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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! 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.

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New York

New York

Incentives/Policies for Renewables & Efficiency

Printable Version
Solar Sales Tax Exemption   

Last DSIRE Review: 09/18/2014
Program Overview:
State: New York
Incentive Type: Sales Tax Incentive
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Solar Pool Heating
Applicable Sectors: Commercial, Industrial, Residential, General Public/Consumer, Multi-Family Residential
Amount:100% exemption from state sales tax
Start Date:Residential: 09/01/2005
Non-residential: 01/01/2013
Authority 1:
Date Enacted:
Date Effective:
NYCL Tax, Article 28 ยง 1115 (ee)
07/26/2005
09/01/2005
Authority 2:
Date Enacted:
Date Effective:
S.B. 3203
08/17/2012
01/01/2013
Summary:

New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption was extended to non-residential solar systems in August 2012 (S.B. 3203), effective beginning January 1, 2013. For both residential and non-residential systems, the exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. It does not include equipment that is part of a "non-solar energy system". For residential systems additional language prohibits the exemption from being claimed for a system that uses "any sort of recreational facility or equipment as a storage medium".  This language is not replicated in the non-residential exemption, thus it would appear that a system used to heat a non-residential pool would qualify while one used to heat a residential pool would not. There is not an expiration date for this incentive.*

The law also permits local governments (municipalities and counties) to grant an exemption from local sales taxes. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for solar energy equipment. The solar sales tax list (Publication 718-S) is updated several times per year. The New York Department of Taxation and Finance has issued a small amount of additional guidance and instructions on how to claim the residential exemption in Publication TSB-M-05(11)S. In December 2012 the department issued similar instructions on how the claim the commercial exemption in Publication TSB-M-12(14)S. More information, including a list of jurisdictions that provide an exemption, can be found here



*The New York Code contains duplicate sections NYCL Tax § 1115 (ee). The first pertains to the sales tax exemption for residential solar energy systems and contains no expiration date, while the second contains rules for an unrelated exemption with expiration dates of December 1, 2014, and December 1, 2016. This appears to be a mistake that will not affect the sales tax exemption for residential solar energy equipment.


 
Contact:
  Taxpayer Assistance - Sales Tax Information Center
New York State Department of Taxation and Finance
W.A. Harriman Campus
Albany, NY 12227
Phone: (518) 485-2889
Phone 2: (800) 698-2909
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.