Homeowners, Property Tax & Repairs · Surprise rank #376
New York Gives Homeowners Up to $5,000 Back for Installing Solar
Eligible homeowners may receive a state income-tax credit equal to 25% of qualifying residential solar costs, capped at $5,000.
Who
New York taxpayers who purchase and install qualifying solar equipment at a residence.
What to do
Start here: Before signing, obtain the tax-credit cost breakdown and confirm eligibility with a tax professional.
Eligibility: Qualifying purchased system, eligible residence and tax liability; lease and PPA treatment differs.
What you get
New York homeowners who purchase eligible residential solar equipment can claim a state income-tax credit equal to 25% of qualified costs, up to $5,000.
Benefit: A nonrefundable state income-tax credit.
Possible value: Up to $5,000, potentially combined with current federal incentives where eligible.
Good to know
Important: The credit is nonrefundable and requires qualifying expenditures and a New York principal residence. Unused credit may be carried forward for up to five years.
Availability: Claim on the return for the installation year; unused credit may carry forward under current rules.
Why people miss it: Installers emphasize financing, while homeowners may not understand the state credit's separate cap and carryforward rules.
Sources reviewed: Aug 2, 2026