Geothermal energy systems credit (Article 22)

For tax years beginning on or after January 1, 2022, a new credit is available for qualified geothermal energy systems installed at New York residences.

To qualify for the credit:

the location of the system must be the taxpayer’s residence at the time it is placed into service, and

the taxpayer’s residence may not be rented out in the tax year(s) the credit is claimed.

The credit is equal to 25% of qualified geothermal energy expenditures for systems that are purchased or leased, with a maximum credit amount of $5,000.

[Part FF of Chapter 59 of the Laws of 2022; Tax Law § 606(g-4)]