Take advantage of State and Federal tax incentives

Below is a 2026 snapshot of the major Massachusetts (MA) and Federal rebates and incentives available for residential energy-saving products and upgrades (heat pumps, insulation, solar, EV chargers, etc.). Due to recent federal policy changes, many federal tax credits ended at the end of 2025, so the 2026 picture relies more heavily on state and utility incentives.

📊 2026 Residential Energy Incentives  — Federal & Massachusetts

Heat Pumps (HVAC)

Mass Save® rebates:

• Whole-home: $2,650/ton up to $8,500
• Partial-home: $1,125/ton up to $8,500
• Basic: $250/ton up to $2,500 plus income-eligible enhancements up to ~$16,000 through turnkey services.

Federal: energy-efficient tax credits (Energy Efficient Home Improvement Credit / Residential Clean Energy Credit) expired Dec 31, 2025 (no federal credit in 2026).

Insulation & Air Sealing

Mass Save® rebates: 75–100% off insulation & air sealing (instant rebate at installation; income-eligible households may pay $0).

Federal:  Section 25C expired Dec 31, 2025 (no federal credit in 2026).

Heat Pump Water Heaters

Mass Save® rebate: ~$750 for qualifying heat pump water heaters.

Federal:  tax credit expired at end of 2025.

Solar Panels & Storage

Massachusetts:

• MA Residential Energy Credit: 15% of system cost, up to $1,000 (state personal income tax credit).
• SMART Program: performance-based payments per kWh produced.
• Solar sales tax exemption: no MA sales tax on qualifying solar equipment & installation.

Federal:  Residential Clean Energy Credit expired Dec 31, 2025 (no new federal credit).

Electric Panel / Electrical Upgrades

Individual utility or Mass Save offers may include connected solutions incentives (e.g., battery or thermostat rebates through demand-response programs).

Federal Energy Efficient Home Improvement Credit expired Dec 31, 2025.

EV Charger Installation (Home)

MA may have utility rebates or incentives for home charger installation (via utility programs; check local utility websites).

Federal:  EV Charger Tax Credit (30% up to $1,000) is available for equipment installed and placed in service by June 30, 2026 (Alternative Fuel Refueling Property Credit).

Energy Assessment & Weatherization

Mass Save® Home Energy Assessment: Free energy assessment and recommended weatherization upgrades (air sealing, insulation) with rebates.

Heat Loans / Financing — Mass Save® HEAT Loan: 0% interest loans (often up to $25,000) to help pay for efficiency upgrades (heat pumps, insulation).

Federal:  audit / improvement credits expired Dec 31, 2025.

Key Notes on 2026 Incentives
Federal Changes (2026):

Most major federal home energy tax credits expired on Dec 31, 2025, including:

• Residential Energy Efficient Home Improvement Credit (formerly Sec. 25C)
• Residential Clean Energy Credit (formerly Sec. 25D)
• Heat pump and solar panel installation credits
• Weatherization / insulation federal credit
• These credits cannot be claimed for improvements installed after 2025.

The EV charger tax credit (30% up to $1,000) still applies for residential chargers installed and placed in service by June 30, 2026.

Massachusetts/Utility Programs (2026):

• Mass Save® remains the core program for rebates on insulation, weatherization, heat pumps, efficiency upgrades, and financing.
• Rebates for heat pumps in MA have shifted in 2026 with updated per-ton rebates and caps.
• MA offers additional incentives for solar via state tax credits and SMART program renewable incentives.
• Utility programs (e.g., National Grid ConnectedSolutions) may offer additional incentives for grid-interactive technologies (batteries, smart thermostats).

🧾 Summary — What’s Still Available in 2026

✅ Mass Save rebates: insulation, air sealing, heat pumps, heat pump water heaters, home energy assessments
✅ MA solar incentives: solar tax credit, SMART performance incentives, solar sales tax exemption
✅ Federal EV charger credit: 30% up to $1,000 (through June 30, 2026)
Federal home energy tax credits are largely unavailable for products installed in 2026 — homeowners must have placed equipment in service by Dec 31, 2025 to claim them.