FindMyRebate See my rebates

All of New York · Tax credit

Solar Energy System Equipment Credit

Run by New York State Department of Taxation and Finance

New York homeowners and renters who buy, lease or sign a 10-year-plus power purchase agreement for solar equipment at their principal residence can claim a state income tax credit of 25% of the equipment cost, up to $5,000, with unused credit carried forward five years.

Open Checked Oct 26, 2026

Amounts

How much you get

25% of qualified solar energy system equipment expenditures, up to $5,000. Not refundable, but any amount above the tax you owe carries over for up to five years. For a lease or power purchase agreement, no credit is allowed after the 15th year.

Eligibility

Do I qualify?

You need to meet all 5 of these.

  • Your home is in New York.

  • The system must be installed and used at your principal residence in New York State (a house, mobile home, co-op or condo where you live most of the time). Vacation homes don't qualify.

  • You can claim it if you bought the equipment, leased it under a written agreement, or signed a written agreement of at least ten years to buy the power from a system you don't own.

  • The system must use solar radiation to produce energy for heating, cooling, hot water or electricity for residential use. Solar electric systems must have a net energy metering contract (or follow the utility's net metering schedule) and be connected to the utility grid.

  • Not refundable; it reduces New York income tax owed, with the excess carried forward up to five years.

Applying

How to apply

You claim it on your tax return.

  1. Keep your purchase, lease or power purchase agreement records.
  2. Complete Form IT-255, Claim for Solar Energy System Equipment Credit.
  3. File it with your New York State income tax return (Form IT-201 or IT-203).

Forms and instructionsInstructions for Form IT-255 (2025)

Stacking

Use it with

You can get these too.

  • All of New York

    NY-Sun Residential Solar Incentive

    Up to $0.8 back

    NY-Sun pays an upfront per-watt incentive through your solar contractor for home solar up to 25 kW. Households under 80% of area median income get the Affordable Solar incentive of $0.80/W (Upstate and Con Edison areas) or $0.40/W (Long Island); the standard incentive remains only in a few upstate utility areas.

    Checked Oct 26, 2026

  • All of New York

    Sales Tax Exemption for Residential Solar Energy Systems Equipment

    Amount varies

    Buying and installing solar equipment for a New York home is exempt from the 4% state sales tax and the 3/8% MCTD tax; local sales tax is exempt only where the county or city has adopted the exemption.

    Checked Oct 26, 2026

  • All of New York

    Real Property Tax Exemption for Solar, Wind, Energy Storage and Certain Other Energy Systems (RPTL 487)

    Amount varies

    New York homeowners who add solar panels, a wind system, battery storage or certain other energy systems can have the added assessed value exempted from property taxes for 15 years by filing Form RP-487 with the local assessor, unless their town, city, county, village or school district has opted out.

    Checked Oct 26, 2026

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Solar Energy System Equipment Credit pay?

25% of qualified solar energy system equipment expenditures, up to $5,000. Not refundable, but any amount above the tax you owe carries over for up to five years. For a lease or power purchase agreement, no credit is allowed after the 15th year.

Do renters qualify?

The system must be installed and used at your principal residence in New York State (a house, mobile home, co-op or condo where you live most of the time). Vacation homes don't qualify. You can claim it if you bought the equipment, leased it under a written agreement, or signed a written agreement of at least ten years to buy the power from a system you don't own.

Can I combine it with other rebates?

Yes, with NY-Sun Residential Solar Incentive, Sales Tax Exemption for Residential Solar Energy Systems Equipment and Real Property Tax Exemption for Solar, Wind, Energy Storage and Certain Other Energy Systems (RPTL 487). See Use it with.

Is it still available?

Yes. It was open when we last checked, on October 26, 2026.

I live in a co-op or condo. Can I claim the credit?

Yes. A share of the building's qualified solar expenditures can be attributed to each unit; the co-op or condo association should tell you your share.

References

Sources

This page is built from these official pages, run by the program itself.

  1. Solar Energy System Equipment Credit | Department of Taxation and Financetax.ny.gov · Read Oct 26, 2026 · Re-checked weekly
  2. Instructions for Form IT-255 (2025)tax.ny.gov · Read Oct 26, 2026 · Re-checked monthly

When one of these pages changes, we re-check this page against it.

Report a problem with this page

Nearby

More in New York

  • All of New York

    On-Bill Recovery Loan

    Amount varies

    NYSERDA loans of $1,500 to $25,000 for solar panels, heat pumps and energy efficiency work on one- to four-family New York homes, repaid through your utility bill over 5, 10 or 15 years, with a balance that can pass to the next owner.

    Checked Oct 26, 2026

  • All of New York

    Residential Energy Storage Incentive

    Amount varies

    NYSERDA pays a per-kWh incentive, through a participating contractor, for a home battery up to 25 kWh, standalone or paired with solar. A higher Inclusive Storage Incentive is available in disadvantaged communities and for households under 80% of median income.

    Checked Oct 26, 2026

  • All of New York

    Sales Tax Exemption for Residential Energy Storage Systems Equipment

    Amount varies

    From June 1, 2024 through May 31, 2028, buying and installing a home battery (residential energy storage system) in New York is exempt from state and local sales and use tax.

    Checked Oct 26, 2026