September 16, 2005—Both Oregon and New York State recently put new legislation in place to offer tax credits and sales tax exemptions for solar energy systems.
Oregon Governor Ted Kulongoski signed a bill into law on September 2 that will provide expanded tax credits for solar energy systems. The state already had a tax credit in place for alternative energy systems; that credit was based on the energy produced during the system’s first year of operation and capped at $1,500. The new solar electric system tax credit is much larger, at $3 per watt of installed output capacity, up to a maximum of $6,000. To see the test of the Senate Bill, visit the state government Web site.
In New York State, solar energy systems became exempt from state sales taxes on September 1. New York Governor George Pataki signed a bill in August that exempts both the sale and installation of the equipment from state sales and compensating use taxes, and allows municipalities to waive their city sales taxes as well. The governor also signed a separate bill that extends the state’s personal income tax credit for solar energy systems to include systems used for water heating and space heating or cooling. To see the governors press release, visit the Web site.
