Last updated: March 29, 2026
Massachusetts has the best combination of IRA and state energy programs in the country right now. For a moderate-income household doing a full heat pump + water heater + panel upgrade, the combined stack can reach $18,000–$22,000 in rebates and tax credits. This guide covers everything a MA energy practitioner needs to know.
HEAR program status: LIVE via MassCEC • Mass Save status: LIVE via utility programs
| Program | Example Measure | Max Value | Admin |
|---|---|---|---|
| HEAR Rebate | Heat pump HVAC + HPWH + panel | Up to $14,000 | MassCEC |
| Mass Save Rebate | Heat pump HVAC | Up to $2,500 | Your utility |
| Mass Save Rebate | Heat pump water heater | Up to $750 | Your utility |
| 25C Federal Tax Credit | Heat pump HVAC + HPWH + insulation + panel | Up to $3,200/yr | IRS Form 5695 |
| 25D Federal Tax Credit | Solar / battery | 30% of cost (no cap) | IRS Form 5695 |
| Combined potential (moderate income, full retrofit) | $18,000–$22,000+ | ||
| Measure | LMI (<80% AMI) | Moderate (80–150% AMI) |
|---|---|---|
| Heat Pump HVAC (air source) | Up to $8,000 | Up to $4,000 |
| Heat Pump Water Heater | Up to $1,750 | Up to $875 |
| Electric Stove / Induction Range | Up to $840 | Up to $420 |
| Electric Dryer | Up to $840 | Up to $420 |
| Electrical Panel Upgrade | Up to $4,000 | Up to $2,000 |
| Total household cap | $14,000 | $7,000 |
Mass Save is administered jointly by Massachusetts electric and gas utilities (Eversource, National Grid, Cape Light Compact, Unitil). Rebates are separate from HEAR and can be stacked.
| Measure | Typical Rebate | Notes |
|---|---|---|
| Air Source Heat Pump (whole home) | $1,500–$2,500 | Varies by equipment efficiency and utility |
| Air Source Heat Pump (ductless mini-split) | $500–$1,000 per unit | Up to $2,000 total |
| Heat Pump Water Heater | $750 | Standard rate across utilities |
| Insulation (attic) | $0.40–$0.60/sq ft | Often cost-shared or provided free for LMI |
| Air Sealing | Up to $500 | Often bundled with insulation |
| Smart Thermostat | $100 | — |
Verify current rebate amounts at masssave.com — rates can change when utility program cycles reset, typically annually.
| Measure | Credit Rate | Annual Cap |
|---|---|---|
| Heat Pump HVAC | 30% of cost | $2,000/year |
| Heat Pump Water Heater | 30% of cost | Within $2,000 heat pump cap |
| Insulation & Air Sealing | 30% of cost | $1,200/year |
| Electrical Panel Upgrade | 30% of cost | $600/year |
| Home Energy Audit | 30% of cost | $150/year |
These stack with Mass Save and HEAR. The IRS confirmed IRA rebates do not reduce the 25C-eligible basis — a $4,000 HEAR rebate does not shrink what you can claim on 25C.
A 3-person household at 110% AMI in Worcester doing heat pump HVAC + water heater + panel upgrade. Installed project cost: ~$22,000.
| Program | Measure | Amount |
|---|---|---|
| HEAR (MassCEC) | Heat pump HVAC | $4,000 |
| HEAR (MassCEC) | Heat pump water heater | $875 |
| HEAR (MassCEC) | Panel upgrade | $2,000 |
| Mass Save | Heat pump HVAC | $2,000 |
| Mass Save | Heat pump water heater | $750 |
| 25C Tax Credit | Heat pump HVAC | $2,000 |
| 25C Tax Credit | Water heater + panel | $1,200 |
| Total benefit | $12,825 | |
Out-of-pocket on a $22,000 project: ~$9,175. For an LMI household, the HEAR amounts roughly double — out-of-pocket could be under $3,000 on the same project.
| Area | 80% AMI (4-person HH, approx.) | 150% AMI (4-person HH, approx.) |
|---|---|---|
| Boston Metro | ~$90,000 | ~$169,000 |
| Springfield / Western MA | ~$66,000 | ~$124,000 |
| Worcester area | ~$74,000 | ~$138,000 |
| Cape Cod / Islands | ~$80,000 | ~$150,000 |
Verify current AMI tables at masscec.com or HUD's website. Figures are approximate.
Program rebate amounts and AMI tables change. The IRA Practitioner Brief covers Massachusetts and all 50 states — free for the first two issues.