Rebates & Tax Credits | Boston, MA

Heat Pump Rebates: Save Big in Boston with 2024 Incentives

If you're a homeowner in Boston, MA, looking to cut your energy bills while staying comfortable year-round, 2024 is shaping up to be a game-changing year. With the rising cost of traditional heating fuels and Boston’s commitment to sustainability, many residents are looking toward heat pumps as a cleaner, more efficient solution for both heating and cooling.

Known for cold winters and humid summers, Boston homes often rely on outdated oil furnaces or electric baseboard heating—systems that tend to be expensive and inefficient. Thankfully, recent expansions in rebate programs and tax credits make now the perfect time to make the switch to a heat pump system.

Whether you live in Dorchester, Jamaica Plain, or a classic Cape in Medford, there are generous financial incentives available to help make energy-efficient upgrades more affordable.

Let’s explore the key rebate and tax credit programs available to Boston-area residents, and how SumZero Energy Systems can help you benefit.

Understanding Heat Pump Rebates in Boston, MA

Heat pump rebates are a significant opportunity for Boston homeowners to reduce upfront installation costs. These programs are tailored to Massachusetts' dynamic climate and long-term clean energy goals, offering strong support for energy-efficient upgrades.

Mass Save® Rebates for Air Source and Ground Source Heat Pumps

If you’re a Boston homeowner, Mass Save® is likely your go-to for mass save incentives. Sponsored by local electric and gas utilities and energy efficiency service providers, the Mass Save program offers up to $10,000 in rebates for qualifying heat pump installations.

There are two primary categories:

• Air source heat pumps (ASHPs): Rebates of $1,250 per ton or more.
• Ground source heat pumps (GSHPs): Rebates starting at $15,000 for whole-home systems.

To qualify, you must use a Mass Save® certified contractor, and your equipment has to meet specific energy efficiency standards. SumZero Energy Systems is experienced with these criteria and can help streamline the application process.

Income-Based Incentives for Greater Savings

Boston residents with qualifying income levels may be eligible for enhanced rebates under the Income Eligible Program. This tiered support can cover even more of the installation cost—up to 100% in some cases.

These enhanced local rebate programs are part of Massachusetts’ broader equity goals, ensuring all residents benefit from energy efficiency, regardless of income.

Rebate Requirements: Know Before You Install

To take advantage of Mass Save® heat pump rebates:

• Your home must be in Massachusetts
• A home energy assessment must be conducted before or within 60 days after the install
• You must replace or supplement existing electric resistance, propane, or oil heating

Installing eligible equipment through a certified installer like SumZero Energy Systems ensures you meet these criteria while optimizing cost savings.

"With up to $10,000 in heat pump rebates on the table, Boston homeowners have a real chance to modernize their heating and cooling systems without breaking the bank." — Massachusetts Clean Energy Center

How to Qualify for Heat Pump Tax Credits in 2024

Besides rebates, the 2024 heat pump tax credits available through the federal government can help reduce your tax liability, making your upgrade even more affordable.

What Boston Residents Need to Know About the Federal Tax Credit

In 2024, the federal government continues offering a 30% tax credit—up to $2,000—for qualifying heat pump systems through the Energy Efficient Home Improvement Credit (25C). Homeowners in Boston who upgrade to eligible air source or ground source heat pumps can claim this as a non-refundable credit on their federal tax return.

This program is part of the Inflation Reduction Act and is available to all taxpayers, regardless of income level, making it broadly accessible.

Combining Rebates and Tax Credits for Maximum Value

You don’t have to choose between heat pump rebates and tax credits—you can use both. For a Boston homeowner upgrading from an oil furnace to a whole-home heat pump, this might translate to:

• Up to $10,000 from Mass Save®
• Plus a $2,000 federal heat pump tax credit

The combined financial assistance can significantly reduce your installation cost, sometimes cutting it by more than half. And with lower monthly energy bills, the long-term savings continue to add up.

What Qualifies? Equipment and Installation Standards

To qualify for the federal credit:

• The heat pump must be ENERGY STAR® certified
• Installation must meet the manufacturer’s specifications
• You must own and live in the home

Working with an experienced contractor ensures the project meets both Mass Save and federal guidelines. At SumZero Energy Systems, we make sure every system we install is eligible for the rebates and credits available.

"Boston’s working families can now afford a high-efficiency heat pump system by combining both state and federal incentives—something unheard of just a few years ago." — Mayor Michelle Wu, City of Boston

What is the Energy Tax Credit for 2024?

The broader energy tax credit 2024 applies to multiple home improvement measures aimed at efficiency and reductions in greenhouse gas emissions. For Boston homeowners looking to maximize efficiency, understanding how this credit interacts with their upgrade plans is key.

Eligible Energy Home Improvements in Addition to Heat Pumps

In addition to the 30% credit on heat pumps:

• Insulation upgrades qualify for a separate tax credit of up to $1,200 annually
• New efficient windows and doors may also qualify
• Electrical panel upgrades related to heat pump installation may qualify for an additional credit

As many of Boston’s historic homes need multiple updates, the clean energy credits in 2024 offer a chance to bundle these improvements and leverage the full financial benefit.

Annual Caps and What They Mean for Your Upgrade Timeline

While the energy tax credit 2024 resets annually, there are caps:

• $2,000 for heat pumps
• $1,200 combined for upgrades like insulation and ventilation

Together, this creates a $3,200 potential credit per year. Strategic planning may allow homeowners to phase updates over two or more years to maximize returns.

Filing for the Credit: Steps Boston Homeowners Should Take

To claim the credit:

1. Save all receipts and documentation, particularly equipment specs and invoices.
2. Ensure that all products are qualified per IRS guidelines (ENERGY STAR® backed).
3. File IRS Form 5695 when you do your taxes.

Consulting your tax preparer can help clarify eligibility, especially if you are stacking improvements or had other major renovations during the tax year.

"Energy-efficient renovations, backed by clean energy credits and the latest tax incentives, are transforming Boston’s housing stock while putting money back into homeowners’ pockets." — Massachusetts Department of Energy Resources (DOER)

Leveraging the Federal Tax Credit for Heat Pump Projects in Boston

If you're planning to make the switch to high-efficiency heating and cooling, the federal tax credit for heat pump systems will play a central role in your savings strategy.

Designed for Existing Homes: Primary Residence Eligibility

This federal program is aimed at existing homes—not new construction—which makes it ideal for Boston’s long-standing neighborhoods. Whether you’re renovating a triple-decker in Roslindale or improving a classic colonial in Brighton, installing a qualified heat pump in your primary residence means you’re likely eligible.

Why the Credit Targets Electrification

Massachusetts is working aggressively toward de-carbonization. Programs like the federal tax credit help align the interests of homeowners with the state’s environmental goals. By electrifying your heating system and pairing it with clean energy credits, you’re contributing to the larger mission of reducing reliance on fossil fuels in Greater Boston.

Maximize Your Tax Return While Cutting Utility Costs

With significantly lower monthly bills compared to oil or natural gas systems, Boston residents can expect:

• Energy savings of 30%-50% annually
• Lower maintenance costs
• Less reliance on fossil fuels

Every dollar from the federal tax credit for heat pump installation helps pay back your upfront investment faster—while your long-term savings keep growing.

Getting Started with Rebates, Credits, and Clean Energy Savings

Boston has long been a leader in energy innovation. With local and federal initiatives aligned in 2024, there's never been a better time to transition your home to a clean, efficient heat pump system.

As a Boston-based contractor, SumZero Energy Systems specializes in guiding homeowners through this process—from personalized equipment recommendations to managing mass save incentives paperwork and maximizing clean energy credits.

We understand Boston’s winters, zoning, and historic home frameworks—and we’re here to help those systems meet 21st-century energy standards.

For more information about rebates and credits for ENERGY STAR® certified equipment, visit the official EPA guide here.

Smart, cost-effective upgrades are within reach for Boston homeowners in 2024—and these programs make it easier than ever to step into a cleaner, more comfortable future.