New York: NY-Sun and the NYC Tax Abatement
- What Is the NYC Solar Electric Generating Systems Tax Abatement?
- Who Is Eligible for the NYC Solar Tax Abatement?
- When the Abatement Starts and How Long It Lasts
- How Much Can You Save with the NYC Solar Tax Abatement?
- How NY-Sun Complements the NYC Solar Tax Abatement
- How to Apply for the NYC Solar Tax Abatement
- Pairing Solar Incentives with Energy Storage for Greater Value
- Why a Modern Solar and Storage Approach Matters in New York City
- Frequently Asked Questions
- Ready to unlock NYC solar tax abatement benefits with EcoFlow DELTA Pro Ultra?
New York property tax bills can create a significant financial burden for homeowners. Thankfully, there are tax abatement and incentive programs that can help reduce property tax liability for solar installations. This program also complements NY-Sun's rebates, creating a comprehensive savings package for solar-powered homeowners in the Big Apple.
What Is the NYC Solar Electric Generating Systems Tax Abatement?
The NYC Solar Electric Generating Systems Tax Abatement is a property tax reduction program for New York City residents who install photovoltaic solar panel systems on their property.
The abatement is worth 7.5% of the annual installation cost for 4 consecutive years, totaling 30% of the total system cost. However, the maximum benefit is capped at $62,500 per year, or the annual property tax liability, whichever is lower. It's applied as a credit against your bill and doesn't reduce property value.
This program is in place for residential and commercial properties in all five boroughs of New York City through January 1st, 2035.
Who Is Eligible for the NYC Solar Tax Abatement?
Any New York City property owner who installs solar electric generating systems on their tax class 1, 2, or 4 property is eligible for the NYC solar abatement. This includes residential homeowners, condo owners, commercial building owners, and co-op shareholders. Historic and landmark buildings are also eligible if they are approved by the Landmarks Preservation Commission.
Note that any properties that receive ICAP 421-A, 421-B, or 421-G benefits are excluded from this program.
When the Abatement Starts and How Long It Lasts
The abatement's four-year benefit period begins on July 1st, once your system is fully installed and approved by the Department of Buildings. The system must be placed in service before January 1st, 2035, to qualify for the enhanced 30% benefit.
Any applications submitted after March 15th should apply for the abatement for the following year due to the NYC fiscal year schedule. Once the Department of Finance processes your application, you don't need to do anything more. The benefit will automatically appear on your property tax statements. You also don't need to reply each year. The abatement will continue for the full four-year term.
How Much Can You Save with the NYC Solar Tax Abatement?
Your total savings depend on the cost of your system.
A $25,000 system will generate an $1,875 annual abatement, totaling $7,500 over four years. Similarly, a $40,000 installation will yield a $3,000 annual reduction, for a total of $12,000 in savings. These savings are capped at the lesser of $62,500 annually, 7.5% of costs, or your actual property tax liability.
The average homeowner in New York City can save $2,000 to $4,000 each year on their property bill with a typical solar installation and NYC solar abatement application.
How NY-Sun Complements the NYC Solar Tax Abatement
NY-Sun provides upfront rebates to help reduce the initial cost of installation before other benefits apply. Your contractor will typically subtract the rebate directly from their invoice, so you don't have to fill out any additional paperwork. If your household earns under 80% of the area’s median income, you may also qualify for enhanced incentives.
How to Apply for the NYC Solar Tax Abatement
The first step in applying for the abatement is having your installer complete the Form PTA-4 application and submit it to the NYC Department of Buildings during the permitting process.
The Department of Buildings will then inspect the completed installation and issue a letter of completion confirming that your system is operational. After that, your installer can file the abatement application with the Department of Finance on your behalf.
All applications must be submitted by March 15th to apply for the abatement in the same calendar year. You can also self-file using the detailed DOB instruction manual if you're handling the paperwork yourself.
Pairing Solar Incentives with Energy Storage for Greater Value
If you want to maximize the value of your solar incentives, consider pairing it with battery storage to create a solar generator, which is still eligible for the same 30% abatement as solar panels alone.
This energy storage will enhance the value of your panels by storing excess daytime production for evening use. It can also provide backup power during grid outages to keep essential loads running.
Why a Modern Solar and Storage Approach Matters in New York City
New York City's aging electrical grid faces reliability challenges, especially during peak demand or extreme weather. Using a modern solar and storage approach to create a whole-home backup power system is critical for energy independence, reducing reliance on your utility system, lowering your monthly electricity bills, and providing backup during increasingly common outages.
Frequently Asked Questions
What is the property tax abatement for solar panels in NY?
New York City offers an abatement of 7.5% of installation costs, annually for 4 years, totaling 30% of the total system cost. However, the maximum annual benefit is $62,500 or the actual property tax liability, whichever is lower. This program is available through January 1st, 2035.
Am I eligible for the solar tax credit twice from New York State?
The New York State 25% credit is available only once per residence and capped at $5,000. However, you can also apply for the NYC property tax abatement, as these are separate and complementary programs.
What will the New York estate tax exemption be in 2026?
Solar installations can increase your property value, but also qualify for 15-year property tax exemptions on the added value. Note that this is separate from the solar abatement. This exemption reduces the assessed value of your property, while the abatement reduces what you owe. Property owners can choose either the exemption or the abatement.
Ready to unlock NYC solar tax abatement benefits with EcoFlow DELTA Pro Ultra?
If you're ready to take advantage of NYC's solar tax abatement, it's time to choose your equipment. Use the EcoFlow DELTA Pro Ultra to create expandable whole-home backup power that seamlessly integrates with the grid.
You can also combine it with a smart electrical panel to ensure it automatically backs up your power during outages. This installation can qualify for the full NYC solar abatement when paired with solar panels.
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