25% NY Solar Tax Credit Extended to Solar Lease + PPA Customers
The sun is shining a little brighter these days for New York homeowners interested in going solar. On Friday, August 17th, Gov. Andrew Cuomo signed a set of bills making them eligible for new tax credits.
Previously, only homeowners who purchased a solar power system were eligible for the state rebate (currently $1.50/Watt capped at 7,000 Watts or $10,500), the state tax credit of 25% and the 30% federal tax credit. Effective immediately, this new legislation allows homeowners who are leasing a system (or going solar through a power purchase agreement) to use the 25% NY solar tax credit as well.
The credit is a New York state tax credit given at 25% of what a customer spends on a lease or purchase (after rebate purchase cost) for the next 14 years, capped at $5,000. For example, a customer who spends $20,000 on a prepaid lease can assume they will receive a 25% state tax credit of $5,000. The credit is declared on the state tax return and is best done in consultation with a tax advisor.
It should be noted it is also on top of the electric bill savings solar-powered homeowners recognize every month.
The NY solar tax credit should reduce the cost of most residential solar leases by 25% and increase a homeowner’s return on investment by the same – making clean, green solar power an even easier decision for New Yorkers.
According to Andreas Schmid, New York Sales Manager for Real Goods Solar, by expanding the state tax credit, Governor Cuomo is putting New York on track to significantly boost the Empire State’s solar capacity. “We have been consistently delivering solar to State homeowners for more than a decade, but I can honestly say that now is the most exciting time for New York solar. We will soon be giving California and New Jersey a run for their money when it comes to leading the solar pack.”