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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

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New York

New York

Incentives/Policies for Renewables & Efficiency

Printable Version
Residential Solar Tax Credit   

Last DSIRE Review: 08/27/2012
Program Overview:
State: New York
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics
Applicable Sectors: Residential, Multi-Family Residential
Amount:25% for solar-electric (PV) and solar-thermal systems; for third-party owned systems this is in reference to the aggregate amount owed under the contract rather than the amount owed in any single year
Maximum Incentive:$5,000 for solar-energy systems
Eligible System Size:25 kW maximum*, except 50 kW for solar systems owned by condominium or cooperative housing associations
Equipment Requirements:Systems must be new and in compliance with all applicable performance and safety standards
Installation Requirements:Electricity generation systems must be grid connected and net metered.
Carryover Provisions:Excess credit may be carried forward five years
Start Date:01/01/1998 (solar electric); 01/01/2006 (solar thermal)
Authority 1:
Date Enacted:
Date Effective:
NY CLS Tax, Article 22 ยง 606 (g-1) et seq.
08/02/1997 (solar electric)
01/01/1998 (solar electric) 01/01/2006 (solar thermal)
Authority 2:
Date Enacted:
Date Effective:
A.B. 34
08/17/2012
08/17/2012
Summary:

Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006. The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006.

In August 2012 the credit was amended yet again (A.B. 34) to allow it to be claimed for systems installed under lease or power purchase agreements (PPAs) of at least 10 years in length. For third-party owned systems, the residential homeowner may claim a tax credit in the amount of lease or PPA payments made during the taxable year, for up to 15 years. The 25% incentive for such systems refers to aggregate amount of payments owed rather than the amount made during any single year. The maximum allowable tax credit amount of $5,000 applies to the total amount of credits claimed regardless of the ownership arrangement. The new law has an effective date of August 17, 2012. It is unclear at this time whether tax credit claims for third-party owned systems will be permitted for installations made prior to this date.

Solar-energy equipment is defined as "an arrangement or combination of components utilizing solar radiation, which, when installed in a residence, produces energy designed to provide heating, cooling, hot water or electricity." The credit may not be used for pool heating or other recreational applications. Any amount of credit that exceeds a taxpayer's liability in a given tax year may be carried forward for the five following taxable years. Any portion of the system cost provided by a non-taxable federal, state, or local grant is not eligible for this credit.

In general systems must comply with the 25 kW capacity limit on residential, net-metered solar-energy systems*. However, in 2007 legislation was passed increasing the capacity limit to 50 kW for condominiums and cooperative housing associations. In addition, members of condominium management associations and tenant stockholders of cooperative housing associations are now allowed to claim a proportionate share of the total system expense towards the tax credit. These changes took effect beginning in the 2007 tax year, but as with other portions of the tax credit, they do not have an expiration date.


*The language of the tax credit generally requires that PV systems conform to the state's net metering law. In August 2008, the state net metering law was expanded by S.B. 7171 to increase the net metering size limits for residential PV systems from 10 kW to 25 kW. While several subsequent versions of the tax credit claim form did not reflect this change, the 2011 Solar Tax Credit Form IT-255 uses revised language which no longer references the former 10 kW limit.


 
Contact:
  Taxpayer Assistance - Personal Income Tax Information Center
New York State Department of Taxation and Finance
W.A. Harriman Campus
Albany, NY 12227
Phone: (518) 457-5181
Web Site: http://www.tax.ny.gov/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.