Most New York homeowners pricing out a heat pump start by Googling the federal tax credit, assuming Washington still covers the biggest slice of the bill. That assumption is now out of date — the federal 25C credit no longer applies to equipment placed in service after December 31, 2025, which makes the state and utility programs the load-bearing money in 2026.
The good news for New York is that the state runs the largest state-utility heat pump incentive in the country. NYSERDA's NYS Clean Heat program, delivered through utilities like Con Edison, is where most of the real dollars live this year.
Yes — the NYS Clean Heat program, coordinated by NYSERDA and delivered through utilities like Con Edison, continues to offer heat pump rebates in 2026. Air-source, ground-source, and heat pump water heater incentives are typically paid as instant discounts through participating contractors, with the largest amounts reserved for geothermal and income-eligible households.
What Is the NYS Clean Heat Program?
NYS Clean Heat is New York's statewide heat pump incentive, coordinated by NYSERDA in partnership with the Joint Utilities of New York. It standardizes rebates across the major investor-owned utilities so that a qualifying system earns a comparable incentive whether you live in Brooklyn or Buffalo.
The program covers three equipment categories: air-source heat pumps, ground-source (geothermal) heat pumps, and heat pump water heaters. Each category has its own incentive math, and geothermal consistently earns the most per project.
NYS Clean Heat is New York's statewide heat pump incentive program, coordinated by NYSERDA and the Joint Utilities of New York. It pays rebates for qualifying air-source heat pumps, ground-source geothermal systems, and heat pump water heaters, usually as an upfront discount applied by a participating contractor rather than a check you wait months to receive.
Keep in mind that the rebate is generally claimed by your contractor, not by you. The contractor enrolls in the program, applies the discount on your invoice, and handles the paperwork — which is why choosing a participating installer matters as much as choosing the equipment.
How Con Edison Delivers Clean Heat Rebates
In New York City and most of Westchester County, Con Edison is the utility that administers NYS Clean Heat for its electric customers. That makes Con Edison the practical front door to the program for several million households in the densest part of the state.
In New York City and most of Westchester County, Con Edison administers the NYS Clean Heat rebates for its electric customers. The incentive is calculated from your system's rated heating capacity, then passed through your enrolled contractor as a line-item discount — so the payout depends on equipment specs and program tier, not on your tax bill.
Because the rebate is tied to heating capacity rather than income alone, two neighbors installing identical systems generally see the same base incentive. For a full breakdown of the utility-specific figures, see our guide to Con Edison heat pump rebates, which tracks the current per-unit amounts.
However, Con Edison territory also carries some of the highest electric rates in the country. That changes the running-cost math, so pairing the rebate analysis with a realistic operating-cost estimate — not just the install discount — is the honest way to evaluate the switch.
How Much Are NYS Clean Heat Heat Pump Rebates?
Rebate amounts vary by utility, equipment type, and program year, so the only authoritative number is the one published on the active program page. That said, the structure is consistent enough to plan around.
NYS Clean Heat rebate amounts vary by utility and equipment type, with geothermal earning the largest incentives and air-source systems paid per unit of heating capacity. Income-eligible households can layer additional NYSERDA support through EmPower+, and Con Edison publishes its current per-unit figures on the program page — the number to confirm before any contract is signed.
Air-source heat pump incentives are calculated per unit of rated heating capacity, commonly expressed per 10,000 BTUh or per ton at a low-temperature rating. Ground-source systems earn substantially more — often the single largest rebate on a residential electrification project, reaching into the thousands of dollars.
Income-eligible households can go further through NYSERDA's EmPower+ program, which layers enhanced support on top of the base Clean Heat incentive. Eligibility is tied to household income or participation in qualifying assistance programs.
The table below maps the major New York programs by what they cover and how the money reaches you. Treat the dollar descriptions as structure, not quotes — verify the live figure before signing.
| Program | What it covers | How you receive it | Where to verify |
|---|---|---|---|
| NYS Clean Heat | Air-source, geothermal, heat pump water heaters | Instant discount via participating contractor | NYSERDA / NYS Clean Heat |
| Con Edison (Clean Heat) | Same categories, Con Ed electric territory | Line-item rebate on contractor invoice | Con Edison program page |
| EmPower+ | Income-eligible enhanced support | Added NYSERDA incentive / no-cost measures | NYSERDA EmPower+ |
| HEEHRA (IRA) | Point-of-sale heat pump rebates, income-tiered | State-administered, varies by rollout | NYSERDA / U.S. DOE |
| Federal 25C credit | Up to $2,000 heat pump tax credit | Expired for installs after Dec 31, 2025 | IRS Pub 5695 (historical) |
What Happened to the Federal Heat Pump Tax Credit?
For years, the federal 25C Energy Efficient Home Improvement Credit returned up to $2,000 against the cost of a qualifying heat pump. That credit was a central part of nearly every electrification quote — until the law changed.
Honest fact anchor: The federal 25C heat pump tax credit no longer applies to equipment placed in service after December 31, 2025. Any 2026 New York quote that still lists a $2,000 federal tax credit for a heat pump is citing an expired incentive — confirm program status before you rely on it.
The federal 25C Energy Efficient Home Improvement Credit, which once returned up to $2,000 for a qualifying heat pump, no longer applies to equipment placed in service after December 31, 2025. New York buyers in 2026 generally rely on state and utility programs plus any federally funded, state-administered HEEHRA rebates that remain available.
If you are trying to reconstruct how the federal picture shifted, our explainer on what happened to the 25C credit in July 2025 walks through the timeline. The practical takeaway for New York is that federal support now flows mainly through HEEHRA rather than the tax code.
Can You Stack NYSERDA, Con Edison, and Federal Money?
Stacking is the heart of this guide, and it is where most of the confusion — and most of the savings — live. The mechanics matter, because programs are funded from different pots and follow different rules about combining.
Stacking means combining NYS Clean Heat utility rebates with separately funded programs rather than claiming the same dollar twice for the same equipment. In practice, a New York homeowner may pair a Con Edison instant discount with income-tiered HEEHRA rebates, applied in a specific order so one program's payout does not reduce another's eligible cost.
HEEHRA — the High-Efficiency Electric Home Rebate program funded by the Inflation Reduction Act — is federally funded but state-administered, which means its New York rollout runs through NYSERDA. Our overview of New York's HEEHRA rebate rollout tracks where that program stands.
HEEHRA rebates are income-tiered, with the most generous point-of-sale amounts reserved for low- and moderate-income households. The HEEHRA income tiers determine both eligibility and the rebate ceiling, so your household income bracket is the first variable to pin down.
What's more, the order in which programs are applied can change the final number, because some rebates reduce the eligible cost basis that a later program calculates against. We break down the order you apply rebates so that a Clean Heat discount and a HEEHRA rebate do not cannibalize each other.
For households deciding between the now-expired tax-credit path and the rebate path, the 25C versus HEEHRA decision tree lays out the logic. In 2026, the rebate path is generally the live one.
Sizing and Cold-Climate Considerations for New York
Rebate dollars scale with heating capacity, which creates a quiet temptation to oversize a system to be safe. That instinct usually backfires — an oversized heat pump costs more, short-cycles, and dehumidifies poorly.
Right-sizing matters because NYS Clean Heat rebates scale with heating capacity, and an oversized system costs more upfront without delivering proportional comfort. A Manual J load calculation tied to New York's 99% winter design temperature is the defensible basis for capacity — not a rule-of-thumb based on square footage or the old furnace's nameplate rating.
New York's design temperatures vary widely, from the relatively mild Long Island shoreline to the deep cold of the North Country. A system specified for the Hudson Valley is not the same machine that belongs in Plattsburgh, which is why cold-climate heat pump sizing is worth getting right before you lock in equipment.
For homeowners weighing the full financial picture rather than the install alone, our whole-home electrification ROI analysis frames rebates against operating costs and equipment lifespan. In high-rate Con Edison territory, that operating-cost line is the one that most often surprises people.
A Decision Rule by Homeowner Phase
Because this is decision-support and not advice, the most useful thing we can offer is a way to locate yourself in the process. Where you are determines what to verify next.
The right next step depends on which phase you are in:
- Pre-purchase. Confirm your Con Edison enrollment status and get a Manual J load calculation before you accept any capacity recommendation, so the rebate is sized to a real load rather than a guess.
- Mid-application. Verify that your contractor is enrolled in NYS Clean Heat and that the discount appears as a line item on the quote, and pin down your HEEHRA income tier before the cost basis is locked.
- Post-install. Keep your AHRI certificate and final invoice, since those documents substantiate both the utility rebate and any income-qualified program reconciliation.
Across all three phases, the constant is verification: program amounts, enrollment status, and income tiers change, and the live program page is always the authority. The hub on rebate stacking strategy keeps the cross-program logic in one place.
Frequently Asked Questions
Does NYSERDA Clean Heat cover both air-source and geothermal heat pumps?
Yes. NYS Clean Heat covers air-source heat pumps, ground-source (geothermal) heat pumps, and heat pump water heaters. Geothermal systems earn the largest incentives because of their higher efficiency and installation cost, while air-source rebates are calculated per unit of rated heating capacity. The exact per-project amount depends on your utility, equipment specifications, and whether you qualify for income-based enhancements through EmPower+.
Can I still claim the $2,000 federal heat pump tax credit in 2026?
No. The federal 25C Energy Efficient Home Improvement Credit does not apply to heat pumps placed in service after December 31, 2025. If a 2026 quote still lists a $2,000 federal tax credit for the heat pump itself, it is referencing an expired incentive. Federal support for New York heat pumps now flows primarily through the state-administered HEEHRA rebate program rather than the federal tax code.
How do I get the Con Edison heat pump rebate?
The Con Edison rebate is delivered through a participating NYS Clean Heat contractor, not claimed directly by the homeowner. Your enrolled installer applies the incentive as a discount on your invoice and submits the program paperwork. Because of this, selecting a contractor who is active in the program is as important as the equipment choice itself. Confirm enrollment and the discount line item before signing any contract.
Can NYSERDA, Con Edison, and HEEHRA rebates be combined?
Often, yes — but the order and funding source matter. NYS Clean Heat utility rebates and federally funded HEEHRA point-of-sale rebates come from different pots, so they can frequently stack. However, some programs reduce the eligible cost basis a later program calculates against, so the application order affects the final number. Income tier also governs HEEHRA eligibility, so confirm your bracket and the current stacking rules before assuming a total.
How much can a New York homeowner save on a heat pump in 2026?
Total savings depend on equipment type, utility, household income, and system size, so a single figure would be misleading. Geothermal projects typically capture the largest NYS Clean Heat incentive, while income-eligible households can add EmPower+ and HEEHRA support on top. The most reliable estimate comes from a participating contractor's quote that itemizes each program against a Manual J-sized system, verified on the live program pages.
This article is for informational purposes and is not financial, tax, legal, or medical advice. Confirm current program amounts and eligibility with NYSERDA, NYS Clean Heat, Con Edison, and a licensed HVAC contractor or tax professional before acting.