In an effort to integrate solar technology into the economy and make solar systems a feasible option for everyday businesses and homeowners, state governments offer several financial incentives and tax credits to alleviate the economic costs of installing a solar system.
|Residential Solar Sales Tax Exemption program||
Exempts the sale and installation of residential solar-energy systems from the state’s sales and compensating use taxes.
|Solar & Fuel Cell Tax Credit program||
A taxpayer may claim a credit of 25-30% of qualified expenditures for a solar system that serves a dwelling unit located in the United States and used as a residence by the taxpayer.
|Green Building Tax Credit program||
Offers tax credits that can be applied against corporate taxes, personal income, insurance corporation taxes and banking corporation taxes.
|NYSERDA Solar PV Program||
The New York State Energy Research and Development Authority (NYSERDA) provides cash incentives for the installation by Eligible Installers of new grid-connected Solar Electric or Photovoltaic (PV) systems that are 50 kW or less for commercial sites. Cash incentives are available for qualified customers who wish to install PV systems through applications submitted by an “Eligible Installer.”
|Property Tax Abatement for Photovoltaic (PV) Equipment Expenditures||
In cities with a population of more than 1 million people (like NYC), this program allows building owners to deduct from their total real property taxes a portion of the expenditures associated with installing a PV system on an eligible building. Systems placed in service between August 5, 2008 and December 31, 2010 are eligible for an abatement of 8.75% of eligible expenditures annually for four years. Systems placed in service between January 1, 2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible expenditures annually for 4 years. Thus the total property tax benefit can amount to either 35% or 20% of the installed system cost depending on when it is built.
On average…government incentives like these can save you up to 30% off your initial investment costs!