The Investment Tax Credit (ITC), also commonly referred to as the federal tax credit provides a 30% tax credit for projects installed from 2022-2032. This is a result of the passing of the Inflation Reduction Act, which offers increased incentives for clean energy nationwide.
This incentive differs from other incentives in that it works in a block grant format. The incentive rewards early movers in installing solar by rewarding them with more money by the wattage of their solar system.
Bonus Tip: Once one block of the grant is fully used the incentive drops a grade and rewards less money per watt. Move fast to take full advantage of this incentive!
The state tax credit (which can be claimed in addition to the federal tax credit) provides an additional 25% tax credit for New York state taxes. However this incentive caps at $5,000.
For both the Federal and State solar tax credits, if an individual’s tax credit exceeds that of their tax liability, then the tax credits are eligible to be carried over for up to 5 years.
Solar batteries can be eligible for the ITC under certain conditions. The same 30% tax credit can be applied to a storage system provided it is exclusively charged from a renewable source of energy. This means a storage system paired with a solar system is eligible for the tax credit!
The Affordable Solar Program gives the opportunity for underserved households and communities qualify for solar. To calculate how to qualify for this program, NYSERDA measures gross household income combined with the total household occupancy.
First NY Federal Credit Union:
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