Massachusetts home energy rebates & incentives (2026)
Massachusetts runs one of the most generous statewide efficiency frameworks, coordinated across utilities, with strong heat pump and weatherization incentives and dedicated income-eligible pathways.
Massachusetts's IRA Home Energy Rebate program (HOMES and/or HEAR) has launched. Income-eligible households may be able to apply now, but funding is limited and generally first-come, first-served — confirm current availability with your state energy office.
Massachusetts home energy incentives at a glance (July 3, 2026)
- IRA rebates (HOMES/HEAR) in Massachusetts: Launched — one or both programs are accepting applications (confirm current funding with the Massachusetts energy office)
- HEAR rebate: Up to $14,000 per household for income-qualified residents (at or below 150% of area median income)
- HOMES rebate: Typically up to $8,000, all incomes, based on whole-home energy savings
- Federal tax credits (25C/25D): Ended December 31, 2025 — no federal home energy tax credit for 2026 installs
- Still available: Utility rebates from your electric/gas provider and free Weatherization Assistance for income-qualified households
Federal update for 2026
Federal home energy tax credits (25C and 25D) ended December 31, 2025. The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) terminated the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D). No 25C or 25D credit is available for property placed in service on or after January 1, 2026. Equipment placed in service by December 31, 2025 can still be claimed on your 2025 return (IRS Form 5695), and unused 25D credit generally carries forward. This is not tax advice — confirm with the IRS or a tax professional.
What's available now: The Inflation Reduction Act funds roughly $8.8 billion in Home Energy Rebates through two state-run programs: HOMES (Home Efficiency Rebates) and HEAR/HEEHRA (Home Electrification and Appliance Rebates). These rebates were not repealed by the 2025 tax law and remain the primary federal savings pathway. They are administered by each state's energy office and launch on different timelines; funding runs until it is used up or September 30, 2031.
Recent change: A mid-2026 U.S. Department of Energy update narrowed HEAR: rebates no longer cover 'fuel switching' (for example, replacing a gas furnace with a heat pump) and now focus on upgrading existing electric equipment to more efficient electric models. New HVAC rebates may also require insulation and air sealing to be done at the same time. Exact rules and timing vary by state.
Sources: IRS — One Big Beautiful Bill provisions · U.S. DOE — Home Energy Rebates (state allocations & status) · DSIRE — Database of State Incentives for Renewables & Efficiency
Federal tax credits (ended)
Ended December 31, 2025These federal credits were available through 2025. They're shown here for reference and for anyone claiming a 2025 install — they do not apply to work done in 2026 or later.
Energy Efficient Home Improvement Credit IRC §25C
No longer availableWas 30% of project cost, up to $1,200 per year (no lifetime limit), with a $600-per-item cap — and a higher $2,000 per year limit for heat pumps and heat pump water heaters. Home energy audits up to $150. Existing homes only.
Not available for property placed in service on or after January 1, 2026. Work completed by December 31, 2025 can still be claimed on your 2025 return.
Residential Clean Energy Credit IRC §25D
No longer availableWas 30% of cost with no dollar cap — for solar panels, solar water heating, battery storage, small wind, fuel cells, and geothermal heat pumps. Was originally scheduled to run through 2034 before it was ended early.
Not available for expenditures made on or after January 1, 2026. Costs paid by December 31, 2025 can still be claimed on your 2025 return, and unused credit generally carries forward.
Sources: IRS — One Big Beautiful Bill provisions · IRS — Energy Efficient Home Improvement Credit (25C)
What about 2027 and 2028?
- No new federal home-energy tax credits are scheduled for 2027 or 2028. The 25C and 25D credits ended after 2025 and have not been replaced.
- The IRA-funded Home Energy Rebates (HOMES and HEAR) are scheduled to remain available through September 30, 2031, or until each state's funds run out — so they can still apply in 2026, 2027, and 2028 wherever a state's program is running.
- For home solar installed through a lease or power-purchase agreement, the separate Section 48E clean-electricity credit is scheduled to end for projects placed in service after December 31, 2027 (with exceptions for projects that began construction by July 4, 2026). This credit is claimed by the system owner, not the homeowner.
- Utility rebates and the Weatherization Assistance Program don't have a national expiration tied to the tax law and are expected to continue.
Sources: IRS — One Big Beautiful Bill provisions · U.S. DOE — Home Energy Rebates
IRA Home Energy Rebates in Massachusetts
These federal rebate programs are administered by the state. Amounts shown are the federal maximums — final rules are set by Massachusetts.
Home Electrification and Appliance Rebates (HEAR / HEEHRA)
Low- and moderate-income households (generally at or below 150% of Area Median Income). Below 80% AMI may receive up to 100% of project cost; 80–150% AMI generally up to 50%.
| Measure | Max rebate |
|---|---|
| Heat pump (space heating & cooling) | $8,000 |
| Heat pump water heater | $1,750 |
| Electric panel / service upgrade | $4,000 |
| Electric wiring | $2,500 |
| Insulation, air sealing & ventilation | $1,600 |
| Electric stove / cooktop / oven | $840 |
| Heat pump clothes dryer | $840 |
| Household total (all measures) | $14,000 |
Amounts are federal maximums; your state sets final rules.
Home Efficiency Rebates (HOMES)
Available to all income levels. Rebate scales with modeled or measured whole-home energy savings; larger amounts for deeper savings and for low-income households.
Typical maximum
$8,000
Because HOMES depends on your home's projected energy savings, the amount is determined after an energy assessment — it can't be precisely estimated in advance.
State & utility program examples
Sample data Illustrative examples of the kinds of programs available — confirm current amounts with the official source.
Sample Whole-Home Heat Pump Rebate
Massachusetts statewide efficiency program (sample) · state
$2,000–$10,000Higher for whole-home electrification
Enhanced incentives and no-cost pathways for income-eligible households.
Who qualifies
- Own and occupy a MA home
- Whole-home or qualifying partial-home heat pump
- Participating contractor
- Income limits for enhanced tier
Documents needed
- Proof of MA residency
- Itemized invoice
- Equipment certification
- Income documentation for enhanced tier
How to apply
- Schedule a no-cost home energy assessment where offered
- Get a quote from a participating contractor
- Complete the install
- Submit rebate paperwork
Common mistakes
- Not completing a required assessment first
- Partial-home installs where whole-home is required for the top rebate
Illustrative placeholder — verify with the official Massachusetts program.
Utility rebates in Massachusetts
Your electric or gas utility likely runs its own rebate programs for heat pumps, insulation, and smart thermostats — separate from federal and state incentives, and they usually stack with IRA rebates. Find your utility's name on your monthly bill, then check its website or the ENERGY STAR Rebate Finder below.
Weatherization Assistance Program (WAP)
A long-standing, federally funded program that provides free energy-efficiency upgrades (insulation, air sealing, and more) to income-qualified households through local providers. Unaffected by the 2025 tax law. (U.S. DOE — Weatherization Assistance Program)
Who typically qualifies
- You own and occupy the home (renters usually need landlord participation)
- Your equipment meets the program's efficiency tier
- You use a participating or licensed contractor where required
- Your household income is within limits for income-based tiers
Documents you'll usually need
- Itemized contractor invoice (labor and equipment)
- Equipment model number and efficiency certificate (AHRI / ENERGY STAR)
- Proof you own and occupy the home
- Proof of income (for income-qualified rebates)
- Completed program application and any pre-approval
How to get a rebate in Massachusetts
- Confirm the program is open and funded
- Check that your equipment and contractor qualify
- Get pre-approval if the program requires it
- Complete the work and keep every invoice
- Submit your application with documents before the deadline