Heat Pumps

Federal  |  Massachusetts  |  Rhode Island

Federal Tax Credit

• 30% up to $2,000/year for heat pumps & heat pump water heaters
• Tax credit limited to a total of $3,200 per year for combined measures
  • No rollovers
    
• For more details, see https://www.masssave.com/-/media/Files/PDFs/THE-INFLATION-REDUCTION-ACT-FAQ.pdf

Federal Energy Efficiency Rebates

• Two types of energy efficiency rebates:
  • For projects saving > 15% energy, up to $8,000
  • For low- and moderate-income households (up to 150% of area median income) up to $14,000 for various home electrification measures
• Tax credits and rebates may be stacked together
• For more information, see the Rewiring America calculator
  

   

Federal Income-Qualified Rebates

• Cannot be combined with other federal rebates

• Less than 80% AMI - up to 100% of cost

• Less than 150% AMI - up to 50% of cost

• Waiting on more details from federal and state governments
• You can sign up to receive updates about Massachusetts roll-out of the IRA rebate program at : Sign up (e2ma.net).
  

MassSave Rebates

Whole Home:

• $10,000

• Must be sized properly for 100% of home’s need

• Legacy system can stay as emergency backup

Partial Home:

• $1,250 per ton (12,000 BTU) of heating capacity
• Integrated controls may be required
• 75-100% for insulation

MassSave HEAT Loan Program

• $25,000 (up to $50,000 for projects that include heat pumps) zero-interest rate loan
• Batteries may earn money from Connected Solutions program

Rhode Island Rebates

Federal rebates for heat pumps are now available for Rhode Island residents who meet income qualifications, however, the HEAR program is currently paused due to uncertainty in federal funding: Home Energy Rebate Programs | Rhode Island Office of Energy Resources. 

Rhode Island has two additional rebate programs that may be combined. 

Clean Heat RI (a program of the RI Office of Energy Resources):

Please note as of February 2025 the Clean Heat Rhode Island market-rate incentive, which offers savings per ton on switching to heat pump & heat pump water heater installations, is currently fully subscribed and no longer taking applications (however, the incentive for low-income households is still available). It may be re-instated later.

• $1,000/ton for homes heating with gas, oil, or propane

• Low-income households that heat with oil or propane may qualify for 100% subsidy of heat pump conversion, including up to $3,000 for electrical wiring upgrades

• For more details, see https://cleanheatri.com/resources/incentives/

Rhode Island Energy

• $350/ton for homes heating with gas, oil, or propane
• $1,250/ton for homes with electric resistance baseboard
• Must fully insulate and use approved contractor

• Integrated controls may be required

• For more details, see https://www.rienergy.com/RI-Home/Energy-Saving-Programs/Heat-Pump-Incentives

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Electric Vehicles

Federal  |  Massachusetts  |  Rhode Island

Federal Clean Vehicle Credit

Can claim at point-of-sale or at tax time. Either way, must purchase through dealership registered with the IRS portal.

For new electric cars:

• Up to $7,500
• Household income must be under limit to qualify; $300,000 for joint filers, $225,000 for heads of household, and $150,000 for individuals
  
•  Vehicle must meet three requirements
  • Must be assembled in North America
  • MSRP must be under the limit of $55,000 for sedans and hatchbacks; $80,000 for SUVS, pickup trucks, and vans
  • Must meet complicated battery component and mineral requirements
    
•  If you lease, clean vehicle credit goes to leasing agent, who may pass on value

For used electric cars:

• Up to $4,000 or 30% of sales price (whichever is lower)
• Household income must be under limit to qualify: $150,000 for joint filers, $112,500 for heads of household, $75,000 for individuals
• Vehicle requirements
  • Must be under $25,000
  • Must be at least two model years old
  • Must be purchased from a dealership
•  No battery, mineral, or assembly location requirements
• Clean Vehicle Credit only applies at first resale

Federal Tax Credit for Charging Installation

• Federal tax credit of 30% up to $1,000 for charging infrastructure installation
• Only available in census tracts that meet certain requirements

Massachusetts MOR-EV Rebate

• Available to Massachusetts residents for purchase or 36-month lease
• MOR-EV Standard: $3,500 for battery electric vehicles under $55,000
• MOR-EV Used: $3,500 for used battery electric vehicle under $40,000 purchased at a licensed Massachusetts dealership; must meet income requirements to be eligible
• MOR-EV+: Additional $1,500 rebate for income-qualified drivers
• For all iterations, two ways of participating:
  • Purchase from a participating dealership to get the rebate right away
  • Apply after purchasing online and receive a check in the mail
• MOR-EV Truck: $7,500 for eligible pick-up trucks under $80,000
  

Massachusetts Charging Installation Incentives

• Check with your electric utility for charging incentives
• National Grid and Eversource offer infrastructure, hardware, and installation support for residential customers to varying degrees in various segments
• If you live in a community with a municipal utility, check if your electric utility has programs to support charging installation

Visit our website for more information.

Rhode Island Electric Vehicle Rebate Programs

There are three rebate programs in Rhode Island: DRIVE EV, DRIVE+, and DRIVE EV FLEET. DRIVE EV is for all RI residents and DRIVE+ provides additional incentives of up to $1,500 for Rhode Islanders who meet certain income requirements. DRIVE EV FLEET is for small businesses, non-profits, and public sector entities, so we won't go into details here, but please feel free to check out the website.

• Qualified applicants will have 120 days from the date of purchase or lease to apply for the rebate program online. The program is first-come, first-served
• Must be purchased at a licensed RI Automobile Dealership and registered in RI
• Purchase or lease of a new EV has to have a final sales and purchase price agreement at or below $60,000. Rebate amount is $1,500 for a new battery-electric vehicle and $1,000 for a new plug-in hybrid.
• Purchase or lease of a used EV must have a final sales and purchase price agreement at or below $40,000. Rebate amount is $1,000 for a used battery-electric vehicle and $750 for a used plug-in hybrid.

Rhode Island Charging Installation Incentives

PowerUpRI offers the following:

• $350.00 or 50% of the purchase of a Level 2 residential EV charger, whichever is lesser, if no electrical system upgrades are required ($500 or 75% if income-qualifying)
• $700 or 50% of the purchase and installation costs of a Level 2 residential charger, whichever is less, if upgrades are required ($1,000 or 75% if income-qualifying)

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Solar

Federal  |  Massachusetts  |  Rhode Island

Federal Tax Credit

• 30% for solar panels (PV), solar water heaters (HW), battery storage, geothermal

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Other Energy Upgrades

Federal  |  Massachusetts  |  Rhode Island

Federal Energy Efficiency Tax Credits

• 30% up to $600/year for windows and panel upgrades (if coupled with heat pumps or heat pump water heaters)
• 30% up to $1,200 for insulation
• May be received every year for qualifying measures

Federal Energy Efficiency Rebates

• Two types of energy efficiency rebates:
  • For projects saving > 15% energy, up to $8,000
  • For low- and moderate-income households (up to 150% of area median income) up to $14,000 for various home electrification measures
• Tax credits and rebates may be stacked together
• For more information, see the Rewiring America calculator

Federal Income-Qualified Rebates

• Can't be combined with other programs

• Less than 80% AMI - up to 100% of cost

• Less than 150% AMI - up to 50% of cost

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