New York Has the Best Stacking in the Country
If you live in New York, you're in luck. New York offers more heat pump rebate programs working together than almost any other state. Utilities, state government, and federal incentives all stack. One Brooklyn homeowner we tracked got $20,000 in total rebates. Her payback was just 1.3 years.
• Con Edison utility rebate: $2,000
• NYS Clean Heat rebate: $6,000
• Federal HEAR Tax Credit (30%): $4,000
• Disadvantaged Communities (DAC) bonus: $2,000
• Smart meter program: $100
Total: $14,100
System cost: $18,000. After rebates: $3,900. Savings per year: $1,500. Payback: 2.6 years.
Here Are the 6 Programs That Work Together
1. Your Utility Rebate (Con Edison or National Grid)
The first money comes from your utility company. New York has two big utilities, and both offer heat pump rebates.
- Con Edison (NYC & Westchester): $1,500-$2,500 depending on your heat pump efficiency.
- National Grid (Upstate: Buffalo, Rochester, Syracuse): $1,500-$4,000 for participating areas.
Note: NYSEG and RG&E ended their programs in June 2025. If you're in those old territories, your rebate now comes through NYS Clean Heat instead (see below).
Action: Look up your utility at coned.com or nationalgridus.com to confirm your rebate amount.
2. NYS Clean Heat Program (State Rebate)
New York State has its own heat pump program on top of utility rebates. You can stack this with your utility rebate. This is the big one.
New York State Clean Heat Program: Up to $10,000 for a heat pump. Income-qualified households get more ($12,000+). Income limits are generous: $150,000+ for families of 4.
How it works: You apply on dec.ny.gov. It takes 30–45 days. You need your utility bill and a contractor quote.
Action: Start here. This is the biggest rebate from any single source in New York.
3. Federal HEAR Tax Credit (IRA Section 30C)
The federal government is paying 30% of your heat pump cost, up to $3,200. This is separate from all other rebates. You claim it on your 2026 tax return.
30% Federal Tax Credit (Energy.gov): Up to $3,200 for a heat pump installed between 2022 and 2032. Stacks with everything.
Action: Keep your receipt and contractor invoice. On your 2026 tax return, file Form 5695. You get the credit back as money when you file.
4. Disadvantaged Communities (DAC) Bonus (+$1,000–$2,000)
If you live in a low-income or environmental justice area, New York adds extra money to your rebate. This is on top of programs #1, #2, and #3.
NYS Environmental Justice Areas: Households in designated communities get $1,000–$2,000 extra from Clean Heat.
Action: Look up your address on the map above. If you're in a shaded area, you qualify for the DAC bonus automatically. No separate application.
5. Federal LIHEAP (Low-Income Assistance)
If your household income is below 150% of the federal poverty line, you may qualify for additional federal grants to pay for the heat pump directly.
New York LIHEAP (Low Income Home Energy Assistance Program): Up to $20,000 in grants for low-income households. This doesn't stack directly with rebates—it replaces them. But it's there if you qualify.
Action: Check your income level. If you're borderline, apply to LIHEAP. It's worth thousands.
6. EmPower+ Program (FREE Heat Pumps for Very Low-Income)
If you make less than 60% of Area Median Income (roughly $55,000 for a single person in NYC), you get a heat pump for free through EmPower+.
EmPower+ Program: 100% coverage of heat pump + installation for eligible households. No repayment. No interest.
How it works: You apply, get income-verified, and a certified contractor installs it for free. The process takes 2–4 weeks.
Action: If your income qualifies, apply. This is the fastest way to get a free upgrade.
The Stacking Order That Works
- Apply for NYS Clean Heat first (dec.ny.gov). Largest rebate, 30–45 days.
- Get your utility rebate upfront when you install (contractor handles this).
- Claim the federal 30% tax credit on your 2026 tax return (Form 5695).
- If you're in a DAC area, the state adds the bonus automatically to your Clean Heat payment.
- Check if you qualify for LIHEAP or EmPower+ separately (these are major programs but require low income).
Why New York Crushes Other States
Most states have one rebate (utility) or two (state + federal). New York has six. That's why a typical New York homeowner gets $14,000–$20,000 in combined rebates. A typical California homeowner (outside LADWP territory) gets $8,000–$12,000. New York's stacking is unbeatable.
Timeline for Getting Your Rebates
Week 1: Apply for NYS Clean Heat. Get a contractor quote.
Week 2–6: Wait for Clean Heat approval (30–45 days).
Week 7: Schedule installation with your contractor.
Week 8: Heat pump installed. Utility rebate applied to invoice. Clean Heat payment arrives (2 weeks).
April 2027: File your tax return and claim the federal 30% credit.
Next Steps
Ready to see your rebates? Fill out our free assessment. We'll calculate your exact rebate amount based on your utility territory, income, and location. Then we'll connect you with an installer who knows how to claim all 6 programs.