New Yorkers can save a drastically both short and long-term with solar panels. To collect even more in your pocket, federal and state governments offer a variety of incentive programs for solar homeowners to choose from. Solar tax credits are a federal incentive that give homeowners a 26% credit that can be applied to their annual taxes. Furthermore, New York homeowners can utilize NYSERDA Solar Installation Incentives.
Keep reading to learn more about the solar incentives available in your area.
Federal Tax Credits
With the Federal Tax Credit, solar energy owners can deduct 26% of the cost of installing their panels from their federal taxes. This incentive is the most common and easiest way that residents who own their solar panel systems can earn money back.
The Federal Tax Credit applies to both residential and commercial systems. This credit can be applied to personal income taxes that would otherwise be payed to the federal government.
You qualify for these credits if you own your solar energy system, you installed in 2020 and it actively generates electricity. When you’re ready to claim your credit, you’ll file IRS Form 5695 when doing your tax returns. You will be instructed to calculate your credit on the form.
This deal will not last forever, as 2020 is the last year to take advantage of the incentive’s current value. Residential and commercial solar energy system owners can deduct 26% of the cost of installation for systems that have begun construction through 2020. The tax credit then decreases in slow increments annually until 2021, where it is projected to stay at 10%. You’ll get the best deal if you switch to solar energy today!
NYSERDA Solar Installation Incentives
The New York State Energy Research and Development Authority was founded to provide opportunities that make solar energy accessible to as many New Yorkers as possible.
The NY Sun Solar PV offers incentives to owners of both residential and commercial solar energy systems. Some of the resources that homeowners can take advantage of include financing, education and other local government resources. NY-Sun is a major component of the Reforming the Energy Vision (REV) program. This program aims to make clean energy affordable for all New Yorkers.
New York also offers their own tax incentives for residential systems. These incentives include:
- -Income tax credit for 25% of the cost of the system ($5,000 maximum) for grid connected and net metered solar energy system.
- -Subject to local option, a 15-year property tax exemption for the cost of solar and other solar panel systems constructed in New York. This incentive is to ensure that property taxes do not rise because owners install solar energy equipment.
New Yorkers should aim to begin their solar projects in 2020 to take advantage of all of these current incentives.