Updated February 23, 2024
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 solar grants, solar rebates, and renewable energy commitments.
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The Top NY State Solar Tax Credits
One of the forgotten advantages of solar energy is the huge savings that amount during the tax season! In addition the the Federal Solar Tax Credit of 30% on the cost of your solar panels, New York offers state level tax advantages to encourage home & business owners to convert to renewable energy sources, such as solar. Here are a few of the top NY State solar tax credits.
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.
Solar Property Tax 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!
Solar 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
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.
Taking Advantage of NY Solar Tax Credits
As you can see, there are several NY state tax credits available for home & business owners who choose solar energy. These state tax credits combined with the federal solar tax credit can add up to huge savings for solar owners, come tax season. For these reasons and more, solar energy should be viewed as a true investment in your home and your future.
If you are considering going solar in New York, start with a free solar savings quote from the NY State Solar experts at EcoGen America. Start by entering your zip code below to explore all of your solar options in New York.
Enter your zip code to see which NY solar incentives you qualify for!
Do I Qualify?
Please enter a zip code