Tax Credits & Incentives

Those who use energy-efficient products in their homes or drive fuel-efficient vehicles enjoy multiple benefits. At home, these benefits include lower home energy bills, increased indoor comfort, and reduced air pollution. On the road, consumers will increase their gas mileage so they lower their gasoline costs, and they will dramatically reduce the amount of air pollution from their vehicles.

In addition to helping savvy consumers lower their energy bills at home and on the road, many energy-efficient products are eligible for federal tax credits that actually lower the amount of federal income taxes we pay to Uncle Sam.

THE BASICS

What is a tax credit?

You don’t receive an income tax credit when you buy the product, like an instant rebate. You claim the credit on your federal income tax form at the end of the year. The credit then increases the tax refund you receive or decreases the amount you have to pay.

Tax Credits vs. Tax Deductions

In general, a tax credit is more valuable than a tax deduction of the same amount. A tax credit reduces the tax you pay, dollar-for-dollar. Tax deductions – such as those for home mortgages and charitable giving – lower your taxable income. If you are in the highest 35-percent tax bracket, the income tax you pay is reduced by 35 percent of the value of a tax deduction. But a tax credit reduces your federal income tax by 100 percent of the amount of the credit.

What about other incentives?

In addition to the federal tax credits, consumers in some areas of the country are  eligible for utility, state or local rebates and tax incentives for homes, vehicles and equipment. For information on these incentives, see the DSIRE database of state incentives, or contact your state energy office or local utility.

Which year’s credits do I claim?

The credit value and technical criteria for the home improvement credits depend on when that improvement was installed. If you purchased a product in 2012, but didn’t install it until 2013, the 2013 criteria apply.

Incentives/Policies for Renewables & Efficiency In New York >

See Federal Incentives
See All Summaries
See Residential Incentives Only

Corporate Tax Credit

Green Building Incentive

Industry Recruitment/Support

PACE Financing

Performance-Based Incentive

Personal Tax Credit

Property Tax Incentive

Sales Tax Incentive

State Grant Program

State Loan Program

State Rebate Program

Utility Rebate Program

Rules, Regulations & Policies >

Appliance/Equipment Efficiency Standards

Building Energy Code

Energy Efficiency Resource Standard

Energy Standards for Public Buildings

Generation Disclosure

Green Power Purchasing

Interconnection

Net Metering

Public Benefits Fund

Renewables Portfolio Standard

Solar/Wind Access Policy

Solar/Wind Permitting Standards

Related Programs & Initiatives >

Alternative Fuels Data Center
The U.S. Department of Energy’s Alternative Fuels Data Center (AFDC) provides information, data and tools to help fleets and other transportation decision-makers find ways to reduce petroleum consumption through the use of alternative and renewable fuels, advanced vehicles, and other fuel-saving measures.

Green Power Network
The U.S. Department of Energy’s Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.

Weatherization Assistance Program
The U.S. Department of Energy’s Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.

Wind Powering America
The U.S. Department of Energy’s Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.

Source: DSIRE: Database of State Incentives For Renewables & Efficiency

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