You’ve determined that 2020 will finally be your year — your year to go green.
Specifically, you’re interested in going the solar route. And that couldn’t be a smarter choice considering that New York State offers an attractive solar tax credit.
The question is, what is the value of the New York State solar tax credit for 2020?
Here’s a rundown on the savings you can expect in 2020 as compared with 2019 in this guide.
Let’s get started!
New York State Solar Tax Credit
The state in 2020 has a tax credit that equals either 25% of the solar costs you incur or $5,000 — whatever figure is lower.
This tax credit is much better than a tax deduction. That’s because a deduction only reduces a taxpayer’s liability. This means that the deduction is worth just a percentage of its monetary value.
With a tax credit, on the other hand, you can subtract your credit amount from your bill directly. In other words, it is pure savings.
What’s great about the New York State solar tax credit is that it is very flexible compared with other types of credits. This is because you may roll over extra credits for the next five years or less.
In addition, you may claim your tax credit whether you purchase your energy system outright or lease it.
This credit is available only to New York residents. In addition, you must install your solar system on a primary residence in the state.
Solar Tax Credit in 2020 vs. 2019
This year’s New York State solar tax credit is the same as in 2019. So, like last year, if you purchase a system for $15,000 in 2020, you could claim a credit of $3,750 on your New York taxes.
Note, however, that the federal government also offers a tax credit in 2020. Still, this credit is only for people who purchase their own solar energy systems. Also, the savings you receive with this tax credit has actually decreased in 2020 compared with last year for homeowners.
This federal credit was 30% of a solar power system’s cost in 2019, but in 2020, it is 26% of the cost. This figure is expected to drop yet again in 2021, when it will be 22% of the cost.
Then, the federal credit is slated to expire in 2022 for homeowners. Meanwhile, it will be 10% going forward for business owners.
How We Can Help
We love helping people to take advantage of the New York State solar tax credit to become increasingly energy efficient by using solar energy.
That’s why our solar energy system installation count is already in the thousands. And it’s why we remain one of the state’s biggest providers of solar power systems.
With our help, you can easily purchase your very own system or even lease a system. Either way, your wallet wins, and so does the environment.
Get in touch with us today to start enjoying a cleaner energy source and starting saving significantly on your utility bill in the months ahead.