Environment DEC
From the September 2005 issue
Governor Pataki Signs Clean Energy Tax Credit Bills
Governor George E. Pataki announced that he has signed into law two bills to promote the use of solar energy in New York State by offering homeowners tax incentives that would reduce the net cost of solar installation. The bills will encourage the use of clean, alternative sources of renewable energy and better protect New York's environment.
Solar radiation is used to provide heating, cooling, and hot water to municipal buildings, school districts and office buildings
"New York State has become a national leader in advancing clean-energy technologies and solutions that will protect our environment and preserve our energy resources," Governor Pataki said. "By providing these energy tax credit measures, we will allow New York to build on that historic progress and help preserve the state's cherished resources for generations of New Yorkers who will follow. Investing in clean, renewable energy sources-such as solar-will help clean the air we breathe, make us less dependent on foreign fuel, and help create new jobs and businesses right here in New York State."
Two Bills - Many Benefits
The legislation (S.4962-a) exempts solar energy systems equipment from sales and use taxes and gives municipalities the option of granting local exemptions. A second bill (S.5252) broadens the existing personal income tax credit for solar electric generating equipment to also include equipment using solar radiation to provide heating, cooling and/or hot water. The personal income tax credit covers 25 percent of qualified expenditures for the purchase and installation of solar energy systems equipment. The second bill also increases the maximum allowable credit from the current cap of $3,750 to $5,000.
Saving Money and Our Planet
Solar energy offers many environmental and economic benefits. Water heating is the third largest energy expense in a typical home and accounts for 14 percent of a homeowner's utility bill. By making the installation of water heaters which use solar energy more affordable, the new law could generate significant savings for homeowners.
In addition, over a 20-year period, a 3-kilowatt solar electric system will eliminate 65 tons of carbon dioxide-the chief greenhouse gas responsible for global warming and climate change; 670 pounds of sulfur dioxide, which contributes to acid rain and 250 pounds of nitrogen oxides-the primary ingredient of smog. During its lifetime, one solar water heater eliminates more than 50 tons of carbon dioxide emissions.
Effective Dates
The new law exempting solar energy systems equipment from state sales and use taxes takes effect September 1, 2005. The new law expanding solar electric system personal income tax credit to include other solar components takes effect immediately and applies to taxable years beginning January 1, 2006.
