New York
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 05/27/2009
| Incentive Type: |
Personal Tax Credit |
| State: |
New York |
| Eligible Renewable/Other Technologies: |
Solar Water Heat,
Solar Space Heat,
Photovoltaics,
Fuel Cells
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| Applicable Sectors: |
Residential,
Multi-Family Residential
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| Amount: | 25% for solar-electric (PV) and solar-thermal systems; 20% for fuel cells |
| Maximum Incentive: | $5,000 for solar-energy systems; $1,500 for fuel cells |
| Carryover Provisions: | Excess credit may be carried forward five years |
| Eligible System Size: | 10 kW maximum for solar-electric systems*, except 50 kW for solar systems owned by condominium or cooperative housing associations;
25 kW maximum for fuel cells
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| Equipment/Installation Requirements: | Systems must be new and in compliance with all applicable performance and safety standards |
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Authority 1:
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NY CLS Tax, Article 22 § 606 (g-1) et seq.
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| Date Enacted: | 08/02/1997 (solar electric) |
| Date Effective: | 01/01/1998 (solar electric); 01/01/2003 (fuel cells); 01/01/2006 (solar thermal) |
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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.
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 amount of the system cost provided by a grant from any source is not eligible for this credit.
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.
Systems must comply with the 10 kW capacity limit on residential, net-metered solar-energy systems*. 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 take effect beginning in the 2007 tax year, but as with other portions of the tax credit, they do not have an expiration date.
Fuel cells installed at a principal residence are eligible for a 20% tax credit, with a maximum credit of $1,500. To qualify, fuel cells must provide a maximum rated baseload capacity of 25 kW and must utilize proton exchange membrane (PEM) technology.
*The language of the tax credit generally requires that PV systems conform to the state's net metering law, thereby limiting system size to 10 kW. In August 2008, the state net metering law was expanded by S.B. 7171 to permit net metering for residential PV systems up to 25 KW. It is unclear at this point whether the state intends for the new net metering limits to apply to the tax credit described above. The 2008 Solar and Fuel Cell Tax Credit Form IT-255 does not specifically address this issue.
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Contact:
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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
Phone 2: (800) 225-5829
Web Site: http://www.tax.state.ny.us
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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