The abatement allows building owners to deduct from their total real property taxes* a portion of the expenditures associated with installing a PV system on an eligible building. Systems placed in service between August 5, 2008 (the effective date) and December 31, 2010 were eligible for an abatement of 8.75% of eligible expenditures annually for four years. The percentage of abatement changes dependent on the time period the system was put in place; 5% for 2011-2012, 2.5% for 2013, 5% for 2014-2023. The addition of energy storage equipment brought a 10% abatement for systems in service between 2019-2023. The current abatement for both types of systems is 7.5% for 2024-2034.
The maximum abatement during a year is $62,500 or the amount of real property taxes owed during the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures include reasonable expenditures for materials, labor associated with on-site preparation, assembly and original installation, architectural and engineering services, and designs and plans directly related to the construction or installation of a system. Expenditures incurred using a federal, state, or local grant are not eligible, nor are interest or finance charges. However, the amount of eligible expenditures is not reduced by federal, state or local tax credits, tax abatements, tax exemptions or tax rebates.
The abatement program is administered by the Department of Finance in cooperation with the Department of Buildings. Applications for the abatement must be filed by March 15 in order to be eligible for a tax credit during the year the application is submitted. Applications submitted after this deadline can be applied to taxes owed for the following fiscal year. It is important to note that claiming the abatement does not affect whether a building owner can claim New York's real property tax exemption on the value added by solar, wind, and farm-based biogas energy systems.
*This incentive is similar to an investment tax credit for renewable energy systems, which are frequently applied to personal or corporate income taxes. It is unique in that the tax benefits are recouped through reduced property taxes on the host building instead of through reduced income taxes.
| Implementing Sector: | Local |
| Category: | Financial Incentive |
| State: | New York |
| Incentive Type: | Property Tax Incentive |
| Web Site: | https://www1.nyc.gov/nycbusiness/description/solar-electric-generating-systems-tax-abatement-program |
| Administrator: | New York City Department of Buildings |
| Start Date: | 08/05/2008 |
| Eligible Renewable/Other Technologies: |
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| Incentive Amount: |
Solar systems installed from August 5, 2008 to December 31, 2010: 8.75% of system expenditures per year for 4 years; 5% for 2011 - 2012; 2.5% for 2013; 5% for 2014 - 2023. Energy storage equipment installed from January 1, 2019 to December 31, 2023: 10% of system expenditures per year for 4 years Either system Installed from January 1, 2024 to December 31, 2034: 7.5% of the system expenditures per year for 4 years |
| Maximum Incentive: | $62,500 annually or the amount of real property taxes owed during a year. |
| Equipment Requirements: | Systems must be located within a city with a population of at least 1 million (i.e., New York City). |
| Name: | NY CLS RPT § 499-aaaa et seq. |
| Date Enacted: | 08/05/2008 |
| Effective Date: | 08/05/2008 |
| Expiration Date: | 12/31/2018 |
| Name: | Rules of the City of New York § 105-02 |
| Effective Date: | 03/12/2009 |
| Name: | NYC Department of Buildings |
| Address: |
280 Broadway New York NY 10007 |
| Phone: | (212) 566-5000 |
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.
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