Inflation Reduction Act: Homeowners

Combine IRA Savings with State Incentives to Upgrade Your Home With Efficiency and Comfort in Mind

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.

Since 2023, IRA tax credits have been available to New Yorkers. As of June 2024, income-eligible New Yorkers can access IRA rebates 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. Now is the time to start your clean energy future.

Inflation Reduction Act Rebates

New York State is in the process of rolling out IRA rebates, with initial funding available for income-eligible New Yorkers through the EmPower+ program. Additional IRA rebates, including offers for multifamily buildings and certain high-efficiency appliances, will become available later in 2024.

Income-eligible homeowners and landlords of one-to-four family homes can use EmPower+ funding to lower the upfront cost of energy efficiency improvements and all-electric equipment in their homes. Possible EmPower+ incentives are based on household income and include maximum limits for the type of energy efficiency improvement.

• Low-income, single-family households are eligible for no-cost energy efficiency improvements capped at $10,000 per project.
• Moderate-income single-family households are eligible for no-cost energy efficiency improvements capped at $5,000 per project.

This funding can cover a range of upgrades, with prioritization for core energy efficiency improvements, including insulation, air sealing, health and safety items, and replacement of inefficient refrigerator/freezer units. For homes that have air sealing and insulation completed, contractors can make recommendations to upgrade heating and cooling equipment through EmPower+.

Home Electrification Appliance Rebate (HEAR) funding through the Inflation Reduction Act (IRA) recently expanded the incentives that income-eligible New Yorkers can receive through EmPower+ program to make their homes more comfortable and energy efficient. This funding is in addition to the incentive amounts listed above.

• Air sealing, insulation, and ventilation: $1,600 
• Electrical wiring upgrade: $2,500
• Electrical service upgrade (panel box): $4,000
• Heat pump water heaters: $1,750
• Heat pumps: $8,000

Incentives for two- to four-family households are based on income eligibility and the number of units in the buildings.

Get Started With EmPower+

EmPower+ customers receive a no-cost home energy assessment that pinpoints where a home is wasting energy, flag any safety or health issues, and identify energy-saving improvements.

To fill any home energy upgrade funding gaps, customers can apply for low-interest financing through NYSERDA’s Residential Financing programs and explore qualifying IRA tax credits below.

Inflation Reduction Act Tax Credits

The table below shows the IRA tax credits and NYS incentives you may be eligible to receive when you purchase a qualifying item. Eligibility for IRA and NYS offerings 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

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
** Property must be in an eligible low-income or non-urban census tract .
† 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.

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.

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.