New York State provides individuals with an income tax credit for a solar system purchased by the taxpayer for the taxpayer’s principal residence. The credit is capped at $5,000.
In a recent New York state tax ruling, a taxpayer intended to install two solar systems: (1) in the spring of 2012 a 10 pole-mounted system that would generate 2.45 KW for a cost of $20,900 and (2) in the spring of 2013 a six-pole-mounted system that would generate 1.47 KW for a cost of $7,350. Each system would “have its own distinct placed-in-service date.”
The taxpayer asked if the $5,000 cap could be applied to each system separately, so the taxpayer would be entitled to a total of $10,000 in New York State income tax credits.
The Department of Taxation and Finance ruled that the taxpayer was entitled to only a single $5,000 New York State income tax credit, because the cap was intended to apply on a principal- residence basis (rather, than on a system-by-system basis).