New York Passes Two Solar Energy Bills

New York Governor George Pataki signed two bills in August 2005 designed to encourage the use of solar energy. The first (S.4962-a) exempts the sale and installation of solar energy systems from state sales and compensating-use taxes and gives municipalities the option of extending the exemption to city taxes. The second bill (S.5252) expands the existing personal income tax credit for solar-electric generating equipment to include systems used for water heating and space heating or cooling. The credit is capped at 25% of the installed cost of the system, up to $5,000.