The New York State Department of Taxation and Finance has issued a reminder to New Yorkers that state tax credits are available for solar customers.
According to the agency, New Yorkers have already claimed more than $38 million with the Solar Energy Systems Equipment Credit, which is available to those who’ve installed solar energy systems at their primary residences. Between 2012 and 2014, claims for the credit increased 194%. The department received 9,041 claims for the credit in 2014, up from 3,074 in 2012.
“The momentum continues to build for Governor Cuomo’s clean energy initiatives,” says New York State Acting Commissioner of Taxation and Finance Nonie Manion, in a press release. “The increased number of credit claims highlights the importance environmentally mindful New Yorkers place on conserving our natural resources for future generations.”
New Yorkers are eligible to claim this credit if they’ve purchased solar energy equipment, leased the equipment, or have agreed to purchase energy produced by a solar energy system for at least 10 years. The credit is equal to 25% of the expenses related to the qualified solar energy system up to $5,000. The average credit amount between 2012 and 2014 was $2,345.
The department says Gov. Andrew Cuomo’s NY-Sun initiative is aimed at building a next-generation New York energy system, and tax credits are a critical part of that plan. This solar incentive has contributed to a dramatic overall increase in solar installations across the state – a nearly 730% spike between the beginning of 2012 and the end of November 2016, the department adds.
“The state has seen a tremendous growth in solar under NY-Sun as New Yorkers turn to this renewable resource to power their homes and businesses,” comments NYSERDA President and CEO John B. Rhodes. “With some of the most ambitious clean energy goals in the country, and an unwavering commitment to achieve these goals by Governor Cuomo, New York is a national model in developing a robust solar market.”
In addition to the tax credits available for qualifying solar installations, the state’s 4% sales tax isn’t charged on the sale or installation of commercial solar energy systems equipment. The exemption also applies to the 3/8% sales tax imposed in the Metropolitan Commuter Transportation District. The law allows cities and counties, including New York City, to provide a similar tax exemption from their local sales taxes.