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New York solar and battery tax exemptions open

Administered by the New York State Department of Taxation and Finance, local assessors, and the New York City Department of Finance.

Home solar equipment and its installation are free of New York's 4% sales tax, and home batteries of all sales tax until 31 May 2028. The added value of solar is exempt from property tax for 15 years where the town has not opted out. New York City instead cuts property tax by 7.5% of the cost for four years.

source · verified 26 September 2026 · amounts in US dollars

What it pays

The exemptions
ExemptionWhat it covers
Sales tax on home solarThe 4% state tax and the 3/8% commuter-district tax on equipment and installation; local sales tax depends on the locality (Publication 718-S)
Sales tax on home batteriesState and local sales tax on residential energy storage and its installation, 1 June 2024 to 31 May 2028
Property tax (RPTL 487)The increase in assessed value from solar, wind or battery storage, for 15 years, unless your locality opted out
New York City solar abatement7.5% of the installation cost off property tax each year for four years, for systems starting service from 1 January 2024 to 1 January 2035; the lowest of that, the year's taxes or $62,500

Who is eligible

sales tax
Give the installer Form ST-121, box U, "residential solar energy systems equipment exempt under section 1115(ee) of the Tax Law".
New York City
The Department of Buildings approves the abatement; it starts 1 July after approval. NYC properties get the abatement instead of the RPTL 487 exemption.

Where the application goes

The sales tax exemption at purchase; the property tax exemption with your local assessor; NYC's abatement through the Department of Buildings.

Where the application goes
If this is youApply here
Sales tax bulletintax.ny.gov
NYC abatementnyc.gov

The thing most pages get wrong

New York City's business portal and many solar sites still describe the city's solar abatement as 5% a year. The Department of Finance's page says 7.5% of the installation cost for systems that start service from 1 January 2024 to 1 January 2035, up to $62,500 a year for four years.