Rebates and incentives have made energy-efficient HVAC installations more affordable since the early ’90s. These programs, including tax credits, provide financial relief while reducing energy consumption and environmental impact—a true win-win for homeowners.
In 2025, rebates and incentives remain available but are set to decline. If you’re considering upgrading your system to enhance comfort and cut long-term costs, now is the time to act. This guide covers current rebate programs, eligibility requirements, and strategies to maximize your savings.
Federal Incentives
As part of the Inflation Reduction Act of 2022, federal tax credits and rebates support homeowners who install ENERGY STAR® certified heating and cooling equipment.
Tax Section 25C
Also known as the Nonbusiness Energy Property Credit, Tax Section 25C is a tax credit that covers 30% of installation costs for certain upgrades, up to $1,200 annually, for qualifying energy-efficient improvements. These are the ways to use this tax credit to save:
- $600 credit on air conditioners
- $2,000 credit on heat pumps
- $600 credit on gas furnaces and boilers
- $50 credit on advanced air-circulating fans
Tax Section 25D
Also known as the Residential Energy Efficient Property Credit, this incentive supplements 30% of installation costs for ENERGY STAR® geothermal heat pumps until 2032. That percentage drops to 26% in 2033 and 22% in 2034.
Massachusetts State Rebates
Pairing federal incentives with Mass Save® programs amplifies savings, offering rebates and 0% financing for high-efficiency HVAC systems.
HVAC Rebates
- Whole-Home Systems: Rebates offer $3,000 per ton, up to $10,000, for the primary heating and cooling source systems.
- Partial-Home Systems: Rebates of $1,250 per ton, up to $10,000, are available for systems that supplement existing heating solutions.
- Income-Based Enhanced Incentives: Qualifying residents may receive up to $16,000 for heat pump installations.
- Smart Thermostats: Up to $100 in rebates are available for eligible smart technology, helping homeowners optimize their energy usage.
However, these rebates aren’t the only way to make installing new HVAC affordable through MassSave®. You can also benefit from one of their 0% financing loans. The MassSave® HEAT Loan offers zero-interest financing up to $25,000 for qualifying energy-efficient upgrades, making it easier to afford new HVAC systems and other efficiency improvements.
Manufacturer Promotions
Beyond government incentives, many HVAC manufacturers offer seasonal rebates. Timing your purchase strategically can lead to significant savings. For example, the Carrier® Cool Cash program provides instant savings up to $2,300 on select systems from March 3 to June 27, 2025.
Maximize Your Savings
To get the most out of rebates and incentives, consider these strategies:
- Hire a Certified Contractor: Most programs require installation by a certified professional to qualify for rebates. A proper installation ensures efficiency, performance, and compliance with rebate requirements.
- Schedule an Energy Audit: Many utility companies offer free or low-cost evaluations to identify energy-saving opportunities.
- Time Your Purchase Wisely: The best deals typically align with spring and fall promotions. Planning ahead maximizes savings.
Are Energy-Efficient HVAC Systems Worth It?
Absolutely! Beyond rebates and incentives, an energy-efficient system offers:
- Improved Home Value
- Lower Utility Bills
- Reduced Carbon Footprint
- Enhanced Indoor Comfort
- Quieter Operation
- Better Humidity Control
- Improved Indoor Air Quality
- Longer System Lifespan
- Fewer Repairs and Maintenance Needs
Upgrading to an energy-efficient heating and cooling system is a wise investment for your home and the environment. With the combination of federal tax credits, state rebates, and manufacturer promotions, there’s never been a better time to make the switch. Following this guide and working with certified professionals can maximize your savings while enjoying a more comfortable and energy-efficient home.
Stay Updated on Rebates
Navigating rebates and incentives can be complex, but you don’t have to do it alone. If you’re in Massachusetts, Pierce Refrigeration is here to help. Our team will guide you through the process and find the best solution for your home.
Please Note: Rebate programs and incentives are subject to change. While we strive to keep our information current, offers and values may vary. We verify rebate eligibility at the time of contracting and inform you of any time-sensitive updates.
For more information, contact the Pierce Refrigeration team, and one of our experts will guide you in finding your solution.
Need 24-7 emergency service? Looking for advice on improving your everyday air quality and comfort at home and work? Contact the friendly staff at Pierce Refrigeration at 800-696-1088 or email us at: info@piercerefrig.com.