Article: 50505

Overview 

New York State offers a nonrefundable personal income tax credit for homeowners who purchase and install a qualified geothermal energy system in their principal residence located in New York. This credit helps offset the cost of environmentally friendly heating and cooling systems. 

To claim the credit, you must complete Form IT-267 – Geothermal Energy System Credit, and submit it with your Form IT-201. 

Who is Eligible? 

You may qualify for this credit if: 

• You are a New York State resident, 

• You own and occupy the property as your primary residence, and 

• You installed a qualified geothermal energy system on or after January 1, 2022, and 

• You received a certificate of eligibility from the New York State Energy Research and Development Authority (NYSERDA). 

Note: The system must be installed in accordance with NYSERDA program requirements and must be used for heating and/or cooling the home. 

Credit Amount 

• The credit is equal to 25% of the total system cost, 

• Up to a maximum of $5,000 per qualified residence. 

How to Report 

1. Navigate to the State Taxes section on the left-hand side of the screen. 

2. Click the link: I’d like to see the forms I’ve filled out or search for a form. 

3. In the dropdown menu, select New York. 

4. Click on the IT Credits 100 – 200 Series tab. 

5. Select IT-267 – Geothermal Energy System Credit to open the screen. 

6. Enter all applicable information.  

7. Click Save once complete. 

Additional Resources 

For further guidance, see:  

• 2024 New York State Instructions for Form IT-201 – Full-Year Resident Return  

• Form IT-267 Instructions – Geothermal Energy System Credit (PDF)