NYC heat pump rebates: what's actually available in 2026

Heat pump incentives in New York City stack across federal, state, and utility programs. For most homes and small buildings, the combined rebates cover 30–50% of installed cost — sometimes more. Here's the lay of the land in 2026.

The three rebate buckets

There are three categories of incentive most NYC residents and building owners qualify for:

• Federal tax credits. The Inflation Reduction Act covers 30% of installed cost on qualifying heat pumps, capped at $2,000 per year.
• NYSERDA Clean Heat. NY State rebates run $1,000–$3,000 per ton of capacity for cold-climate heat pumps.
• Con Edison / National Grid rebates. Utility-level rebates add another $500–$1,500 depending on equipment and program enrollment.

What qualifies

Equipment must be on the NYSERDA-approved list — generally cold-climate models from Mitsubishi, Daikin, Fujitsu, LG, and a handful of others. The contractor also has to be a NYSERDA-participating installer (we are) so the rebate actually flows through.

Stacking the numbers

A typical Brooklyn brownstone whole-home install runs $18,000–$28,000 before incentives. After federal, state, and utility rebates, the out-of-pocket number is usually $10,000–$16,000. For a small commercial building swap, the math is even more favorable.

Rebate programs change. Confirm current amounts when you book — we keep a live cheat sheet.

What to do next

If you're considering a heat pump install, we'll itemize the rebates that apply to your specific building during the estimate. There's no separate paperwork on your end for most of them.