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 condominium or co-op buildings. Some of these incentives are tax related and vary from case to case, so condo and co-op boards should consult their tax professional to determine their eligibility for tax benefits, and whether any incentives may be considered taxable income.
Federal Tax Credit:
A federal tax credit equating to 30% of the total cost of the solar installation (less any NY-Sun incentives) is available to residents of co-ops and condos, The credit is available for systems placed into service between December 31, 2021 and January 1, 2033.
Resident shareholders in co-ops are eligible for their proportionate share of this tax credit for the co-op’s eligible expenditures. Individual members of condominium 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
The NY-Sun Initiative provides incentives for installing solar electric systems throughout the state. Incentives are distributed through three regions: Con Edison, PSEG Long Island, and Upstate. The NY-Sun incentive is funded by the System Benefits Charge (SBC) that appears on your utility bill, and is paid directly to the installing contractor.
Under the Megawatt Block incentive structure, each region and sector (commercial or residential) is assigned a series of MW targets at certain incentive levels, referred to as “blocks.” The residential or commercial sector a co-op or condo falls under depends on your electric bill’s rate classification. As applications are submitted, incentives at the current level are claimed until the MW target for that block is reached. The block is then 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 Block Dashboard. Please note that additional incentives, or “adders”, may be available for multifamily affordable housing; community solar projects; rooftop canopy systems; and parking lot canopy systems.
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. Resident shareholders in co-ops and individual members of condominium associates are eligible for their proportionate share of this tax credit for the corporation/association’s eligible expenditures. For more information, visit: DSIRE
Sales Tax Exemption: New York State exempts 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 grant 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 for four years (total of 20%). The abatement is based on the installed cost of the system, less 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