As you consider an investment in solar energy for your home, you’ve probably wondered are there any tax incentives? The answer is yes, there are federal and state tax incentives as well as New York net metering incentives available. NY solar credits can significantly offset the cost of a solar installation. To take advantage of these incentives, you can have your solar power system installed with Long Island Power Solutions.
Learn about New York State credits and federal credits and what they mean for you.
Are There any Tax Incentives for State Filings?
NYS solar panel incentives are provided solely by the state. New York offers a residential solar tax credit worth 25% of a solar system installation, up to a cap of $5,000.
You are eligible for New York State credits if you are a state resident, install solar at your primary residence, and have tax liability in the state.
NY Solar Credit on Federal Taxes
In addition, there is a federal tax incentive available. The federal credit is a dollar-for-dollar reduction in the amount of income tax that you owe. For systems installed in 2021, the credit is 22% of the cost of your solar system installation.
This NY solar credit for federal taxpayers isn’t capped, so you can claim 22% of the system cost, regardless of the contract price. You’re eligible for the federal tax credit if you install a system before December 31, 2021.It needs to be at your primary or secondary residence, you need to own the system (leased systems don’t count), and the system should be new and being used for the first time.
The federal incentive is available for Long Island residents even when claiming state incentives.
New York State Credits Under the Net Metering Policy
Many who ask if there are any tax incentives for solar are impressed to learn that there are net metering benefits too.
Net metering is a policy where you can receive credits for any electricity that you send back to the grid. Excess power creates a ‘credit bank’ that is then used to offset future bills where you generate less solar electricity and draw more from the grid. It helps to keep solar systems viable, even in the winter where shorter days, less intense sunlight, and snow can reduce your output.
New York state credits offered in the form of the net metering policy are available under a first-come, first-served basis by major investor-owned utility companies as well as PSEG Long Island.
Do NYS Solar Panel Incentives Make Installation More Affordable?
There’s no doubt that the federal and NYS solar panel incentives make solar installation more affordable. With combined federal and state benefits, home solar becomes more accessible to households throughout Long Island.
Net metering NYS solar panel incentives keep solar appealing and economical in the long term. In most cases, tax incentives can cover more than half the cost of a solar installation. If you frequently generate more electricity than you consume, the net metering policy will minimize your electric bills in the years to come.
Are There Any Tax Incentives for Solar in Long Island? You Bet!
You’ve asked are there any tax incentives for solar in Long Island, and we’ve explained the various benefits available with a resounding YES! Solar is becoming increasingly affordable, especially with direct tax incentives and the ongoing benefits of net metering.
To get started with an energy evaluation for your home, contact Long Island Power Solutions today and get ready to gain your energy independence.
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