The new geothermal tax credit is available for any system installed after January 1, 2022, and homeowners can carry the tax credit forward for five years if their New York income tax liability is less than $5,000. When coupled with the 26% federal tax credit and rebates provided by New York's utilities, this new income tax credit will help make geothermal systems even more affordable for New York homeowners.
After a year which saw gas prices increase by up to 50%, the geothermal tax credit will provide financial assistance to help people make a change to cleaner, renewable energy solutions. This is especially important for the 25% of New York households using heating oil and other petroleum products to heat their homes.
The geothermal tax credit bill was sponsored by Senator Tim Kennedy and Assembly Member Jon Rivera, and co-sponsored by 47 of their colleagues. Supporters from throughout the state made phone calls, sent emails, and testified at hearings to win this victory for New Yorkers seeking to free themselves from fossil fuels and crippling energy bills.
"Using a geothermal heat pump is a climate-friendly, energy-efficient option available to heat and cool your home and this tax credit will make transitioning to them more affordable for New York homeowners," said Senator Todd Kaminsky, Chair of the NYS Senate's Environmental Conservation Committee. "Reducing the cost will encourage local, green job growth while helping New York achieve its climate objectives."
Doreen M. Harris, President and CEO, NYSERDA said, "Under Governor Hochul, New York is committed to pursuing ambitious and urgently-needed climate and building decarbonization priorities, and has set a nation-leading goal of two million electrified and efficient homes statewide by 2030. These new tax incentives approved in this year's budget make geothermal more affordable, helping New Yorkers to heat and cool their homes without burning fossil fuel."
"Homeowners are looking for cleaner, sustainable, more affordable ways to heat and cool their homes. Geothermal provides a cost effective solution, but the upfront costs were a barrier to many homeowners," explained Michael Sachse, CEO of Dandelion Energy. "This law helps change that equation. Thanks to the geothermal tax credit, more families will be able to afford clean, efficient geothermal heating and cooling."