There are several solar energy tax incentives New York State offers to pay for your rooftop system. According to recent studies, residential solar installations have increased nearly 1800% since 2011. Largely, this is because homeowners are leveraging state solar rebates and federal incentive programs to reduce their installation costs. As a New York resident, you could potentially save up to 40% on your up-front solar energy costs. Once applied, your rooftop solar panels Rockland County and other areas typically pay for itself over just a few years. To access these savings, you need to know about the best solar tax incentive programs. Read on to learn about the most profitable solar energy tax incentives New York State offers to pay for your rooftop system.
Federal Solar Tax Credit
First, NY state property owners can lower their installation costs through the federal solar tax credit. With this program, you can deduct 26% of your installation costs from your federal taxes. Notably, the average solar customer can save over $8,000 with this investment tax credit (ITC). In addition, Congress has recently passed an extension for these savings. Originally, the credit was supposed to decrease to 22% starting in 2021. Under the extension, you can access 26% savings as long as your solar project is 5% complete by December 31, 2022. Typically, you need to own your solar system in order to qualify for this incentive. Therefore, be sure to ask your solar provider about your financing options as you start the installation process. Definitely, the federal solar tax credit is a great way for New York residents increase their solar savings.
NY Solar Equipment Tax Credit
Next, the NY solar equipment tax credit is another program to boost your solar savings. Notably, this credit is usually equal to $5,000 or 25% of your solar system expenses, whichever is less. If your system costs $15,000, you could potentially take a $3,750 tax credit on your state taxes. On the other hand, a $21,000 system would only be able to earn a $5,000 tax credit. Indeed, this is because it is the lesser of the two possible savings values. To qualify for this program, you must be a New York resident. Additionally, this typically is available for systems up to 25 kilowatts in capacity. Unlike some states, you may be eligible for the solar tax credit even if you lease your panels. Therefore, the NY solar equipment tax credit is a great incentive to reduce your solar panels cost in NY.
Megawatt Block Incentive
In addition, NY residents can also save on their residential solar energy system with the Megawatt Block incentive. Available under the NY-Sun Initiative, this program provides an upfront dollars-per-watt solar rebate. Typically, the size of your subsidy depends on how much solar energy is being produced in your area. Under the Megawatt Block program, NY is divided up into three districts. Each district has a set number of blocks that determine the incentive rate. For example, block 1 for upstate NY had a cap for 40 MW (about 6,500 residential systems) where they offered $1 per watt. Once the block reached the 40 MW cap, upstate NY moved to block two, which had a 15 MW cap at $0.90/W. Undoubtedly, the Megawatt Block incentive is a great New York rebate to pay back the costs of your solar energy system.
NYC Property Tax Abatement
Moreover, the NYC Property Tax Abatement (PTA) is another program to increase your solar savings. With this, building owners who install a grid-connected solar energy system by January 1, 2024 are eligible for a tax abatement. Typically, you can earn back 5% of the installation costs per year, up to 20%. Importantly, the property tax abatement is usually applied after NY-Sun Initiatives. Additionally, it is capped at about $62,500 per year or approximately $250,000 total. To apply for this incentive, consult with your energy efficiency contractors NJ and NY to file the paperwork with the Department of Buildings. Absolutely, the NYC property tax abatement is a valuable incentive to boost your solar savings.
Home Solar Project Sales Tax Exemption
Lastly, the home solar project sales tax exemption is another program to lower your installation expenses. Under this exemption, you can buy a new residential solar power system without paying any sales tax. Typically, the exemption is 100% of your sales tax. Notably, this can save up nearly 4% before you even pay for your installation. In addition, it applies to energy systems that utilize solar radiation for heating, cooling, water, or electricity. Thus, most homeowners going solar in New York can access these savings. Certainly, apply for the home solar project sales tax exemption to reduce your installation costs.
There are several solar energy tax incentives New York State offers to pay for your rooftop system. First, the federal solar tax credit can save solar system owners up to 26% in tax deductibles. Next, the NY solar equipment tax credit is another great program to increase your solar savings. In addition, the Megawatt Block incentive provides regional rebates to pay back your investment costs. Moreover, apply for the property tax abatement to earn back even more of your expenses. Lastly, the home solar project sales tax exemption can save you money before you even make your installation payments. Apply for these solar energy tax incentives New York State offers to pay for your rooftop system.