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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 Link opens in new window - close new window to return to this page. 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

Other Energy Efficiency Upgrades

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

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

For years, New York’s nation-leading climate actions Link opens in new window - close new window to return to this page. 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.


    Residential Energy Assessments

    All New York residents are eligible to receive a free home energy assessment that can reveal how efficiently your home is operating and where energy is being wasted. An assessment will provide you with recommendations to save energy and improve the efficiency, comfort, and safety of your home.

    Get a Free Assessment 


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

How to Claim IRA Benefits and Save

The IRA will help most Americans reduce the purchase cost of clean energy technologies through tax credits. Here’s how it works:

  • When you purchase a qualifying clean energy technology Link opens in new window - close new window to return to this page., save your proof of purchase to be included with your yearly tax return.
  • When you submit your tax return for the year you installed the qualifying technology, work with your tax preparer to indicate that you made a qualifying clean energy improvement to your home and the amount it cost.
  • Qualifying credits will be applied to your federal tax return, meaning you will either receive a larger refund or owe a smaller amount, depending on your circumstances. Read the IRS’s FAQs about energy efficient home improvements and residential clean energy property credits Link opens in new window - close new window to return to this page. or consult with a tax professional to better understand your particular tax situation.

New Yorkers may also be eligible for additional upfront rebates toward the cost of energy efficiency and electrification home improvements through the IRA. The IRA’s rebate programs Link opens in new window - close new window to return to this page. are currently being developed and will be administered in New York State by NYSERDA starting in late 2023/early 2024.