New York offers one of the most generous state solar tax credits in the country: 25% of installation costs, up to $5,000 maximum. This credit comes directly off your NY state income tax bill — dollar for dollar, not just a deduction.
How the NY state solar credit stacks with federal:
- Federal 30% ITC on a $30,000 system = $9,000 federal tax credit
- NY state 25% credit = $5,000 additional state tax credit
- Combined: $14,000 in tax credits before NY-Sun incentives
- Net cost before NY-Sun: approximately $16,000 on a $30,000 system
The NY state credit can be carried over to future tax years if your credit exceeds your current year's state tax liability — it doesn't expire unused. You claim it on NY Form IT-255.
Combined with net metering, the NY-Sun Megawatt Block upfront incentive, the RPTL 487 property tax exemption, and the NY sales tax exemption, New York's incentive stack is among the strongest of any state in the US.