Congress must defend the tax credit that saves energy and money for New Yorkers

I recently bought a 50-year-old home on Long Island, and, like most homeowners, I wanted to make some upgrades to reduce my energy costs. I’m a data nerd, and when I tracked our energy usage, I found that the water heating coil in our fuel oil furnace was the worst energy stealing culprit. Its inefficient design required the furnace to be running all the time and cost us at least $100 a month. 

I wanted a water heater that cost less to run, was more efficient, and gave my family more reliable hot water. That’s when I learned about heat pump water heaters, which are four times more efficient to run than my current system. Between PSEG incentives and the federal 25C Energy Efficient Home Improvement Tax Credit, the cost of a new heat pump water heater was so low that the appliance would pay for itself in savings in just one year.

That’s exactly what happened. Not only did the heat pump water heater cut our costs by 80% (now $20 a month versus $100), it also just works better. We don’t have to wait for the water to heat up, and we no longer run out of hot water halfway through a bath. Because the new system has an app, I can adjust electricity usage like a programmable thermostat and turn it off when we go on vacation. It’s just far smarter technology.

Now we’re saving for a heat pump HVAC system to replace the oil furnace, baseboard heaters, and central air conditioning—an upgrade that promises similar savings. 

Like my new water heater, this investment is only financially possible because of the 25C tax credit. Without it, making the switch would be much harder for working families. Not only has our family benefited from lower energy bills, but the manufacturers and contractors who made and installed these machines have benefited across the board from the tax credit. It has encouraged manufacturers to design better, more efficient systems and has led contractors to invest in training to meet growing demand.

But now, Congress may put this tax credit on the chopping block. That would be a huge mistake. More and more Republicans recognize that energy tax credits are not about politics—they’re about helping small businesses and keeping energy affordable. I appreciate Congressman LaLota for signing the recent letter defending these credits and hope his leadership extends to protecting 25C.

Eliminating this tax credit would mean fewer options for homeowners, higher energy costs, and lost business opportunities for contractors. I urge my fellow Long Islanders and New Yorkers to contact their representatives and tell them to protect these smart investments that keep energy costs low and support local businesses.

Michael Caprio

Miller Place