New York’s Solar Tax Credit is a fantastic solar incentive for New York homeowners. The New York State Tax Credit is 25% of your total system cost, capped at $5,000. Unlike the federal Investment Tax Credit, you’ll be able to claim this tax credit regardless of how you choose to finance the system. Speaking of the Federal Tax Credit, you’ll be able to claim both of these tax credits off the total system cost, for a potential total of a 55% tax credit. That’s more than half your system cost.
Let’s take a look at a couple examples. If your total system cost was $20,000, your 25% New York Tax Credit would be the full $5,000. Once you subtract the 30% federal tax credit, which in this case is $6,000, your net system cost is $9,000. Without any other incentives, that’s $11,000 off your total system cost.
Now if your total system cost was $30,000, 25% of that is $7,500. Remember, there is a cap of $5,000, so your state tax credit would be $5,000. Once you subtract the 30% federal tax credit, which in this case is $9,000, your net system cost is $16,000. That’s a savings of $14,000 without any other incentives.
You can see why the New York State Tax Credit is one of the best in the country.