Incentives for Renewable and Sustainable Renovations - New York
The state of New York offers a variety of tax incentives and programs for home-owners making changes to make their residences more sustainable or green. The five programs identified include tax credits, sale tax exemptions, rebate programs, and property tax exemptions.
Residential Solar Tax Credit
- The residential solar tax credit was implemented in New York in 1998. The personal tax credit is equal to 25% of the cost of equipment and installation, and is capped at $5,000.
- The incentive is for the installation of solar water heat, solar space heat, and solar photovoltaics using new equipment only. Any excess credits can be rolled over for five years.
- The system can not exceed a 25 kW capacity limit and must comply with all safety standards.
Solar Sales Tax Exemption
- Since 2005, New York has made solar — passive, solar water heat, solar space heat, solar photovoltaics, and solar pool heating 100% exempt from sales tax.
- Residential solar installation and equipment is completely exempt from sales tax. Solar lease programs are also exempt from sales tax in New York.
NYSEG (Gas) — Residential Efficiency Program
- The New York State Electric and Gas Corporation offers a rebate program for the installation of energy efficient equipment. The rebate applies to certain water heaters, furnaces, boilers, and programmable thermostats.
- The maximum available rebate is $450 for a new water boiler. The rebate must be applied for online.
Renewable Heat NY
- The renewable heat NY rebate program is funded by the Regional Greenhouse Gas Initiative (RGGI). The financial incentive is for biomass system equipment and installation.
- The rebate is a maximum of 45% of the cost of the equipment and installation up to a maximum of $36,000.
Local Option — Solar, Wind & Biomass Energy Systems Exemption
- The solar, wind & biomass energy systems exemption is a 15-year property tax exemption for solar, wind energy, and farm-waste energy systems constructed in New York.
- The incentive is a 100% property tax exemption, unless the local jurisdiction has opted out of the program.