New York Senate Bill S05846

New York 2025-2026 Regular Session

• Introduced: 3/3/25
• Refer: 3/3/25
• Refer: 1/7/26

Caption

Expands the solar energy system equipment tax credit to cover solar energy system equipment installed in a community solar array; defines "community solar array" to mean a location other than a person's principal residence where solar energy system equipment is owned and installed for use in such person's principal residence.

Summary

This bill expands New York’s personal income tax credit for solar energy system equipment. Under current law, the credit applies to qualifying solar equipment installed in a taxpayer’s residence; this bill adds equipment installed in a “community solar array” and clarifies that the equipment may be located at a site other than the taxpayer’s principal residence so long as it is owned and installed for use in that residence. The bill also updates the definition of solar energy system equipment to reflect this new community solar arrangement. The measure further amends the credit rules for multiple taxpayers by allowing the credit to be prorated when solar equipment is purchased and installed in a principal residence shared by more than one taxpayer or in a community solar array. The bill takes effect immediately and applies to taxable years beginning on or after the first January 1 following enactment.

Impact

The bill would amend section 606 of the Tax Law, expanding eligibility for the solar energy system equipment tax credit and creating a statutory definition of “community solar array.” It would affect individual taxpayers claiming the credit, as well as condominium management associations and cooperative housing corporations already subject to special rules under the existing solar credit provisions. By recognizing off-site community solar installations, the bill broadens the types of solar projects that can qualify for state tax relief.

Sentiment

No committee transcript or recorded vote is provided, so there is no direct evidence of debate or opposition in the materials supplied. Based on the bill text and caption, the measure appears to be framed as a pro-solar, pro-clean-energy tax incentive expansion intended to make the credit usable for community solar participants. The available context suggests a generally supportive policy posture toward renewable energy incentives, but not a documented legislative consensus.

Contention

The main policy issue is the scope of the tax credit: whether state law should treat off-site community solar installations the same as rooftop solar installed at a taxpayer’s home. Potential points of contention include the fiscal cost of expanding the credit, whether the benefit should extend to non-home-based installations, and how to administer prorated credits among multiple taxpayers or shared housing arrangements. No specific opponents or supporters are identified in the provided record.