The information below was prepared for general informational purposes only and, therefore, individuals may wish to consult an attorney, accountant, or other professional for advice specific to individual circumstances. See the disclaimer below.

Federal and state tax credits:

• Residents may be eligible for a credit against federal income taxes for up to 30% of qualified solar electric property expenditures, solar heating property expenditures, fuel cell property expenditures, small wind energy property expenditures, and geothermal heat pump property expenditures. (See 26 USC § 25D). For current information including forms and instructions, visit the IRS website at www.irs.gov and search for the terms "residential energy credit."

• Residents may be eligible for a credit against New York State income taxes of up to 25% (capped at $5,000) of the cost of qualified solar energy system equipment expenditures. (See NY Tax Law § 606 g-1). Click here for more information or visit the New York State Department of Taxation and Finance website and search for the terms “solar energy.” Please note that for qualified taxpayers, the state allows a total maximum credit of $5,000 for solar energy systems equipment.

Property tax exemption:

• In many cases, a solar energy system increases a home’s value; however, the added-value may be exempt from real property taxes for 15 years if the system meets certain eligibility requirements of the New York State Energy Research and Development Authority. (See NY Real Property Tax Law § 487). Click here for more information from the New York State Office of Real Property Services or link to form.

Rebates:

• In order to reduce the initial cost of installing panels, LIPA offers rebates. The utility offers $3.50 per watt for your photovoltaic (PV) system. Click here for more information about LIPA's rebate program.

Net metering:

• Solar panels may reduce electricity bills throughout the year. During the month, if LIPA customer with a net-meter (a meter that replaces the standard kilowatt-hour meter with a meter that registers the flow of electricity in and out of the home) generates more energy from his or her system than is consumed from LIPA, the customer is billed for the daily service charge only (line and meter charge) and the excess generation in kilowatt hours (credits) is placed in an “energy bank.” Energy from the bank can be withdrawn in subsequent months to reduce the net metered customer's billed consumption during the contract year. Click here for m ore on net metering from LIPA's Solar Pioneer Program.

Disclaimer: The information above was prepared for general informational purposes only, may not include current developments in the law, and does not constitute the provision of legal advice or tax advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers who are fully aware of the facts specific to your situation. None of the tax information on this website is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. Click here for additional disclaimers.