In New York, there are several incentives and tax breaks available for those considering geothermal heating and cooling systems:

1.Federal Tax Credits: Homeowners can receive a 30% tax credit for geothermal heat pumps installed through December 31, 2032. This credit applies to both residential and commercial systems and covers installation costs as well as equipment expenses.

2.New York State Income Tax Credit: New York offers an additional 25% state income tax credit for geothermal systems. This can significantly lower the upfront costs for homeowners investing in renewable energy solutions.

3.NYS Clean Heat Program: This initiative provides rebates for the installation of ground-source heat pumps, which can vary based on the system’s size and efficiency. The program aims to incentivize the adoption of clean heating technologies, making it more affordable for residents.

4.Inflation Reduction Act (IRA) Benefits: The IRA expands the benefits available to homeowners, including additional tax credits based on labor standards, domestic content, and community participation.

5.Accelerated Depreciation for Businesses: For commercial properties, geothermal installations can benefit from a five-year accelerated depreciation schedule, which allows businesses to recoup costs more quickly.

For more detailed information on these incentives, you can visit the NY-GEO website or the New York State Energy Research and Development Authority (NYSERDA) site, which provide comprehensive guides on geothermal tax incentives and rebates in New York  .