Want to lower your building’s energy bills in Massachusetts?
Wondering if getting a new, energy-saving HVAC system could help you save money?
The answer is yes, and if you don’t look into it, you could miss out on thousands of dollars in savings.
At Harold Brothers, we help business owners across Massachusetts get money back through special programs when they upgrade their HVAC systems to more efficient ones.
In this article, we’ll explain the best HVAC incentives in Massachusetts, how they work, and how your business can qualify, all in simple steps, making it easy to understand.
What Is an Energy-Efficient HVAC System for Commercial Buildings?
An energy-efficient HVAC system uses less electricity or gas to heat and cool your building, but still does a great job. These systems are built to work smarter, so they cost less to run, help the environment, and keep your employees or tenants more comfortable.
Examples of commercial energy-efficient HVAC systems include:
- Variable Refrigerant Flow (VRF) systems
- High-efficiency rooftop units (RTUs)
- Air-source and ground-source heat pumps
- Building automation systems (BAS)
- Smart commercial thermostats
- Demand-controlled ventilation systems
When you install these systems, you’re not just making your building work better; you can also get money back, tax breaks, and even loans with little or no interest to help pay for it. This can make the upgrade much more affordable.
Why Does Massachusetts Offer HVAC Incentives for Commercial Properties?
Massachusetts has some of the highest energy costs in the country for businesses. To help fix this, the state wants companies to use less energy by installing better, more efficient HVAC systems.
When buildings use less energy, it helps the power grid work better, cuts down on pollution, and saves businesses money. That’s why Massachusetts offers rewards if you upgrade your HVAC system.
Mass Save Rebates: The Biggest Incentive Program
Mass Save is the primary energy-efficiency program in Massachusetts, sponsored by your local electric and gas utilities and supported by the state.
Here are some of the rebates your commercial property may qualify for:
Heat Pump Rebates (often custom amounts)
You can receive generous incentives for installing air-source or ground-source heat pumps:
- Whole-building air-source heat pump systems: Custom rebates based on tonnage and system type
- Partial-building heat pump installations: Up to $2,500 per ton
- Ground-source (geothermal) systems: Custom incentives up to $15,000+, depending on scope
High-Efficiency Furnace or Boiler Rebates
Not ready to switch to heat pumps? You can still get rebates for traditional systems:
- High-efficiency gas furnace: Up to $1,000 per unit
- High-efficiency gas boiler: Up to $3,000 per unit
Smart Thermostat Rebate: Up to $100 per Unit
Mass Save offers up to $100 per smart thermostat installed in commercial spaces to help optimize performance and cut waste.
Important: All rebates require working with a Mass Save-approved commercial contractor, so be sure to review the list before starting.
Federal Tax Credits for Commercial HVAC Upgrades
In addition to state programs, Massachusetts businesses can benefit from federal tax incentives under the Inflation Reduction Act (IRA).
As of 2023, you may be eligible for:
- 30% of the cost of a qualifying HVAC system (up to $2,000 per unit)
- Section 179D deduction: Up to $5 per square foot for overall building efficiency improvements
- Bundled credits for integrated systems like controls and thermostats
To claim these credits, keep detailed records of purchases and submit IRS Form 5695 (for credits) or consult a tax professional for 179D deductions.
Income-Based Incentives and No-Cost Upgrades (for Nonprofits & Public Sector)
If your organization serves the public or qualifies as low-income, such as:
- Affordable housing developers
- Municipal buildings
- Public schools and universities
- Nonprofit facilities
You may qualify for additional Mass Save programs offering:
- 100% coverage for qualifying HVAC systems
- No-cost commercial energy assessments
- Free or subsidized building envelope upgrades
This support is designed to help mission-driven organizations upgrade systems without the financial burden.
Local and Utility Incentives
Outside of Mass Save and federal programs, some towns and cities in Massachusetts offer their own HVAC incentives for commercial buildings.
Examples include:
- Extra rebates for heat pumps or electrification in cities with municipal utilities.
- Demand-response programs offering credits for smart controls.
- Equipment rebates through utilities like Concord MLP or Braintree Electric.
Be sure to visit your city’s or utility company’s website, especially if you’re served by a municipal provider. Their programs may run separately from Mass Save.
What Do You Need to Qualify for These Incentives?
To take advantage of these programs, here’s what most will require:
- Work with approved commercial HVAC contractors.
- Install ENERGY STAR® or program-qualified equipment.
- Complete a Mass Save commercial energy assessment.
- Submit all rebate paperwork, forms, and receipts accurately.
- Use proper documentation for any tax incentives.
Not sure where to start? Schedule a commercial energy assessment with a Mass Save contractor. It’s usually free and unlocks access to many of these programs.
How Much Can You Actually Save?
It depends on your system, building type, and usage, but here’s a sample scenario:
Let’s say you install a commercial VRF heat pump system:
- System cost: $120,000
- Mass Save rebate: -$40,000
- Federal tax credit (30%): -$24,000
- Net cost: $56,000
Is It Worth Upgrading to an Energy-Efficient HVAC System?
Absolutely.
For most commercial buildings, HVAC systems represent a significant portion of operating costs. If your current system is outdated, inefficient, or near the end of its lifespan, upgrading now could mean:
- Thousands in immediate rebates
- Long-term energy cost reduction
- Improved comfort and indoor air quality
- Positive ESG reporting metrics
With the current stack of incentives available, many Massachusetts businesses are getting 50–70% of their project costs covered.
Take Advantage Before It’s Too Late
Many Massachusetts commercial buildings are still running on outdated HVAC systems that drive up costs and limit performance. With rebates, tax credits, and 0% financing options available, there’s no better time to make the switch.
At Harold Brothers, we’ve helped businesses across the state choose, install, and maintain energy-efficient HVAC systems that deliver results, and we’re ready to help you do the same.
Looking to cut energy costs and run a more efficient building?
Your next step is to check out our article, “How to Achieve Energy Efficiency in Commercial Buildings.” You’ll discover a variety of strategies and technologies designed to help you lower energy costs and improve overall building performance.
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