Federal Heat Pump Tax Credit Expired, But Erie County Homeowners Still Eligible for $6,000-$12,000 in NYS Clean Heat Rebates, JP Heating & Cooling Reports
BUFFALO, NY – June 30, 2026 – Erie County homeowners can still offset the cost of installing a qualifying cold-climate heat pump by $6,000 to $12,000 in 2026 through the NYS Clean Heat program, even after the federal Inflation Reduction Act’s Section 25C tax credit expired on December 31, 2025, according to a new analysis released today by JP Heating & Cooling, LLC.
The federal Section 25C credit, which previously offered up to $2,000 for qualifying heat pump installations, was repealed under the One Big Beautiful Bill Act (OBBBA) and is no longer available for systems installed in 2026 or later. New York’s state-level program, however, remains active and well-funded through 2030 under a May 2025 Public Service Commission order.
“A lot of Erie County homeowners assumed that when the federal credit went away, the heat pump opportunity went away with it,” said Jim Perusich, owner of JP Heating & Cooling, LLC. “That’s not the case at all. NYS Clean Heat is still one of the most generous heat pump rebate programs in the country, and for most Buffalo-area homeowners the state and utility incentives now cover a much larger share of the project than the federal credit ever did.”
The analysis found that NYS Clean Heat rebate amounts vary by utility territory, system size, fossil-fuel decommissioning status, and Disadvantaged Community (DAC) designation. For air-source heat pumps in Buffalo and Erie County—where National Grid is the primary electric utility—rebates typically fall in the $6,000 to $12,000 range for whole-home installations. Geothermal (ground-source) systems can qualify for rebates of $14,000 to $25,000.
Buffalo’s climate makes heat pump adoption particularly cost-effective. The city logs approximately 6,600 heating degree days annually per NOAA climate normals—roughly 50% more than the U.S. national average and placing the region in IECC Climate Zone 5A. Modern cold-climate heat pumps are rated to maintain heating capacity at temperatures of 5°F or below, with leading models continuing to operate efficiently down to ‒13°F.
Operating costs are another major factor. Air-source heat pumps can be two to three times more efficient than oil-fueled heating systems, meaning Erie County homeowners replacing aging oil or propane equipment often see lower utility bills from day one—particularly when paired with low-interest financing through NYSERDA’s Green Jobs–Green New York program.
The analysis also documented several important program changes taking effect in 2026: residential Clean Heat rebates are now limited to homes with one to four units; NYSEG and RG&E retired their standalone rebate tracks in favor of the unified Clean Heat program; National Grid shifted to flat per-project incentive amounts; and starting March 1, 2028, homes will need to meet weatherization standards to qualify for any Clean Heat incentive.
Income-eligible households at or below 80% of area median income may also qualify for additional support through NYSERDA’s EmPower+ program, which channels federal HEAR (High-Efficiency Electric Home Rebate Act) funding and can provide up to $24,000 in combined incentives—potentially covering the entire installation cost for qualifying households.
To qualify for a Clean Heat rebate, homeowners must work with a contractor enrolled in the NYS Clean Heat network for their cold-climate heat pump installation; the participating contractor creates the incentive reservation before installation begins, and the rebate is applied as an instant discount on the project invoice rather than as a post-installation reimbursement.
More information about NYS Clean Heat eligibility, cold-climate heat pump options, and Erie County installation services is available at https://controllingyourair.com/
About JP Heating & Cooling, LLC
JP Heating & Cooling, LLC is a BBB-accredited HVAC contractor serving Buffalo and Erie County, NY, with more than 10 years of experience and a 5-star Google rating. The company specializes in cold-climate heat pump installation, furnace and boiler service, air conditioning, and ductless mini-split systems across Buffalo, Amherst, Cheektowaga, Clarence, East Amherst, West Seneca, and Williamsville. JP Heating & Cooling services all major HVAC brands including Carrier, Daikin, Lennox, Trane, Bryant, Amana, and Bosch, and offers a 10% veterans discount on service calls.
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Company Name: JP Heating & Cooling, LLC
Contact Person: Jim
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Phone: (716) 621-2842 / (716) 832-8200
Address:2060 Niagara St
City: Buffalo
State: NY 14207
Country: United States
Website: https://controllingyourair.com/
