New York City - Residential Solar Sales Tax Exemption

If you install a solar system at your New York City home, including solar electric, solar water heating, solar space heating, or passive solar, the equipment and related services are exempt from city sales tax. The exemption has been in effect since December 1, 2005, and it lowers your upfront cost. Ask your installer to confirm how the exemption is applied to your purchase, and contact the administering tax agency for details.

Residential customers in New York City can buy solar equipment and services without city sales tax, which makes your quotes more competitive. The exemption covers solar photovoltaics, solar water heat, solar space heat, and passive solar systems for residential customers. Check with the administering tax agency for any documentation or certification needed to apply the exemption correctly.

New York City adopted Resolution 1121 in August 2005, effective December 1, 2005, to exempt residential solar energy equipment and services from city sales tax. The city had to pass the resolution to match the state exemption because it has a population of 1 million or more. It is a sales tax incentive that works through foregone tax revenue rather than a funded program, and it targets residential customers installing solar electric, solar water heating, solar space heating, or passive solar.