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14956: NY - IT-255 Solar Energy System Equipment Credit


New York

Where would I go to fill out the New York IT-255 for Solar Energy Credit?
 

The Solar Energy System Equipment Credit is a non-refundable credit available to some NY taxpayers. To complete this form, go to Data Entry > States Tab > New York > IT Credits 100-200 Series Tab > Screen 255 Solar Electric Credit. On this screen, you will make applicable entries in columns A, B, and/or D to calculate the available credit*. 

If the taxpayer is eligible for a current year credit, the amount shown on NYIT255, line 7 will flow to NY201ATT, line 5 to be added to the other non-refundable credits calculated on the return. Then the amount from line 7 of the NY201ATT will flow to the NY201.PG3, line 42.

If the taxpayer cannot take the credit (or a portion thereof) this year, the amount eligible for carryover, as shown on line 10 of NYIT255, will be updated to the next year and flagged on screen 255

The box A The solar energy system uses solar radiation to produce energy for heating, cooling, hot water, or electricity for residential use, is required to be checked when completing the 255 screen. If this is not applicable, and the box is left unchecked, the form NYIT255 will not be generated. The return will be ineligible for e-file until the box is checked (if applicable) or the screen is deleted. See field help (F1) to determine if the taxpayer meets the requirements.

Note: NY bribery/conviction question located on NY MISC Screen must be answered in order for this credit to appear on the return, if eligible. In order to answer this question, you will need to go to Data Entry > States Tab > New York > General Tab > MISC Screen > Answer Question E

Per the IT-255 instructions: The credit is equal to 25% of your qualified solar energy system equipment expenditures and is limited to $5,000. If your credit is greater than the amount of tax you owe, the balance will not be refunded to you. However, any credit amount in excess of the tax due can be carried over for a maximum of up to five years.

*The entries for each column are broken down as follows: 

  • Column A is used for the date that the equipment was placed in service during the tax year. This applies to equipment that was purchased, obtained under a power purchase agreement, or leased within the previous year.
  • Column B (Per the instructions)
    • Purchase- Enter your expenditures for the purchase of solar energy system equipment installed, placed in service, and used at your principal residence in New York State. These expenditures include: materials, labor costs properly allocated to on-site preparation, assembly and original installation, architectural and engineering services, and designs and plans directly related to the construction or installation of the solar energy system equipment. Do not include expenditures made with nontaxable federal, state, and local grants or any interest or other finance charges.
    • Power Purchase Agreement- Enter your payments made during the tax year under a written agreement that spans at least ten years for the purchase of power generated by solar energy system equipment not owned by you. The equipment must be installed, placed in service, and used at your principal residence in New York State. Do not include payments made with nontaxable federal, state, and local grants.
    • Lease- Enter the total amount of all your payments to be made under a written agreement that spans at least ten years for the lease of solar energy system equipment not owned by you. The equipment must be installed, placed in service, and used at your principal residence located in New York State. Do not include payments made with nontaxable federal, state, and local grants.
  •  Column D
    • Lease- Enter the difference between $5,000 and the total amount related to this power purchase agreement from all previous years’ Form IT-255, line 1.

For further information, please see the NY IT-255 Instructions.


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