As the cost of heating and cooling your home rises, you might be looking for ways to save money on your HVAC expenses. Fortunately, there’s a way to do that while also making a positive impact on the environment. When you make energy-efficient upgrades to your HVAC system, you get access to a wide range of federal, state, and local HVAC tax incentives to help you cover the expenses. Today, the HVAC experts at Attyx are reviewing some of the clean HVAC tax incentives and rebates for New York State homeowners so that you can save money and feel good about your environmental impact in the process..
Federal Tax Incentives for HVAC
Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) of 2022 is the main source of federal tax incentives for HVAC energy improvements. The IRA invests in energy and climate improvements nationwide, including energy-efficient HVAC upgrades. IRA federal tax incentives for HVAC began rolling out in 2023. More IRA HVAC tax incentives are expected to be available late 2024.
Energy Efficient Home Improvement Credit
The Energy Efficient Home Improvement Credit is a credit available through the IRA. It encourages homeowners to make environmentally-friendly HVAC and other home improvement upgrades. As a part of the credit, you can claim up to 30% of the cost of replacing your HVAC system with a more energy-efficient option. The credit’s cap depends on which energy home improvement you are making. This credit can help you afford HVAC improvements while making an environmentally-friendly choice.
Residential Clean Energy
One of the other federal HVAC tax incentives available through the IRA is the Residential Clean Energy credit. Through 2032, the Residential Clean Energy program provides up to a 30 percent income tax credit for homeowners making energy efficiency improvements to their homes, with a maximum of $3,200 offered annually to each household. The tax incentive decreases to 22 percent in 2033 and 2034. This HVAC tax incentive helps homeowners nationwide make HVAC improvements more affordable.
New York State Tax Incentives for HVAC
NYS Clean Heat Rebate
Heat pumps are a more efficient way to keep your home’s temperature comfortable year-round without relying on fossil fuels. The NYS Clean Heat program offers a rebate for New York State property owners who install heat pumps. The best part? Your Clean Heat contractor is the one that submits the rebate for you.
EmPower+
Eligible New York homeowners can take advantage of funding offered through EmPower+ Program. The rebate amount available for no-cost HVAC and other home energy efficiency improvements is income-based.
- Low-Income Households: Rebate capped at $10,000 per project.
- Moderate-Income Households: Rebate capped at $5,000 per project.
This tax incentive for HVAC is a great way for New York State homeowners to maximize HVAC savings while making home energy upgrades.
Flexible Technical Assistance (FlexTech) Program
New York State commercial organizations and multifamily facilities that pay into the electric System Benefits Charge are eligible for the Flexible Technical Assistance (FlexTech) Program in New York State. This program encourages property owners to work with a consultant to complete an energy study of their facilities to determine any opportunities for lowering energy usage and prioritizing clean energy throughout their property, including their HVAC system. Through the program, the state shares the cost of the energy study.
Local Incentives Offered By Utility Providers
Your local utility provider is often your best bet for local HVAC incentives. Here are some of the HVAC savings available through New York utility companies:
Central Hudson
If you are a Central Hudson customer, you can receive a rebate of up to $1,800 for making energy-efficient natural gas heating equipment upgrades in your home using one of their Trade Ally contractors. The HVAC rebate amount varies based on the type of equipment installed and its energy efficiency.
Con Edison
Con Edison also provides rebates for customers upgrading their heating and cooling to use energy-efficient air-source heat pumps with one of Con Edison’s approved HVAC contractors.
PSEG Long Island
When you install a heat pump using one of PSEG Long Island’s participating contractors, you’re eligible for a rebate of $500-4,000, depending on the Total Heating Tons of your project and your income.
RG&E
RG&E offers a rebate of $150 for customers installing new high-efficiency furnace equipment. They also provide a $75 rebate for furnace tune-ups.
HVAC Installation with Attyx
If you’re a New York State homeowner preparing to replace your home’s HVAC system, Attyx can help. Our HVAC experts know the ins and outs of the different HVAC options on the market. We can help you optimize your HVAC system’s energy efficiency so that you can save money and make a better environmental impact. If you have any questions about the federal, state, and local tax incentives and rebates available to you when you upgrade your HVAC system, we’re here to help.
