Solar Panels are Now Exempt from County Sales Tax
Residents will dish out a little less money to install solar panels in Westchester County. Solar panel purchases will now be permanently exempt from the county’s portion of sales tax. Last week the legislature and County Executive Rob Astorino gave new legs to a bill that was first passed in 2005 and had sunset in November 2009.
The legislation is designed to spur the sale of solar energy systems and assist in encouraging the use of alternative energy sources.
“The act signed extends a sales-tax exemption to homeowners who install solar energy systems, which should stimulate the purchase of this equipment and help reduce reliance on non-renewable sources of energy,” said Astorino.
The Westchester County Board of Legislators (BOL) passed the bill to permanently make the solar panels sales-tax exempt unanimously with a vote of 17-0.
“The continued efforts of this legislature to provide tax relief to Westchester residents wherever possible, coupled with the fact that Westchester County remains a leader in the environmental arena, made this an ideal time to revisit this issue,” said County Legislator Michael Kaplowitz (D, I-Somers), who spearheaded the efforts. “I am grateful to my colleagues for their support on this, and I am thrilled that we are able to provide further tax relief opportunities to our residents, while promoting the use of a much-needed alternative energy source.”
In November 2007, the Board of Legislators passed Act No. 240-2007, which amended the County’s Sales and Compensating Use Tax Law, in order to provide a tax break for County residents who install residential solar energy systems by relieving them from paying the 3% county sales tax. However, this provision expired in November 2009.
Incentives to install solar panels are also offered on the federal and state level. The Federal government already offers Renewable Energy Federal Tax Credits of 30% to consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and micro turbine systems placed in service before December 31, 2016. New York State offers a similar tax credit of 25% up to $5000 of solar installation costs.
While the projected annual cost of the program is estimated to be about $40,000 per year, the average savings to each participating Westchester homeowner will be over $1000. The economic benefits to small businesses that produce and install these systems, and the green jobs that will likely be created, are only two of the many benefits that are sure to come as a result of this tax-saving initiative.
“Residents installing new solar energy systems will see lower monthly energy bills while knowing they are contributing to a cleaner environment,” remarked Kaplowitz. “At the same time, promoting and helping to stimulate a growth industry in alternative energy sources will bring new, well-paying green jobs to Westchester.”
“Strong support of alternative energy development makes sense in so many ways,” said Legislator Peter Harckham (D-Bedford) who has solar panels already installed on his home. “This bill will make solar installations more affordable for homeowners and will help to spur the creation of both clean energy and green jobs in Westchester.”
Any resident considering purchasing a solar energy package is urged to verify with the vendor or installer that no state or county portion of the sales tax will be collected.
Purchasers may still be liable for the sales tax collected on behalf of cities and the Metropolitan Transportation Administration.
Astorino said he would consider legislation to exempt sales tax from other energy equipment that uses renewable energy if the state would permit it.
“This is a small but meaningful action, which is part of our effort to reduce dependence on fossil fuels,” said Astorino.
In addition to the solar panel sales-tax exemption, in efforts to go green the county will begin expanding it recyclable collection.
As of June 1, the county and all companies operating in Westchester will accept plastics that are labeled in the 3-7 categories as well as the already accepted 1 and 2 categories. This would mean that in addition to water or soda bottles and detergent or milk containers, items like yogurt cups, food containers and mixed plastics would become recyclables.
“Expanding the range of plastics that the county recycles is a win-win locally and globally,” said Harckham. “Locally we are saving municipalities money by reducing the chargeable weight of their waste stream, which will provide revenue to the district to further reduce the cost. Globally this will help to decrease our dependence on foreign oil and also reduce our greenhouse gas emissions.”
Adam has worked in the local news industry for the past two decades in Westchester County and the broader Hudson Valley. Read more from Adam’s author bio here.