5 Solar Energy Tax Incentives New York State Offers to Pay You
Infinity Energy is proud of our role in helping New York residents find solar incentives to convert their homes and businesses to clean, renewable energy. New York State offers several solar energy tax incentives to help you pay for a rooftop system in New York City and throughout the state. Recent studies show an increase in residential solar installations by nearly 1800% since 2011. This is largely due to homeowners reducing their installation costs by leveraging federal incentive programs and state solar rebates. If you’re a New York resident, you could save as much as 40% on your upfront solar energy costs. After applying these incentives, your rooftop solar panels could practically pay for themselves in Rockland County and other areas in a few years. You must know about the best New York state solar incentives and tax credits to access these savings. We recommend you continue reading to educate yourself on New York’s most profitable solar energy tax incentives to cover your rooftop system costs.
Federal Solar Tax Credit
If you’re a New York state property owner, you can lower your solar system installation costs using the Federal Solar Tax Credit. This program lets you deduct 26% of your installation costs from your federal taxes. You can save over $8,000 on an average solar system through this Investment Tax Credit (ITC). Additionally, Congress recently passed an extension on these savings. The credit was meant to decrease to 22% in 2021, but this extension lets you access 26% savings if you complete %5 of your solar installation project by December 31, 2022. Typically, you must own a solar system to be eligible for this incentive. Be sure you ask your solar provider about financing options when starting the installation process. New York state residents can increase their solar savings with the lucrative Federal Solar Tax Credit.
NY Solar Equipment Tax Credit
With the NY Solar equipment tax credit, you can boost your solar system savings. This notable credit usually equals 25% or $5,000 on your solar system expenses, depending on which is less. You could potentially earn a $3,750 tax credit on state taxes when your system costs $15,000. Conversely, you will only get a $5,000 tax credit if you invest in a $21,000 system. The difference in savings is because the credit value depends on which amount is less. You must be a New York State resident to qualify for this savings program. Typically, this program is available for systems with up to 25 kilowatts in capacity. You might be eligible for the solar tax credit when leasing your panels, which is not available in some other states. In conclusion, you can reduce your costs on solar panels in New York using this great incentive.
Megawatt Block Incentive
New York state solar energy investors can save additional money with the Megawatt Block incentive. This option is available under the NY-Sun initiative and provides an upfront dollars-per-watt solar rebate. Your subsidy’s size typically depends on how much solar energy your area produces. The Megawatt Block program divides New York into three districts, each with a set number of blocks to determine the incentive rate. For example, there was a cap for 40 MV (about 6,500 residential systems) for block one in upstate New York, offering $1 per watt. After the block hit their 40 MW cap, upstate New York moved to block two with a 15 MW cap and $0.90-per-watt offer. Without a doubt, the Megawatt Block incentive is an excellent rebate that New York residents can use to pay back their solar energy system costs.
NYC Property Tax Abatement
Infinity Energy wants you to save as much as possible on your solar energy investment, and you can increase your solar savings through the NYC Property Tax Abatement program. With this program, business owners are eligible for tax abatement if they install a grid-connected solar energy system by January 1, 2024. You can typically earn back 5% of your installation costs per year for up to 20% in savings. Please note you usually apply property tax abatement after NY-Sun Initiatives. This program is also capped at approximately $250,000 total or about $62,500 per year. We advise you to consult with your energy efficiency contractors in New Jersey and New York to file the paperwork with the Department of Buildings. You can boost your solar savings with the NYC Property Tax Abatement and make renewable energy a more lucrative choice.
Home Solar Project Sales Tax Exemption
The final option we’ll discuss is the Home Solar Project Sales Tax Exemption program, designed to lower your installation costs. You can purchase a new residential solar power system and not pay any sales tax under this exemption. Typically, this exemption serves as 100% of your sales tax. You can save almost 4% before paying for your installation with this exemption. Additionally, this program applies to energy systems utilizing solar radiation to provide heat, cool air, water, or electricity. You can access these savings if you choose to go solar in New York. State solar incentives like this one can reduce your installation costs and make solar power an ideal choice for your structure.
Save on Power in New York State
New York State offers several energy tax incentives to pay for your rooftop energy system. The Federal Solar Tax Credit can save you as much as 26% on tax deductibles, and you can increase your savings with the NY Solar Equipment Tax Credit. Additionally, you can pay back your investment costs using the Megawatt Block incentive and apply for the Property Tax Abatement to earn back more of your costs. Finally, the Home Solar Project Sales Tax Exemption can save you money before making any installation payment. Get help paying for a rooftop solar energy system by applying for these New York solar incentives. Infinity Energy will gladly provide further information on how to save on clean, renewable energy. Contact us today to learn more.