New York offers numerous incentives to encourage solar panel adoption, including state and federal tax credits, rebates, and other programs. The Federal Solar Tax Credit allows homeowners to deduct 30% of their solar installation costs from their federal taxes according to Moser Baer Solar. New York also provides a state tax credit of 25%, capped at $5,000, which applies to both purchased and leased systems. Additionally, the NY-Sun initiative offers various incentives, including rebates through utility companies and the Megawatt Block program, which is being phased out.
Key Incentives:
- Federal Solar Tax Credit (Investment Tax Credit – ITC): A 30% tax credit on solar installation costs for both residential and commercial projects.
New York State Solar Tax Credit:
A 25% tax credit, up to $5,000, on solar installations, applicable to both purchased and leased systems.
NY-Sun Initiative:
Provides incentives through utility companies and the Megawatt Block program, with rebates available for solar installations.
NYC Solar Property Tax Abatement (PTA):
A reduction in property tax liability for solar panel installations in New York City.
Sales Tax Exemption:
Sales tax is not applied to the purchase of solar panels in New York.
Property Tax Exemption:
Property taxes are not increased due to the increased value from solar panel installations.
Important Considerations:
- NY-Sun Incentive Phase-Out: The NY-Sun incentive, particularly the Megawatt Block program, is being phased out, so it’s important to act quickly.
Regional Differences:
Incentives vary by region, with some areas having more limited incentives than others.
Eligibility:
Check specific eligibility requirements for each incentive, as some may have specific criteria related to system size, installation type, or lease agreements.
Combining Incentives:
The federal and state tax credits can often be combined for maximum savings