Abstract
Air-source and ground-source heat pumps have proven to be a valuable mechanism in reducing greenhouse gas (GHG) emissions resulting from fossil fuel-based heating and cooling systems in residences and buildings. This study offers an analysis of the potential impact of federal and state tax incentives on the adoption of ground-source heat pumps (GSHP) and air-source heat pumps (ASHP) for residential heating and cooling purposes, aiming to determine their effectiveness as climate change policy measures. This paper suggests that despite a considerable reduction in the cost of GSHPs compared to ASHPs after the application of the tax incentives, the installation of ASHPs has significantly increased in residences in New York, whereas the implementation of GSHPs has not. Therefore, it was concluded that the tax policy aimed at promoting the installation of GSHPs in residences did not achieve its intended effectiveness, and even though ASHPs increased in demand, the tax incentives limited to only $2,000 were considered to have had a limited influence on the increase in the implementation of this system due to its low final cost reduction percentage. Accordingly, this essay recommends that additional tax incentives be allocated for ASHP installation, and that NY consider enhancing its GSHP tax benefits to levels more comparable to those offered in other states.
Recommended Citation
Samuel F. de Carvalho, Air Source and Ground Source Heat Pumps: A Comparison and Analysis of the Effects of U.S. Federal and New York Tax Incentives in the Adoption of Both Systems, 43 Pace Envtl. L. Rev. 38 (2025)Available at: https://digitalcommons.pace.edu/pelr/vol43/iss1/12