HVAC Rebates: Federal and Mass Save Programs

At North Winds Mechanical, we make it easy for you to get the maximum savings when you upgrade your HVAC system or switch to a heat pump. We handle all of the Mass Save rebate paperwork for you, providing what amounts to an instant rebate — we apply the Mass Save incentive up front, so you only pay the net price.

You can also take advantage of federal tax credits under sections 25C and 25D, giving you even more savings. Below is a clear guide to current rebates and incentives for 2025, including expiration dates and differences between residential and commercial geothermal systems.

Mass Save Rebates and Incentives (2025)

Mass Save rebates are some of the most generous in the country and are available only when using a Mass Save Approved Contractor like North Winds Mechanical.

Whole-Home Air-Source Heat Pumps
If you replace your home’s entire primary heating and cooling system with a qualifying heat pump, the rebate is $3,000 per ton of installed capacity, with a maximum of $10,000 per home. The existing system must be fully replaced or disconnected.

Partial-Home or Supplemental Heat Pumps
If you add a heat pump to supplement your existing heating system, you can receive $1,250 per ton of installed capacity, up to $10,000 total. An integrated control may be required to ensure the systems work efficiently together.

Income-Based Enhanced Incentive
For households meeting certain income thresholds, rebates can go as high as $16,000 total. Income verification is required to qualify for these enhanced incentives.

0% Mass Save HEAT Loan
In addition to rebates, you may qualify for 0% interest financing for up to 7 years with a lifetime maximum of $25,000. This loan can be used for heat pumps, weatherization, and other energy-efficient upgrades.

Federal Tax Credits: Sections 25C and 25D

The Inflation Reduction Act extended federal credits to help homeowners transition to cleaner, more efficient energy systems.

Section 25C – Energy Efficient Home Improvement Credit
This credit applies to energy-efficient HVAC systems such as air-source heat pumps, heat pump water heaters, high-efficiency furnaces, boilers, and central air conditioners.

  • Covers 30% of eligible project costs.

  • For heat pumps and heat pump water heaters, the annual cap is $2,000.

  • Other improvements, such as panel upgrades or weatherization, have lower caps (e.g., $600 for panel upgrades).

  • Systems must be installed and placed in service by December 31, 2025.

  • This credit is for residential systems only, not commercial.

Section 25D – Residential Clean Energy Credit
This credit applies to renewable energy systems, including geothermal heat pumps, solar, battery storage, and more.

  • Covers 30% of the total project cost, including installation.

  • No dollar cap for geothermal systems.

  • Systems must be installed and placed in service by December 31, 2025.

  • This credit applies to residential installations only.

  • For commercial geothermal systems, different federal programs and tax incentives apply.

Expiration Deadlines

Both 25C and 25D federal credits currently expire after December 31, 2025. Any equipment installed after this date will not qualify for the same level of credit unless the law is extended.
Mass Save rebates are currently active for 2025 but may be reduced or adjusted in future years. Acting now ensures you receive the highest rebates possible.

How North Winds Mechanical Makes It Simple

  1. Instant Mass Save Rebate
    We handle the entire Mass Save rebate process for you and apply the rebate directly to your project cost. You never have to wait for a rebate check — you pay only the net price after the rebate.

  2. Federal Tax Credit Documentation
    After installation, we provide all the documentation you need to claim the 25C or 25D federal credit when you file your taxes.

  3. Stacking Savings
    You can combine your instant Mass Save rebate with a federal tax credit for maximum savings.

Example of Total Savings

If you install a whole-home heat pump system that costs $22,000:

  • The Mass Save rebate may reduce your cost by $10,000, leaving $12,000 as your net cost.

  • Then you could receive a $2,000 federal tax credit under Section 25C when you file your taxes.

  • Total net cost after all incentives could be as low as $10,000.

For geothermal systems, the federal credit under Section 25D would be 30% of the total project cost with no cap, potentially saving you tens of thousands of dollars.

Geothermal vs. Commercial Systems

  • Residential Geothermal: Eligible for the 25D credit at 30% with no limit.

  • Commercial Geothermal: Federal credits are handled differently and fall under separate commercial tax programs. These projects may qualify for accelerated depreciation or other incentives.

  • Mass Save Rebates: Focus primarily on residential applications, though some commercial programs may exist. Contact us to discuss commercial options.

Get Started Today

  1. Contact North Winds Mechanical to evaluate your home and heating system.

  2. We’ll determine which rebate and credit programs you qualify for.

  3. Schedule a free Mass Save Home Energy Assessment if required.

  4. We install your system, applying the Mass Save rebate immediately.

  5. You file for your federal tax credits when you do your taxes.

By acting now, you can lock in maximum rebates and tax credits before these programs expire. Contact us today to start saving — and to make your home more energy-efficient and comfortable year-round.