Unlock Thousands in Savings: Your Complete Guide to NYC Boiler Installation Tax Credits and Rebates in 2024

New York City homeowners facing boiler replacement costs have never had better opportunities to save money through federal tax credits and state rebate programs. With energy-efficient boiler installations qualifying for substantial incentives, understanding these programs can dramatically reduce your investment in home heating upgrades.

Federal Tax Credits: Up to $600 for High-Efficiency Boilers

ENERGY STAR certified gas boilers with AFUE ≥ 95% are eligible for federal tax credits, with the overall total limit for an efficiency tax credit in one year being $3,200, which breaks down to a total limit of $1,200 for any combination of home envelope improvements plus furnaces, boilers and central air conditioners. Boilers and furnaces are eligible for tax credits of 30% of the cost up to a maximum of $600.

ENERGY STAR certified oil boilers that use certain fuels are also eligible, with the equipment required to be rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of biodiesel, renewable diesel or second-generation biofuel. The credit is allowed for qualifying property placed in service on or after Jan. 1, 2023, and before December 31, 2025.

New York State and Local Rebate Programs

NYC residents have access to multiple rebate programs that can significantly reduce boiler installation costs. The UPGRADE & SAVE – NYC & LI Energy Efficiency and Safety Rebate offers NEW YORK CITY & LONG ISLAND homeowners up to $500 when you install a new, higher-efficiency oil-fired furnace or boiler, with up to $300 for the replacement/upgrade of an existing oil-fired boiler or furnace.

National Grid offers energy efficient furnace, boiler, and heat pumps rebates and incentives, currently offering limited time increased rebates of up to $1200 through March 31, 2025, on a variety of heating and water heating equipment. These utility rebates can be combined with federal tax credits for maximum savings.

Maximizing Your Savings Strategy

One of the best things about federal tax credits is that you don’t have to choose between taking the tax credit or participating in a rebate program – you can take advantage of both incentives and maximize your savings, with the amount of your tax credit determined by the total amount of your original invoice, minus the amount of any rebates you received afterward.

Staten Island homeowners can typically save 40-60% on major efficiency projects by combining federal credits, state rebates, and Con Edison utility incentives – for example, a $15,000 heat pump installation could receive $2,000 federal credit, $1,000 NYSERDA rebate, and $500 Con Edison incentive, totaling $3,500 in savings (23% reduction).

Important 2025 Requirements

For installations in 2025, it will be sufficient to simply include the manufacturer’s four-digit QM code on your 2025 tax return, as this applies to heat pumps, water heaters, CAC, boilers, furnaces, biomass stoves, windows, doors and skylights. You must file Form 5695, Residential Energy Credits Part II, with your tax return to claim the credit, and claim the credit for the tax year when the property is installed, not merely purchased.

Working with Professional Installers

Choosing the right contractor is crucial for maximizing your savings and ensuring proper installation. RB Mechanical Plumbing and Heating is more than just a plumbing company; they’re a legacy, serving Manhattan and Staten Island, NY with pride and professionalism, bringing over 40 years of experience to your doorstep as a third-generation family-owned and operated business that understands the value of trust.

For homeowners seeking professional boiler installation new york services, working with experienced contractors like RB Mechanical ensures proper installation and documentation needed for rebate applications. They’re fully licensed and insured, so you can rest assured knowing you’re in the hands of professionals.

Act Before Time Runs Out

The December 31, 2025 deadline makes immediate action critical for maximum savings. Funds are limited and are allocated on a first-come, first-served basis, with max rebate when combined with federal tax credits for home energy efficiency improvements.

Studies show that heating system upgrades can reduce your annual energy expenses by 30-40 percent and pay for themselves in just a few short years through these savings, and you can make that payback come even quicker and start saving immediately with energy efficiency rebate programs.

Don’t miss this opportunity to upgrade your home’s heating system while maximizing available incentives. Contact qualified contractors to discuss your options and ensure you have all necessary documentation to claim these valuable credits and rebates before the programs expire.