NY State Historic Tax Credit is Disappearing

Find out which Brooklyn neighborhoods will be affected.

NYC is one of the most incentivized areas of the county for solar. Unfortunately some of these solar tax incentives are diminishing or disappearing for good. Starting April 1st 2020, neighborhoods including Fort Greene, Prospect Heights, Wallabout, Brooklyn Heights, Clinton Hill, and Greenpoint will no longer be eligible to receive the New York State Historic Tax Credit. Depending on census results, neighboring areas also may not receive the credit. This program changes annually and is likely to completely phase out in the coming years, so we wanted to give you a heads-up.

What is a Historic District?

Historic designation or landmarking helps to preserve the character of buildings, and neighborhoods. To be designated an historic district by the NYC Landmarks Preservation Commission, the neighborhood must represent at least one typical historic period or style of architecture, have a distinct sense of place and have a coherent streetscape.

What is the Historic Tax Credit?

The New York State Historic Homeowner Tax Credit Program is little known, but very valuable. It covers 20% of qualified rehabilitation costs of owner-occupied historic houses, up to a credit value of $50,000. So through this program, the state is effectively paying eligible homeowners to optimize their homes.

Why is the Historic Tax Credit Valuable?

This credit reduces the cost of improvements on such homes, including the installation of a solar system. It can be extended to other renovations you have planned, and in some cases can be applied retroactively to renovations you’ve already paid for. 

This credit can also be combined with other state and federal solar tax incentives to reduce the cost of a solar installation by up to 85%. The building must be individually listed in the State or National Register of Historic Places, or in a listed historic district in order to qualify.

What NYC Homeowners Need to Know

• Neighborhoods losing the HTC starting April 1st: Fort Greene, Prospect Heights, Wallabout, Brooklyn Heights, Clinton Hill, & Greenpoint.
• If you’re considering solar for your historic home, the time is now.
• Everyone in the country is losing the federal tax credit (it will be zero in 2024).
• ConEd is changing how they value solar power in 2021.
• Connecting to the grid this year means full retail net metering for 20 years.

If solar is part of your 2020 plan, move forward now so that you’re eligible to take advantage of every possible incentive. Help us to continue spreading clean, renewable, incentivized energy in Brooklyn by moving forward now and sharing this information with your neighbors.

Contact our team to schedule your free site evaluation!