New York homeowners who purchase and install geothermal heat pump systems could be in line for a tax credit under a provision given final approval in the state budget this month.
The measure will make homeowners eligible for a 25% tax credit of up to $5,000 for the installation of geothermal systems as New York seeks to transition to renewable and cleaner forms of fuel in the coming years.
The tax credit is the latest incentive for homeowners to transition to a renewable form of energy as New York wants to make 2 million homes electrified and energy efficient by 2030.
“We’ve taken some great strides within New York State when it comes to meeting our ambitious climate goals over the next decade, but more is required if we’re to stave off the worst effects currently projected of a heating planet," said Assemblyman Jon Rivera, who sponsored the measure with state Sen. Tim Kennedy. "Heating buildings is a problem that is responsible for the largest share of greenhouse gas emissions in New York state. We will not meet our climate goals unless we transition away from heating with fossil fuels, and it makes sense to start with new construction where including electrification in the design, construction and financing of the building is most affordable.”
Geothermal systems use ground temperatures to boost heating and create cooling efficiencies as opposed to the burning of fossil fuels. The system reduces electricity needs on the warmest and coldest days when demand on the electric grid is usually the highest.
“As New York continues to build on the progressive environmental and climate goals we’ve outlined, we must continue to identify accessible and affordable ways for New Yorkers to effectively reduce their carbon footprint," Kennedy said. "By incentivizing the use of geothermal heat pump systems statewide, New York is actively taking yet another step towards fostering a sustainable future focused on natural, renewable energy."