Is There a Federal Solar Tax Credit Available to New York Residents?

With the help of the federal solar credit, you can enjoy a reduction on the amount of income tax that you would owe. This helps to offset the cost of solar, reducing the upfront cost or the amount that you pay for SMART solar financing. The federal solar credit is available to residents throughout the United States, including in New York. Here’s what you need to know about solar tax credits before you start with your free home solar estimate.

How Does the Solar Tax Credit Work?

Made available through the Inflation Reduction Act of 2022, the federal solar credit reduces what you owe in taxes in the same year that you install solar. It’s currently worth 30% of the cost of installation. If, for example, your solar installation was billed at $16,000, you’d be eligible for a credit worth up to $4,800.

There’s no maximum amount, so the credit is flexible no matter the size of your home or the size of the system that you install. A few of the details are particularly important, and it’s worth reviewing these before you start the detailed solar consultation process and get your free home solar estimate.

The solar system must be installed at a residence you own.
You need to own the solar system (either paid outright or through financing).
It does not apply to leased systems.
The credit is only available for the original installation of a new solar panel system.

This is one of the most important programs available to help you make the switch to solar. It’s not the only one. There is also a state income tax credit worth up to $5,000 per installation. If you’re in New York City, there’s a property tax abatement program that you may be eligible for. There’s also a NYSERDA program called NY-SUN that allows for a direct incentive paid to your installer, which comes off the top of your bill.

The federal solar tax credit covers all key aspects of your solar system. This includes solar panels and cells, labor and installation costs, permit fees, inspections, wiring, inverters, mounting hardware, and even solar backup batteries. Essentially, if it’s part of the renewable energy system, it can be used to submit your tax credit claim.

If you’re interested in a New York Solar Installation, please call us. We’ll explain the process and get you energy independent as soon as possible!

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We’ll Help You to Make Sense of Solar Credits When You Get SMART Solar Financing

Some tax credits can help you to get easy access to SMART solar financing in New York. We’ll look at your situation and base an initial interest-free period on expected tax credits. Your first solar loan will be equal to these expected tax credits and paid in full once you receive them. After this interest-free period, you’ll move to the rest of the loan with a term length and repayments of your choosing. We can carefully balance the loan to ensure that repayments are manageable.

You can get access to solar financing with no money down, making it easier than ever to get clean and affordable solar energy at home.

Ready to Learn More? Start Your Solar Journey with New York Power Solutions

The federal solar credit is one of the most significant factors driving the high demand for solar today. You can enjoy significant savings thanks to government programs and a general decline in the price of solar panels. You can learn more by getting your free home solar estimate today. New York Power Solutions is here to make the transition easy. Talk to us and get started on your solar journey.