Over the years, CPS has worked with many low to medium income homeowners to find quality heating and cooling systems that fit their budgets and suit their needs. We understand the complexities of sorting through the assistance programs, rebates, and tax credits so we would like to share the resources available in Massachusetts to make new HVAC installations affordable for all families and individuals. In 2023, you can access several options to subsidize the cost of installing a new HVAC system.
The Federal Inflation Reduction Act
With prices rising, the government has instated legislation that offers tax credits to homeowners equal to 30% of HVAC installation costs up to $1,200 ($2,000 for heat pumps). Additionally, there are tax credits and rebates available for the following energy-efficient units:
Air Conditioners: Up to $600 tax credit*
Heat Pumps: Up to $2,000 tax credit*
Gas Furnaces and Boilers: Up to $600 tax credit*
Advanced Main Air Circulating Fan (using no more than 2% of furnace’s total energy): Up to $50 tax credit
Electric Heat Pumps: Up to $8,000 in rebates
ENERGY STAR® Geothermal Heat Pumps: 30% of installation cost tax credit
* Products must be in the highest CEE tier (efficiency ratings)
NationalGrid Energy Saving Programs
In hopes of counteracting the difficulties families face in maintaining a comfortable home as energy and gas prices rise, NationalGrid implemented a program that provides free energy-related services to persons who qualify. Zero-cost HVAC services and systems include:
- Additional attic, wall, and basement insulation
- Air sealing of leaks
- Heating systems, including the option of switching from oil or propane to efficient electric heat pumps
- Replacement heating system
- Replacement dehumidifier
- Replacement window air conditioning unit
- A programmable or Wi-Fi thermostat
To schedule your Home Energy Assessment, call Mass Save® at 1-866-537-7267 or your local Community Action Program (CAP) agency. For more information and to see if you qualify, visit the National Grid website.
Massachusetts Home Energy Assistance Programs
Massachusetts low-income residents can benefit from financial assistance with energy bills, weatherization, and Heating System Repair & Replacement. These programs are yet another way to make replacing your HVAC system affordable if you’re on a tight budget. The Heating Emergency Assistance Retrofit Task Weatherization Assistance Program (HEARTWAP) uses local agencies to aid those with a gross annual income that is at most 60% of the Estimated State Median Income. The amount of savings and subsidies for residents vary depending on what kind of system is installed and their assessment of the level of need of the individual who has applied. You can apply online and learn more about the program on the Massachusetts government website.
MassSave Rebates and Incentives
MassSave has a long list of rebates available to a broader range of homeowner incomes. Current offers are:
Air Source Heat Pumps: Up to $10,000 rebate
Ground Source Heat Pumps: Up to $15,000 rebate
Heat Pump Water Heaters: $750 instant discount
Integrated Controls: Up to $1,500 rebate
Gas Heating & Water Heaters: Up to $2,000 for heating equipment; Up to $550 for water heaters
Oil Heating & Water Heaters: Up to $500 for heating equipment; Up to $300 for water heaters
Propane Heating & Water Heaters: Up to $2,000 for heating equipment; Up to $550 for water heaters
Smart & Programmable Thermostats: Up to $100 rebate or instant discount
If your HVAC needs are urgent, you can contact us here or get an estimate now!
We hope you found this article helpful and look forward to continuing to ensure your comfort and safety. Thank you for choosing CPS.
If you are in need of more information or would like to schedule a free consultation, you can reach us at 508-460-6691 or fill out this form.