A common question we receive from homeowners is whether the work completed through NYSERDA’s EmPower+ program is tax-deductible. The answer depends on the specifics of the project, but in most cases, the improvements funded through EmPower+ are not eligible for tax deductions.

Grants and Incentives: What You Need to Know

For the majority of homeowners, the energy efficiency improvements completed through NYSERDA’s EmPower+ program come at no cost to you. This is because the state covers the full cost of the upgrades through grants and incentives. Since there is no out-of-pocket expense for the homeowner, there are typically no tax deductions or rebates available for the work.

Partial Contributions and Tax Rebates

However, there are some situations where a homeowner might be asked to contribute a portion of the cost. This could happen if the state does not cover the entire scope of the work or if a particular improvement doesn’t meet NYSERDA’s full funding criteria. In these cases, where the homeowner makes a partial financial contribution, that portion of the cost may be tax-deductible.

If you’re asked to contribute to the cost of improvements, you may be eligible to claim that expense as a tax rebate on your next tax return. Simply provide the cost of the work you paid for to your tax auditor, and they can help determine what rebates or deductions you might qualify for.

Takeaway

While most EmPower+ projects won’t qualify for tax deductions, if you do contribute financially to any improvements, be sure to keep track of your expenses for potential tax savings.

For more information on NYSERDA’s EmPower+ program or questions about your specific situation, feel free to contact us. We’re here to help you navigate the process and ensure you understand all the financial benefits available to you.