- Erin Nylen-Wysocki / Lynne Bailey
Time is running out for some tax breaks on energy upgrades. Most federal tax incentives – for things like rooftop solar panels, electric vehicles and heat pumps – are being phased out this year under the federal tax bill that recently was signed into law, though many New York State incentives will continue.

Expiring soon …
• Efficiency upgrades: This includes upgrading insulation, doors and windows, which can result in significant cost savings for homeowners. If your heating or cooling system needs to be replaced anyway, it’s smart to consider switching to heat pumps. To claim a federal tax credit worth up to 30% of the costs for various upgrades (up to $2,00 for heat pumps, or $1,200 for windows/doors/insulation), you’ll need to get the work done by Dec. 31, 2025.
What still will be available next year …
HEAR, HOMES: The Home Electrification and Appliances Rebate (HEAR) and Home Efficiency Rebates (HOMES) programs will continue to provide rebates to homeowners for heat pumps, water heaters, insulation, and electric load service upgrades until New York’s pool of funds is used up.
EmPower+: Income-eligible New Yorkers still can access whole-house energy upgrades through the EmPower+ Program.
EVs: To claim a federal tax credit worth up to $7,500 for new electric vehicles or $4,000 for used ones, you’ll need to buy or lease by Sept. 30. The deadline to upgrade electrical panels in your home to handle higher demand is Dec. 31. To claim a federal tax credit worth 30% of the cost of installing a home charger, you’ll need to do so by June 30, 2026. Also, NYSERDA’s Drive Clean rebate and Central Hudson’s purchase incentives still will provide some EV purchase rebates.
Solar: To claim a federal tax credit worth up 30% of the price of a rooftop solar system (averaging around $19,000 in New York), installation must be complete by Dec. 31, 2026. The deadline if leasing a rooftop solar system is Dec. 31, 2027. Also, homeowners continue to be eligible for a 25% New York State tax credit for solar panels on a private residence.
Additional resources … “How Can I Get Clean Energy Tax Breaks?” from The New York Times: tinyurl.com/NYT-TaxCredits “Go Electric,” from Rewiring America: tinyurl.com/Rewire-GoElectric “Paying for Solar,” from NYSERDA: tinyurl.com/NYSERDA-HomeSolar