2026 Heating Rebates and Tax Credits in Maine and New Hampshire: A Homeowner’s Guide

Current as of August 31, 2026. Incentive programs change and sometimes run out of funding mid-year — always confirm current figures with Efficiency Maine, NHSaves, or our office before counting on a specific number.

Between changes at the federal level and Maine and New Hampshire’s own programs, it’s genuinely hard to keep track of what’s currently available for a heating system upgrade. Here’s where things stand right now.

Federal Tax Credit: Currently Not Available for New Installs

This is the biggest change homeowners need to know about. Public Law 119-21 (the budget reconciliation act signed July 4, 2025) eliminated the Section 25C Energy Efficient Home Improvement Credit — the credit that previously covered up to $2,000 for qualifying heat pumps and up to $600 for high-efficiency boilers — for any equipment placed in service after December 31, 2025. If your system was fully installed and operating on or before that date, you can still claim the credit on your tax filing using IRS Form 5695. For anything installed in 2026, there currently is no federal 25C credit to claim. This isn’t a Local Energy policy or a guess — it’s directly from the IRS’s own guidance on the law.

Efficiency Maine Heat Pump Rebates: Still Active

Unlike the federal credit, Efficiency Maine’s heat pump rebate program is still running, and it’s tiered by household income:

• All income levels: up to $1,000 per outdoor unit, capped at $3,000 per household
• Moderate-income households (roughly individual filers up to $70,000, joint filers up to $100,000): up to $2,000 per outdoor unit, capped at $6,000
• Low-income households (enrolled in programs like HEAP, SNAP, TANF, or MaineCare): up to $3,000 per outdoor unit, capped at $9,000

A qualifying whole-house heat pump conversion adds a $500 bonus on top of those tiers. Note that this program applies to heat pump installations specifically — it does not cover oil-to-gas conversions or fossil-fuel boiler/furnace replacements. If you’re weighing a gas conversion against a heat pump, that’s worth factoring into the decision; see our Oil to Gas Conversion guide for more.

Wood and Pellet Boiler Rebates

Upgrading to an advanced pellet or wood-fired hydronic boiler is covered at 1/3 of project cost, up to $6,000, through Efficiency Maine.

Oil Heating System Rebates (Cyclical Funding)

The Maine Energy Marketers Association coordinates NORA-funded rebate pools that, during active budget windows, offer up to $450 for an upgraded higher-efficiency oil heating system and $300 for a new heating oil storage tank. Funding for these programs is cyclical and can run out mid-year, so we verify what’s actually available at the time of your estimate rather than quoting last year’s numbers.

Financing: Efficiency Maine Green Bank and NEIF

If a rebate doesn’t cover the full gap, there are two financing programs we work with regularly:

• Efficiency Maine Green Bank: unsecured loans up to $25,000 with no home liens required — options include a 1-year term at 0% APR (with a $500 origination fee spread over 12 months), a 5-year term at 5.99% APR fixed, a 10-year term at 7.99% APR fixed, and an income-based 10-year option at 5.99% APR for unsecured loans up to $7,500.
• NEIF (National Energy Improvement Fund): we’re an approved contractor partner. Their EnergyPlus Loans are simple-interest, fixed-rate installment loans from $2,500 to $50,000 with no prepayment penalties — qualifying tiers offer rates as low as 8.99% APR for credit scores above 700.

New Hampshire: NHSaves

New Hampshire’s equivalent program, NHSaves, currently offers per-ton incentives for qualifying ducted or ductless heat pump installations, with a notably higher tier for systems replacing electric resistance heat, plus a smaller rebate for Wi-Fi thermostats. NHSaves’ tiers have shifted more than once in the past year, so if you’re in our Albany, NH service area, we’ll confirm the current rate that applies to your specific project rather than quoting a number that may already be out of date.

The Honest Bottom Line

Rebate and credit programs move fast, and what’s true in this post today may not be true by next winter. We provide your finalized installation invoice and matching AHRI certificates to help you apply for whatever’s currently available, but final approval and disbursement is controlled by Efficiency Maine, NHSaves, or the relevant program administrator — not us, and we can’t guarantee any specific rebate. For the most current answer for your specific project, see our full FAQ page or contact us directly — call Maine at (207)-613-6886 or New Hampshire at (603)-662-2809.