Inflation Reduction Act: Renters

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.

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.

Below is a comprehensive list of eligible clean energy technologies, though options may depend on the type of rental property and your lease agreement.

Later this year, renters will also have access to IRA rebates on appliances like dryers and induction cooktops that operate without the use of fossil fuels. Please check for updates on the availability of rebates through the Home Energy Rebate Program .

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

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 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

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.
     

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.

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.

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 become available in late 2023/early 2024.