New York City
4-Year Property Tax Abatement
Simply put, you will pay a reduced property tax bill for the first 4 years that you have solar. We’ll be able to show you the total amount of the abatement, what it will be per year, and then even what it will be per month if you pay your property taxes with your mortgage.
In New York State, we have a program to lower the initial cost of a system to make the economics more attractive to the end-user called the Megawatt Block Program. NYSERDA will reserve your incentive based on the size of your system and the current incentive level. This is great news, as it lowers the gross cost by thousands of dollars, but it is a time-sensitive rebate because as more homeowners choose to switch to solar, the incentive continues to decrease in value. ConEdison territory has the highest incentive level in the state, which means you stand to save more than your friends upstate.
State Tax Credit
New York State also has a personal tax credit (PTC) of up to $5,000 for homeowners who choose to purchase, finance or lease their system. It is calculated as 25% of your cost after the NYSERDA rebate with a $5,000 maximum amount. Most systems will qualify for the full amount, and your solar specialist will calculate this for your system. You will claim the credit through your NY State tax filing using form IT-255. This personal tax credit is one of the most significant financial reasons why you should hurry and get your system installed before it expires.
Net metering allows you to store energy your panels produce in the electric grid for use at a later date (for example, excess energy produced in July can be used in December), decreasing your electricity bill and putting money back in your pocket.
Federal Investment Tax Credit
The federal government offers a tax credit that covers 26% of the cost of your solar energy system. This isn’t a write-off or a deduction, but an actual dollar for dollar credit against your income taxes. You can claim all of this in one year and will come back to you in the form of a larger income tax return. It is a very simple form that you or your tax preparer can file called Form 5695.