NY S06249

Individual taxpayers receive a 25 percent tax credit against state income tax for qualified geothermal energy system expenditures, with a maximum credit of $5,000 per system placed in service on or after September 1, 2016.

Qualified expenditures include purchase of geothermal equipment for principal residences in New York, lease agreements spanning at least 10 years, or power purchase agreements for geothermal-generated electricity, plus costs for materials, labor, engineering services, and installation.

For leases and power purchase agreements, taxpayers can claim credits for 14 years after the first year the credit is claimed, with the 25 percent limitation applied only to total aggregate payments rather than annual payments.

Multiple taxpayers sharing a residence prorate the credit by contribution percentage, and condominium or cooperative residents can claim a proportionate share of equipment costs installed by their association or corporation.

Excess credits exceeding a taxpayer's annual tax liability may be carried forward and applied to the five subsequent taxable years, effective for tax years beginning January 1, 2016.