Each year, more and more homeowners are turning to residential solar systems to help the environment and save money. If you’re a New York resident considering the change, you’re in luck. Did you know that you could qualify for New York State and/or federal tax credits for installing a solar system at your home? All you have to do is complete the appropriate forms and submit along with your normal annual tax filing. Here’s some more information:
New York State Tax Credit
This credit is equal to 25% of your qualified solar energy system equipment expenditures and is limited to $5,000. Here are the eligibility requirements:
You purchased solar energy system equipment.
You entered into a written agreement for the lease of solar energy system equipment, or
You entered into a written agreement that spans at least ten years for the purchase of power generated by solar energy system equipment not owned by you.
The solar energy system must use solar radiation to produce energy for heating, cooling, hot water, or electricity for residential use.
The system must also be installed and used at your principal residence in New York State.
To claim this credit, simply fill out this form when you file your taxes.
Federal Tax Credit
With this credit, you can reduce your federal tax liability by up to 30% of the net cost of your solar energy system, after other rebates and credits. You are eligible for this credit as long as you own your solar energy system. If you don’t have a large enough tax liability to claim your entire credit, it can be rolled over into the next year.
To claim this credit, fill out this form and include the final result of it on IRS Form 1040.
Have questions about your solar tax credits?
There are so many incentives to go solar, especially for New York residents. To learn more about solar tax credits and how going solar can help you save money, give us a call today at (516) 855-7283. We would be happy to answer all of your questions.