Gov. Andrew Cuomo's budget plan unveiled Tuesday includes two new tax credits designed to help grow the solar industry in the state.
The credits are part of Cuomo's NY-SUN Solar Program he announced during his State of the State address earlier in the month.
The first tax credit would exempt commercial customers from state sales tax on solar electric systems, while giving local governments the option to do the same with their local sales tax. Currently, only residential solar customers are exempt from sales tax, according to Cuomo's budget proposal.
Cuomo would also expand a state income tax credit for solar systems to include leased systems. The current law allows homeowners who buy a solar system to take a personal income tax credit equal to 25 percent of the cost of the system. Cuomo is proposing a tax credit equal to 12.5 percent of the annual leasing costs of a solar system.
Cuomo's NY-SUN program is expected to have other elements to help expand the state' solar industry, especially demand for large-scale solar projects. The governor wants to quadruple annual solar installations in the state by 2013.
Solar advocates hailed Cuomo's tax proposals Tuesday, saying they will further encourage solar development in New York, which already has a solar rebate program through the New York State Energy Research and Development Authority.
Carol Murphy, executive director for the Alliance for Clean Energy New York in Albany, says additional details of Cuomo's overall solar plan should be revealed in the near future, but the tax breaks are a welcome component.
"Anything that makes it more affordable for people is all for the good," Murphy said.
A coalition of labor, renewable energy and environmental groups called the New York Solar Jobs Coalition also praised Cuomo's tax credit plan.
"We appreciate Gov. Cuomo's recognition that investing in solar power is an investment in New York's energy and economic future, and this is a step in the right direction" said Carrie Cullen Hitt, vice president of the Solar Energy Industry Association, a national solar industry trade association that is part of the New York coalition.
The tax credits are expected to cost the state $2 million in the next fiscal year and $5 million a year after that until 2016, when the impact would drop back down to $3 million annually.
SOURCE: http://www.timesunion.com/business/article/Solar-gets-a-tax-boost-2589503.php
The credits are part of Cuomo's NY-SUN Solar Program he announced during his State of the State address earlier in the month.
The first tax credit would exempt commercial customers from state sales tax on solar electric systems, while giving local governments the option to do the same with their local sales tax. Currently, only residential solar customers are exempt from sales tax, according to Cuomo's budget proposal.
Cuomo would also expand a state income tax credit for solar systems to include leased systems. The current law allows homeowners who buy a solar system to take a personal income tax credit equal to 25 percent of the cost of the system. Cuomo is proposing a tax credit equal to 12.5 percent of the annual leasing costs of a solar system.
Cuomo's NY-SUN program is expected to have other elements to help expand the state' solar industry, especially demand for large-scale solar projects. The governor wants to quadruple annual solar installations in the state by 2013.
Solar advocates hailed Cuomo's tax proposals Tuesday, saying they will further encourage solar development in New York, which already has a solar rebate program through the New York State Energy Research and Development Authority.
Carol Murphy, executive director for the Alliance for Clean Energy New York in Albany, says additional details of Cuomo's overall solar plan should be revealed in the near future, but the tax breaks are a welcome component.
"Anything that makes it more affordable for people is all for the good," Murphy said.
A coalition of labor, renewable energy and environmental groups called the New York Solar Jobs Coalition also praised Cuomo's tax credit plan.
"We appreciate Gov. Cuomo's recognition that investing in solar power is an investment in New York's energy and economic future, and this is a step in the right direction" said Carrie Cullen Hitt, vice president of the Solar Energy Industry Association, a national solar industry trade association that is part of the New York coalition.
The tax credits are expected to cost the state $2 million in the next fiscal year and $5 million a year after that until 2016, when the impact would drop back down to $3 million annually.
SOURCE: http://www.timesunion.com/business/article/Solar-gets-a-tax-boost-2589503.php
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