New York Real Property Tax Law Section 487 exempts solar energy systems from property tax assessment for 15 years. In a state where property taxes are among the highest in the nation, this exemption is highly valuable — especially in Westchester, Nassau, and Suffolk counties.
How RPTL 487 works:
- Solar panels that add value to your home are excluded from the assessed value calculation for 15 years
- A $30,000 solar system on a Westchester home taxed at 1.5% effective rate would otherwise add ~$450/year to your property tax bill — RPTL 487 prevents this
- In Nassau and Suffolk counties where effective rates run 1.0–2.5%, the savings over 15 years can be $7,500–$11,250 or more
Opt-out clause: Municipalities can opt out of RPTL 487. The vast majority of NY municipalities participate, but you should confirm your specific town's status with your installer. In Westchester, most towns participate — confirm through your installer or your town's assessor's office.
RPTL 487 stacks with the federal 30% ITC, NY state 25% credit, NY-Sun incentives, net metering, and the NY sales tax exemption — making New York's full solar incentive package among the best in the country.