Both the Federal government and many states now offer substantial incentives and benefits for homeowners that install ductless mini split heat pump systems.
NE Mini Splits will work with you to ensure that your ductless mini split heat pump system meets the criteria necessary to qualify for the maximum possible rebates and incentives!
State Rebate Programs
- New Hampshire currently offers a rebate of up to $1,250 for qualifying heat pump installations through the NH Saves air-source heat pump rebate program.
- The rebate is calculated by dividing rated cooling capacity measured in BTUs by 12,000, multiplied by $250. (For example: 40,000 BTUs cooling/12,000 = 3.33 tons x $250/ton = rebate of $832.50)
- The program is administered via the New Hampshire utilities and operates differently depending on the utility. For details, visit: https://nhsaves.com/learn/rebate/electric-heating-cooling-equipment/
- Enhanced rebates of up to $10,000 ($2,000 per ton) are available for customers switching from baseboard or other fixed electric resistance heating that is used as a primary heat source. These rebates require pre-verification of resistance heating. Get pre-verified here: https://nhsaves.com/getverified/
- New Hampshire is also in the process of implementing and rolling out additional rebates, which may be available under the federal High-Efficiency Electric Home Rebate (HEEHRA) program that was passed as part of the 2022 Federal Inflation Reduction Act. More information about the federal program is at the bottom of this page, and more information about New Hampshire’s ongoing implementation of it is available here: https://www.energy.nh.gov/funding-opportunities/funding-opportunities-homeowners/home-electrification-and-appliance-rebates
- Maine offers financial incentives via the Efficiency Maine Residential Heat Pump Rebate program. Maine’s program calculates rebate amounts based on household income tiers and whether the system is ductless or ducted. Additional eligibility requirements apply:
- Any income – $1,000 per eligible outdoor unit (up to $3,000 per housing unit)
- Moderate income – $2,000 per eligible outdoor unit (up to $6,000 per housing unit)
- Low income – $3,000 per eligible outdoor unit (up to $9,000 per housing unit)
- Additional details, including eligibility requirements, are available here: https://www.efficiencymaine.com/at-home/residential-heat-pump-rebates/
- Massachusetts offers three types of rebates for heat pumps, depending on whether the heat pump is used as the sole source of heating. The rebate is calculated by dividing rated cooling capacity measured in BTUs by 12,000, multiplied by $250. (For example: 40,000 BTUs cooling/12,000 = 3.33 tons x $2,650/ton = rebate of $8,825, capped at $8,500).
- Whole-Home Rebate: $2,650 per ton, up to $8,500. Available to consumers who install heat pumps to replace a pre-existing system and operate as the sole source for heating and cooling.
- Partial-Home Rebate: $1,125 per ton, up to $8,500. Available to customers who plan to keep an existing furnace or boiler to supplement a new heat pump.
- Basic Rebate: $250 per ton, up to $2,500. Available to customers who are not displacing fossil fuel or electric resistance heating. Example include installing a heat pump in a previously unconditioned space, or in a summer home, or updating an existing central air system.
- More information regarding Massachusetts’ program, including eligibility requirements, is available here: https://www.masssave.com/en/residential/rebates-offers-services/heating-and-cooling/heat-pumps/air-source-heat-pumps
Federal Rebates and Credits
- For qualifying installations between January 1, 2023 and January 1, 2026, a federal tax credit of 30% of installation cost, up to $2,000, is available.
- The 2022 Federal Inflation Reduction Act also contains the High-Efficiency Electric Home Rebate (HEEHRA) program. This program can provide a rebate of up to $8,000 of installation cost for a heat pump for space heating or cooling. HEEHRA rebates are subject to the following income limits.
- If household income is 80% below the relevant area’s median income, the homeowner is eligible to receive the maximum rebate: 100% up to $8,000.
- If household income is 81-150% of the relevant area’s median income, the homeowner is eligible to receive up to 50% of the heat pump’s installed cost.
- The credit is not available to consumers who earn more than 150% of the media for their area. Median income is determined by reference to the Fannie Mae Area Median Income tool, available here: https://ami-lookup-tool.fanniemae.com/amilookuptool/
- HEEHRA rebates are administered by state energy offices, which are currently in the process of creating specific guidelines, including additional eligibility requirements. Below is information about the current status of the programs in Massachusetts, New Hampshire and Maine.
- New Hampshire: Not live yet – expected to launch in late 2026, subject to federal DOE approval. More information is available here: https://www.energy.nh.gov/funding-opportunities/funding-opportunities-homeowners/home-electrification-and-appliance-rebates.
- Maine: The Maine program is run via Efficiency Maine and is partially live, but limited to income-eligible new construction of affordable multifamily housing and single-family mobile homes. It is not currently open for general retrofits or replacing systems in existing standard homes. More information about the Maine program is available here: https://www.efficiencymaine.com/ira-home-energy-rebates/
- Massachusetts: Federal funds are being integrated into the Mass Save program (described above). A summary of the Massachusetts program is available here: https://www.masssave.com/en/residential/rebates-offers-services/heating-and-cooling/heat-pumps/air-source-heat-pumps