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State
All of New York can take advantage of the 26%
Federal Tax Credit, which will allow you to recoup 26% of
your equipment AND installation costs for an unlimited amount.
There may still be other local rebates from your city, county, or utility. Check below!
New York Solar PV Rebates & Incentives
Data from DSIRE. Last updated: 03/25/2023
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Residential Solar Tax Credit | New York State Department of Taxation and Finance | 03/21/23 | 03/25/23 | 80 | Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006. The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006.
In August 2012 the credit was amended yet again (A.B. 34) to allow it to be claimed for systems installed under lease or power purchase agreements (PPAs) of at least 10 years in length. For third-party owned systems, the residential homeowner may claim a tax credit in the amount of lease or PPA payments made during the taxable year, for up to 15 years. The 25% incentive for such systems refers to aggregate amount of payments owed rather than the amount made during any single year. The maximum allowable tax credit amount of $5,000 applies to the total amount of credits claimed regardless of the ownership arrangement.
Interested participants can claim for the credit through filling out Form IT-255 (Claim for Solar Energy System Equipment), including specific instructions for the credit. | |||||||||||||||||||||||||||||||||||||||||||||
Local Option - Solar, Wind & Biomass Energy Systems Exemption | 07/12/20 | 01/01/25 | 192 | Note: In pursuant to S.B. 07026, the expiration deadline for the eligible renewable energy projects have been extended to 01/01/2025.
Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar, wind energy, and farm-waste energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted decide whether or not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option clause was added. The exemption is valid unless a government opts out of the exemption, as opposed to the more common practice of requiring governments to "opt-in" in order to offer an exemption. | ||||||||||||||||||||||||||||||||||||||||||||||
Business Energy Investment Tax Credit (ITC) | U.S. Internal Revenue Service | 12/09/22 | 03/25/23 | 658 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including expanding the eligible technologies, extending the expiration date, modifying the scheduled step-down in its value, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 48 of the Internal Revenue Code and replaces it with a new technology-neutral tax credit under section 48E of the Internal Revenue Code. The summary below describes the current section 48 tax credit as modified by the Inflation Reduction Act, and below that, the new 48E tax credit. The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently and most significantly by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full 30% tax credit. The Department of the Treasury issued Initial Guidance on these requirements on November 30, 2022 . According to law, the labor provisions apply to projects for which construction begins 60 days or more after Treasury publishes its guidance. Given the publishing date of November 30, 2022, the effective date for the labor provisions is January 30, 2023. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 30% tax credit. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit of 30%. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines (January 29, 2023) and no later than January 1, 2025 will receive a base tax credit of 6%. However, projects can qualify for the full 30% tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for 5 years after project completion are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Bonus Credits Projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States can qualify for the Domestic Content Bonus. for projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Domestic Content Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Domestic Content Bonus increases the tax credit by 2 percentage points. Projects that are located within an energy community can receive the Energy Community Bonus. To qualify, a facility must be located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. For projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Energy Community Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Energy Community Bonus increases the tax credit by 2 percentage points. Solar and wind facilities less than 5 MW may also be eligible for low-income bonuses. A project built in a low-income community as defined by the New Markets Tax Credit or on Indian Land can receive an increased tax credit of 10 percentage points. A project associated with a low-income residential building project or a low-income economic benefit project can receive an increased tax credit of 20 percentage points.
Eligible Technologies
Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Electricity Investment Tax Credit (48E) Section 13702 of the Inflation Reduction Act created a new tax credit, the Clean Electricity Investment Tax Credit to replace the traditional ITC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the ITC, but is not technology-specific. It applies to all generation facilities and energy storage systems that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, but will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |||||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Personal) | U.S. Internal Revenue Service | 07/20/22 | 03/25/23 | 666 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||||
Modified Accelerated Cost-Recovery System (MACRS) | U.S. Internal Revenue Service | 08/21/18 | 03/25/23 | 676 | Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes*:
In addition, for certain other types of renewable energy property, such as biomass or marine and hydrokinetic property, the MACRS property class life is seven years. Eligible biomass property generally includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. Marine and hydrokinetic property includes facilities that utilize waves, tides, currents, free-flowing water, or differentials in ocean temperature to generate energy. It does not include traditional hydropower that uses dams, diversionary structures, or impoundments.
Bonus Depreciation Bonus Depreciation History
The 50% first-year bonus depreciation provision enacted in 2008 was extended (retroactively for the entire 2009 tax year) under the same terms by the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009. It was renewed again in September 2010 (retroactively for the entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297). In December 2010 the provision for bonus depreciation was amended and extended yet again by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 was permitted to qualify for 100% first-year bonus depreciation. The December 2010 amendments also permitted bonus depreciation to be claimed for property placed in service during 2012, but reverted the allowable amount from 100% to 50% of the eligible basis. The 50% first-year bonus depreciation allowance was further extended for property placed in service during 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331) in January 2013. The Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125), extended these provisions through to December 31, 2014, and thus retroactively for the 2014 tax year. | |||||||||||||||||||||||||||||||||||||||||||||
NY-Sun PV Incentive Program (Residential, Low-Income, and Small Business) | New York State Energy Research and Development Authority | $762 M through 2023 (petition submitted for additional $573 million through 2025) | 12/06/19 | 12/29/25 | 701 | NOTE: A petition was submitted on November 25, 2019 to the New York Department of Public Service (DPS) requesting an additional $573 million and extending the program through 2025.The New York State Energy Research and Development Authority (NYSERDA) through NY Sun Incentive Program (PON 2112) provides cash incentives for the installation of approved, grid-connected photovoltaic (PV) systems. The program was re-launched in 2014 with a goal of supporting 3.175 GW of installed capacity by 2023, which has been expanded to 6 GW of installed capacity by 2025. The program provides cash incentives for residential solar systems that are 25 kW or less, and for small commercial systems in Upstate and PSEG Long Island region that are 750kW or less and non-residential sites in the Con Ed region up to 7.5MW or less. NY-Sun solar incentives are designed to phase out in a controlled and predictable manner over time depending on installed solar capacity in the given region. Program Description NYSERDA has established separate megawatt (MW) budgets for different regions of the state. These MW block targets are specified for three regions: areas served by Con Edison, areas served by PSEG Long Island, and for the rest of the state. The block incentives are set based on historical demand, market penetration, installed cost per watt, and equity on a regional basis. The incentives available within each MW Block are scheduled to step down over time as certain targets are met. Information on the MW block design, including real-time data on the current incentive levels for Upstate can be found by visiting NYSERDA dashboard and similar dashboard for other regions. Customers of investor-owned utilities, including Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, New York State Electric & Gas Corporation, Niagara Mohawk Power Corporation, Orange and Rockland Utilities, Rochester Gas and Electric Corporation, and PSEG Long Island are eligible to participate, as well as customers of NYPA and municipally-owned utilities. Affordable Solar The program provides additional incentives for low-to-moderate income households. To be eligible, the applicant must have a household income that is less than 80% of the State Median Income (SMI) or Area Median Income (AMI), whichever is greater. Such qualifying households in the Con Edison and Upstate Regions receive $0.80/W up to an installed capacity of 10 kW. In the Long Island Region, where incentives are no longer available, the Affordable Solar incentive provides $0.40/W. Project capacity above 10 kW will receive the applicable residential incentive. Additionally, the Affordable Solar incentive is locked at the current level, and it does not drop with the residential incentive as more projects come online. Residential, small commercial, and not-for-profit organizations are also eligible for low-interest rate financing. More information about financing is available here. Multifamily Affordable Housing Adder Additional incentives are available for nonresidential projects serving multifamily affordable housing properties. In addition to the standard nonresidential incentive, eligible projects will receive an additional $0.30/W incentive for the first 50kW of the project. Project capacity above 50kW will receive the applicable nonresidential base incentive. To receive this incentive, projects must be sited at an affordable housing property that has documented eligibility and offset the usage of the affordable housing property (behind-the-meter) or its residents (Community Distributed Generation from system located on the property). For Community Distributed Generation projects on eligible properties with offsite subscribers, additional documentation demonstrating that project capacity will be dedicated to low-to-moderate income subscribers is required. More information about this additional criteria is available in the Program Manuals found here. Incentive Payment Contractors reserve incentives for approved systems for customers on a first-come, first-served basis for as long as funds are available. Prior to installing a PV system, contractors must provide customers with information and basic assistance in understanding possible energy efficiency improvements and benefits, although energy efficiency measure installation is not required for program participation. Incentives are paid to the contractor after the PV system has been connected to the utility grid. Small commercial projects have the option the option to receive the incentive in two increments based on installation milestones. The first incentive payment includes 75% of the total incentive amount approved by NYSERDA, which is paid out after all system components are delivered to a customer’s site. The second incentive payment includes remaining 25%, which are released after a PV system has been connected to the utility grid and inspected by NYSERDA or its representatives. System Eligibility The program supports a maximum of 25 kW solar PV systems for residential sector and 750 kW systems for non-residential sector (7.5MW in Con Ed). Incentives are only available to eligible contractors, and incentives must be passed on in full amount to the customers. Residential PV systems must be sized to meet specific site energy needs (local load or demand) and may not exceed 110% of the demonstrated energy demand for the site, taking into account any other on-site electrical power generation systems. Incentive levels will be reduced in proportion to potential output losses of greater than 20%. Contractor/ Builder Requirements Contractor/Builder eligibility is determined and maintained based on factors such as acceptance of all program terms and conditions, training, installation experience, track record related to utility interconnections, overall performance, monitoring, customer references, customer satisfaction, and commitment to become certified through a national certification program. NYSERDA provides accredited training opportunities for PV installers. Training opportunities are posted on NYSERDA's Renewable Energy Training web site. All builders must have credentialing from Underwriters Labs (UL), the International Brotherhood of Electrical Workers (IBEW) or the North American Board of Certified Energy Practitioners (NABCEP) in order to qualify for the program. | ||||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Corporate) | U.S. Internal Revenue Service | 07/20/22 | 03/25/23 | 727 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||||
Renewable Electricity Production Tax Credit (PTC) | U.S. Internal Revenue Service | 09/09/22 | 03/25/23 | 734 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including extending the expiration date, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 45 of the Internal Revenue Code at the end of 2024 and replaces it with a new technology-neutral tax credit under section 45Y of the Internal Revenue Code. The summary below describes the current section 45 tax credit as modified by the Inflation Reduction Act, and below that, the new 45Y tax credit. The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service. Originally enacted in 1992, the PTC has been renewed and expanded numerous times, most recently by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full value of the tax credit -- 2.6 cents per kilowatt-hour (kWh) for wind, closed-loop biomass, and geothermal energy; 1.3 cents per kWh for open-loop biomass facilities, small irrigation power facilities, landfill gas facilities and trash facilities. In late-2022 or 2023, the Treasury Secretary will issue guidance for these new labor provisions. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 1.3 or 2.6 cents/kWh (depending on the facility type) tax credit. This amount may be adjusted annually for inflation. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines and no later than January 1, 2025 will receive a base tax credit of 0.5 cents/kWh. However, projects can qualify for the full tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for the entire 10-year PTC period are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Bonus Credits The Domestic Content Bonus increases the credit amount by 10% for projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States. Note, the required percentage of domestic manufactured products for offshore wind facilities is 20%. The Energy Community Bonus increases the credit amount by 10% for projects that are located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Energy Production Tax Credit (45Y) Section 13701 of the Inflation Reduction Act created a new tax credit, the Clean Energy Production Tax Credit to replace the traditional PTC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the PTC, but is not technology-specific. It applies to all generation facilities that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, and all technologies that satisfy the labor requirements will be eligible for the full value of the tax credit as adjusted for inflation. The credit will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |||||||||||||||||||||||||||||||||||||||||||||
Energy-Efficient Mortgages | 08/05/20 | 03/25/23 | 742 |
Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.
Loan amounts may not exceed the projected savings of the energy efficiency improvements. These loans may be combined with FHA 203 (h) mortgages available to victims of presidentially-declared disasters and with financing offered through the FHA 203 (k) rehabilitation program. FHA loan limits do not apply to the EEM. Borrowers must obtain a home energy assessment by a qualified energy rater, assessor, or auditor using whole-assessment standards, protocols, and procedures.
ENERGY STAR Partnership for Lenders | ||||||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Grants | U.S. Department of Agriculture | $600 million for FY 2018 | 08/21/18 | 03/25/23 | 917 | Note: The U.S. Department of Agriculture's Rural Development issues periodic Notices of Solicitation of Applications for the Rural Energy for America Program (REAP) in the Federal Register. The FY 2018 solicitation for the REAP program includes a total budget of approximately $800 million. The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | ||||||||||||||||||||||||||||||||||||||||||||
Office of Indian Energy Policy and Programs - Funding Opportunities | U.S. Department of Energy | 02/26/20 | 03/25/23 | 918 | The U.S. Department of Energy's (DOE) Office of Indian Energy Policy and Programs promotes tribal energy sufficiency, economic growth, and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures. DOE's program offerings consist of program management through DOE headquarters, program implementation and project management through DOE's field offices, and technical support through DOE laboratories. Program management is carried out by DOE's Weatherization and Intergovernmental Program, which provides programmatic direction and funding to DOE field offices for program implementation. DOE's Golden Field Office solicits, awards, administers, and manages financial assistance agreements. Program funding is awarded through a competitive process. Click here to view current program funding opportunities, and here to apply for technical assistance. | |||||||||||||||||||||||||||||||||||||||||||||
Solar Sales Tax Exemption | New York State Department of Taxation and Finance | 07/31/20 | 03/25/23 | 1234 | New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption was extended to non-residential solar systems in August 2012 (S.B. 3203), effective beginning January 1, 2013. In 2015 the exemption was extended to solar systems that are owned by third party owners, who provide solar electricity to residential and commercial users. Both solar lease payments and the receipts of the sale of electricity by such systems are exempt from state sales and use tax. For both residential and non-residential systems, the exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. It does not include equipment that is part of a "non-solar energy system". For residential systems additional language prohibits the exemption from being claimed for a system that uses "any sort of recreational facility or equipment as a storage medium". This language is not replicated in the non-residential exemption, thus it would appear that a system used to heat a non-residential pool would qualify while one used to heat a residential pool would not. There is not an expiration date for this incentive.*
Local Sales and Use Tax Rates on Sales and Installations of Commercial Solar Energy Systems Equipment - Effective March 1, 2018 Local Sales and Use Tax Rates on Sales of Electricity under Solar Power Purchase Agreements - Effective March 1, 2018 Local Sales and Use Tax Rates on Sales and Installations of Residential Solar Energy Systems Equipment - Effective March 1, 2018 *The New York Code contains duplicate sections NYCL Tax § 1115 (ee). The first pertains to the sales tax exemption for residential solar energy systems and contains no expiration date, while the second contains rules for an unrelated exemption with expiration dates of December 1, 2014, and December 1, 2016. This appears to be a mistake that will not affect the sales tax exemption for residential solar energy equipment. | |||||||||||||||||||||||||||||||||||||||||||||
Residential Renewable Energy Tax Credit | U.S. Internal Revenue Service | 08/16/22 | 12/31/34 | 1235 | Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone energy storage systems eligible for the credit, and biomass heaters ineligible for the credit. Biomass heaters are now eligible for the residential energy efficiency tax credit. The summary below reflects the credit after the enactment of H.R. 5376. A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below. Solar-electric property
Solar water-heating property
Fuel cell property
Small wind-energy property
Geothermal heat pumps
Battery Storage Systems (Standalone Systems)
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies. Energy Storage Prior to the enactment of the Inflation Reduction Act of 2022, the federal tax code did not explicitly reference energy storage, so stand-alone energy storage systems did not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. History Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008. | |||||||||||||||||||||||||||||||||||||||||||||
Energy Conservation Improvements Property Tax Exemption | New York State Office of Real Property Tax Services | 07/12/20 | 03/25/23 | 1596 | NOTE: AB 260 enacted in October 2017 amends the property tax exemption adding micro-hydro, fuel cell, micro combined heat and power, and electric energy storage system and storage equipment to be eligible for tax exemption for any increase in the value through the addition of these systems for period of fifteen years. Qualifying energy-conservation improvements to homes are exempt from real property taxation to the extent that the addition would increase the value of the home. The exemption includes general municipal property taxes, school district taxes, and special ad valorem taxes, but does not apply to special assessments. Eligible properties include single-family to four-family dwellings. The exemption applies directly to a variety of equipment and measures, but the statute also states that any conservation-related state or federal tax credit or deduction is also exempt from New York's property tax under this statute. The state Tax Assessor's Manual also specifically identifies solar and wind energy systems as eligible for the exemption. | |||||||||||||||||||||||||||||||||||||||||||||
Clean Renewable Energy Bonds (CREBs) | U.S. Internal Revenue Service | 08/15/18 | 03/25/23 | 2510 | Note: The Tax Cuts and Jobs Act of 2017 repealed section 54C of the Internal Revenue Code, which authorized the use of New CREBs. IRS Notice 2018-15 announced that the IRS will no longer process applications for or issue allocations of New CREBs. The summary below describes CREBs before they were repealed, and is here for historical purposes only.
Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. The bondholder receives federal tax credits in lieu of a portion of the traditional bond interest, resulting in a lower effective interest rate for the borrower.* The issuer remains responsible for repaying the principal on the bond. The tax credit rate is set daily by the U.S. Treasury Department. Under past allocations, the credit could be taken quarterly on a dollar-for-dollar basis to offset the tax liability of the bondholder. However, under the new CREBs allocation, the credit has been reduced to 70% of what it would have been otherwise. Other important changes are described in IRS Notice 2009-33. | |||||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Loan Guarantees | U.S. Department of Agriculture | 08/21/18 | 03/25/23 | 2511 | The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | |||||||||||||||||||||||||||||||||||||||||||||
City of Riverhead - Energy Conservation Device Permitting Fees | Riverhead Building Department | 07/22/22 | 03/25/23 | 2740 | In 2006 the Town of Riverhead on Long Island enacted a special allowance in its building permit fee structure to provide a discount to people wishing to install energy conservation devices on residential or commercial buildings. The provision in the town code applies to any energy conservation device "installed in or on a structure which qualifies for any federal, state or local tax exemption, tax credit or tax rebate", but explicitly mentions solar panels as eligible for favorable treatment. The original law authorized a flat permitting fee of $150, which still generally applies, but the law was amended in December 2011 to create a "Fast-Track" process for residential systems that meet certain technical requirements (e.g., maximum roof loading, mounting orientation). The fee for Fast-Track applications is set at $50 and the process also entitles the applicant to expedited review (14 days). Applicants subject to review by the Landmarks Preservation Commission or the Architectural Review Board are not eligible for the Fast-Track process. Prior to the code revision permitting fees for solar panel installations often approached $1,000. | |||||||||||||||||||||||||||||||||||||||||||||
New York City - Property Tax Abatement for Photovoltaic (PV) and Energy Storage equipment | New York City Department of Buildings | 12/21/21 | 03/15/24 | 3037 | NOTE: The program has been extended until March 15, 2024.
In August 2008 the State of New York enacted legislation allowing a property tax abatement for photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1 million or more people. This limits the abatement to systems installed within New York City. Eligible buildings include all real property except utility real property. As originally enacted the in-service deadline for eligible systems was December 31, 2012. However, in August 2012 the abatement was extended to systems placed in service through December 31, 2014 at a reduced rate. In October 2014, the Senate Bill S0746 extended the compliance period for systems till 2016. The tax abatement was extended again until 2019 on September 2016 by enactment of Senate Bill S7110. The abatement was extended to energy storage by Assembly Bill 10410 in 2018.
Thus the total property tax benefit can amount to either 35%, 20%, or 10% of the installed system cost depending on when it is built. | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Department of Energy - Loan Guarantee Program | U.S. Department of Energy | 09/08/22 | 03/25/23 | 3071 | Note: The Inflation Reduction Act (H.R. 5376) made several changes to this program. It appropriated approximately $11.7 billion in total for the Loan Programs Office (LPO) to support issuing new loans. This, in turn, increased the loan authority in LPO’s existing loan programs by approximately $100 billion. The Inflation Reduction Act also adds a new loan program, the Energy Infrastructure Reinvestment (EIR) Program (section 1706), to help retool, repower, repurpose, or replace energy infrastructure that has ceased operations or to improve the efficiency of infrastructure that is currently operating. Title 17 Program Section 1703 of Title 17 of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program. Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects. The Inflation Reduction Act added an additional $40 billion of loan authority to Section 1703 program. The legislation appropriated $3.6 billion in credit subsidy to support the cost of those loans and set aside a percentage of these amounts for administrative expenses to help carry out the program, including monitoring and originating new loans. This new loan authority is open to all currently eligible Title 17 Innovative Clean Energy technology categories, including fossil energy and nuclear energy. The Inflation Reduction Act appropriations also support the expanded activities authorized by the Bipartisan Infrastructure Law that required these new appropriations to go into effect. These expanded activities support projects involving critical minerals processing, manufacturing, and recycling, and removing the innovation requirement for State Energy Financing Institution-backed projects. Energy Infrastructure Reinvestment (EIR) Program (Section 1706) The Inflation Reduction Act also created a new program under Title 17, the Energy Infrastructure Reinvestment (EIR) Program. The new program targets projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations, or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases. The Inflation Reduction Act appropriated $5 billion through September 30, 2026, to carry out EIR, with a total cap on loans of up to $250 billion. Advanced Technology Vehicles Manufacturing Loan Program LPO initially had $15.1 billion in loan authority to support the manufacture of eligible light-duty vehicles and qualifying components under the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), authorized by the Energy Independence and Security Act of 2007. To date, the program has loaned $8 billion for projects that have supported the production of more than 4 million advanced technology vehicles. Read more about LPO's ATVM portfolio. The Inflation Reduction Act removed the $25 billion cap on the total amount of loans it can award and appropriated $3 billion to remain available through September 30, 2028 for the costs of direct loans under ATVM. In addition to amounts supported by currently appropriated credit subsidy, this $3 billion is estimated to provide for an additional ~$40 billion in loan authority for a total estimated available loan authority under ATVM of ~$55.1 billion. Tribal Energy Projects The Tribal Energy Loan Guarantee Program (TELGP) supports tribal investment in energy-related projects by providing direct loans or partial loan guarantees to federally recognized tribe, including Alaska Native village or regional or village corporations; or a Tribal Energy Development Organization (TEDO) that is wholly or substantially owned by a federally recognized tribe federally recognized Indian tribe or Alaska Native Corporation. Under this solicitation, The Inflation Reduction Act increased the aggregate amount of loans available at any time under the Tribal Energy Loan Guarantee Program (TELGP) from $2 billion to $20 billion. It also provided $75 million to remain available through September 30, 2028 to carry out TELGP under section 2602(c) of the Energy Policy Act of 1992. | |||||||||||||||||||||||||||||||||||||||||||||
Qualified Energy Conservation Bonds (QECBs) | U.S. Internal Revenue Service | 08/22/18 | 03/25/23 | 3098 | Note: The Tax Cuts and Jobs Act (HR 1) of 2017 repealed the use of tax credit bonds effective January 1, 2018. Issuers of QECBs that elected to receive direct payments from the Treasury issued on or before December 31, 2017, consistent with the Internal Revenue Code (Section 54D), will continue to receive direct payments. The summary presented below is for historical purposes.
The Energy Improvement and Extension Act of 2008, enacted in October 2008, authorized the issuance of Qualified Energy Conservation Bonds (QECBs) that may be used by state, local and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, and in this respect are similar to new Clean Renewable Energy Bonds or CREBs. The October 2008 enabling legislation set a limit of $800 million on the volume of energy conservation tax credit bonds that may be issued by state and local governments. The American Recovery and Reinvestment Act of 2009, enacted in February 2009, expanded the allowable bond volume to $3.2 billion. In April 2009, the IRS issued Notice 2009-29 providing interim guidance on how the program will operate and how the bond volume will be allocated. Subsequently, H.R. 2847 enacted in March 2010 introduced an option allowing issuers of QECBs and New CREBs to recoup part of the interest they pay on a qualified bond through a direct subsidy from the Department of Treasury. Guidance from the IRS on this option was issued in April 2010 under Notice 2010-35. | |||||||||||||||||||||||||||||||||||||||||||||
USDA - High Energy Cost Grant Program | USDA Rural Utilities Service | $10 million (2021 solicitation) | 07/20/22 | 03/25/23 | 4359 |
NOTE: The most recent solicitation for this program closed July 6, 2021. Please check the program website for information on future solicitations.
This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program. | ||||||||||||||||||||||||||||||||||||||||||||
NYSERDA - Residential Financing Options | New York State Energy Research and Development Authority (NYSERDA) | 07/18/22 | 03/25/23 | 4563 | NYSERDA offers the On-Bill Recovery, Smart Energy, Renewable Energy Tax Credit Bridge, and Companion Loans to help New York State residents finance energy efficiency and renewable energy improvements made through NYSERDA’s programs. These loans provide lower interest rates to lower-income New Yorkers and to those who cannot qualify for traditional financing. Through our Companion Loan, you can access additional financing for projects that exceed the $25,000 cap on the On-Bill Recovery and Smart Energy loans. The Bridge Loan, allows you access to short-term financing to borrow a portion of the renewable energy system cost that may be eligible for a federal or state tax income tax credit or a New York City Real Property Tax Abatement for eligible renewable energy system costs. Talk to your participating contractor and select the loan that works best for you. Loans are not incentives or rebates and must be paid back. These loan options can be used with the following NYSERDA programs: Assisted Home Performance with ENERGY STAR® Offers income-qualified homeowners a comprehensive, whole-house approach to improving energy efficiency and home comfort while saving money. Use the loans for the purchase and installation of energy efficiency upgrades. Residential energy efficiency and Comfort Home Identifies where your home is wasting energy and how you can save money and improve your home’s comfort year-round. Use the loans for the purchase and installation of energy efficiency upgrades that are not participating in the Assisted Home Performance with ENERGY STAR Program NY-Sun Makes going solar accessible and affordable. Use the loans to purchase and install solar at home. Air and Ground Source Heat Pumps Offers more efficient heating and cooling option that eliminate fossil fuels. Use the loans for purchase and installation costs. | |||||||||||||||||||||||||||||||||||||||||||||
New York City - Residential Solar Sales Tax Exemption | 07/20/20 | 03/25/23 | 4703 | New York City passed Resolution 1121 in August 2005 (effective December 1, 2005) to exempt residential solar energy systems equipment and services from sales tax. | ||||||||||||||||||||||||||||||||||||||||||||||
Local Option - Solar Sales Tax Exemption | 07/31/20 | 03/25/23 | 4857 | New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. In 2012 the exemption was also extended to commercial solar energy systems, effective January 1, 2013. In 2015 the exemption was extended to solar systems that are owned by third party owners, who provide solar electricity to residential and commercial users. Both solar lease payments and the receipts of the sale of electricity by such systems are exempt from state sales and use tax. The exemption does not apply to solar pool heating or other recreational applications. The laws also permit local governments (municipalities and counties) to grant an exemption from local sales taxes. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. Local sales tax rates in New York range from 1.5% to more than 4% in addition to the general state sales tax rate of 4%. The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for solar energy equipment. The solar sales tax list (Publication 718-S) is updated frequently. The New York Department of Taxation and Finance has issued a small amount of additional guidance and instructions on how to claim the exemption in Publication TSB-M-05(11)S (residential) and Publication TSB-M-12(14)S (commercial). Local Sales and Use Tax Rates on Sales and Installations of Commercial Solar Energy Systems Equipment - Effective March 1, 2018 Local Sales and Use Tax Rates on Sales of Electricity under Solar Power Purchase Agreements - Effective March 1, 2018 Local Sales and Use Tax Rates on Sales and Installations of Residential Solar Energy Systems Equipment - Effective March 1, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Local Option - Real Property Tax Exemption for Green Buildings | Administered locally | 07/13/20 | 03/25/23 | 5249 | In July 2012 New York enacted legislation allowing municipal corporations to exempt green buildings from real property taxes. It is important to note that this law allows but does not require local governments to extend favorable property tax treatment to green buildings. In order for the exemption to apply, a municipal corporation must first adopt an ordinance this effect. In order to qualify for an exemption, the new construction or improvement (does not include routine maintenance or repairs) must commence on or after January 1, 2013; be valued in excess of $10,000; and projects must meet the LEED, Green Globes, American National Standards Institute, or substantially equivalent green building certification standards. Although the law references allowable green building rating systems/certifications other than LEED, the incentive amounts are described in relation to LEED certification levels. The amount of the exemption permitted varies by year and by the certification level achieved. Although not specifically identified in the law, it appears that the "year" refers to the property tax year in which the exemption is first claimed and subsequent years thereafter. The allowable exemption levels, stated in terms of the percentage of total taxes owed, are as follows:
Projects must actually achieve certification in order to be eligible for an exemption, and the exemption must be approved by the local assessor prior to taking effect. For further details, please see the full text of the enabling legislation. | |||||||||||||||||||||||||||||||||||||||||||||
NY Green Bank | NY Green Bank | $225.0 million over the fiscal year ending March 31, 2023 | 10/03/22 | 03/25/23 | 5539 | In December 19, 2013 the Public Service Commission (PSC) approved a petition issued by NYSERDA’s to establish and fund the operations of New York Green Bank (NY Green Bank). NY Green Bank is a state-sponsored specialized financial entity, working to accelerate clean energy deployment throughout New York State by partnering with the private sector to address and alleviate market and financial barriers preventing a thriving clean energy marketplace. NY Green Bank does not accept deposits or offer retail loans, and instead works on the wholesale level, operating in direct response to real-time market needs. Funding On December 2013, the PSC approved the reallocation of $165.6 million of uncommitted NYSERDA Energy Efficiency Portfolio Standard (EEPS) and System Benefit Charge (SBC) III funds, and $52.9 million raised from selling Regional Green House Gas Initiative carbon allowances. These reallocations provide an initial capitalization fund of $218.5 million. In July 2015, the PSC approved additional $150 million dollars of uncommitted NYSERDA funds to support the NY Green Bank. On December 2016, the NY PSC approved additional $782 million for NY Green Bank as part of a $5 billion NY Clean Energy Fund. This finally completes the NY Green Bank initial plan of a full capitalization goal of $1 billion dollars. Financing Structure NY Green Bank works with a broad range of market participants such as energy service companies, developers, and equipment manufacturers. Rather than providing loans directly to the companies for pre-construction operations, NY Green Bank works in partnership with the participating financing entities, including banks and other private sector participants, to address existing market barriers and alleviate those in order to expand today’s clean energy financing markets. The NY Green Bank is flexible in terms of its involvement in any given project or transaction and can assume various roles, including but not limited to: provide credit enhancements (e.g. a reserve account or a junior interest), serve as a lender (e.g. senior, mezzanine or subordinated), or warehouse provider (with likelihood of being taken out by private sector third parties). These financial arrangements are targeted towards funding various clean energy projects that are economically viable but not currently financeable due to financing gaps in today’s clean energy marketplace. Eligibility The NY Green Bank can participate in projects located in the State of New York and eligible, commercially-proven technologies include : solar, wind, and other renewable energy generation technologies, energy efficiency measures, electricity load reduction, on-site generation and similar projects that support the State’s clean energy objectives. Interested participants may submit a proposal for financing arrangements to NY Green Bank through it’s open solicitation. NY Green Bank has a standing Request for Proposals (RFP) available on its website: www.greenbank.ny.gov, which remains open, and proposals are evaluated as they are received. The RFP must include the description of the project, financing structure and an explanation of why NY Green Bank financing is required in order to complete the transaction (why is the private sector not financing this project on its own? How, with Green Bank financing, will this project will lead to more, similar projects getting done?). NY Green Bank will consider different criteria such as expected financial returns, creditworthiness, scalability of the project, greenhouse gas reduction potential, and other considerations well in advance of financing the project. In most cases, the bank will invest alongside other capital provides and work with industry participations who deal directly with end-use customers. While there is no maximum or minimum project size NY Green Bank will consider, the expected project range is between NY $5 million to $50 million.
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NY-Sun Loan Program | 08/07/20 | 03/25/23 | 5540 | NY-Sun loan program is part of broader NY-Sun Initiative program to accelerate the use of solar PV across the State. In addition to cash incentives, NY-Sun Initiative also provides State sponsored low-interest financing options to install solar PV systems. The financing for the program is made available through the Green Jobs- Green New York (GJGNY) Act of 2009. Eligibility The PV installations up to 200 kW should be performed by a participating Solar Electric Installer. List of participating installers is available here. Beginning from October, 2014, NY-Sun loan program has added Solar Thermal as an eligible resource for financing. Financing structure for Solar Thermal equipment are as same as offered for Solar PV systems. Additional financial incentives for Solar Thermal systems can be accessed here. Residential Residential customers can qualify for$1,500, or up to $25,000 loans with higher cost-effectiveness standards. The repayment periods can be 5, 10, or 15 years and should be within the expected life of the installation. Residential customers can choose between a standard loan or a On-Bill financing loan. These loans are provided by the Energy Finance Solutions (EFS) on behalf of NYSERDA. Residential Smart Energy Loan This loan provides a standard loan with interest rates subject to the customer’s credit qualification (see the interest rate estimator to determine which rate may be available). In case of transfer or sale of the property, the customer remains responsible for the outstanding balance of the loan which cannot be assigned. Residential and Small Business/ Not-for Profit On-Bill Recovery Loan On bill financing loans available for residential, small business, and not-for profit institutions. This loan provides the convenience of repayment through a regular charge on the customer’s utility bill. This loan provides a standard loan with interest rates subject to the customer’s credit qualification (see the interest rate estimator to determine which rate may be available).The payments appear as a separate item on the utility bill. The monthly payments may not exceed the estimated cost savings from the improvements over the loan term. In case of sale of the property, the payments can be transferable. Small Business and Not-For-Profit Organizations Small business and Not-For-Profit organizations can obtain low interest standard loan up to $100,000, or On-Bill Recovery loans up to $50,000. In addition to PV installation, the funds may also be used to finance certain eligible energy efficiency improvements in the building. More information about financing options for Small business and Not-for-Profit customers can be accessed here. Small Commercial participation loans Apart on-bill financing loans, small commercial and not-for-profit organizations also have an option to financing systems through a traditional loan structure. Financing up to $100,000 is provided to eligible customer at below market interest rates. NYSERDA provides 50% of the project cost up to $50,000 at 2% interest rate and the participating lender provides the rest of the loan at market rates. | ||||||||||||||||||||||||||||||||||||||||||||||
NY-Sun Commercial and Industrial Incentive Program | New York State Energy Research and Development Authority | $450,525,000 | 08/24/17 | 12/29/23 | 5755 | New York State Energy Research and Development Authority (NYSERDA) through NY-Sun Commercial/Industrial Incentive Program (PON 3082) provides incentives for installation of non-residential new grid connected solar photovoltaic (PV) systems that are greater than 200 kW. Incentives for systems smaller than 200 kW systems are offered through the NY- Residential and Small Commericial incentive program. Incentives are awarded on a first-come, first serve basis, until the funds are fully committed. Applications are being accepted through December 29, 2023. Eligibility Incentives are provided to new customer-sited PV systems, greater than 200 kW per electric meter, that are grid connected and displace utility provided electricity. The program is funded primarily by the Renewable Portfolio Standard (RPS) customer charge that are billed to the customers of investor owned utilities in the State. The funding in limited amount is also provided through the statewide Regional Greenhouse Gas Initiative (RGGI) funds. After the RGGI funds are exhausted, only RPS/SBC paying customers of investor owned utilities will be eligible for the program. Such utilities include Central Hudson Gas and Electric, Con Edison, National Grid, NYSEG/RG&E, and Orange & Rockland. PV projects receiving any other NYSERDA awards are not eligible to receive incentive under this program. Program Description The program offers incentive based on the performance of the PV system over the first 3 years of the system’s annual energy production. The program also offers additional incentives for: i) installations in utility identified strategic locations, ii) for systems that integrate energy storage, and iii) for projects that include comprehensive energy efficiency. MW Blocks Incentives are based on the Megawatt (MW) Block design that allocates specific incremental MW targets to specific regions of the state. Each target has a specific incentive level. As the MW target on the specific block fully subscribed, another subsequent target is specified with unique incentive amount. Incentive amounts are designed to decrease in time as each of the MW targets are met. Once all the MW blocks in a region are fully subscribed, an incentive is no longer offered in that region. The MW block design is based on historical demand, market penetration, installed cost per watt, and helps to provide equity on a regional basis. Real time incentive price for each of the MW blocks can be viewed here. There are two regional MW blocks established i) region served by Con Ed, and ii) the rest of the state (ROS) except PSEG-LI. Remote net metered projects in ROS that receive monetary crediting from a non-demand host meter receive the "Monetary" incentive, all other projects in ROS receive "Volumetric" incentive. Incentive Amount The Base Incentive for the PV systems are calculated based on 3 years of estimated annual energy production using 13.4% capacity factor (CF) for fixed systems, 16% CF for single-axis tracking, or 17.5% CF for dual-axis tracking. Total estimated annual energy production is calculated by the formula: PV system Estimated Annual Energy Production (kWh) = PV system DC rating (kW) x 8760 (h) x Capacity Factor. Base Incentive is calculated by multiplying estimated annual energy production calculated above by its corresponding MW block incentive rate (in $/kWh), given by the formula Base Incentive ($) = PV system Estimated Annual Energy Production (kWh) x MW Block Incentive ($/kWh) x 3 years The base incentive calculated above, with additional eligible incentives (described section below) add up to "Not to Exceed" (NTE). NTE value is calculated based on projected kWh production of the system. Total incentive payment for the system cannot exceed this value. Incentives are distributed to the contractor in for four separate installments:
For example a 1MW system, would have total Annual Energy Production of 1,174MWh with a 13.4% capacity factor. Base incentive can be calculated by multiplying the total Annual Energy Production by 3 years and the Performance Based Incentive corresponding to the MW block. The Base incentive with volumetric PBI on Block I (0.114$/kWh) would amount to 1,174MWh x 3 x 0.114 = $401,453.28. This is the total NTE or maximum incentive that the project will receive (excluding additional incentives described below). One fourth of the amount ($100,363) will be paid after commercial operation. The rest of the amount will be paid after each year for three years based on the output of the facility (which will approximately amount to $100,363 each year for next three years. The excel based incentive calculator (MWBlock Estimator) available at the NY-Sun website can be used to calculate incentives for the PV system. Additional Incentives An additional incentive of $50,000 is awarded to applicants who invest in energy storage and/or energy efficiency. Energy efficiency investments must reduce energy use intensity (kBtu/sq.ft/year) at the customer’s site by a minimum of 15% relative to the baseline energy use intensity of the customer. The program also offers separate additional $50,000 for investment in integrated PV/energy storage that provide minimum of 250 kW of monthly peak demand reduction at the electric customer's site. Contractor Requirements Incentives are provided directly to the participating contractors, which are transferred to the customer to reduce the cost of the system. Interested parties with appropriate credentials can apply through the NY-Sun program website to register as a participating contractor. Participating contractors are responsible for installing the system, and submitting all required PV incentive application to NYSERDA.
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Fannie Mae Green Financing – Loan Program | 05/08/20 | 03/25/23 | 5780 | NOTE: Only multifamily properties are eligible for the program. Single family homeowners are not eligible for this program. The Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with 5 or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender: https://multifamily.fanniemae.com/about-multifamily/our-partners/dus-lenders Green Rewards, launched in 2015, provides preferential pricing and up to an additional 5% of loan proceeds by including up to 75% of projected owner energy and water savings and 25% of projected tenant savings in the loan underwriting. Conventional and affordable multifamily properties, as well as cooperatives, seniors, military, and student housing properties are eligible for this program. To qualify for a Green Rewards loan the property owner must commit to making property improvements that are projected to reduce the whole property’s annual energy and water consumption by at least 30%, which a minimum of 15% must be attributable to savings in energy consumption. Properties may be located anywhere in US, and the selected property upgrades must be completed within 12 months of loan closing. Fannie Mae also provides preferential pricing for an acquisition or refinance loan on a conventional or affordable property that has a current, eligible Green Building Certification per Fannie Mae Form 4250. Please visit the Fannie Mae Green Financing website for more information and detailed program requirements. | ||||||||||||||||||||||||||||||||||||||||||||||
PSEG Long Island- Commercial Solar PV Feed-in Tariff | PSEG | 07/14/22 | 03/25/23 | 21865 | NOTE: The FIT III program is closed and no longer accepting new applications. Any inquiries may be submitted to Power Markets at [email protected] PSEG Long Island’s Commercial Solar Feed-in Tariff (FIT) program supports the development of solar energy for commercial sector in Long Island. The program is designed as part of Long Island Power Authority’s (LIPA) goal to add 400 MW of new renewable energy generation by 2018. The commercial solar FIT program has a goal to install 20 MW of solar energy in its third round of solicitation. Eligibility All new non-residential solar PV projects that have a minimum output of 200kW (AC) and maximum output less than 1,000kW (AC) are eligible to participate in the program. The solar PV project must be placed on non-residential customer’s rooftop or carport that is used to shelter motor vehicles, and be interconnected to the LIPA’s distribution system. The applicant does not have to be a PSEG LIPA’s electric customer to participate in the program, however, the system must be installed within LIPA’s service territory. Net metered systems, systems that are already interconnected, or projects that have received other incentives from LIPA are not eligible for the program. Program description The program is designed as a “buy-all, sell-all” where all the output from the solar PV system is exported to the grid. In exchange, the program provides fixed price ($/kWh) for all the output generated by the system for the period of 20 years under a power purchase agreement (PPA). The fixed purchase price will be determined through a Clearing Price Auction. Market Auction Interested applicants must submit an application for the Clearing Price Auction including a bid price that is less than the bid cap price of $0.1649/kWh. Applications with a bid price greater than the cap price will be discarded. The bids will be ranked generally based on- i) lowest evaluation bid price, ii) smallest proposed project size, and iii) earliest submittal time stamp until the projects add up to 20 MW. The price ($/kWh) at which the capacity reaches 20 MW will be set as the market clearing price. Each successful applicant will receive a fixed price contract at which the auction cleared. |