When it becomes time to invest in a new heating or cooling system for your home, there are many different options out there to choose from. One thing that you’ll want to take into account is the overall eligibility that a particular HVAC system will provide when it comes to getting rebates from the federal and local governments. We’re going to delve into the specific details of how New York homeowners can make themselves eligible to receive different incentives and rebates when purchasing new HVAC systems for their homes below.
Inflation Reduction Act of 2022
One of the most notable tax incentives out there for eligible homeowners who purchase an energy-efficient HVAC system is under the Inflation Reduction Act of 2022. When you purchase a qualifying system with an ENERGY STAR certification, you could be eligible to receive a tax incentive of up to a total amount of $3,200. The maximum amount will be set per system type, with geothermal heat pumps receiving the highest incentive amount.
You can get a list of the different types of HVAC systems that make you eligible to receive this tax incentive on ENERGY STAR’s website. It’s important to note that the incentive is equal to 30% of the total cost of your new system plus installation labor up to the maximum allowable amount. You can only claim this tax credit during the year that you purchased the system.
You can only receive a credit up to the amount of taxes that you owe for the year. In other words, you won’t receive a refund check for the remaining amount of the tax incentive. However, you can carry over the extra incentive amount to the following tax year to further reduce your income taxes for that following year.
NYS Clean Heat Program
One program specific to New York is the NYS Clean Heat Program. Under this program, homeowners who purchase eligible air-source and geothermal heat pumps can receive a rebate. The particular amount of the rebate that you receive will be impacted by the type of system that you install and your utility provider. You’ll need to use a participating contractor to ensure that you’re eligible to receive the rebate through this program.
Utility Company Rebates
Another place that you can get a rebate to help recoup some of the costs of purchasing your new HVAC system is through your utility company. Utility companies like NYSEG, National Grid, and Con Edison offer rebates for customers who invest in certain energy-efficient HVAC equipment, like heat pumps and natural gas furnaces. The rebate amount is going to vary tremendously depending on the particular utility service provider that you have. In most cases, the utility provider will give you the rebate in the form of a credit on your next electricity bill.
Green Jobs Green New York Financing
Investing in a new HVAC system can be expensive for the average homeowner. Sometimes, that high upfront cost can hold you back from upgrading and enjoying all the benefits of a more energy-efficient system. Under the GJGNY financing program, eligible homeowners can receive low-interest financing to help purchase HVAC system upgrades for their homes. This can help open up the possibility of getting favorable financing that fits within your budget so that you can get a new heating or cooling system for your home.
Property Tax Exemptions
Some local municipalities throughout the great state of New York are offering property tax exemptions to homeowners who invest in renewable energy systems like heat pumps. In many cases, they will reduce the property taxes you owe based on a set amount for the type of HVAC system you purchase. This can help you recoup some of the upfront cost of your new system by not having to pay out for the large majority of your property taxes for the year. It’s important to check with your local municipality to determine if they participate in this kind of exemption program.
Expert HVAC Installation Service
Heatwave Heating & Cooling offers expert HVAC installation for the Amherst, NY community. We can also assist with all your heating and cooling repair, replacement, and maintenance needs. Simply call our office today to book your next service appointment with one of our helpful HVAC technicians.
