What's happening
This bill doubles New York's maximum solar energy system tax credit from $5,000 to $10,000 for systems installed after September 1, 2017.
Why it matters
Makes solar installations more financially attractive. By doubling the maximum tax credit, the bill significantly lowers the upfront cost for homeowners and businesses considering solar, which could drive greater adoption of renewable energy.
Targets recent and future installations. The increased credit only applies to solar systems installed after September 1, 2017, providing a clear incentive for new projects rather than retroactively benefiting older installations.
Potentially boosts local solar industry and jobs. Increasing the credit may stimulate demand for solar contractors, manufacturers, and related services, supporting green jobs and economic activity within New York State.
Impacts state tax revenue and budget planning. The larger credit means a greater potential reduction in state income tax collections, which could have budgetary implications as more taxpayers claim the higher benefit.
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Who cares
Headline styles
Increase Solar Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 59–2
- Ordered to third reading cal.1558
- Committee discharged and committed to rules
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Increase Solar Tax Credit
In Assembly Committee · Ways And Means · Sponsor Latrice Walker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4714
2017-2018 Regular Sessions
IN SENATE
February 24, 2017
Introduced by Sens. MONTGOMERY, ADDABBO, COMRIE, KENNEDY, SQUADRON -read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to increasing the tax credit provided for solar energy system equipment from five thousand dollars to ten thousand dollars
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 1 of subsection (g-1) of section 606 of the tax law, as amended by chapter 375 of the laws of 2012, is amended to read as follows:
(1) General. An individual taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty-five percent of qualified solar energy system equipment expenditures, except as provided in subparagraph (D) of paragraph two of this subsection. This credit shall not exceed three thousand seven hundred fifty dollars for qualified solar energy equipment placed in service before September first, two thousand six, and five thousand dollars for qualified solar energy equipment placed in service on or after September first, two thousand six and prior to September first, two thousand seventeen, and ten thousand dollars for qualified solar energy equipment placed in service on or after September first, two thousand seventeen.
§ 2. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2017.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06186-02-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to increasing the tax credit provided for solar energy system equipment from five thousand dollars to ten thousand dollars
Purpose
To increase the allowable tax credit for the installation of solar energy system equipment.
Summary of provisions
Amends paragraph 1 of subsection (g-1) of section 606 of the tax law to allow for a tax credit up to $10,000 for qualified solar energy equipment placed in service on or after September 1, 2017.
Existing law
The current tax credit cap for qualified solar energy equipment is $5,002.
Justification
The allowable personal tax credit for solar energy equipment has not been increased since 2005 despite the fact that the purchase and installation costs remain higher than most New Yorkers can afford.
Solar energy technology has many advantages. It is a free and renewable energy source; environmentally friendly (no noise or smells); reduces or eliminates the cost of electricity; allows consumers to receive incentives and rebates from governments and utility companies; reduces reliance on foreign oil; and enables net metering, giving consumers the opportunity to sell their excess electricity or get a credit from the utility company.
Solar energy technology, however, still remains a costly alternative to the use of readily available fossil fuel technologies. The greatest obstacle to using this energy source is the initial cost of the equipment used to harness the suns energy. By increasing the solar energy equipment tax credit, more New Yorkers will be able to retrofit their homes with solar energy systems. Consumer demand will drive down the cost of solar panels, which will likely lead to an increase in solar cells to generate electricity.
Qualified solar energy expenditures include material and installation costs relating to components utilizing solar radiation to produce energy designed to provide heating, cooling, hot water, or electricity for residential use.
Fiscal implications
2008: 3.2 million; 2011: $4.0 million; the fiscal impact cannot be determined because the number of taxpayers who would take advantage of and qualify for a solar energy tax credit of an increased amount (up to $10,000) is uncertain.
Effective date
This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.