NYC Incentives Hub

Every NYC HVAC incentive, by building type.

Federal, state, city, utility, and tax programs all stacked in one place. Pick your building type and we route you to the exact programs that apply. No fluff, no outdated amounts. Numbers current 2026.

Free incentive assessment →📞 (212) 810-0915
Pick Your Building Type

Start with your building

Different buildings qualify for different programs. Match your building type to the right path. Each card routes to the program mix that applies.

Single-family home

Brownstone, townhouse, detached. Con Ed Clean Heat up to $10,000, federal 25C, NYSERDA stack.

Clean Heat residential →

2 to 4 unit building

Small multifamily owner-occupied or rental. Residential Clean Heat paths plus federal credits.

Clean Heat residential →

Condo or co-op unit

Individual unit owner in a 5+ unit building. Treated as residential for Clean Heat. Federal 25C applies.

Clean Heat residential →

Multifamily 5+ units

Building-wide conversion. $5,000 per unit Clean Heat plus J-51 abatement and C-PACE financing.

Multifamily incentives →

Commercial building

Offices, retail, hotels, industrial. Per-MMBtu Clean Heat, Section 179D, bonus depreciation, C-PACE.

Commercial incentives →
All Programs

Every program at a glance

Grouped by category. Utility rebates first because they come off your invoice at install. Tax credits and depreciation apply at filing. Financing programs close the gap on what rebates do not cover.

Utility Rebate

Con Ed Clean Heat: Option 1 (Full Replacement)

Remove or disable the fossil fuel system and install a qualifying heat pump. Highest rebate tier.

$8,000 single-family / $4,000 apartment
Single-family homeApartment in 1 to 4 unit building
Program source →

Con Ed Clean Heat: Option 2 (Keep Existing with Controls)

Add a qualifying heat pump but keep the existing fossil fuel system as backup, with integrated controls.

$2,500 single-family / $1,000 apartment
Single-family homeApartment in 1 to 4 unit building
Program source →

Clean Heat DAC Enhancement

Extra incentive for properties in NYS-designated Disadvantaged Community areas.

Up to $10,000 single-family / $5,000 apartment (Option 1)
Single-family homeApartment in 1 to 4 unit building
Program source →

Clean Heat Multifamily: Full Load ASHP w/ Decommissioning

Building-wide ASHP replacement plus fossil fuel decommissioning in 5+ unit buildings.

$5,000 per dwelling unit
Multifamily 5+ unitsResidential rental owner
Program source →

Clean Heat Commercial: Full Building Load Electrification

Per-MMBtu incentive for full commercial building heat load conversion.

$120/MMBtu displaced
Commercial building
Program source →

Clean Heat Commercial: Phased Load Electrification

Partial / phased commercial heat load electrification. Lower rate than full building.

$70/MMBtu displaced
Commercial building
Program source →

Clean Heat Domestic Hot Water Electrification

Heat pump water heating incentive for commercial and multifamily.

$200/MMBtu (commercial) / $1,000 per dwelling unit (prescriptive multifamily)
Commercial buildingMultifamily 5+ units
Program source →

Con Ed Bring Your Own Thermostat (BYOT)

Annual payment for letting Con Ed adjust your smart thermostat during peak demand events.

$50 enrollment + $25/year
All residential
Program source →

Federal Tax Credit

Federal Section 25C: Energy Efficient Home Improvement Credit (Heat Pumps)

Non-refundable federal tax credit worth 30% of qualified heat pump cost, up to $2,000/yr.

30% of cost, up to $2,000 per tax yearExpires 2032-12-31
All residential
Program source →

Federal Section 25D: Residential Clean Energy Credit (Geothermal)

30% federal tax credit, uncapped, for residential geothermal heat pump installs through 2032.

30% of total cost, no capExpires 2034-12-31
All residential
Program source →

IRS Section 48: Investment Tax Credit (Commercial Geothermal)

30% federal tax credit for commercial geothermal heat pump systems, with bonus adders.

30% base + 10% domestic content + 10% energy community + more for low-income projects
Commercial building
Program source →

Federal Rebate

HEEHRA: High-Efficiency Electric Home Rebate

Income-qualified point-of-sale rebate for heat pump installs in low and moderate income households.

Up to $8,000 for heat pump (LMI households)
All residential
Program source →

State Rebate

NYSERDA EmPower+

Income-qualified home performance and weatherization, including heat pump support.

Up to $10,000 in free improvements, income-dependent
All residential
Program source →

State Loan / Financing

NYS Clean Heat Loan (On-Bill / Smart Energy)

Low-interest financing for the remaining project cost after Clean Heat rebates.

Up to $25,000 (residential) at below-market rates
All residentialMultifamily 5+ units
Program source →

Tax Depreciation

IRS Section 179 Expensing (Commercial HVAC)

Immediate first-year expensing of HVAC equipment installed in nonresidential real property.

Up to ~$1.22M deduction in 2026 (indexed, phase-out ~$3.05M)
Commercial buildingResidential rental owner
Program source →

Bonus Depreciation (Phase-out)

Accelerated first-year depreciation on qualifying HVAC, phasing out 2024 to 2026.

60% (2024), 40% (2025), 20% (2026), 0% (2027) unless extendedExpires 2026-12-31
Commercial building
Program source →

IRS Section 179D: Commercial Buildings Energy-Efficiency Deduction

Per-square-foot deduction for high-efficiency HVAC, lighting, or envelope upgrades. Prevailing wage + apprenticeship boost.

Up to $5.81/sqft (2026, with prevailing wage and apprenticeship). ~$1.16/sqft without.
Commercial building
Program source →

Tax Abatement

J-51 Tax Abatement

NYC property tax exemption and abatement for qualifying multifamily renovations including HVAC.

Exemption on increased assessed value + abatement up to 8.33% of reasonable cost per year (varies)
Multifamily 5+ unitsResidential rental owner
Program source →

Financing Program

NYC C-PACE (Commercial Property Assessed Clean Energy)

Long-term (up to 30-year) financing for commercial energy upgrades, repaid through property tax assessment.

100% financing of qualifying project cost
Commercial buildingMultifamily 5+ units
Program source →

Advisory / Free Service

NYC Accelerator

Free advisory service for NYC building owners on energy upgrades and compliance.

Free (funded by NYC)
Multifamily 5+ unitsCommercial buildingResidential rental owner
Program source →
Worked Examples

How stacking actually plays out

Three real NYC scenarios. Sticker price, program stack, net cost. Numbers round for readability. Exact figures depend on your system, building, and tax position.

Single-family brownstone heat pump retrofit

Project cost: $32,000
Con Ed Clean Heat Option 1-$8,000
Federal 25C tax credit-$2,000
NYSERDA Clean Heat Loan (financed remainder)financed
BYOT smart thermostat enrollment-$50 + $25/yr
Net: ~$22,000 out of pocket, or ~$20,000 in a Disadvantaged Community

24-unit multifamily ASHP plus DHW conversion

Project cost: $720,000
Clean Heat Multifamily Full Load ASHP (24 units x $5,000)-$120,000
Clean Heat DHW prescriptive (24 units x $1,000)-$24,000
J-51 Tax Abatement (building-wide)multi-year
NYC C-PACE financing (remainder)100% financed
Net: ~$576,000 financed via C-PACE, with J-51 offsetting property tax over assessment period

$250,000 commercial VRF replacement (15,000 sqft office)

Project cost: $250,000
Con Ed Clean Heat Commercial Full Building ($120/MMBtu, ~700 MMBtu)-$84,000
Section 179D deduction (15,000 sqft x $5.81)-$87,150 deduction
Section 179 expensing (remainder in year 1)year-1 deduction
Bonus depreciation 20% (2026 final year)year-1 deduction
Net: Cash effective cost ~$90,000 to $110,000 after rebate and tax treatment (depends on bracket)

Education not tax advice. Federal and state rules change. Confirm figures with your CPA before signing contracts.

Expiring Soon

Programs with a clock on them

If you own commercial property, 2026 is the last year for meaningful bonus depreciation. If you are planning a residential geothermal install, 2032 is the last year of the full 30% credit.

Deadline risk

Bonus depreciation

20% in 2026, 0% in 2027 unless Congress extends. Last meaningful year to place equipment in service.

Plan the stack →
Deadline risk

Section 25D geothermal credit

30% through 2032, then steps down (26% in 2033, 22% in 2034, expires 2035).

Plan the stack →
Deadline risk

Section 25C heat pump credit

30% up to $2,000 through 2032. Subject to federal legislation changes.

Plan the stack →
Free Assessment

Find out what your building qualifies for

One call. We map every program against your building, handle the Clean Heat application, and coordinate with your CPA on tax side. No charge for the assessment.

Get Started →📞 (212) 810-0915
Incentives Hub Answers

Direct answers on which NYC HVAC incentives apply to your building, how they stack, and what's expiring.

What HVAC incentives are available in NYC?

NYC HVAC projects stack programs from five levels. Federal tax credits (Section 25C residential, 25D geothermal, 48 commercial ITC, 179D deduction). New York State programs (NYSERDA EmPower+, Clean Heat Loan, HEEHRA rollout). NYC programs (J-51 tax abatement, C-PACE financing, NYC Accelerator). Con Edison Clean Heat (residential, multifamily, commercial tracks). And tax depreciation (Section 179, bonus depreciation for commercial). The exact mix depends on building type and ownership structure.

Can I combine multiple HVAC incentives?

Yes. Most federal, state, utility, and tax programs stack. The caps are at the program level (Con Ed Clean Heat caps at 70% of project cost, 85% in a Disadvantaged Community), not across programs. Commercial owners routinely combine rebate, expensing, depreciation, and financing on a single project.

Which programs expire soonest?

Bonus depreciation is the most time-sensitive. It drops from 20% in 2026 to 0% in 2027 under current law. Commercial owners who want to expense a 2026 project should finalize design and place equipment in service before December 31. Section 25D geothermal steps down starting 2033. Section 25C heat pump credit runs through 2032.

How do I apply?

For Con Edison Clean Heat, your participating contractor submits the application and the incentive comes off your invoice. For federal credits, you claim on your tax return using AHRI certificates and manufacturer certification statements we provide. J-51 goes through NYC HPD. C-PACE goes through NYCEEC or partner capital providers. NYC Accelerator offers free advisory to route you correctly.

Do I need a specific contractor?

For Con Edison Clean Heat and NYSERDA programs, yes. You must use a participating contractor. Vinco Mechanical is enrolled in both. For federal tax credits, any licensed installer works as long as the equipment is AHRI-certified and meets program efficiency thresholds.

What if I rent out the building?

Residential rental property (27.5-year MACRS) generally does not qualify for Section 179 on HVAC. Landlords still get Con Edison Clean Heat, Section 25C does not flow through to rental, but 179D applies if the property qualifies as commercial. Multifamily 5+ units uses the multifamily track with J-51 available for major capital improvements.

Is there a free consultation?

Yes. Call Vinco Mechanical at (212) 810-0915 for a free incentive assessment. We map your building against every program, handle the Clean Heat paperwork, and coordinate with your CPA on the tax side. NYC Accelerator also offers free building consults funded by NYC.

Deeper guides

Con Ed & NYS Clean HeatCommercial HVAC IncentivesMultifamily HVAC IncentivesLocal Law 97 HVAC ComplianceHVAC Cost in NYCBrownstone HVAC NYC