Residential Solar Tax Credit
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|Program Name||Residential Solar Tax Credit|
|Program Administrator||New York State Department of Taxation and Finance|
|Sector||Multifamily Residential, Residential|
|Last updated||September 27th, 2018|
Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006. The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006.
In August 2012 the credit was amended yet again (A.B. 34) to allow it to be claimed for systems installed under lease or power purchase agreements (PPAs) of at least 10 years in length. For third-party owned systems, the residential homeowner may claim a tax credit in the amount of lease or PPA payments made during the taxable year, for up to 15 years. The 25% incentive for such systems refers to aggregate amount of payments owed rather than the amount made during any single year. The maximum allowable tax credit amount of $5,000 applies to the total amount of credits claimed regardless of the ownership arrangement..
Interested participants can claim for the credit through filling out Form IT-255 (Claim for Solar Energy System Equipment), including specific instructions for the credit.
|Incentive Amount||25% for solar-electric (PV) and solar-thermal systems; for third-party owned systems this is in reference to the aggregate amount owed under the contract rather than the amount owed in any single year|
|Maximum Incentive||$5,000 for solar-energy systems|
|Eligible System Size||25 kW maximum, except 50 kW for solar systems owned by condominium or cooperative housing associations|
|Equipment Requirements||Systems must be new and in compliance with all applicable performance and safety standards|
|Installation Requirements||Electricity generation systems must be grid connected and net metered.|
|Carryover Provisions||Excess credit may be carried forward five years|