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New York Supports Solar Energy with Sales Tax Exemption

  • Sep 11, 2015 | Gail Cole

 New York sales tax exemption promotes solar energy systems.

Commercial solar energy systems equipment is exempt from New York state sales and use tax (4%) and the Metropolitan Commuter Transportation District (MCTD) tax (3/8%), effective September 1, 2015. The exemption applies to the retail sale and installation of eligible products.

Local sales and use taxes apply unless a local tax jurisdiction enacts an exemption. As of this writing, a handful of localities have done so. These are:

  • Broome County
  • Erie County
  • Rockland County
  • Suffolk County
  • Tompkins County (excepting the city of Ithaca)
  • Ulster County
  • Westchester County (excepting Mount Vernon, New Rochelle, White Plains, and Yonkers)

Additional information, including a list of counties and localities that do tax sales and installations of commercial solar energy systems, is available on New York Department of Finance Publication 718-CS.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.