Solar, Wind & Renewable Energy Systems Tax Exemption (RPTL §487)

Overview

New York State Real Property Tax Law §487 provides a property tax exemption for certain renewable energy systems installed on residential, commercial, industrial, and agricultural properties.

The exemption is intended to encourage investment in clean energy technologies by exempting the increase in assessed value resulting from eligible renewable energy installations.

The exemption generally applies for 15 years unless a municipality or school district has opted out through local law or resolution.

Eligible Energy Systems

The exemption may apply to property containing:

• Solar energy systems
• Wind energy systems
• Farm waste energy systems
• Micro-hydroelectric systems
• Fuel cell electric generating systems
• Micro-combined heat and power systems
• Electric energy storage systems approved by NYSERDA

Eligible equipment may include:

• Solar panels and collectors
• Wind turbines
• Heat pumps
• Energy storage devices and batteries
• Heat exchangers
• Related controls and equipment necessary for energy production and distribution

Exemption Benefits

Qualifying systems are exempt from taxation on the increase in assessed value attributable to the renewable energy installation.

Key benefits include:

• Up to 15 years of property tax exemption
• Applies to residential and commercial properties
• Encourages long-term energy savings and sustainability investments

The exemption generally does not apply to:

• Special assessments
• Certain special ad valorem levies

Eligibility Requirements

To qualify:

• The system must be constructed within the dates established under New York State law
• The installation must meet applicable state guidelines and definitions
• The property owner must submit an application to the local assessor

Construction deadlines currently extend through January 1, 2030 for most qualifying systems.

Local Option Rules

New York municipalities, counties, cities, towns, villages, and certain school districts may choose to opt out of the exemption program.

Because local participation varies, property owners should verify exemption availability with their:

• Local assessor
• Municipality
• School district

Application Process

Applicants must file Form RP-487, Application for Tax Exemption of Solar, Wind, or Certain Other Energy Systems, with the local assessor.

Applications typically require:

• System specifications
• Installation details
• Supporting documentation
• Proof of completion

Additional Information

The exemption is administered locally and eligibility requirements may vary by jurisdiction.

For official forms, guidelines, and municipal opt-out information, visit the New York State Department of Taxation and Finance website or contact your local assessor’s office.

APPLICATION FOR TAX EXEMPTION OF SOLAR OR WIND ENERGY SYSTEMS OR FARM WASTE ENERGY SYSTEMS