COOPERATIVE HOUSING & CONDOMINIUMS INCENTIVES
Federal, New York State and New York City financial incentives are available to support investments in solar. Below is an overview of the incentives available for installing a solar electric system on a condominium or co-op building in NY. Many of these incentives are tax related and vary from case to case.*
Federal Tax Credit: Resident shareholders may be eligible for a tax credit worth:
*Projects may be eligible for tax credits under the Commercial ITC worth 10% of eligible project expenditures depending on project ownership. Speak with your solar developer & tax professional for further details.
Tenant stock-holders in cooperative housing corporations are eligible for their proportionate share of this tax credit for the corporation’s eligible expenditures. Individual members of condominium management associations who own a condominium in the building on which they install solar are also eligible for their proportionate share of this tax credit. If the federal tax credit exceeds an individual’s federal income tax liability for the year the solar energy system is installed, the individual may carry the tax credit forward to the next year. It is important to speak with a tax professional to ensure all IRS rules are followed. For more information, visit: DSIRE
NY-Sun Incentive NY-Sun Incentive (PV system size 200 kW or less per electric meter): The NY-Sun Initiative provides incentives for installing solar electric systems. Incentives are distributed through 3 regions: Con Edison, PSEG Long Island, and The Balance of the State (Upstate).
Under the Megawatt Block incentive structure, each region and sector is assigned a series of MW targets at certain incentive levels, referred to as “blocks.” As applications are submitted, incentives are assigned and the kW associated with the applications are added together and the units are converted to MW. When the MW target for that block is reached, the block is closed and a new block, with a new target and a lower incentive level, is started. Once all of the blocks for a particular region and sector are filled, an incentive for that region and sector will no longer be offered. View real time available incentives by block on the Megawatt Dashboard.
In general, incentives for a typical residential or commercial system cover approximately 20-30% of the installed cost of a PV system. Note: the NY-Sun Incentive is paid directly to the installing contractor. The residential or commercial sector a co-op or condo falls under depends on your electric bill’s rate classification.
New York State Tax Credit: Residential building owners who install solar are eligible for a tax credit for the lesser of 25% of the installed cost of the solar energy system (up to 50 kW on net-metered systems) after the NY-Sun Incentive, or $5,000. Tenant stock-holders in cooperative housing corporations and individual members of condominium management associates are eligible for their proportionate share of this tax credit for the corporation/association’s eligible expenditures. Be advised that the federal government considers this state tax credit taxable income. For more information, visit: DSIRE
Sales Tax Exemption: New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. The exemption does not apply to solar pool heating or other recreational applications. In addition, New York City and some other local jurisdictions granted exemption from local sales and uses taxes for residential solar energy systems. DSIRE
New York City
New York City Property Tax Abatement: Building owners who place a solar energy system into service from January 1, 2014 through January 1, 2024 are eligible for a four-year Tax Abatement of 5% per year of the installed cost of the system for 4 years (total of 20%) after the NY-Sun Incentive. Abatements are capped at $62,500 per year or $250,000 total. This tax abatement may not exceed one’s property tax liability for any given year. For systems installed on condominiums, the tax abatement is to be divided among all tax lots within the building. If building owners wish to apply for this incentive, they will need to hire a New York State registered architect or professional engineer. For more information, visit: NYC DOB Property Tax Abatement for Solar
*Disclaimer: the authors of this guide do not provide tax advice. You should consult your tax professional to verify your eligibility for tax benefits.