How much money can you get for combating the climate crisis? Rep. Clarke reviews state and federal green energy tax rebates
Congressmember Yvette Clarke recently hosted educational seminars on the cost benefits of the federal Inflation Reduction Act (IRA) and New York State Energy Research and Development Authority (NYSERDA’s) programs, which offer taxpayers significant grants and rebates for clean energy-efficiency in their homes, businesses, and vehicles.
“From lowering prescription drug prices and energy costs to delivering vital resources to combat the climate crisis to creating millions of well-paying union jobs, this law is a once-in-a-generation investment in our economy and our communities,” Clarke said at the seminar. “I was proud to cast a decisive vote for the [IRA] because I knew the immense benefits of the legislation and that they would not only benefit communities across our nation but families just across the street right here in Brooklyn.”
The IRA was signed into law by President Biden in 2022. It allowed for significant investments in improving the country’s infrastructure, energy security, and efforts to combat climate change. It also created more than 20 tax incentives for clean energy and manufacturing, such as the energy-efficient home improvement and residential clean energy credits, credits for electric cars recently bought or used, and credits for alternative fuels.
According to Julie Tighe, president of the New York League of Conservation Voters (NYLCV), credits can range up to thousands of dollars in tax refunds. For example, a tax credit for electric vehicles (EV) that are at least two years old with a sale price of less than $25,000 provides up to $4,000 for the car and up to $1,000 for EV charger installation and hardware at home if eligible, said Tighe.
Under the IRA, New York State has received two grant programs: Home Efficiency Rebates (HER), with $159 million through 2031 for energy savings, and Home Electrification and Appliance Rebates (HEAR), with $18.4 million for rebates through 2031 for electrification of households below 150% of the area median income (AMI).
“We are expecting to receive a total of $37.4 million to deploy between now and September 30 of 2031, and both of these grants have funds that are dedicated to low-income households,” said NYSERDA Chief Program Officer Anthony J. Fiore. “I am thrilled to report that New York is the first state in the nation to get this money into the market.”
Existing state programs like EmPower+ will continue to offer low- to moderate-income homeowners substantial funding and help with installing heat pumps, heat pump water heaters and clothes dryers, electronic cooking appliances, updated insulation and ventilation systems, air sealing, and electrical wiring upgrades, said Fiore.
“New York is an old state — we look good, but we’re an old state with old buildings [that] really need to be retrofitted,” said Senator Kevin Parker, who chairs the energy and telecommunications committee. “Weatherization, changing windows, insulating buildings is going to be a big part of keeping cool air in in the summer and warm air in in the winter. The second part is demand response, [which] talks about knowing the best times and the best ways to use electricity and power generally.”
Assemblywoman Latrice Walker, who grew up in Brooklyn’s Brownsville neighborhood, attested to “demand response” or power usage as an environmental justice issue that takes a toll on low-income communities of color.
“Brownsville and other parts of central Brooklyn were in sort of brownout stages and the [power] load, based on the lifestyles of so many people in central Brooklyn pulling so heavily on the Brownsville substation that Con Edison would have to turn down the power in many of our communities,” Walker said. “[That] prevented the elevators from working. It had gotten so bad once that at Brookdale Hospital, they had to almost evacuate the hospital because when the load was reduced so low, the chillers no longer worked in the building.”
Part of the IRA dedicates $57 billion to help address these issues in historically disadvantaged communities. Walker said one of the more important tax credits available in her district has been the solar initiative, which helps families and low-income communities to put solar panels on the roofs of their homes and reduce their energy bills long-term.
“I always remember the excitement of a homeowner who came in with an energy bill with zero dollars, and there was also a church that had that, and they couldn’t believe it,” Walker said. “They thought it was an error.”
For more information about tax rebates and energy grants, check out the cost-savings calculator to determine eligibility. New Yorkers can find EmPower+ applications and information about state tax and energy rebate programs at www.nyserda.ny.gov or energyadvisor.ny.gov/.
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