Solar & Battery Regulation & Incentive Programs

New York City - Property Tax Abatement for Photovoltaic (PV) and Energy Storage equipment

Program Overview


Category:
Financial Incentive
Program Type:
Property Tax Incentive
Implementing Sector:
Local
State:
New York
Eligible Storage Technologies:
Solar Photovoltaics
Website:
http://www1.nyc.gov/site/finance/benefits/landlords-solar-roof.page
Incentive Amount:
Installed from August 5, 2008 to December 31, 2010: 8.75% of system expenditures per year for 4 years (total of 35%);

Installed from January 1, 2011 to December 31, 2012: 5% of system expenditures per year for 4 years (total of 20%);

Installed from January 1, 2013 to December 31, 2013: 2.5% of system expenditures per year for 4 years (total of 10%)

Installed from January 1, 2014 to December 31, 2016: 5% of the system expenditures per year for 4 years

Installed from January 1, 2017 to December 31, 2018: 5% of the system expenditures per year for 4 years
Maximum Incentive:
$62,500 annually or the amount of real property taxes owed during a year
Equipment Requirements:
Systems must be located within a city with a population of at least 1 million (i.e., New York City)
Administrator:
New York City Department of Buildings
Applicable Sectors:
Commercial, Industrial, Nonprofit, Residential, Schools, Multifamily Residential, Institutional
Start Date:
08/05/2008
Expiration Date:
12/31/2018
Last Updated:
07/13/2020

Eligibility Criteria

EligibilitySectorsTechnologies
%5.0000
Commercial
Industrial
Nonprofit
Residential
Institutional
Solar Photovoltaics
max $62500.0000
Commercial
Industrial
Nonprofit
Residential
Institutional
Solar Photovoltaics

Summary

NOTE: A.B. 10410 and its companion bill provide a property tax abatement for energy storage equipment in New York City worth 10% of the expenditures on the equipment (up to a maximum of $6,500 or the total value of taxes owed by the owner of the equipment). (See. S.B. 8971). S7110 enacted on September 2016 extends the property tax abatement for PV systems until January 1st 2019. 

In August 2008 the State of New York enacted legislation allowing a property tax abatement for photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1 million or more people. This limits the abatement to systems installed within New York City. Eligible buildings include all real property except utility real property. As originally enacted the in-service deadline for eligible systems was December 31, 2012. However, in August 2012 the abatement was extended to systems placed in service through December 31, 2014 at a reduced rate. In October 2014, the Senate Bill S0746 extended the compliance period for systems till 2016. The tax abatement was extended again until 2019 on September 2016 by enactment of Senate Bill S7110.   

The abatement allows building owners to deduct from their total real property taxes* a portion of the expenditures associated with installing a PV system on an eligible building. Systems placed in service between August 5, 2008 (the effective date) and December 31, 2010 were eligible for an abatement of 8.75% of eligible expenditures annually for four years. Systems placed in service between January 1, 2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible expenditures annually for 4 years. Systems placed in service between January 1, 2013 and December 31, 2013 are eligible for an abatement of 2.5% of eligible expenditures annually for 4 years. Systems placed in service between January 1st, 2014 and December 31, 2018 are eligible for abatement of 5% of eligible expenditures for 4 years.

Thus the total property tax benefit can amount to either 35%, 20%, or 10% of the installed system cost depending on when it is built.

The maximum abatement during a year is $62,500 or the amount of real property taxes owed during the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures include reasonable expenditures for materials and labor associated with planning, designing, and installing the system. Expenditures incurred using a federal, state, or local grant are not eligible, nor are interest or finance charges. However, the amount of eligible expenditures is not reduced by federal, state or local tax credits, tax abatements, tax exemptions or tax rebates.

The abatement program is administered by the Department of Finance in cooperation with the Department of Buildings. Applications for the abatement must be filed by March 15 in order to be eligible for a tax credit during the year the application is submitted. Applications submitted after this deadline can be applied to taxes owed for the following fiscal year. It is important to note that claiming the abatement does not affect whether a building owner can claim New York's real property tax exemption on the value added by solar, wind, and farm-based biogas energy systems.


*This incentive is similar to an investment tax credit for renewable energy systems, which are frequently applied to personal or corporate income taxes. It is unique in that the tax benefits are recouped through reduced property taxes on the host building instead of through reduced income taxes.


Authorities

NameEnacted DateEffective DateExpired Date
NY CLS RPT § 499-aaaa et seq.08/05/200808/05/200812/31/2018
Rules of the City of New York § 105-0203/12/2009
S07464A09/23/201409/23/201412/31/2016
S 711009/30/201609/30/201612/31/2018