By now, you’ve probably heard that federal tax credits for heat pumps expired at the end of 2025.  This means that homeowners who want to install these comfortable and energy-efficient home heating and cooling systems will no longer receive a $2,000 U.S. government credit.

But while the early sunsetting of federal Energy Efficient Home Improvement Credits is bad news, it hardly means that homeowners have to foot the bill for making their homes more energy efficient entirely by themselves. 

Several states, including Massachusetts, offer significant rebates to households that choose to reduce their energy use and carbon footprint: In the Commonwealth, investor-owned utilities  –such as National Grid, Eversource, Berkshire Gas, Cape Light Compact, Liberty, and Until – are legally obliged to fund the Mass Save® program with the fees they collect for their services.

The Mass Save program offers rebates of up to $8,500 for air-source heat pumps (ASHPs) and $13,500 for ground-source heat pumps (GSHPs). Additional incentives are available to low and moderate-income households.

Many homeowners can also obtain a 0% interest Mass Save HEAT loan of up to $25,000 to finance the costs of energy-efficient improvements to their residence. This includes installing heat pump equipment for the first time.

Combined with the new discounted electricity rates that are available to heat pump owners in the Commonwealth, these rebates mean that you can enjoy the benefits of these carbon-saving devices without breaking the bank! More safety, comfort, and the peace of mind that comes with knowing you’re doing your bit to accelerate the transition to a cleaner future.