
Inflation Reduction Act: Homeowners
Combine IRA Savings with State Incentives to Upgrade Your Home and Ditch Fossil Fuels
The Inflation Reduction Act (IRA) helps New Yorkers get the latest clean energy technologies and equipment that will save energy for years to come. From the cars we drive, to the ways we heat and cool our homes, the IRA is helping New Yorkers 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.
New Yorkers can combine IRA savings with New York State incentives and programs, helping homeowners cut energy use, save more money, 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 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
Eligible Clean Energy Technology | Federal IRA Tax Credit 2023-2032 |
New York State Incentives and Tax Credits |
---|---|---|
Solar (Electricity)† | 30% of cost | Incentives: $1,200-$2,400 average Tax Credit: 25%, up to $5,000 |
Fuel Cells | 30% of cost | |
Wind Turbine | 30% of cost | |
Battery Storage | 30% of cost |
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![]() |
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
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.
All New York residents are eligible to receive a no-cost 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 AssessmentExplore 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.
IRA-Eligible Clean Energy Technologies
-
Heat Pumps
NYS Clean Heat helps make energy efficient electric heat pumps affordable for all New Yorkers.
Read more about Heat Pumps
-
Weatherization
Comfort Home offers tiered incentives on “seal and insulate” packages and high-performance windows for residents across the State.
Read more about Weatherization
-
Electric Vehicles and Chargers
Find rebates, incentives, and tax credits on electric vehicles and charging stations through Charge NY.
Read more about Electric Vehicles and Chargers
-
Solar
NY-Sun helps New York State residents access renewable energy through both on-site and community solar options.
Read more about Solar
-
Heat Pump Water Heaters
NYS Clean Heat helps make energy efficient heat pump waters heaters affordable for all New Yorkers.
Read more about Heat Pump Water Heaters
-
Battery Storage
Battery storage can help New Yorkers take their home’s energy efficiency and resiliency to the next level.
Read more about Battery Storage
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
, 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
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 are currently being developed and will be administered in New York State by NYSERDA starting in late 2023/early 2024.
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