Tax Credits, Rebates and Financing

Equipment type	Tax Credit Available for 2022 Tax Year	Updated Tax Credit Available for 2023-2032 Tax Years
Home Clean Electricity Products
Solar (electricity)	30% of cost
Fuel Cells
Wind Turbine
Battery Storage	N/A	30% of cost
Heating, Cooling, and Water Heating
Heat pumps	$300	30% of cost, up to $2,000 per year
Heat pump water heaters
Biomass stoves
Geothermal heat pumps	30% of cost
Solar (water heating)
Efficient air conditioners*	$300	30% of cost, up to $600
Efficient heating equipment*
Efficient water heating equipment*	$150	30% of cost, up to $600
Other Energy Efficiency Upgrades
Electric panel or circuit upgrades for new electric equipment*	N/A	30% of cost, up to $600
Insulation materials*	10% of cost	30% of cost
Windows, including skylights*	10% of cost	30% of cost, up to $600
Exterior doors*	10% of cost	30% of cost, up to $500 for doors (up to $250 each)
Home Energy Audits*	N/A	30% of cost, up to $150
Home Electric Vehicle Charger	30% of cost, up to $1,000	30% of cost, up to $1,000 **
* Subject to cap of $1200/year ** The IRS will soon publish further information on eligibility requirements related to home electric vehicle chargers, but we know that credits are intended for residents in non-urban or low-income communities.

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25C Residential Energy Efficiency Tax Credit and 25D Residential Clean Energy Tax Credit – The 25C and 25D tax credits incentivize household electrification by lowering the total cost of qualified electrification upgrades. 25C provides a capped 30 percent tax credit for air-source heat pumps, heat pump water heaters (HPWHs), qualifying electrical panel upgrades, select weatherization measures, and energy audits. 25D provides an uncapped 30 percent tax credit for rooftop solar, battery storage, and geothermal heat pumps.

PSEG ENERGY STAR Rebates – PSEG customers are eligible for immediate or online rebates after purchase on a variety home energy appliances.

ENERGY STAR Tax Credits - A broad selection of ENERGY STAR certified equipment is eligible for federal income tax credits for energy efficiency home improvements under the Inflation Reduction Act. Before 2032, take advantage of the tax credits, along with any available rebates, to help make the transition to a clean energy future more affordable.

Fannie Mae HomeStyle Energy Mortgage - Homeowners can now make upgrades to reduce utility costs and improve the comfort and safety of their homes with Fannie Mae’s HomeStyle® Energy mortgage. Contact your local bank to determine if these financial services are appropriate for you.

Freddie Mac GreenCHOICE Mortgage – Homeowners can finance energy efficient improvements with any mortgage product, property type and financing terms up to 30 years to provide greater affordability for borrowers, offer more flexibility and combine the flexibilities of Home Possible Mortgages to offer borrowers additional affordable financing opportunities. Contact your local bank to determine if these financial services are appropriate for you.

IRS Energy Tax Credits for Consumers: FAQ – IRS answers frequently asked questions on tax credits available to save money on home energy upgrades, clean vehicles, and more.

NYSERDA Residential Financing Programs - NYSERDA offers a suite of loans under the Green Jobs-Green New York (GJGNY) Program to help state residents finance energy efficiency improvements, and renewable energy systems. Qualifying borrowers may be eligible for interest rates between starting at 4.5% for customers within a Designated Area or with household income of less than or equal to 80% AMI with the option of a 0.5% discount for Smart Energy Loans (SEL) when using automatic payments (ACH). For customers outside of Designated Area or with household income greater than 80% AMI, interest rates will start at 8.00%, with the option of a 0.5% discount when using ACH.

Slipstream Energy Finance Solutions - Originates loans on behalf of NYSERDA and offers New York State residents reduced-interest rate loans to finance qualified residential energy efficiency improvements. Qualifying borrowers may be eligible for interest rates between 4.49%.

Last updated October 8, 2024