What is happening
State lawmakers are close to helping more New York families benefit from solar energy. They are considering two important steps:
- Increasing the state’s solar tax credit cap from $5,000 to $10,000, and
- Making the tax credit refundable
The tax credit cap needs to increase
New York state provides a 25% personal income tax credit for New Yorkers who install solar. The $5,000 tax credit cap hasn’t increased since 2006.
It has remained flat, without any inflationary adjustment since then. Lawmakers passed the credit to help the state meet its renewable energy goals. Without a cap increase, the state will fall short.
A refundable credit will help more New Yorkers go solar
The current tax credit leaves many New Yorkers out. It inaccessible to many low-income homeowners and seniors. This is because they often do not pay enough in taxes to use the credit. Making the credit refundable would remove this barrier.