Some Lawmakers Still Support Solar Tax Credits

Despite the One Big Beautiful Bill Act eliminating personal solar tax credits in 2025, some lawmakers still support individual benefits for solar panels.

A group of lawmakers, including Mike Lawler from New York’s 17^th Congressional District, introduced a bill in late April that proposes the extension of the Investment Tax Credit and Production Tax Credit for commercial and residential solar projects.

Known informally as the “American Energy Dominance Act,” the bill has yet to progress in the House of Representatives. It shows that there is still enthusiasm for renewable energy credits that directly benefit homeowners.

The Current State of Solar Tax Credits on Long Island

Long Island is one of America’s most important solar markets. Electricity rates here are some of the highest in the nation. Rooftop solar installations help to offset costs and return long-term value to homeowners.

Long Island families benefited from the now-defunct residential solar tax credit. Before it was eliminated in December 2025, it provided a 30% dollar-for-dollar personal tax credit based on the total cost of a solar panel installation.

Families on Long Island can still claim a solar tax credit at the state level. New York’s Solar Energy System Equipment Credit provides:

• A state tax credit worth up to 25% of the total solar expenditure, limited to $5,000.
• A five-year carry-over period. Individuals can continue to claim the credit until it is consumed or the five-year period expires. This ensures maximum value even if the credit exceeds the yearly tax liability.
• The credit is calculated on the total cost of the solar installation, including solar panels, labor, equipment, and battery systems.

Even if the American Energy Dominance Act stalls in Congress, families on Long Island can still reduce the real cost of switching to solar, thanks to New York State’s support of renewable energy.

Solar Leasing is a Potential Alternative to Save Money on a Long Island Solar Installation

Solar leasing wasn’t always the most cost-efficient option for homeowners, but in the current landscape, it’s actually one of the best ways to get residential solar at a reduced cost.

• Through a pre-paid leasing partnership program, homeowners can have Long Island solar installed at a reduced cost.
• Homeowners pre-pay 70% of the total lease value. Commercial ownership is retained by the leasing company for the first five years.
• The leasing company claims a 48E Investment Tax Credit and applies the value of the commercial incentive to lower the total lease payment for the homeowner.
• At the end of the term, homeowners can buy out the system at fair market value.

This type of structure offers several core benefits:

• Homeowners get solar at a reduced cost through an affordable leasing program.
• In the sixth year, the homeowner has the option to own the system outright through a buyout.
• It leverages the commercial tax credit to reduce the total cost of solar.
• The program requires no UCC lien on the home and no credit underwriting.
• The lease can be transferred if the home is sold.

It’s important to note that the state tax credit is unavailable for leased systems. This is an alternative pathway to residential solar installation on Long Island.

Explore Your Options for Residential Solar on Long Island

Power Solutions is one of the top-rated solar installers on Long Island. We offer several options to install solar panels, including outright purchases, financing, and solar leasing structures.

You can get a free ballpark solar estimate today, or call us at (631) 348-0001 to learn more about solar leasing or ask any questions. We provide transparent consultations with detailed cost/benefit breakdowns. We provide the information. You make the choice.