Are you afraid that investing in solar is too cost prohibitive? Would you change your mind if you learned that New York and federal tax credits and rebates are worth about 50% of the cost of a new solar system? It’s true! Here are the tax credits and rebates you can qualify for as a Long Island resident.
A solar tax credit is a deduction on your federal and state income taxes for the year in which you install a solar system, including solar panels and solar water heaters.
The federal tax credit is worth 30% of the purchase and installation costs with no upper limit. This could reduce your taxes by $6,000 to $12,000! If you pay lower annual taxes than this, you can rollover unused tax credits to later years, allowing you to maximize your savings. The 30% federal solar tax credit is available through 2019. The credit drops to 26% for the 2020 tax year and drops again to 22% for the 2021 tax year. The credit expires completely on December 31, 2021.
New York State also offers a tax credit, worth 25% of a solar purchase or lease, with a maximum value of $5,000. Energy By Choice will accurately calculate your federal and state tax credits.
New York lawmakers want to encourage as many homeowners as possible to go solar. To help their cause, they have issued property and sales tax exemptions for anyone who installs solar panels.
A solar electric system can increase your property value by significantly reducing your electricity expenses. New York State’s Real Property Tax Law prevents higher property taxes on that higher home value for the next 15 years. This can save you thousands of dollars in taxes over the coming years.
Then, with the New York State Sales Tax Exemption, you don’t have to pay sales tax on the cost to purchase and install your solar panels. When you’re looking at spending a few thousand dollars on solar panels, avoiding sales tax is a great way to save big up front.
While not technically a tax credit or rebate, net metering is yet another way to save over time once you go solar. As long as your system is grid-tied, this program allows you to rollover your energy credits from month to month, allowing you to tap in to your energy credit account during times of higher energy usage. New York utility companies sell this excess energy as clean power to other customers. It’s a win-win situation!
New York is ranked one of the best states to go solar because of these great tax credits, rebates, and programs. Clearly, if you take advantage of all these ways to save, you can go solar for far less than you thought possible. Contact Energy By Choice to see how the federal and NY state solar tax credits can work for you!