Energy Conservation Improvements Property Tax Exemption

November 07, 2023


NOTE: AB 260 enacted in October 2017 amends the property tax exemption adding micro-hydro, fuel cell, micro combined heat and power, and electric energy storage system and storage equipment to be eligible for tax exemption for any increase in the value through the addition of these systems for period of fifteen years. 

Qualifying energy-conservation improvements to homes are exempt from real property taxation to the extent that the addition would increase the value of the home. The exemption includes general municipal property taxes, school district taxes, and special ad valorem taxes, but does not apply to special assessments. Eligible properties include single-family to four-family dwellings. The exemption applies directly to a variety of equipment and measures, but the statute also states that any conservation-related state or federal tax credit or deduction is also exempt from New York's property tax under this statute. The state Tax Assessor's Manual also specifically identifies solar and wind energy systems as eligible for the exemption.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New York
Incentive Type: Property Tax Incentive
Web Site:
Administrator: New York State Office of Real Property Tax Services
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Photovoltaics
  • Wind (All)
  • Equipment Insulation
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Programmable Thermostats
  • Energy Mgmt. Systems/Building Controls
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Doors
  • Wind (Small)
Incentive Amount: 100% of the value added to the residence by the improvements


Name: NY CLS Real Property Tax Law §487-a
Date Enacted: 1977
Name: A.B. 260
Date Enacted: 10/23/2017
Effective Date: 10/23/2017


Name: Property Tax
Organization: NY State Department of Taxation and Finance
Address: Harriman Campus Road
Albany NY 12227
Phone: (518) 591-5232

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.