Massachusetts Heat-Pump Incentives in 2026: What Actually Saves You Money
Starting January 1, 2026, the federal residential clean-energy tax credits that powered heat-pump adoption for years have expired. The 30% federal solar credit (IRS §25D) and the efficiency credit for heat pumps and weatherization (§25C) are no longer available for systems placed in service on or after that date. There is no phase-down, no partial credit, and no extension.
The good news: Massachusetts homeowners still have access to substantial incentives—they're just not federal anymore. State and utility-level programs, net-metering credits, rebates, and tax exemptions continue to drive real savings. Because these incentives vary by utility and municipality, the path to maximum savings is now local, not national.
See what applies to your home and ZIP in ~3 minutes — free.
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The federal residential clean-energy credit (IRS §25D) and the efficiency credit (§25C) expired for all systems placed in service on or after January 1, 2026, under Public Law 119-21. This includes heat pumps, air-source and ground-source systems, weatherization, and solar installations.
If you installed a heat pump or solar system before January 1, 2026, you may still claim the credit on your 2025 tax return. If you install after January 1, 2026, the federal credit does not apply.
Where Massachusetts Incentives Still Work
Massachusetts state and utility incentives were not affected by the federal change. These include net-metering or export-credit rules set by your utility (which determine how much you earn for excess solar power sent to the grid), state heat-pump rebates, and state sales-tax and property-tax exemptions on renewable-energy equipment.
Local efficiency programs, municipal rebates, and utility demand-response incentives also remain active. Because these vary by utility district and town, the savings available to your home depend on your specific location and utility provider.
The authoritative, regularly-updated source for all state and utility incentives is DSIRE (Database of State Incentives for Renewables & Efficiency). Checking DSIRE for your zip code and utility is the fastest way to see what you actually qualify for.
Find Your Highest-Leverage Next Step
Because incentives are now local rather than federal, the math is different for every home. A free EnergyAI assessment takes 3 minutes and returns your Energy Node Score—a personalized ranking of which efficiency or renewable upgrade will save you the most money, given your utility, local incentives, and home profile.
The assessment also identifies the single highest-leverage next step: whether that's a heat-pump rebate, a net-metering upgrade, weatherization, or solar. No obligation, no sales call, no data sharing.
Start your free assessment now to see which Massachusetts incentives apply to your home and which upgrade moves the needle most.
Frequently asked
Can I still claim the federal 30% solar credit or heat-pump credit in 2026?
No. The federal residential clean-energy credit (IRS §25D) and the efficiency credit (§25C) ended on January 1, 2026, for all systems placed in service on or after that date. If you installed before January 1, 2026, you may claim the credit on your 2025 tax return. If you install in 2026 or later, the federal credit does not apply.
Are Massachusetts state and utility incentives still available?
Yes. State heat-pump rebates, net-metering credits, sales-tax exemptions, property-tax exemptions, and utility-level rebates and efficiency programs continue and were not affected by the federal change. These incentives vary by utility and municipality, so check DSIRE or your utility's website for your specific address.
How do I know which incentives apply to my home?
The fastest way is a free 3-minute EnergyAI assessment, which returns your Energy Node Score and identifies the single highest-leverage upgrade for your home, given your utility, local incentives, and property. You can also check DSIRE (Database of State Incentives for Renewables & Efficiency) for your zip code and utility, or contact your utility directly.
Sources
- IRS — FAQs on §25C/§25D under Public Law 119-21 (One Big Beautiful Bill)
- DSIRE — Database of State Incentives for Renewables & Efficiency (NC State)
- EnergySage — clean-energy cost & incentive guides
Incentive amounts change; figures verified 2026-06-29. This is educational information, not tax advice.
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