If you’re a New Yorker considering solar panels for your home or business, you’re in luck! New York State offers a variety of tax credits and incentives to make the switch to solar energy more affordable. Here, we’ll provide an overview of these programs and explain how they can help you save money on your solar investment.
New York State Solar Energy System Tax Credit
One of the main incentives for going solar in New York is the Solar Energy System Tax Credit. This state tax credit allows you to claim up to 25% of your solar installation costs, up to a maximum of $5,000. To qualify for this credit, your solar panel system must be installed on a residential property and be used primarily for generating electricity.
Federal Investment Tax Credit (ITC)
On top of the state tax credit, you can also benefit from the federal Investment Tax Credit (ITC). The ITC allows you to claim a percentage of your solar installation costs as a credit on your federal income taxes. Currently, the ITC rate is set at 26% for solar systems installed through 2022, but it will decrease to 22% in 2023. To maximize your savings, it’s best to install your solar panels as soon as possible.
New York State Sales Tax Exemption
Another financial incentive for going solar in New York is the Sales Tax Exemption. This program exempts you from paying state sales tax on your solar equipment and installation services. Depending on your location, this exemption could save you around 8% on your total solar installation costs.
New York State Property Tax Exemption
To further encourage solar adoption, New York State also offers a Property Tax Exemption for solar panel installations. This exemption ensures that your property taxes won’t increase due to the added value of your solar energy system for a period of 15 years. Just remember to apply for this exemption within one year of your solar system’s installation.
If you’re looking to install your own solar panels, then give Empire Clean Energy Supply a call at 631.589.4340 today!