Solar Sales Tax Exemption (New York)

(Redirected from Residential Solar Sales Tax Exemption (New York))

This is the approved revision of this page, as well as being the most recent.
Jump to: navigation, search


Last modified on February 12, 2015.

Financial Incentive Program

Place New York

Name Solar Sales Tax Exemption
Incentive Type Sales Tax Incentive
Applicable Sector Commercial, Industrial, Residential, General Public/Consumer, Multi-Family Residential
Eligible Technologies Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Solar Pool Heating
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% exemption from state sales tax

Start Date Residential: 09/01/2005

Non-residential: 01/01/2013

Program Administrator New York State Department of Taxation and Finance

Date added to DSIRE 2005-08-10
Last DSIRE Review 2014-09-18

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption was extended to non-residential solar systems in August 2012 (S.B. 3203), effective beginning January 1, 2013. For both residential and non-residential systems, the exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. It does not include equipment that is part of a "non-solar energy system". For residential systems additional language prohibits the exemption from being claimed for a system that uses "any sort of recreational facility or equipment as a storage medium". This language is not replicated in the non-residential exemption, thus it would appear that a system used to heat a non-residential pool would qualify while one used to heat a residential pool would not. There is not an expiration date for this incentive.*

The law also permits local governments (municipalities and counties) to grant an exemption from local sales taxes. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for solar energy equipment. The solar sales tax list (Publication 718-S) is updated several times per year. The New York Department of Taxation and Finance has issued a small amount of additional guidance and instructions on how to claim the residential exemption in Publication TSB-M-05(11)S. In December 2012 the department issued similar instructions on how the claim the commercial exemption in Publication TSB-M-12(14)S. More information, including a list of jurisdictions that provide an exemption, can be found here.

*The New York Code contains duplicate sections NYCL Tax § 1115 (ee). The first pertains to the sales tax exemption for residential solar energy systems and contains no expiration date, while the second contains rules for an unrelated exemption with expiration dates of December 1, 2014, and December 1, 2016. This appears to be a mistake that will not affect the sales tax exemption for residential solar energy equipment.

Incentive Contact

Contact Name Taxpayer Assistance - Sales Tax Information Center
Department New York State Department of Taxation and Finance

Address W.A. Harriman Campus

Place Albany, New York
Zip/Postal Code 12227
Phone (518) 485-2889
Phone 2 (800) 698-2909


Authorities (Please contact the if there are any file problems.)

Authority 1: NYCL Tax, Article 28 § 1115 (ee)
Date Effective 2005-09-01
Date Enacted 2005-07-26

Authority 2: S.B. 3203
Date Effective 2013-01-01
Date Enacted 2012-08-17

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"