Inflation Reduction Act: Renters
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Save on Energy With Federal Tax Credits and State Incentives
The Inflation Reduction Act (IRA) tax credits for clean energy equipment and energy efficiency upgrades are available to renters in New York State, while IRA rebates are still being developed.
From heating and cooling systems to insulation and air sealing, the IRA can help lower the costs for renters to make energy-saving improvements to their homes. The benefits of the IRA can be enhanced with New York State incentives and programs, helping renters use less energy, save more money, and contribute to a healthier environment.
Since 2023, IRA tax credits have been available to New Yorkers. As of June 2024, income-eligible New Yorkers can access IRA rebates through the EmPower+ program to get upfront discounts on home energy upgrades. Both IRA tax credits and rebates can help homeowners cut energy use, save more money, and contribute to a cleaner, healthier planet.
Below is a comprehensive list of eligible clean energy technologies that are eligible for IRA tax credits, though options may depend on the type of rental property and your lease agreement.
If you drive or are considering buying an electric vehicle, consider taking a more in-depth look on our IRA for vehicles page.
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.
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
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Electric Vehicle Chargers
Get up to speed on home electric vehicle charging options.
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Weatherization
EmPower offers no-cost energy efficiency solutions to income-eligible New Yorkers, including renters.Read More Weatherization -
Solar
NY-Sun helps New York State residents access renewable energy through both on-site and community solar options.
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Battery Storage
Battery storage can help New Yorkers take their home’s energy efficiency and resiliency to the next level.
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Heat Pumps
Energy-efficient, electric heat pumps offer a dual heating and cooling solution to keep your home comfortable all year long.
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Heat Pump Water Heaters
Save money and energy by pumping up your water heater efficiency.
Clean Energy Resources for Renters
Renters have options for reducing their energy costs and improving home comfort with clean energy technologies and energy efficiency upgrades. Depending on the terms of your rental agreement, or if there are energy-saving changes that you need help with or cannot complete on your own, we encourage you to consult your landlord.
- Renter Energy-Saving Tips: Discover ways to reduce energy use in your apartment and save money.
- Tips & Resources for Income-Eligible Households: Explore tips and programs that help save energy at home and access the financial and health benefits of clean energy.
How to Claim IRA Benefits and Save
The IRA will help most Americans, including renters, 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.
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