Multi-unit Residential Buildings, Cooperative Housing & Condominiums Incentives 

 

Investment in Renewable energy is supported at the Federal, State, and Local levels. The Federal Business Energy Investment Tax Credit (ITC) currently offers a federal tax credit equal to 30% of the cost of the solar system, including installation. The rate of 30% will drop to 26% beginning in 2020. Tenant stock-holders in cooperative housing corporations are eligible for their proportionate share of this tax credit for the corporation’s eligible expenditures.

 

Individual members of condominium management associations who own a condominium in the building on which they install solar are also eligible for their proportionate share of this tax credit. If the federal tax credit exceeds an individual’s federal income tax liability for the year the solar energy system is installed, the individual may carry the tax credit forward to the next year.

 

NY-Sun Incentive (PV system size 200 kW or less): The NY-Sun Initiative provides incentives for installing solar electric systems throughout NYS. Incentives are distributed through 3 regions: Con Edison, PSEG Long Island, and The Balance of the State (Upstate). Current rates of cash rebates:
Long Island Region: $0.25/W - $0.23/W
Con Edison Region: $0.70/W - $0.45/W

UpState Region: $0.40/W - $0.30/W


New York State Tax Credit
Residential building owners who install solar are eligible for a tax credit for the lesser of 25% of the installed cost of the solar energy system (up to 50 kW on net-metered systems) after the NY-Sun Incentive, or $5,000. Tenant stock-holders in cooperative housing corporations and individual members of condominium management associates are eligible for their proportionate share of this tax credit for the corporation/association’s eligible expenditures.

 

NY State Sales Tax Exemption: The law exempts the sale and installation of commercial solar energy systems equipment from state sales taxes, and allows municipalities and cities to exclude these costs from local sales tax.

 

New York City Property Tax Abatement (PTA):

Building owners who place a grid-connected solar energy system into service from January 1, 2014, through January 1, 2019, are eligible for a four-year Tax Abatement of 5% per year of the installed cost of the system for 4 years (total of 20%). Abatements are capped at $62,500 per year or $250,000 total, applied after the NY-Sun rebate.

 

Single Family Residential Incentives 

 

Investment in Renewable energy is supported at the Federal, State and Local levels. The Federal Business Energy Investment Tax Credit (ITC) currently offers a Federal tax credit equal to 30% of the cost of the solar system, including installation. The rate of 30% will drop to 26% beginning in 2020. 

 

Each State has their unique set of incentives, especially when combined with the additional incentives offered by a particular municipality. Below we list the solar investment incentives for the State of New York and New York City

 

NY-Sun Incentive: The NY-Sun Initiative provides “cash-rebate” incentives for installing solar electric systems. Incentives are distributed through 3 regions: Con Edison, PSEG Long Island, and the Balance of the State.
Current Rates:
Long Island Region: closed
Con Edison Region: $0.30/W  

Up State Region: $0.35/W

 

Under the Megawatt Block incentive structure, each region and sector (commercial vs residential) is assigned a series of MW targets at certain incentive levels, referred to as “blocks.” As applications are submitted, incentives are assigned and the kW associated with the applications are added together and the units are converted to MW. When the MW target for that block is reached, the block is closed and a new block, with a new target and a lower incentive level, is started. Once all of the blocks for a particular region and sector are filled, an incentive for that region and sector will no longer be offered

 

New York State Tax Credit:

Residential building owners who install solar may be eligible for a tax credit for the lesser of 25% of the installed cost of the solar energy system (up to 25 kW on net-metered systems) after the NYSERDA incentive, or $5,000. Be advised that the federal government considers this state tax credit taxable income

 

NY State Sales Tax Exemption:

The law exempts the sale and installation of commercial solar energy systems equipment from state sales taxes, and allows municipalities and cities to exclude these costs from local sales tax.

 

New York City Property Tax Abatement (PTA):

Building owners who place a grid-connected solar energy system into service from January 1, 2014 through January 1, 2019 are eligible for a four-year Tax Abatement of 5% per year of the installed cost of the system for 4 years (total of 20%). Abatements are capped at $62,500 per year or $250,000 total, applied after the NY-Sun rebate.

 

 

Commercial Incentives 

Investment in Renewable energy is supported at the Federal, State, and Local levels. The Federal Business Energy Investment Tax Credit (ITC) currently offers a federal tax credit equal to 30% of the cost of the solar system, including installation. The rate of 30% will drop to 26% beginning in 2020. 

 

Another federal incentive is the Internal Revenue Service’s “Modified Accelerated Cost Recovery System (MACRS) plus a Bonus Depreciation. the owner of solar PV is eligible to claim tax depreciation deductions. Tax depreciation deductions are determined based on how the property is classified for federal income tax purposes. Generally, most of the solar PV will be classified as a five-year MACRS property. If the solar PV is placed in service before the calendar year 2020, it may also be eligible for bonus tax depreciation.

 

Each State has their unique set of when combined with the additional incentives offered by a particular municipality. Below we list the solar investment incentives for the State of New York and New York City tax incentives.

 

NY-Sun Incentive (PV system size 200 kW or less): The NY-Sun Initiative provides incentives for installing solar electric systems throughout NYS. Incentives are distributed through 3 regions: Con Edison, PSEG Long Island, and The Balance of the State (Upstate). Under the Megawatt Block incentive structure, each region and sector (commercial) is assigned a series of MW targets at certain incentive levels Current rates of cash rebates:
Long Island Region: $0.25/W - $0.23/W
Con Edison Region: $0.70/W - $0.45/W

UpState Region: $0.40/W - $0.30/W


NY-Sun Incentive (PV systems size 200 kW or greater): The New York State Energy Research and Development Authority (NYSERDA) offers performance-based incentives through the NY-Sun Incentive Program for the installation of new grid-connected solar electric (also known as photovoltaic or PV) systems greater than 200 kW that offset the use of grid-supplied electricity. Solar electric systems must be sized primarily to serve project load.

 

NY State Sales Tax Exemption: The law exempts the sale and installation of commercial solar energy systems equipment from state sales taxes, and allows municipalities and cities to exclude these costs from local sales tax.

 

New York City Property Tax Abatement (PTA)

Building owners who place a grid-connected solar energy system into service from January 1,
2014 through January 1, 2019, are eligible for a four-year Tax Abatement of 5% per year of the installed cost of the system for 4 years (total of 20%). Abatements are capped at $62,500 per year or $250,000 total, applied after the NY-Sun rebate.

Energize Your Community Today

Community SolarWorks LLC

222 Broadway 

19th Floor

New York, N.Y. 10038

646-374-6804

Please send any inquiries to 

denise@communitysolarworks.net

 

Government Links

NYC Mayor's Office of Sustainability

NYSERDA - Community Solar

U.S. Department of Energy