There are several advantages to adding solar as part of your environmental advantage. Below we outlined some of the non-cash benefits of such:
Solar Panel Tax Abatement
The property owner will get a tax abatement equivalent to 20% of the system cost. Your property may be eligible for the abatements codified by the NYS Real Property Tax Law if it has a solar electric generating system and electric energy storage equipment placed into service from January 1, 2014 and January 1, 2024.
Modified Accelerated Cost-Recovery System (MACRS) allows companies that invest in solar PV systems to be eligible for federal income tax deductions. Businesses and property owners may recover some of the capital costs of solar installations by deducting an appreciable basis over five years.
Investment Tax Credit(Federal Tax Credit)
In addition to incentive programs, you may be eligible for New York State renewable energy tax credits such as the Federal Income Tax Credit or 25% New York State Tax Credit. Owners of new residential or commercial solar systems can deduct 26% of the cost of the system from their taxes in 2021. In 2023, this percentage will fall to 22% and expire at the end of 2023. The investment tax credit is claimed when you are filing your yearly federal tax returns. The Federal Investment Tax Credit is fully monetized by offsetting the business' federal income taxes the year after the system is installed. If the company owes federal income taxes the year after you install solar, you can offset your income tax liability with the federal investment tax credit. If you are not able to take the full tax credit during a solar installation's first year of operation the credit may be carried forward to the next year.
The NY-Sun Initiative gives incentives for the installation of PV systems sized 200 kW or less per electric meter. Each region is assigned MW targets. The incentives for a residential or commercial system will typically cover 10% of the installed cost of a PV system. This incentive is equivalent to $.30/watt.
Please contact us if you want to have STRATCO explore solar PV solutions for your asset on your behalf.