All of New York · Tax credit
Geothermal Energy System Credit
Run by New York State Department of Taxation and Finance
New York homeowners who buy or lease a ground source heat pump (geothermal) system for their home can claim a state income tax credit of 25% of the cost, up to $10,000 for systems placed in service on or after July 1, 2025, with unused credit carried forward five years.
Amounts
How much you get
25% of qualified geothermal energy system expenditures, up to $10,000 for systems placed in service on or after July 1, 2025 ($5,000 for systems placed in service on or before June 30, 2025). Not refundable; the excess carries over for up to five years. One system per tax year. For a lease, only the first 15 years of the lease count.
Eligibility
Do I qualify?
You need to meet all 5 of these.
Your home is in New York.
The New York residential property must have been your residence when the system was placed in service, and must not be rented at any time during the tax year you claim the credit.
You bought the geothermal equipment, or leased it under a written agreement of at least 10 years.
A ground-coupled system that uses heat stored in the ground or bodies of water, commonly called a ground source heat pump.
Not refundable; it reduces New York income tax owed, with the excess carried forward up to five years.
Equipment
What equipment counts
Applying
How to apply
You claim it on your tax return.
- Keep your purchase or lease records and installation costs.
- Complete Form IT-267, Geothermal Energy System Credit.
- File it with your New York State income tax return.
Forms and instructionsInstructions for Form IT-267 (2025)
Stacking
Use it with
You can get these too.
All of New York
On-Bill Recovery Loan
Amount varies
NYSERDA loans of $1,500 to $25,000 for solar panels, heat pumps and energy efficiency work on one- to four-family New York homes, repaid through your utility bill over 5, 10 or 15 years, with a balance that can pass to the next owner.
Checked Oct 26, 2026
All of New York
Smart Energy Loan
Amount varies
NYSERDA unsecured loans of $1,500 to $25,000 for solar panels, heat pumps and energy efficiency work on one- to four-family New York homes, repaid monthly by check or automatic payment over 5, 10 or 15 years.
Checked Oct 26, 2026
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Geothermal Energy System Credit pay?
25% of qualified geothermal energy system expenditures, up to $10,000 for systems placed in service on or after July 1, 2025 ($5,000 for systems placed in service on or before June 30, 2025). Not refundable; the excess carries over for up to five years. One system per tax year. For a lease, only the first 15 years of the lease count.
Do renters qualify?
The New York residential property must have been your residence when the system was placed in service, and must not be rented at any time during the tax year you claim the credit. You bought the geothermal equipment, or leased it under a written agreement of at least 10 years.
Can I combine it with other rebates?
Yes, with On-Bill Recovery Loan and Smart Energy Loan. See Use it with.
Is it still available?
Yes. It was open when we last checked, on October 26, 2026.
Can I claim it for a condo or co-op unit?
Yes. A percentage of the building's qualified geothermal expenditures can be attributed to each unit; the co-op or condo association should provide it.
Plain words
Words used on this page
References
Sources
This page is built from these official pages, run by the program itself.
- Geothermal Energy System Credit | Department of Taxation and Finance
- Instructions for Form IT-267 (2025)
When one of these pages changes, we re-check this page against it.
Nearby
More in New York
All of New York
EmPower+
Up to $14,000
Income-eligible New York owners and renters of one- to four-family homes get a no-cost home energy assessment and NYSERDA funding for air sealing, insulation, heat pumps, heat pump water heaters and electrical upgrades, free for low-income households and 50% of the cost for moderate-income households.
Checked Oct 26, 2026
Central Hudson Gas & Electric customers, New York
Central Hudson NYS Clean Heat Heat Pump Rebates
Up to $20,000 back
Central Hudson electric customers in one- to four-unit homes can get up to $12,000 toward a whole-home air-source heat pump, or up to $20,000 for a geothermal system, installed by a NYS Clean Heat contractor; the higher amounts go to weatherized homes.
Checked Oct 26, 2026
Con Edison customers, New York
Con Edison Clean Heat Program (Residential Heat Pump Incentives)
Up to $40,000 back
Con Edison electric customers in 1- to 4-family homes and individual apartments can get up to $11,000 off an air-source heat pump or up to $40,000 off a geothermal system, taken off a participating contractor's invoice through the NYS Clean Heat Program.
Checked Oct 26, 2026