Taxes, Cash & Savings · Surprise rank #219
Put Geothermal in Your NY Home? Get 25% Back—Up to $10,000, With Refundability for Some 2026 Filers
New York's geothermal energy-system credit equals 25% of qualifying residential geothermal expenditures, with a higher $10,000 cap for systems placed in service on or after July 1, 2025.
Who
Eligible New York taxpayers who purchase and install a qualifying geothermal energy system at a residence they use and that is not rented during the year claimed.
What to do
Start here: Keep installer certification and itemized costs and claim the credit on the applicable New York return for the year the system is placed in service.
Eligibility: The system and residence must meet New York Tax Department rules. Beginning with 2026 tax years, specified lower/middle-income filers may elect refundability of unused credit under the enacted income thresholds.
What you get
A New York personal income-tax credit for qualifying geothermal equipment installed at a New York residence.
Benefit: 25% of qualified geothermal expenditures, capped at $10,000 for systems placed in service on or after July 1, 2025.
Possible value: Up to $10,000 for qualifying newer installations.
Good to know
Important: The current Tax Department consumer page may still describe the credit as nonrefundable, but enacted 2026 rules allow a refund election for qualifying filers within the new AGI thresholds. Higher-income filers generally use carryforward rules instead.
Availability: Active; 2026 refundability change applies to qualifying filers
Why people miss it: Homeowners may know about federal geothermal incentives but miss the separate New York 25% credit and its newer $10,000 cap.
Sources reviewed: Aug 10, 2026