New York homeowners who buy and install geothermal heat pump systems could qualify for a tax credit under a provision finally approved in the state budget this month.
The measure will make homeowners eligible for a 25% tax credit of up to $5,000 for installing geothermal systems as New York seeks to transition to cleaner, renewable forms of fuel in the coming years.
The tax credit is the latest incentive for homeowners to switch to a form of renewable energy, as New York aims to make 2 million homes electrified and energy efficient by 2030.
“We have made great strides in New York State toward meeting our ambitious climate goals over the next decade, but more is needed if we are to avoid the worst effects currently projected from a planet warming up,” Assemblyman said. Jon Rivera, who sponsored the measure along with State Senator Tim Kennedy. “Building heating is an issue that is responsible for the largest share of greenhouse gas emissions in New York State. We will not meet our climate goals unless we move away from fossil fuel heating. , 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 increase heating and create cooling efficiencies as opposed to burning fossil fuels. The system reduces power requirements on the hottest and coldest days when demand on the power grid is typically highest.
“As New York continues to build on the progressive environmental and climate goals we have set, we must continue to identify accessible and affordable ways for New Yorkers to effectively reduce their carbon footprint,” Kennedy said. “By encouraging the use of geothermal heat pumping systems across the state, New York is actively taking another step toward promoting a sustainable future based on natural and renewable energy.”