Ready to save some serious cash on your solar system? Homeowners based in the New York state can qualify for two solar tax credits that can save tens of thousands of dollars (around 55% of the total cost of the system) when it comes time to pay taxes. Here we'll show you how to apply for these solar tax incentives, which forms you'll need, and what kind of savings you can expect.

In a previous blog post, we went over federal, New York state, and NYC local incentives in great detail–so if you haven’t seen it yet, check it out before you apply. You can also watch a video about applying for solar tax credits here.

So once your solar system is activated here's a guide on how to apply all the relevant rebates to your installation.

Review of New York Solar Tax Incentives

New Yorkers can take advantage of two different tax incentives when they file their taxes.

New York State Solar Incentive

New York homeowners might qualify for a 25 percent tax credit know as the Solar Energy System Equipment Credit. This credit is limited to $5,000 and can be carried over on your tax return for up to five years.

New York City Solar Incentive

Finally, New York City residents may qualify for the Solar Electric Generating System (SEGS) Tax Abatement. For residents of NYC, this program lessens the amount of property taxes owed. For up to four years, NYC residents can take advantage of a 7.5 percent abatement, an abatement equal to the amount of your annual property taxes, or 62,500 dollars—whichever number is lowest.

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☀️ How to Claim the NY State Solar Energy System Equipment Credit ☀️

To receive this credit, your system must use solar radiation to produce energy and it must be installed at your main home in New York state. You’ll qualify for this credit whether you purchased, leased, or entered into a power purchase agreement during the previous tax year. That’s it!

Complete and submit Form IT-255 with your New York State tax return. Instructions for completing the form are available here.

Note: Under Schedule A, your “qualified expenditures” depends on how you financed your system.

• Cash or loan purchase: Use your total system cost (listed in your Mpower Solar contract or invoice).
• Lease: Use the total of all payments in your lease agreement (listed in your Mpower Solar contract).

Need to Know

This credit applies to the year your solar system is placed in service, typically when you receive Permission to Operate PTO from Con Edison. Example: If your system is installed in December 2025 and receives PTO in February 2026, you’ll claim the credit on your 2026 return filed in early 2027. Any credit amount in excess of the tax due can be carried over for up to five years.

☀️ How To Claim the New York City Solar Property Tax Abatement ☀️

As a New York City homeowner installing solar, you’re eligible for the Solar Electric Generating System (SEGS) Tax Abatement worth 7.5% of your solar installation cost each year for four years—a total benefit of up to 30% of your system cost (capped at $62,500 per year). To take advantage of this program, you should discuss the submission process with your installer. In most cases, they’ll submit the appropriate forms on your behalf.

If you qualify, you will automatically receive this rebate as a credit on your annual property tax bill.

How It Works

Mpower Solar will handle this abatement paperwork for you. When your system is installed and ready to be turned on, Mpower Solar files a request with the NYC Department of Buildings (DOB). The DOB will inspect the property and issue a Letter of Completion (LOC). At that stage, Mpower Solar will submit the Property Tax Abatement (PTA) application to the NYC Department of Finance (DOF) on your behalf. This filing allows you to receive the NYC Solar Property Tax Abatement.
Once the DOF processes your PTA application, your tax abatement will be reflected on your upcoming property tax statements.

In the case you need to submit the paperwork yourself, you must do so within the year that your solar system is installed. The NYC DOB provides a detailed instruction manual for filing this paperwork. While following the instructions, you’ll need to fill out the PTA4 form and, once completed, file it with the Department of buildings. They’ll be the ones to approve your application and the Department of Finance will provide the benefit to you.

Note: These abatements are assessed once per year so PTAs filed after March will apply to the following tax year.

Claim Your New York Solar Tax Credits Now

Ensuring that you receive both your New York State solar tax credit and your NYC solar property tax abatement is one of the last—but most important steps in the solar installation process! Speak to your tax preparer, have any supporting paperwork handy, and get ready to enjoy those solar rebates.