Inflation Reduction Act

Combine IRA Tax Credits with State Incentives and Financing to Upgrade Your Home and Ditch Fossil Fuels

The Inflation Reduction Act (IRA) is a United States federal law that was passed in 2022. It is the single largest investment the United States federal government has ever made in clean energy and climate solutions. From the cars we drive, to the ways we heat and cool our homes, one of the key goals of the IRA is to help Americans choose clean energy technologies that improve their health, safety, and quality of life.

Did you know?

• It typically costs less to heat your home with a heat pump than it does to use oil, propane, or other types of electric heat
• New York State is investing in charging stations for towns and businesses to help EV drivers get from point A to point B

The benefits of the IRA can be combined with New York State incentives and rebates, helping New Yorkers use less energy, save more money, and contribute to a cleaner, healthier planet. Now is the time to start your clean energy future, free from fossil fuels including natural gas, oil, and propane.

The IRA helps you get the latest clean energy technologies and equipment that will save energy for years to come. 

The table below shows the tax credits and incentives you may be eligible to receive when you purchase a qualifying item. Eligibility varies by product and may be based on household income, federal income tax liability, product specifications, and more. Consult the Internal Revenue Service (IRS) guidance for taxpayers on credits and deductions and your tax advisor to determine IRA eligibility. Income-eligible New Yorkers may be able to receive additional State and federal rebates along with the incentives and rebates listed below.

Home Clean Electricity Products

Heating, Cooling, and Water Heating

Eligible Clean Energy Technology	Federal IRA Tax Credit 2023-2032	New York State Incentives and Tax Credits
Cold-climate Air Source Heat Pumps†	30% of cost, up to $2,000 per year	Incentives: Partial home solutions $100-$400 on average Whole home solutions $2,000 - $3,000 on average
Heat Pump Water Heaters	30% of cost, up to $2,000 per year	Incentives: $700 - $1, 000 on average
Biomass Stoves	30% of cost, up to $2,000 per year
Ground Source (Geothermal) Heat Pumps†	30% of cost	Incentives: $7,000 - $9,000 on average Tax Credit: 25% up to $5,000
Solar (Water Heating)	30% of cost
Efficient Air Conditioners	30% of cost, up to $600*
Efficient Heating Equipment	30% of cost, up to $600*
Efficient Water Heating Equipment	30% of cost, up to $600*

Other Energy Efficiency Upgrades

* Subject to cap of $1200/year
** The IRS will soon publish further information on eligibility requirements related to home electric vehicle chargers, however credits are intended for residents in non-urban or low-income communities.
† Eligible for New York State low-interest financing .
     
Table Credit: United States Department of Energy

Eligible Clean Energy Technology	Federal IRA Tax 2023-2032	New York State Incentives and Tax Credits
Electric Panel or Circuit Upgrades for New Electric Equipment	30% of cost, up to $600*
Insulation Materials†	30% of cost*	Incentives: $1,000 - $4,000
Windows, Including Skylights†	30% of cost, up to $600*	Incentives may be available with insulation materials packages.
Exterior Doors†	30% of cost, up to $500 for doors (up to $250 each)*
Home Energy Audits	30% of cost, up to $150*	Free for all New Yorkers
Home Electric Vehicle Charger	30% of cost, up to $1,000**
New Electric Vehicle	Up to $7,500 if you meet certain income limitations. For more information, see the IRS website .	Up to $2,000 for purchased or leased eligible vehicles
Pre-owned Electric Vehicle	Up to $4,000 if you meet certain income limitations. For more information, see the IRS website .

For additional information about the IRA, NYSERDA recommends individual New York taxpayers to visit the following resources:

• Information and updates on how the IRA is changing federal tax laws
• White House’s Clean Energy For All 
• Rewiring America’s IRA map of New York 

New York State Helps You Get the Most Out of the IRA

For years, New York’s nation-leading climate actions have included programs to help New Yorkers switch to clean energy options. The IRA does not replace those New York State clean energy programs — it enhances them. New Yorkers can still take advantage of existing State programs to help them save more money, more energy, and get the most out of their IRA incentives.

Explore the options below to find the clean energy opportunity that’s right for you or visit NYSERDA.ny.gov for a complete list of New York State’s energy related programs.

Technologies

NYSERDA has resources to help you understand the benefits of using the clean energy technologies that are covered by the IRA.