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Inflation Reduction Act: Homeowners

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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 deductionsLink 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

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 Link opens in new window - close new window to return to this page.
Whole home solutions $2,000 - $3,000 on average Link opens in new window - close new window to return to this page.
Heat Pump Water Heaters 30% of cost, up to
$2,000 per year		 Incentives: $700 - $1, 000 on average Link opens in new window - close new window to return to this page.
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 averageLink opens in new window - close new window to return to this page. 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

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 Link opens in new window - close new window to return to this page..		 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 Link opens in new window - close new window to return to this page..
Table Credit: United States Department of Energy
* 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.
     

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.

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 Assessment 

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.


IRA-Eligible Clean Energy Technologies

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 technologyLink 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 creditsLink 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 programsLink 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.

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