Rebates & Tax Credits | Hanover, MA

Why Hanover Homeowners Are Embracing Heat Pumps in 2024

Living in Hanover, MA means dealing with dramatic seasonal shifts—from icy Nor'easters in winter to humid, sticky summers. That’s why more homeowners here are seeking efficient ways to stay comfortable year-round without breaking the bank on energy bills. One solution drawing growing attention in 2024 is the heat pump—a clean, energy-efficient system that delivers both heating and cooling.

Stemming from increased federal and state support for clean energy, including the heat pump tax credits and rebate programs, switching to a heat pump in Hanover has never been more financially attractive. Whether you live in an older colonial on Main Street or a newer build off Circuit Street, upgrading your HVAC system can significantly cut your costs while reducing your carbon footprint.

“With new energy incentives now available in Massachusetts, especially through Mass Save incentives and the IRS, Hanover homeowners have an unprecedented opportunity to make affordable energy-efficient upgrades.” — Hanover Energy Planning Committee, 2024

Heat Pump Tax Credits: What Hanover Residents Need to Know for 2024

Understanding the 2024 Federal Tax Credit for Heat Pumps

One of the most beneficial changes in 2024 is the revised federal tax credit for heat pump installations via the Inflation Reduction Act (IRA). This tax credit offers up to 30% of the installation cost, capped at $2,000, for eligible heat pump systems.

For Hanover-area homeowners, that’s potentially thousands in savings on a high-performance HVAC solution—especially beneficial with fluctuating oil and natural gas prices in the South Shore area.

To qualify:

• Your new heat pump system must meet or exceed energy efficiency guidelines set by the Consortium for Energy Efficiency (CEE).
• You must claim the credit on your tax return using IRS Form 5695.
• The system must be installed in your primary residence in Hanover.

Which Heat Pumps Qualify?

Not all systems qualify, so it’s important to check efficiency ratings before committing to an upgrade. Clean energy credits generally apply only to ENERGY STAR-rated models.

Qualifying systems include:

• Air-source heat pumps
• Ground-source (geothermal) heat pumps
• Ductless mini-split systems with high SEER/HSPF ratings

You can verify model qualification on the AHRI Directory.

Why Heat Pumps Are Ideal for Hanover’s Climate

Heat pumps are increasingly suitable for our Massachusetts winters, thanks to advancements in cold-climate technology. Modern heat pumps:

• Operate efficiently at temperatures as low as -5°F to -15°F
• Offer dual-purpose functionality: heating in winter, cooling in summer
• Provide zoning options to heat or cool specific areas of your home

Given Hanover’s average winter lows around 18°F and increasingly hot, humid summers, heat pumps provide a year-round comfort solution that works well for our local conditions.

How to Maximize Heat Pump Rebates in Hanover, MA

Explore Mass Save Incentives for Maximum Savings

The Mass Save incentives for 2024 are among the most generous in the country—and local Hanover residents are in a great spot to take full advantage.

Key rebates include:

• Up to $10,000 for whole-home air source heat pumps
• Up to $15,000 for ground-source heat pumps
• No-interest HEAT Loan financing for up to $50,000 in energy-efficient home improvements

Eligible homeowners may also receive an added bonus for removing fossil fuel-based systems such as oil or propane furnaces, supporting full electrification.

Local Rebate Programs in Plymouth County

In addition to Mass Save, homeowners in and around Hanover may qualify for local rebate programs operated by municipalities or regional energy utilities.

Rebates often cover:

• Installation costs
• Equipment upgrade bonuses
• Smart thermostat integration
• Comprehensive home energy assessments

Hanover partners with the Greater Plymouth County Energy Partnership and National Grid for coordinated service delivery. These programs complement federal rebates and can be stacked for additional savings.

“The biggest game-changer for Hanover residents has been the ability to combine federal credits with Mass Save incentives—stacking those two has made whole-home electrification achievable for families working with a set budget.” — South Shore Regional Energy Council

How to Qualify for Heat Pump Rebates

To qualify, you’ll typically need:

• An energy assessment performed through Mass Save
• Approved equipment installed by a participating contractor
• Proper documentation submitted within 90 days of installation

You can start the rebate process once your installation is complete and your system is inspected.

Energy Tax Credit 2024: Incentives Beyond Heat Pumps

Expand Your Savings with Home Energy Upgrades

Beyond the main tax credit for heat pumps, the 2024 energy tax credit offerings include rebates and deductions for broader home energy efficiency projects—many of which pair well with heat pump installation in Hanover.

Additional credits cover:

• Weatherization upgrades (insulation, air sealing)
• Energy-efficient windows and doors
• Advanced wiring and electrical panels to support heat pump installation
• Home energy audits

These improvements amplify the performance of your new heat pump and add long-term value to your home.

Combine Credits and Incentives Strategically

By integrating various incentive tiers, Hanover homeowners can optimize total savings. A single project could include:

• $2,000+ federal tax credit
• Up to $10,000 from Mass Save incentives
• Additional clean energy credits from regional efforts

This means your net out-of-pocket for a full system overhaul could be significantly lower than traditional HVAC replacements.

Future-Proof Your Hanover Home

Investing in high-efficiency heating and cooling systems can also protect against:

• Fluctuating fossil fuel prices
• Increasing home insurance costs due to climate-driven risk factors
• Local energy code changes encouraging or requiring high-efficiency systems

Hanover has a growing interest in sustainable development and energy independence, and homes that meet these standards are expected to retain higher resale values in the future.

Federal Tax Credit for Heat Pump: How to File and What to Expect

Easy Steps for Submitting Your Tax Claim

To receive the 2024 federal tax credit for heat pump, follow these simple steps:

1. Confirm your system meets federal minimum efficiency requirements.
2. Keep your installation invoice and product certifications.
3. File using IRS Form 5695 when submitting your taxes.
4. Claim up to 30% of total system cost, not to exceed $2,000.

Consult your tax advisor if you need help determining exact eligibility or navigating documentation.

How It Applies to Hanover Residents

Hanover property owners installing heat pumps on their primary residence—including single-family homes, multifamily townhouses, and eligible condos—can qualify.

If your home has existing ducts or is already partially updated with modern electrical infrastructure, installation can be even more cost-effective.

In some cases, a combination of federal tax savings and local rebate programs can cover more than 40–50% of the total system cost.

Timing Your Installation for Maximum Benefit

While the tax credit is available throughout 2024, it’s smart to act early. Program funds from Mass Save incentives and other local programs are often issued on a first-come, first-served basis and may have reset periods.

“If you’re planning a heat pump upgrade in Hanover, the earlier you move in 2024, the better. Delaying could mean missing out on combination plans that stack clean energy credits across programs.” — Massachusetts Department of Energy Resources

Clean Energy Credits Are Changing the Way Hanover Heats and Cools

Between rising energy costs, shifting climate trends, and growing awareness of environmental responsibilities, many property owners in Hanover, MA are rethinking how they consume energy at home. Heat pumps—once seen as purely supplemental systems—are fast becoming the core of whole-home energy solutions.

The incentives now available through energy tax credit 2024 options, Massachusetts' local rebate programs, and generous Mass Save incentives, allow Hanover homeowners to join the clean energy movement without heavy upfront costs.

Key reasons more people in Hanover are switching to high-efficiency heat pumps:

• Major long-term savings on energy bills
• Increased year-round comfort during New England climate extremes
• Big tax and rebate opportunities that make the upgrade affordable today—not years from now
• Enhanced home value and compliance with future energy standards

Hanover’s path to a more energy-efficient and resilient community begins in individual homes—and heat pumps are at the heart of that transition.