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Inflation Reduction Act: Businesses

Cutting Business Energy Costs for a Greener Future

Though much of the Inflation Reduction Act (IRA) focuses on consumer savings, the legislation also lowers the cost for businesses to invest in clean energy and energy efficiency.

The IRA helps small businesses, multifamily housing developers, and commercial entities get the latest clean energy technologies and equipment that will save energy for years to come. The financial benefits of the IRA can be enhanced with New York State incentives and programs, helping New York businesses use less energy, save more money, and contribute to a cleaner, healthier planet.

How Much Can Businesses Save on Clean Energy?

Eligible Clean Energy Technology Federal IRA Tax Credit
2023-2032
New York State Incentives
and Tax Credits
Energy Efficient Commercial Buildings Tax credit of up to $5 per square foot* for new construction or retrofit project

For more information, see the IRS website
Programs and incentives available
New Electric Vehicles (EVs) Plug-in hybrid EV: 15% of cost**
Battery-electric or Fuel cell EV: 30% of cost**

For more information, see the IRS website
Up to $2,000 rebate for purchased or leased eligible vehicle
Solar 30% tax credit (6% base rate with an additional 24% for meeting labor standards)
10% tax credit for domestic content bonus
10% tax credit for energy community bonus
10% tax credit for low-income community bonus (<5 MW projects)***
20% tax credit bonus for low-income residential building project / low-income economic benefit project***

For more information, see the IRS website
Tax Credits: Commercial Depreciation Allowance, NYS Real Property Tax Exemption, and NYC Real Property Tax Exemption

Financing available

Community solar incentives available
*Eligible energy efficiency projects include lighting, heating, cooling, ventilation, hot water systems, and building envelope improvements.
**IRA tax credits may not exceed $7,500 for vehicles under 14,000 lbs. and $40,000 for vehicles above 14,000 lbs.
***Low-income bonus is capped at 1.8 GW/year and limited to projects <5 MW

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 see the complete list of New York State’s energy-related programs.

IRA-Eligible Clean Energy Technologies

How to Claim IRA Tax Credits and Save

The IRA can help businesses reduce the cost of clean energy technologies and energy efficiency improvements through tax credits.

Here’s how it works:

Explore additional federal, New York State, and utility energy programs and incentives for businesses.

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