Your Guide to the NYC Solar Property Tax Abatement

New York City has some of the best solar tax incentive offerings in the country, reducing the cost of most solar projects by up to 70%. One of these tax benefits is the NYC Property Tax Abatement, available for property owners within the five boroughs.

Unfortunately, the NYC Solar Property Tax Abatement is currently set to expire at the end of 2023. Read to learn more about this valuable incentive and how to take advantage of it before it goes away.

What is the NYC Solar Property Tax Abatement?

NYC’s Property Tax Abatement for Solar is an incentive unique to the five boroughs, meant to encourage the adoption of solar energy throughout the city.

NYC’s PTA for solar covers 20% of your solar panel installation costs. It reduces your property tax bill from the New York City Department of Finance by 5% of the cost of your system for 4 consecutive years. New Yorkers who install solar electric systems on both residential and commercial properties that they own can claim this abatement.

To be clear, this is not a tax exemption. This is a tax abatement, which lowers the amount of property taxes you owe by applying a credit (as opposed to reducing the property’s assessed value). The amount of the abatement is based on total installation costs, which includes the costs of solar PV equipment and labor.

How does the NYC Property Tax Abatement relate to solar?

NYC’s Solar Property Tax Abatement program was implemented to help support and incentivize solar installations in the city. This incentive was established in 2007 as part of Mayor Bloomberg’s PlaNYC initiative to create a more sustainable city.

Who is eligible for the Solar Property Tax Abatement?

Property owners who install solar on their property anywhere within the five boroughs are eligible to claim the solar PTA. This includes condo and co-op owners, and can apply to historic and landmark buildings as well.

Will it affect my eligibility for other solar tax incentives?

It’s important to note that claiming the NYC Solar PTA does not affect solar owners’ eligibility for other incentives. In addition to the 20% Property Tax Abatement, NYC residents who install solar can also claim:

• 30% Federal Income Tax Credit
• $5,000 New York State Solar Income Tax Credit
• $0.20 per Watt rebate from NYSERDA (deducted from upfront contract price)
• 20% Historic Homeownership Rehabilitation Credit (depending on your location)

What installation costs are eligible for the solar property tax abatement?

All costs involved with installing a solar electric generating system are eligible for the property tax abatement. This includes:

• Solar PV equipment
• Labor costs, including system design and installation

Any applicable rebates (like the NYS Solar Rebate) must be deducted from the total project cost before applying the abatement.

How to File for the NYC Solar Property Tax Abatement

Typically, you’d file for solar tax credits on your own when you do your federal and state tax returns. However, the NYC PTA for solar is different – when you go solar with us, we’ll file for the abatement on your behalf with the New York City Department of Buildings during the permitting process.

When is the deadline to file?

The Department of Buildings determines eligibility for the abatement, but the Department of Finance administers it. New York’s fiscal year for property taxes runs from July 1 to June 30. Applications must be received by March 15th in order for the abatement to take effect within the same calendar year. 

Although no action is required on your part, you can take a look at the Department of Buildings’s Form PTA4 if you’re interested in seeing what information will be filed.

Will the NYC Solar Property Tax Abatement expire?

Unfortunately, the property tax abatement for solar may not be around forever. Currently, it’s set to expire at the end of 2023. Without necessary action from city and state officials, the abatement may not get renewed. 

That means that if you want to take advantage of NYC’s PTA for solar, you’ll need to have your system installed in 2023. And if you want your installation done in 2023, you’ll need to get the ball rolling ahead of time – the permitting process can take around 3 months to complete prior to installation.

Lock in Your Solar Property Tax Abatement While You Still Can

New York City’s Solar Property Tax Abatement is an incredibly valuable incentive for property owners to install solar, reducing your project costs by 20%. However, its future is unclear.

Get ahead of the uncertainty and go solar in 2023! Schedule your free consultation and find out if your home is right for solar today.