New York Senate Bill S02626

New York 2025-2026 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25
• Refer: 1/7/26

Caption

Increases the amount of residential solar tax credits.

Summary

S02626 amends New York’s personal income tax law to expand the residential solar energy system equipment credit. The bill raises the maximum credit cap from $5,000 to $10,000 for qualifying solar equipment placed in service on or after January 1, 2026, while leaving the existing 26 percent credit rate in place. It also updates the statute to reflect that solar installations may include energy storage equipment, and it clarifies how the credit applies to leased systems, power purchase agreements, and shared residential arrangements such as condominiums and cooperatives. The bill also adds a new refundability feature for certain taxpayers beginning in tax year 2026. If the credit exceeds a taxpayer’s liability and the taxpayer is low- to moderate-income or lives in a disadvantaged community, the excess would be treated as an overpayment and refunded or credited, rather than merely carried forward. The bill preserves existing rules on eligible expenditures, grant offsets, and the five-year carryover for other taxpayers, while making the credit more accessible to households that may not otherwise have enough tax liability to use it fully.

Impact

This bill would amend section 606 of the Tax Law to increase the residential solar tax credit cap, expand the definition of qualifying solar equipment to include storage-related components, and create a refundable credit mechanism for eligible low- to moderate-income taxpayers and residents of disadvantaged communities. It would affect individual taxpayers installing solar on their principal residences in New York, as well as condominium associations and cooperative housing corporations that install shared systems. The bill would also interact with Public Service Law requirements for solar systems and preserve existing limitations on eligible costs and grant-funded expenditures.

Sentiment

The bill appears generally supportive of renewable energy adoption and household solar affordability, with no recorded committee opposition or vote history in the materials provided. Its sponsors and caption indicate a clear policy goal of increasing residential solar tax credits, suggesting favorable sentiment toward expanding access to solar installations. The inclusion of refundability for lower-income and disadvantaged-community residents also suggests an emphasis on equity and broader participation in clean energy incentives.

Contention

The main policy issues likely concern the fiscal cost of increasing the credit cap and making part of the credit refundable, since those changes reduce state tax revenue and can increase direct outlays. Another possible point of discussion is eligibility design: the refundability provision is limited to low- to moderate-income taxpayers and residents of disadvantaged communities, which may prompt questions about how those categories are defined and administered. The bill also updates technical rules for solar-plus-storage systems and shared ownership arrangements, which may require careful implementation but do not appear to be major sources of opposition in the available record.