NYC Townhouse Renovation: Tax Breaks & Incentives
If you're a homeowner in New York City considering renovating or upgrading your townhouse or brownstone, there's a new incentive that might just convince you to take the leap.
Gov. Kathy Hochul and U.S. Energy Secretary Jennifer Granholm recently announced that low- and middle-income homeowners in New York are now eligible for up to $14,000 in rebates for climate-friendly upgrades like insulation and heat pumps. This new funding, made available through President Joe Biden's Inflation Reduction Act, is designed to accelerate electrification and help the city and state reach their climate goals of ending fossil fuel usage.
The rebate is part of the Justice40 program, which aims to distribute 40% of federal climate funding to disadvantaged communities. By shouldering a substantial portion of the cost for low-to-middle income families, this incentive makes energy-efficient upgrades more accessible than ever before.
Nationwide, the estimated energy cost savings for switching to heat pumps is up to $1 billion annually. According to Secretary Granholm, a house in Queens that recently underwent weatherization and replaced its boiler with a heat pump is now saving nearly $200 per month on average.
The Urban Green Council has identified cost as the biggest barrier to residential electrification modifications, such as heat pumps. Central heat pump systems for a single New York City apartment can range from $15,000 to $22,000, with the potential for an additional 15% in costs for added features like simultaneous heating and cooling.
Currently, the majority of New Yorkers use natural gas for fuel, which is cheaper than electricity for heat pumps. However, a substantial portion of homes still rely on more expensive fuel oil or steam.
The rebate program will be administered in two phases. The first phase, which begins now, is exclusively for low-to-middle-income households, defined as those earning 80% of the area's median income or less. For a family of four in Queens, that's about $124,000.
The second phase will be rolled out later this year through the state's Energy Research and Development Authority's Empower+ program. Half of the funding will continue to support low-to-middle-income families, while the remaining funds will be open to all households. The state is also working to provide an additional $8,000 in rebates for upgrades that reduce energy usage by at least 20%.
As architects and interior designers, we at Havard Cooper Architect understand the importance of creating energy-efficient, sustainable homes. This new incentive program presents an excellent opportunity for New York City homeowners to upgrade their townhouses and brownstones while contributing to the fight against climate change.
If you're interested in learning more about the rebate program and how it can help you transform your home, visit the Department of Energy's rebate site for information on eligibility and restrictions. Don't miss out on this chance to create a more comfortable, eco-friendly living space while saving on energy costs in the long run.
