Energy Conservation Improvements Property Tax Exemption

November 07, 2023

Summary

In 2017, New York passed Assembly Bill 260, adding electric energy storage equipment and systems as eligible for an exemption from real property taxes for certain energy equipment.

Other equipment included in the exemption includes micro-hydroelectric energy systems, fuel cell electric generating systems, and micro-combined heat and power generating equipment systems (added in the 2017 bill), as well as solar, wind, and farm waste energy systems (previously included).

The tax exemption lasts for a period of fifteen years. To qualify for the exemption solar, wind, or farm waste energy systems must be (a) in existence or constructed prior to July 1, 1988, or (b) constructed after January 1, 1991 and before January 1, 2025. Micro-hydroelectric energy, fuel cell electric generating, micro-combined heat and power generating equipment, or electric energy storage equipment and systems must be constructed after January 1, 2018 and before January 1, 2025. The exemption applies to the increase in value of the real property due to the addition of the energy equipment.

Municipalities and school districts can elect to not apply this exemption within their jurisdiction.

As of 2019, real property, comprising of or including an eligible energy system, that is owned or controlled by New York State or a New York State department, agency or public authority where New York State or the New York State department, agency, or public authority has agreed in writing with the energy system owner or operator to purchase the produced energy or the environmental credits or attributes created by virtue of the system’s operation is permanently exempt from taxation, special ad valorem levies and special assessments, and the owner of such property shall not be subject to any requirement to enter in an agreement for payments in lieu of taxes.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New York
Incentive Type: Property Tax Incentive
Web Site: https://www.tax.ny.gov/research/property/assess/manuals/vol4/pt1/sec4_01/sec487.htm
Administrator: New York State Department of Taxation and Finance
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Space Heat
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Combined Heat & Power
  • Fuel Cells using Non-Renewable Fuels
  • Hydroelectric (Small)
  • Fuel Cells using Renewable Fuels
  • Lithium-ion
Incentive Amount: Exemption from real property taxation on the increase in value of the real property by reason of the inclusion of the energy equipment for a period of 15 years.

Authorities

Name: Real Property Tax Law § 487
Date Enacted: 10/23/2017
Effective Date: 01/01/2018
Expiration Date: 01/01/2025

Contact

Name: Property Tax
Organization: NY State Department of Taxation and Finance
Address: Harriman Campus Road
Albany NY 12227
Phone: (518) 591-5232
Email: real.property@tax.ny.gov

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.