Solar Electric Generating System (SEGS) Tax Abatement

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Solar Electric Generating System (SEGS) Tax Abatement

The Solar Electric Generating System Tax Abatement provides a property tax abatement to properties that use solar power. Solar power is a reliable, renewable source of electricity. Solar panels generate electricity, recover thermal energy for reuse and act as a roof covering. Using solar power reduces demand on New York City's electrical grid.

Eligibility:

The NYC Department of Buildings (DOB) determines eligibility for the abatement and approves the application, while the Department of Finance administers the benefit.

The abatement is available to eligible tax class 1, 2, and 4 properties. If you receive ICAP, 421-a, 421-b, 421-g, or pay PILOTs, your property is not eligible for the Solar Electric Generating System Tax Abatement.

Benefit:

The amount of the benefit depends on the date your solar service starts. Use the chart below to determine the percentage of the installation cost based on the service start date. Your benefit will be either an amount equal to the percentage of your installation cost, an amount equal to your annual property taxes, or $62,500—whichever is lowest.

Service Start Date
% of the Installation Cost

8/5/08 through 1/1/11
8.75%

1/1/11 through 1/1/13
5%

1/1/13 through 1/1/14
2.5%

1/1/14 through 1/1/24
5%

1/1/24 through 1/1/35
7.5%

Duration:

The abatement will be applied to your property for a four-year period starting on July 1, following the approval by the Department of Buildings.

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