Maximize Your Savings: 2025 NY Tax Credits

As a homeowner in New York State, upgrading your heating and cooling systems isn’t just about comfort—it’s also an opportunity to save money through a variety of tax credits and incentives available in 2025. If you’re thinking about making energy-efficient improvements, here’s everything you need to know to take advantage of these programs.

Federal Tax Credits

Energy Efficient Home Improvement Credit

This federal program allows homeowners to claim a tax credit of 30% of the cost of qualified energy-efficient improvements, with a maximum credit of $3,200 per year. Here are the highlights:

• Eligible Heating and Cooling Systems:

  • Air Source Heat Pumps: 30% of the cost, up to $2,000 annually

  • Heat Pump Water Heaters: 30% of the cost, up to $2,000 annually

  • Ground Source (Geothermal) Heat Pumps: 30% of the cost with no annual cap

This program covers improvements made between 2023 and 2032, giving you plenty of time to plan upgrades.

New York State Incentives

NYS Clean Heat Program

New York’s Clean Heat initiative offers substantial rebates to homeowners who upgrade to energy-efficient heating technologies:

• Air Source Heat Pumps:

  • Partial home solutions: Rebates range from $100 to $400

  • Whole home solutions: Rebates average $2,000 to $3,000

• Ground Source (Geothermal) Heat Pumps: Rebates range from $7,000 to $9,000

• Heat Pump Water Heaters: Incentives range from $700 to $1,000

These rebates are available through participating utility providers and are part of the state’s effort to promote clean energy solutions.

How to Claim These Benefits

Federal Tax Credits

Claim these credits on your federal income tax return using IRS Form 5695. Keep all receipts and manufacturer certifications to validate your claims.

State Incentives

Consult with your utility provider or the New York State Energy Research and Development Authority (NYSERDA) for specific application procedures.

Upgrading your heating and cooling systems isn’t just an investment in your home’s comfort—it’s an investment in your financial future and the environment. With federal and state tax credits and rebates, you can significantly offset the upfront costs and enjoy long-term savings. Ready to start saving? 

Contact Field Industries today at 518-344-9787 or to learn more information about 2025 tax rebates or schedule your appointment here: https://www.fieldhvac.com/contact