Federal
Federal Tax Credit
- 30% up to $2,000/year for heat pumps & heat pump water heaters
- Tax credit limited to a total of $3,200 per year for combined measures
- No rollovers
- Ends 12/31/25
- For more details, see here
Federal Energy Efficiency Rebates
State-specific applications and qualifications:
- Rhode Island: The Home Electrification and Appliance Rebate is open for low-income households. The moderate-income pathway is expected to launch late 2025. Learn more here: Home Energy Rebate Programs | Rhode Island Office of Energy Resources
- Massachusetts: The state plans to launch its IRA rebate program in late 2025. You can sign up to receive updates here: Sign up (e2ma.net)
- Tax credits and rebates may be stacked together
- For more information, see the Rewiring America calculator
Massachusetts
MassSave Rebates
Whole Home:
- $3,000/ton (12,000 BTU) of heating capacity, up to $10,000 ($16,000 for moderate income)
- Must be sized properly for 100% of home’s need
- Legacy system must be disconnected from thermostat or removed
Partial Home:
- $1,250 per ton (12,000 BTU) of heating capacity ($16,000 for moderate income)
- Integrated controls may be required
- $500 adder if adding insulation
MassSave HEAT Loan Program
- $25,000 zero-interest rate loan
- Batteries may earn money from Connected Solutions program
Rhode Island
Clean Heat RI rebates
- This program is available to all Rhode Islanders who heat with oil, propane, or natural gas. If you heat with electric resistance, see Rhode Island Energy’s rebate program below.
- For heat pumps, the incentive amount is 60% of heat pump system and installation costs up to $11,500. For heat pump water heaters, the incentive is $2,500. Overall, the Clean Heat RI incentives are capped at $18,000 per residential address.
- For a breakdown of eligibility requirements and incentives, visit their website here: https://cleanheatri.com/resources/incentives/.
Rhode Island Energy rebates
- If you are upgrading to a heat pump from electric resistance, you are eligible for a rebate up to $1,250 per ton of equipment capacity. If you are a natural gas, electric, oil, or propane customer switching to heat pumps, you may qualify for the Standard Rebate of up to $400 per ton.
- If you are upgrading to a heat pump water heater (either by replacing an existing electric water heater or installing one for the first time in a newly constructed home), you are eligible for a heat pump water heater rebate up to $800 (the regular rebate is $600).
- To learn more about the heat pump rebates, please check here: https://www.rienergy.com/site/ways-to-save/save-money-with-rebates-and-incentives/electric-heating-and-cooling. To learn more about the heat pump water heater rebates, please check here: https://www.rienergy.com/site/ways-to-save/save-money-with-rebates-and-incentives/gas-electric-water-heating.
Rewiring America RI Heat Pump Access Program
- Rewiring America has partnered with global manufacturers and local contractors to offer Rhode Island homeowners brand new heat pumps at a 20-30% reduced cost compared to standard market pricing
- Program eligibility:
- Residents of RI
- 60-150% State Median Income (SMI)
- Own or live in a 1-4 unit building (attached/detached)1
- Program eligibility:
- Through the program, GEM Plumbing and Heating would be the installation partners, Abode Energy, the Clean Heat Rhode Island administrator, would be the heat pump experts that customers can refer to, and Capital Good Fund, alongside other lending partners, would be the recommended partner for low- or no-interest financing options
- This incentive can be stacked with other incentives such as the Clean Heat Rhode Island incentive and federal tax credit
- For a breakdown of potential savings or to schedule a free consultation, visit their website: https://homes.rewiringamerica.org/ri