NY Heat Pump Incentives in 2026: What Rochester Homeowners Can Claim
Between NYSERDA rebates and the federal ITC, upstate NY homeowners can offset 40–60% of installation costs.
2026 is the best year to install a heat pump or geothermal system in New York. Federal and state incentives stack — meaning you can capture multiple rebates and credits on a single install.
Federal 30% Investment Tax Credit (ITC)
The Inflation Reduction Act (IRA) provides a 30% federal tax credit for heat pump and geothermal installations through 2032. On a $25,000 install, that's a $7,500 credit.
Note: consult your tax advisor on eligibility and how to claim the credit on your 2026 return.
NYSERDA Clean Heat Rebate
NYSERDA offers rebates up to $5,000 for qualified whole-home heat pump systems. Rebate amounts change yearly based on program funding — contact us for current rates.
The rebate is separate from the federal ITC, so you can stack both on the same install.
NY Clean Heating Fuel Tax Credit
New York offers a state-level tax credit for homeowners who switch from fossil fuel heating to electric heat pumps. Check the New York Department of Environmental Conservation website for current rates and eligibility.
Example: A $25,000 Heat Pump Install
System cost: $25,000
Federal ITC (30%): -$7,500
NYSERDA rebate (current rate): -$5,000
Net out-of-pocket: ~$12,500
You've offset 50% of the cost.
How to Claim These Incentives
Federal ITC: claim on your tax return (Form 5695). NYSERDA rebate: apply before installation with NYSERDA. NY tax credit: claim on your state return.
We'll help you understand what you qualify for during your free quote. We're not tax advisors, but we can point you to the right resources.
Sources
- • IRA Investment Tax Credit info: energy.gov
- • NYSERDA rebate programs: nyserda.ny.gov
- • New York Clean Heat Program: dec.ny.gov