Planning on making an upgrade to your HVAC or electrical system? Depending on the installation or replacement project you take on, you could be eligible for available tax credits and rebates in New York under the Inflation Reduction Act (IRA). Signed into law in August 2022, the IRA offers several tax credits to Long Island residents, making energy-efficient upgrades more affordable and accessible to all families.

In this blog, the experts at Universe Home Services discuss how New Yorkers can take advantage of available tax credits and rebates to help make their HVAC and electrical upgrades more affordable.

HVAC Tax Credits for Long Island Residents

Under the IRA, New York homeowners can claim up to 30% of the installation cost for eligible energy efficiency improvements made to their homes from Jan. 1, 2023, to Dec. 31, 2032. Qualifying HVAC installations and replacements include air source heat pumps and biomass stoves or boilers. A tax credit of up to $2,000 may be redeemed for installing or replacing an eligible heat pump or biomass stove.

These systems are eligible for tax credits through the IRA and may qualify for state-specific rebates through NYS Clean Heat. Homeowners can receive an average of $2,000–$3,000 in rebates for heat pump installations, including ground-source heat pumps, which are eligible for a 30% IRA tax credit and a 25% New York State income tax credit.  

Electrical Tax Credits in NY

Along with HVAC systems, families can also upgrade their home’s electrical system to receive tax credits under the IRA. Eligible electrical upgrades include:

  • Electrical panel upgrades: Homeowners may receive up to $1,200 in tax credits for replacing their electrical panel.
  • Electric vehicle charging stations: If you install an EV charging station in your home, you may receive up to $1,000 in tax credits.
  • New electrical equipment: Upgrading your electrical equipment to energy-efficient alternatives may earn you a tax credit of up to $600.

The exact amount you receive for your tax credit will depend on the type of system you have installed and your household income level. While all families are eligible to receive tax credits under the IRA for qualifying projects, certain households may receive more of an incentive than others, depending on their income level.

Consult with your tax professional to understand your eligibility requirements and whether you qualify for a higher tax credit based on your income.  

Take Advantage of Available Tax Credits & Rebates with Universe Home Services

If you’re hoping to take advantage of available tax credits in New York, Universe Home Services can help. Our team is well-versed in local, state, and federal tax incentives and rebate programs, allowing us to help customers find the right program to save big on their energy efficiency upgrades.

And with plenty of flexible financing options and regular coupons and specials, we can make your home improvement project even more affordable.

Schedule your HVAC or electrical upgrade today by calling (516) 473-0202 to learn more about your options.