At Solar Savings Initiative, we are thrilled to share the exciting news about the extension and expansion of the New York City Solar Property Tax Abatement. Governor Hochul’s recent decision has paved the way for a brighter and more sustainable future for homeowners in the Big Apple. In this article, we’ll delve into the details of the extended abatement, explaining how it works, who is eligible, and the steps to claim this valuable incentive.
Understanding the NYC Solar Property Tax Abatement
The NYC Solar Property Tax Abatement, administered by the NYC Department of Buildings, allows homeowners to reduce their property tax liability by 7.5% of the total cost of their solar and battery installation annually for four consecutive years. This incentive aims to alleviate the property tax burden for those embracing solar and battery storage, ultimately promoting a cleaner environment.
How It Works
The abatement is calculated based on the price paid for the solar system, encompassing equipment, labor, and soft costs. It does not apply to financing costs or interest on a solar loan. The maximum abatement is $62,500 per year or your annual property tax liability, whichever is less.
NYC Abatement vs. Exemption
It’s essential to distinguish between abatement and exemption. While an exemption ignores the additional value added by the solar system, an abatement is a reduction in property taxes over a specific period. The NYC Solar Property Tax Abatement focuses on providing homeowners with a gradual reduction in their property taxes, making it a valuable incentive.
Calculating the Incentive
Let’s break down the numbers using a hypothetical scenario. Suppose you purchase a 5 kW solar system for $20,000. After factoring in the NYSERDA rebate and the property tax abatement, your net cost over four years would be significantly reduced, showcasing the financial benefits of embracing solar energy.
Combining Incentives for Maximum Savings
For those looking to maximize savings, combining the NYC solar tax abatement with federal and state tax credits can lead to substantial reductions in the overall cost of a solar system. The synergy of these incentives results in a net cost that is more than 75% lower than the initial investment.
Who is Eligible?
The NYC solar property tax abatement is available to property owners in New York City who install solar electric-generating systems on their buildings. The abatement is worth 20% for systems placed in service before January 1, 2024, and up to 30% for systems placed in service between January 1, 2024, and January 1, 2035.
Claiming the Abatement
To claim the NYC Solar Property Tax Abatement, you and your project manager must complete the PTA4: Property Tax Abatement Application and Agreement for Solar Electric Generating System. This detailed application requires careful planning and cooperation, but the rewards are worth the effort.
Conclusion
In conclusion, the extension and expansion of the NYC Solar Property Tax Abatement make New York City an even more attractive market for residential solar. By leveraging this incentive, homeowners can significantly reduce their property tax burden while contributing to a sustainable and cleaner future. At Solar Savings Initiative, we are committed to guiding you through every step of your solar journey, ensuring a seamless and rewarding experience. Join us as we pave the way for a brighter, cleaner future through the power of solar energy.
Join millions of NYC homeowners who have already made the switch and are cutting down their electric bill with solar!