NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1373A
SPONSOR: Walker TITLE OF BILL:
An act to amend the tax law, in relation to residential solar tax cred-
its
PURPOSE:
The purpose of this bill is to increase the maximum credit amount for
the personal income tax credit for residential solar energy systems.
SUMMARY OF PROVISIONS:
Section 1. subsection (g-1) of section 606 of the tax law, is amended
to:
-Increase the tax-credit maximum to $10,000 for equipment installed on
or after January first, two thousand twenty-seven.
-Allow owners of a new business to receive the tax credit as a refund.
JUSTIFICATION:
The Climate Leadership and Community Protection Act requires the state
to have carbon-free electricity generation by 2040. Residential solar
and energy storage are excellent resources for removing demand from the
electricity grid to allow green energy generated from larger renewable
projects to power larger energy demands.
Though residential solar provides a net savings in energy costs, the
high upfront cost of installing solar panels is an obstacle that hinders
homeowners across New York from fitting their roofs with solar. Indeed,
with an initial installation cost in the five-figure range - a heavy
lift for many families - It can take several years for residents to
receive a return on their investment.
Expanding the residential solar tax credit limit will make the installa-
tion of residential solar more affordable and accelerate its expansion,
assisting the state in meeting our goals.
PRIOR LEGISLATIVE HISTORY:
2023-2024: A6739B; referred to Ways and Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Current law caps the solar tax credit at $5,000 or 25%, whichever is met
first, per taxpayer. This bill would increase the maximum amount to
$10,000 while keeping the 25% cap.
EFFECTIVE DATE:
This act shall take effect immediately.
