New York Solar Tax Incentives
Let it never be said that New York state doesn't take its progressive energy policy seriously! New York is one of the states leading the nation in solar energy tax credits, as well as incentives, grants, rebates, and renewable energy commitments.
New York renewable energy incentive programs run the gamut from residential to commercial to industrial and beyond. Even though federal (national level) incentives count on top of those, this time we'd like to focus on just the solar tax incentives in New York, by state policy.
Interested in solar? We offer FREE estimates!
Residential Solar Tax Credit
What for: Residential - Solar Water Heat, Solar Space Heat, Solar Photovoltaics
How much: 25% percent of the cost of equipment and installation
Cap: Maximum of $5000
First enacted in 1997, expanded in 2006. This is your basic "25% off coupon" for installing a solar power system on your residence, plain and simple. The credit allows a deduction from your NY state taxes, and can be carried forward five years. To take full advantage of this credit, of course, you would need to owe that much in state taxes over the next five years. Even if you don't use every nickel of this credit, it's still nice to be able to wipe out your state taxes for the next five years.
Find out more here from the New York State Department of Taxation and Finance.
Local Option - Solar, Wind & Biomass Energy Systems Exemption
What for: Commercial, Industrial, Residential, Agricultural - Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, (other renewable / alt energy systems)
How much: 100% exemption from property tax consideration for the installation
Cap: 15 years from installation date
This is a very common incentive to find in almost any state. In plain English, this knocks out the portion (not the entire amount) of your property tax that would be applied through the value of your solar energy (or any renewable, even biomass) installation. Note that it is a local option, meaning that individual cities can opt in or out of the program. It also applies to business and residence alike.
Find out more here at New York State Department of Taxation and Finance's assessor manuals.
Do you live in New York? See what credits you're eligible for today!
Local Option - Real Property Tax Exemption for Green Buildings
What for: LEED-qualifying Commercial, Residential, Multifamily Residential "Green Buildings"
How much: 20%-100% of real property state taxes owed
Cap: minimum $10K construction value, but must meet LEED certification standards (or comparable)
LEED (Leadership in Energy and Environmental Design) is a global standard for rating "green buildings" and takes much more into account than just solar power. The LEED standard also looks at a building's carbon, energy, water, waste, transportation, materials, health, and indoor environmental quality. While single-family, privately owned dwellings are not excluded, this is more of a commercial-scale program. Generally, to qualify for a good LEED rating, you have to start from the building design and work up from there.
Furthermore, this is a local option which local governments are not compelled to follow. Certification through Green Globes and American National Standards Institute are also allowed, but the tax exemption is applied through the LEED scale (silver, gold, platinum). Find out more in the Assessor manuals here.
Solar Sales Tax Exemption
What for: Commercial, Industrial, Residential, Multifamily Residential, Integrators Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Solar Pool Heating
How much: 100% sales tax exemption
Cap: N/A
Plain and simple, this is a sales tax exemption for all sales of solar equipment to be installed in pretty much any building in New York state. This applies to state sales tax, but there are measures to also apply to local city/county sales taxes as well.
Find out more here at NY's DTF Sales Tax Publications.
Summary
These are only the tax-specific solar power incentives active in New York state. But there is much more to the big solar picture in New York. There are also related tax incentives for things like electric vehicles and heating usage. In addition, New York also offers various grant and loan programs which save you even more money on the up-front cost of installing solar.
Enter your zip code to see if you qualify for solar incentives!
Do I Qualify?
Please enter a zip code
Let it never be said that New York state doesn't take its progressive energy policy seriously! New York is one of the states leading the nation in solar energy tax credits, as well as incentives, grants, rebates, and renewable energy commitments.
Yes, New York offers exemptions for LEED (Leadership in Energy and Environmental Design) qualified buildings.
What for: LEED-qualifying Commercial, Residential, Multifamily Residential "Green Buildings"
How much: 20%-100% of real property state taxes owed
Cap: minimum $10K construction value, but must meet LEED certification standards (or comparable)
