NYSERDA, NYSEG & National Grid Rebates on Cold Climate Air Source Heat Pumps
Federal 25C tax credit expired Dec 31, 2025.
Find rebates available at your address →
Heat Pump Rebates & Incentives in New York — 2026 Guide
Even with the federal tax credit no longer available for new installations, New York State remains one of the most aggressive states in the country for heat pump incentives. NYSERDA, NYSEG, and National Grid are actively offering substantial rebates on Cold Climate Air Source Heat Pumps through the NYS Clean Heat program — and those programs can be stacked together for maximum savings.
Rebate programs stack. A single whole-home Mitsubishi cold climate installation can qualify for NYSERDA rebates + utility incentives + NYS low-interest financing simultaneously. We calculate the full picture for every customer — at no charge.Expired — December 31, 2025
Federal Tax Credit — Section 25C
The federal Energy Efficient Home Improvement Credit (Section 25C), which provided up to $2,000 for qualifying heat pump installations, expired for new installations on December 31, 2025. Systems installed in 2026 or later are not eligible for this federal credit.
Installed a qualifying Mitsubishi system in 2025? You can still claim 30% of your installation cost — up to $2,000 — when filing your 2025 federal tax return. Use IRS Form 5695. Mitsubishi’s Qualified Manufacturer ID (QMID) is E8X7. Consult your tax professional for guidance.This change makes acting on available New York State and utility programs more important than ever — those programs remain active and fully funded in 2026.
Active — 2026
New York State — NYS Clean Heat (NYSERDA)
Tiered NYS Clean Heat rebates depending on tier, decommissioning & location Income-based EmPower+ no-cost upgrades for income-eligible households Stackable NYSERDA + utility rebates + NYS financing can be combinedAir Source Heat Pump Rebates
NYSERDA’s NYS Clean Heat program is the primary statewide rebate source for qualifying cold climate heat pump installations. Rebate amounts depend on your utility provider, whether your existing fossil-fuel system is decommissioned, whether your home meets the program’s Weatherized Tier, and whether your address is in a designated disadvantaged community.
The rebate amount depends on four things: your utility, whether the old fossil-fuel system is fully decommissioned or kept as backup, whether your home meets the Weatherized Tier, and whether your address is in a designated disadvantaged community — the address determines that designation, not household income. The rebate is capped as a percentage of project cost, with a higher cap in a disadvantaged community. NYSEG amounts run close to National Grid's but aren't always identical. Because these tiers and caps are updated by the utilities, we don't quote a number here — we confirm your household's exact rebate against the current program tables at your free estimate.
As of 2026: Residential NYS Clean Heat rebates are available for homes with one to four units served by NYSEG, RG&E, National Grid, or Con Edison electric. Rebate amounts and program terms are updated regularly — we provide a current, personalized breakdown at every free estimate.Find specific rebates available for your address at NYS Clean Heat →
Assisted Home Performance / EmPower+
Income-eligible New Yorkers (at or below 80% of area median income) may qualify for no-cost or significantly reduced-cost heat pump installations through the EmPower+ program — including heat pumps, insulation, and air sealing upgrades, the exact amount set by household size and income; we confirm eligibility and the current cap at your free estimate.
Check current EmPower+ income guidelines at NYSERDA.ny.gov →
Active — 2026
NYSEG, RG&E & National Grid — Utility Rebates
NYSEG, RG&E, and National Grid customers can access additional rebates on qualifying cold climate air source heat pumps and heat pump water heaters through the NYS Clean Heat program. Incentives are available to electric customers, or customers with combination gas and electric accounts, who replace an existing furnace, boiler, or water heater.
- Available to NYSEG, RG&E, and National Grid electric customers
- Applies to systems meeting NYS Clean Heat cold climate efficiency standards
- Heat pump water heaters are also eligible for utility incentives
- Multiple single-zone systems on one property may each qualify separately — ask us
Rebate amounts change as programs are updated. Visit NYSEG’s current NYS Clean Heat page for the latest figures, or contact us — we confirm current amounts with every free estimate.
Financing — NYS Clean Heat Low-Interest Loans
With the right financing, households currently heating with oil, propane, or resistance electric can often see positive monthly savings from day one — even while making loan payments. New York State offers multiple low-interest loan options specifically designed for heat pump installations.
Apply now ·
Find current interest rates Smart Energy Loan A traditional low-interest loan repaid monthly by check or automatic payment. Simple, straightforward, and widely used for heat pump installations throughout New York.
Apply now ·
Find current interest rates Renewable Energy Tax Credit Bridge Loan A short-term loan that bridges the gap while waiting on a tax credit return. Can be paired with a Smart Energy or On-Bill Recovery Loan. Ask us about this option when we visit for your estimate — your contractor initiates the application.
Learn more about all available NYS residential financing options →
The Bottom Line for 2026
New York State continues to make Mitsubishi cold climate heat pump installations more affordable than almost anywhere in the country. While the federal 25C tax credit has ended, NYSERDA Clean Heat rebates, NYSEG and National Grid utility incentives, and low-interest state financing still make the economics very compelling — especially when programs are properly stacked.
When we come out for your free estimate, we’ll give you a complete, up-to-date breakdown of every incentive available for your specific home, utility, and household income — so there are no surprises and no money left on the table.
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Thinking about a heat pump? Superior CO-OP HVAC is a Mitsubishi Diamond Contractor ELITE serving Upstate NY & Vermont. Get a free in-home estimate or call (518) 719-5614.