Tax Abatements for Solar Panels Could Get Extended

Both houses of the New York State legislature have voted to extend a property tax abatement to building owners, including New York City co-ops and condos, who install solar panels. The sign-up period for the abatement was set to expire in early 2019 and will be extended until 2021, provided Governor Andrew Cuomo signs the legislation, the nonprofit Solar One reports. 

The tax abatement is designed to offset the increases in property values that traditionally result from solar panel installations – and ensure that those higher taxes don’t dampen enthusiasm for solar energy. The abatement is available to the owners of co-ops and condos, rental and commercial properties, and one- to three-family homes statewide. 

The identical bills – one in the senate sponsored by Andrew Lanza, a Staten Island Democrat, the other in the assembly sponsored by Robert Carroll, a Brooklyn Democrat – have bipartisan co-sponsors from across the five boroughs. The reason for this citywide support is explained in the legislation: “Solar power in New York City has historically cost more per kilowatt of installed capacity than in other parts of the State of New York, primarily because of more stringent requirements of the [city’s] Department of Buildings and increased complexity in the building sites. Data from the New York State Energy Research and Development Authority indicates that solar energy projects in New York City cost approximately 25 percent more than the state average. Continuation of the property tax abatement is necessary to offset a portion of the extra costs.” 

The passage of the legislation comes as solar energy continues to expand in the city, including the growing number of “community solar” installations that allow consumers to reduce their electricity bills even if they can’t afford solar panels. 

“We’re excited about this bipartisan legislation,” says Noah Ginsburg, director of the Here Comes Solar initiative at Solar One. “We’ve been advocating for extension of the tax abatement. This is good news for co-ops and condos that can’t get a solar installation up by the end of this year.”