100 dollar bills used as background for Insulation Tax Credit Campaign

The Inflation Reduction Act (IRA), passed in 2022, introduced a wave of federal incentives aimed at making homes across the country more energy efficient. Among those benefits was the 25C insulation tax credit, which provided a federal tax credit for eligible upgrades like insulation and air sealing. However, this credit was repealed in 2025 and is no longer available to homeowners planning energy efficiency improvements.

While the insulation tax credit has ended, other opportunities introduced through the IRA remain in place, particularly in the form of rebates that can significantly reduce upfront costs for home energy upgrades.

The Home Electrification and Appliance Rebate (HEAR) Program

The HEAR program is one of two major rebate programs created under the IRA, intended to help homeowners lower their energy use and costs through electrification. While not yet active in every state, some components of this program have already begun rolling out in New York.

In 2024, New York State expanded its existing EmPower+ program using HEAR funds to offer higher rebates to qualifying low- and moderate-income households, particularly for those living in older or inefficient homes.

EmPower+ Rebates Now Available in New York

Eligible homeowners in New York may now access the following rebates through the EmPower+ program:

$1,600 for air sealing, insulation, and ventilation improvements
$2,500 for electrical wiring upgrades, often required to support modern HVAC or appliance installations
$4,000 for electrical panel upgrades, enabling homes to safely handle additional electrical loads
$1,750 for installation of a heat pump water heater
$8,000 toward a heat pump HVAC system, a major step in reducing heating and cooling costs year-round

These rebates are income-based, and availability may vary depending on your eligibility under the program guidelines.

Multi-Family Buildings Can Benefit, Too

In addition to single-family homes, multi-family buildings are also eligible for energy-saving incentives under a separate program known as the Home Efficiency Rebate. These rebates apply to projects that deliver meaningful energy savings, specifically, upgrades that achieve at least a 20% reduction in energy usage. Qualifying buildings can receive up to $8,000 in rebates per unit.

Why Timing Matters

With parts of the IRA repealed and other programs still in flux, now is a key time to take advantage of the incentives that remain. Rebate amounts and program availability are subject to change, and federal funding timelines may impact how long these benefits are offered.

If you're planning home improvements like insulation, air sealing, or heat pump installation, exploring these rebates early can make a major difference in your out-of-pocket costs.