Energy Conservation Improvements Property Tax Exemption
Administered by New York State Office of Real Property Tax Services
New York's Energy Conservation Improvements Property Tax Exemption lets you avoid property tax increases when you install eligible energy upgrades—including solar/wind systems, heat pumps, insulation, windows, doors, and thermostats—on your one- to four-family home. The exemption applies to the added property value from these improvements and covers general municipal taxes, school district taxes, and special ad valorem taxes, though you'll still owe special assessments. Simply have the improvements installed; no certification or filing is required, and the exemption lasts as long as you own the property.
This program is valuable for customers upgrading residential properties (1-4 family homes) because it shields them from tax increases tied to energy-efficiency work, making projects more cost-effective. You can market improvements in solar/wind, heat pumps, insulation, windows, doors, thermostats, boilers, furnaces, duct sealing, and weatherstripping as tax-exempt additions; the exemption automatically applies when improvements qualify for state/federal conservation tax credits or deductions, requiring no paperwork from you or your customer.
This property-tax exemption, enacted in 1977 and expanded in 2017 to include micro-hydro and energy storage, exempts residential improvements (1-4 family homes) from increases in assessed value up to the extent attributable to the installation. The program applies statewide with no local option, requires no owner filing or assessor reporting, and covers general municipal and school district taxes as well as special ad valorem levies—but excludes special assessments. It targets homeowners installing conservation measures and includes low-income residential properties; administration occurs through local assessor offices using exemption code 49510.
Program details
- Program ID
- 1596
- Last updated
- 4/14/2026
Eligibility
- Sectors
- residential multifamily residential low income residential
- Technologies
- solar water heat solar photovoltaics wind (all) wind (small) equipment insulation furnaces boilers heat pumps air conditioners programmable thermostats energy mgmt. systems/building controls caulking/weather-stripping duct/air sealing building insulation windows doors
Program summary
NOTE: A.B. 260 enacted in October 2017 amends the property tax exemption adding micro-hydro, fuel cell, micro combined heat and power, and electric energy storage system and storage equipment to be eligible for tax exemption for any increase in the value through the addition of these systems for period of fifteen years.
Qualifying energy-conservation improvements to homes are exempt from real property taxation to the extent that the addition would increase the value of the home. The exemption includes general municipal property taxes, school district taxes, and special ad valorem taxes, but does not apply to special assessments. Eligible properties include single-family to four-family dwellings. The exemption applies directly to a variety of equipment and measures, but the statute also states that any conservation-related state or federal tax credit or deduction is also exempt from New York's property tax under this statute. The state Tax Assessor's Manual also specifically identifies solar and wind energy systems as eligible for the exemption.
Contact & resources
- Contact email
- orpts.mail@tax.ny.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
