HVAC Rebates and Tax Credits in New York: What to Check

HVAC rebates in New York look different this year than they did two years ago, so check the current program page before you sign anything. The federal Section 25C tax credit expired on December 31, 2025 under Public Law 119-21, and National Fuel stopped direct incentives for gas-fired appliances on January 1, 2026.

NYS Clean Heat heat pump rebates and income-based programs through NYSERDA are still the main places to look. This page is accurate as of October 2026, and programs change.

We are an HVAC company, not a tax or program advisor. Use this as a checklist and confirm every figure with the program itself.

What ended, and what is still running?

Program	Status as of October 2026	Where to check
Federal Section 25C credit	Expired December 31, 2025. Heat pumps installed in 2026 do not qualify	IRS or a tax professional
NYS Clean Heat heat pump rebates	Running through your electric utility	cleanheat.ny.gov
HEAR (income-based, federal funds through NYSERDA)	Check NYSERDA for current status and limits	nyserda.ny.gov
National Fuel direct gas appliance incentives	Ended January 1, 2026	National Fuel rebate page
National Fuel weatherization and thermostat incentives	Still offered per National Fuel	National Fuel rebate page

Older articles still list the $25 tune-up credits, thermostat rebates and hybrid furnace incentives that National Fuel used to run. Ignore them. If a page promising those has no date, assume it is stale.

How does NYS Clean Heat work?

NYS Clean Heat gives heat pump rebates through your electric utility. The state site lists National Grid, NYSEG, RG&E and others, and which one applies depends on where you live. Most of Buffalo is National Grid electric. Parts of Erie County are NYSEG. The site says rebates can be paired with other incentives, so ask the program what stacks.

Three details trip people up:

1. Only a participating contractor can file. Use the program's contractor search, and confirm the contractor is listed before you sign. That applies to every contractor, ours included. Use the search, and ask us what we can and cannot help with.
2. Eligibility changed in 2026. From January 1, 2026, residential rebates cover homes with one to four units.
3. Amounts are not universal. NYSEG advertises up to $10,000 for air-source heat pumps. That is NYSEG's advertised figure, and it does not apply to every home or every utility. Do not assume a dollar amount until the program confirms it for your address.

What about income-based programs?

HEAR is a federal program run in New York through NYSERDA, with eligibility based on household income. Rules, funding and limits shift, so check NYSERDA directly for current status instead of relying on a number you read elsewhere. If you qualify, it can change which equipment makes sense, so check before you buy. Some households also qualify for weatherization help, which in an older house can save more than a new appliance.

Is there help for income-eligible households beyond a rebate?

Yes, and it is worth a look before you shop for equipment. The state's MyEnergy site describes EmPower+ as funding for income-eligible homeowners and renters, covering air sealing, insulation, heat pumps, heat pump water heaters and electrical service and wiring upgrades. Households at or below 80 percent of State or Area Median Income qualify, as do participants in a utility payment assistance program. The page says EmPower+ can cover up to 100 percent of some project costs, and that you start by creating an account in the MyEnergy portal. A Regional Clean Energy Hub can also help with the application and finding participating contractors.

Those are the state's words, not a promise about your household, because eligibility varies by county and household size. Use the guidelines table on the MyEnergy page. One practical point for older Buffalo houses: the energy assessment that comes with this kind of program can show an air leakage or insulation problem that makes a smaller, cheaper heating system the right size. It is better to learn that before a contractor quotes equipment.

Do the program websites agree with each other?

Not always, and that is a reason to check the date on whatever you read. When we reviewed the NYS Clean Heat home page in October 2026, it still said Clean Heat rebates can be combined with federal tax credits included in the Inflation Reduction Act. Since Section 25C expired on December 31, 2025, do not read that line as a credit you can claim for a 2026 heat pump. If you bought and installed equipment in 2025, a tax professional can tell you whether a credit applies to your return.

The same page lists the sponsoring utilities, which include National Grid, NYSEG, Rochester Gas & Electric and National Fuel Gas, along with others elsewhere in the state. Which program applies to you depends on your address and your account, so start with the utility bill and the program's own contractor search.

What should you do with National Fuel?

Gas appliance incentives are gone, but National Fuel still runs weatherization and thermostat incentives, and its rebate page is the place to see what is live. If you are replacing a thermostat during a project, we check the wiring and compatibility first, including whether your system needs a C wire. A smart thermostat that qualifies for a utility incentive is worth confirming before you buy it, since eligible models change.

How we look at rebates

Our recommendation never starts with the rebate. It starts with the house: the heating load, the existing ducts or radiators, the electrical panel, the fuel and the bills. A heat pump that fits the home and the budget is worth considering with or without an incentive, and one that does not fit is not made better by a rebate.

Customers tell us we give honest recommendations, and that is how we handle incentives. We explain what we know, say what we do not, and point you to the program page. One reviewer wrote that John helped with filing a National Fuel rebate, and the limit of what we promise is the same: ask us. For the equipment side, see heat pump installation and furnace replacement.

What should you check before you sign?

• Is the 2025 federal credit being claimed anywhere in the paperwork? It should not apply to a 2026 install.
• Which electric utility serves your address, and what does its program say?
• Is your contractor listed as a participating NYS Clean Heat contractor?
• Does the quote show the rebate separately, so you can compare the full price with and without it?
• When is the rebate paid, and what documents does it require?
• Did anyone run a Manual J load calculation to size the system? The NYS energy code calls for equipment selection under ACCA Manual S, based on Manual J loads or another approved method.

Keep a folder with the dated quote, the model and serial numbers, the program pages you relied on (saved as PDF or screenshot with the date), and the final invoice. If a rebate is questioned months later, those pages show what the program said when you signed. Our boiler replacement and furnace installation pages describe what a quote for those jobs should include, and a rebate sits on top of that scope, not in place of it.

If a salesperson says an offer ends tomorrow, slow down. Program pages are public and do not vanish overnight.

When is the best time to ask?

Before the quote, not after. Rebates often depend on approval before work starts. Call us with the equipment you are considering and the utility you use, and we will tell you honestly what we know. We serve homes in Hamburg, about 15 minutes from our Orchard Park base, and elsewhere in Erie County. Reach us at (321) 666-8870, Monday through Friday, 7:30 AM to 5:00 PM.