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Legislative bills

New York State Assembly Introduces Bill to Boost Residential Solar Tax Credits

Strategic Insights

— 1 min read

The New York State Assembly has introduced a bill to increase the maximum credit amount for the personal income tax credit for residential solar energy systems, with a goal of expanding the utilization of these systems in disadvantaged communities, on condominiums and cooperatives, and to add storage as an eligible cost of installation. The bill aims to make residential solar more affordable and accelerate its expansion, assisting the state in meeting its goal of carbon-free electricity generation by 2040. The proposed amendments would increase the tax credit cap to $10,000, permit energy storage as part of a solar energy system equipment, and expand potential installations for cooperatives and condominiums.

Key Takeaways:

  • The proposed bill would increase the maximum credit amount for the personal income tax credit for residential solar energy systems from $5,000 to $10,000.
  • The bill would permit energy storage as part of a solar energy system equipment, enabling the storage costs to also qualify for the program.
  • The amendment would expand potential installations for cooperatives and condominiums by applying the 10-kilowatt standard for a single building to each unit within the building.
  • The credit would be refundable for low-to-moderate income taxpayers as well as those who reside in disadvantaged communities.
  • The proposed program would result in a 60 percent increase in costs, from $55 million to $86 million, while providing substantial benefits that outweigh the additional costs.

Statistics:

  • The allowable personal tax credit for solar energy equipment has not been increased since 2006.
  • The Climate Leadership and Community Protection Act requires the state to have carbon-free electricity generation by 2040.
  • The initial installation cost of solar panels is in the five-figure range, making it a heavy lift for many families.
  • The proposed program would increase the cost of the current tax credit program by 60 percent.
  • The current tax credit is $55 million, while the increased program would cost less than $31 million more.

Sources:

  • New York State Assembly (n.d.). An act to amend the tax law, in relation to residential solar tax credits.
  • Climate Leadership and Community Protection Act (n.d.). Law of the State of New York.

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