NY A00034

Increases the solar energy tax credit to include leasing of solar equipment and purchasing power from solar systems, in addition to direct purchases of solar equipment.

Allows a 25 percent tax credit against income tax for qualified solar energy system equipment expenditures, with a maximum credit of $3,750 for equipment placed in service before September 1, 2006, and $5,000 for equipment placed in service on or after that date.

Permits tax credits for leasing solar equipment under written agreements spanning at least 10 years and for purchasing power generated by solar equipment under written agreements spanning at least 10 years, where the equipment is owned by someone other than the taxpayer.

Limits tax credits for leased equipment or power purchase agreements to 14 years after the first taxable year the credit is claimed, and applies the 25 percent limitation only to the total aggregate amount of all payments under such agreements rather than individual annual payments.

Takes effect immediately upon enactment.