ClimateMaster applauds New York State’s bold step forward in advancing clean, efficient heating and cooling solutions. In a significant move for homeowners and the geothermal industry alike, the 2025 New York State Budget includes an increase in the state’s geothermal tax credit—doubling the maximum amount from $5,000 to $10,000 per system, and making the credit refundable in certain situations.
This legislative update, reported by Advanced Energy United, will make geothermal heating and cooling more accessible and affordable to thousands of New Yorkers, regardless of their tax liability.
What’s Changed?
Effective July 1, 2024, qualified geothermal energy systems installed in New York will benefit from:
-
Doubled Credit: The state income tax credit cap has been raised from $5,000 to $10,000.
-
Refundable Credit: For many households, the credit will now be refundable, meaning homeowners may receive a tax refund if the credit exceeds their tax liability.
-
Income Eligibility for Refundability: Households with incomes up to $90,000 (single) or $180,000 (joint filers) may qualify for the refundable portion.
This change is expected to drive adoption of ground-source heat pump (GSHP) systems and reduce the financial barrier for energy-efficient home upgrades.
A Game-Changer for Homes—and the Grid
As Christine Hoffer, Executive Director of NY-GEO (New York Geothermal Energy Organization), noted:
"We are excited that the budget includes an increase in the cap on NY’s Geothermal tax credit from $5,000 to $10,000, as well as a provision that makes the credit refundable for many New Yorkers. Geothermal provides an efficient heating and cooling option for buildings in New York, without stressing the electric grid. This measure cuts the upfront costs of geothermal heat pump systems in a way that will stimulate the market and create jobs."
This policy is a direct investment in local jobs, clean energy infrastructure, and grid reliability, all while providing New Yorkers with quiet, low-maintenance, high-efficiency comfort throughout the year.
NY-GEO’s Role and the Road Ahead
This landmark legislation is the result of months of dedicated advocacy from NY-GEO leadership, members, and supporters. ClimateMaster extends thanks and congratulations to the NY-GEO team for their tireless work in making this happen.
As Hoffer further emphasized:
"We ask the legislature to now turn their attention to passing the NY HEAT Act, which will allow utilities to cut spending on unneeded gas infrastructure and protect ratepayers from ever-rising utility bills.”
The NY HEAT Act could empower utilities to make smarter investments in clean energy infrastructure and help consumers transition away from fossil fuels.
A Model for Other States
New York’s geothermal tax credit reform is not just a win for the Empire State—it’s a blueprint for climate-smart policymaking across the country. We hope to see similar legislation adopted in other states, expanding access to geothermal technology and accelerating progress toward decarbonization goals.
Why Geothermal?
Geothermal systems use the constant temperature of the earth to heat and cool homes efficiently, offering:
-
Lower lifetime energy costs
-
Reduced emissions
-
Minimal maintenance
-
Long system lifespans
-
Eligibility for state and federal incentives, including the 30% federal tax credit under the Inflation Reduction Act (IRA)
With policies like New York’s expanded tax credit, geothermal is no longer just the most sustainable choice—it’s the smartest one, too.
Learn More
To explore ClimateMaster’s award-winning geothermal systems and find out if you qualify for state or federal incentives, visit: www.climatemaster.com
For policy details and updates, follow:
Together, we’re building a cleaner, quieter, more efficient future—one home at a time.
