebate reduces your total project cost first. The HEAT Loan then finances whatever remains. The loan is at 0% interest for up to 7 years, applied through one of Mass Save’s partner lenders (not your regular bank). For example: a $15,000 installation receiving a $10,000 Mass Save whole-home rebate leaves $5,000 remaining. A HEAT Loan on that $5,000 at 0% over 7 years is approximately $60/month — no interest ever. The HEAT Loan requires a credit check and lender approval; not all applicants qualify.

Does Massachusetts stack with federal HEEHRA separately from Mass Save?

In Massachusetts, the federal HEEHRA funding flows through Mass Save’s Income-Eligible Program — they’re one connected pathway, not two separate stacks. The “Income-Eligible” label on Mass Save applications reflects the HEEHRA-funded component. If you qualify for the income-eligible tier, you’re accessing both the state Mass Save rebate and the federal HEEHRA layer in a single application managed by your Mass Save contractor. There is no separate federal HEEHRA portal for Massachusetts homeowners to apply through independently.