Skip Navigation

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! The U.S. Department of Energy and the North Carolina Solar 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 the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook
New York

New York

Incentives/Policies for Renewables & Efficiency

Printable Version
Local Option - Solar, Wind & Biomass Energy Systems Exemption   

Last DSIRE Review: 10/11/2012
Program Overview:
State: New York
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Solar Pool Heating, Daylighting, Anaerobic Digestion
Applicable Sectors: Commercial, Industrial, Residential, Agricultural
Amount:100% exemption for 15 years (unless local jurisdiction has opted out)
Eligible System Size:Farm-waste energy systems: maximum size of 400 kW
Other eligible property: no specific limits
Start Date:In-service date of before 07/01/1988 or between 01/01/1991 & 12/31/2014
Expiration Date:12/31/2014
Web Site: http://www.tax.ny.gov/research/property/assess/manuals/vol4/pt1/s...
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
NYCL Real Property Tax ยง 487
1977 (subsequently amended)
Before 07/01/1988 or between 01/01/1991 & 12/31/2014
12/31/2014 (as amended)
Authority 2:
Date Enacted:
Exemption Handbook
11/06/2009 (most recent version)
Summary:

Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar, wind energy, and farm-waste energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted decide whether or not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option clause was added. The exemption is valid unless a government opts out of the exemption, as opposed to the more common practice of requiring governments to "opt-in" in order to offer an exemption.

As originally created, the exemption was limited to solar and wind energy systems, but in September 2002, it was expanded (S.B 6592) to include farm-waste energy systems. These are defined as systems and related equipment that generate electric energy from biogas produced by the anaerobic digestion of agricultural waste -- such as livestock manure, farming waste and food processing wastes. The maximum rated system capacity for eligible farm-waste energy systems is 400 kilowatts (kW) and systems must be connected to the electric grid and operated in accordance with the state's net metering law (Public Service Law 66-j) in order to qualify. S.B. 5966A enacted in July 2006 extended the previous December 31, 2006 in-service deadline to December 31, 2010, and A.B. 10875 enacted in August 2010 further extended the deadline until December 31, 2014.

The exemption applies to systems that are (a) existing or constructed prior to July 1, 1988 (mandatory), or (b) constructed subsequent to January 1, 1991, and prior to January 1, 2015 (local option). The law intends to encourage the installation of solar, wind and farm-waste energy equipment systems and to ensure property owners that their real property taxes will not increase as a result of the installation of these systems. The amount of the exemption is equal to the increase in assessed value attributable to the solar, wind or farm-waste energy system. The definition of solar includes passive solar heating systems such as mass wall and direct gain systems. In the case of solar pool heating, solar energy collection, control, and distribution equipment is eligible; however, the pool itself does not qualify as a storage medium or otherwise. The exemption applies only to general municipal and school district taxes; it cannot be applied to special assessments or special ad valorem levies.

With respect to systems constructed after January 1, 1991, and before January 1, 2015, each county, city, town, village and school district (except the city school districts of New York, Buffalo, Rochester, Syracuse and Yonkers) may choose whether to disallow the exemption. The option must be exercised by counties, cities, towns and villages through adoption of a local law and by school districts through adoption of a resolution. Click here for a list of local bodies that have opted not to offer the exemption. Alternately, a local government that has not opted out of the exemption is permitted to require the property owner to enter into a contract for payments in lieu of taxes, not to exceed the amount payable without the exemption.

Eligibility definitions and guidelines solar, wind-energy, and farm waste energy equipment have been issued by the New York State Research and Development Authority (NYSERDA) and are available above or on the program website.


 
Contact:
  Public Information Officer
Office of Real Property Tax Services
WA Harriman State Campus
Albany, NY 12227
Phone: (518) 591-5232
E-Mail: orpts.mail@tax.ny.gov
Web Site: http://www.tax.ny.gov/about/orpts/regions.htm
NCSU - home
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.