New York State Energy Tax Credit
The New York State Energy Tax Credit refers to massive tax credits offered in the Empire State to encourage what is being called “Green Building.” The credits are given to companies that use the most advanced energy efficiency in their buildings.
The New York State Energy Tax Credit is a good example of how many States are taking the issue of the environment in their own hands and using tax credits to encourage programs designed to reduce energy consumption. These incentives are often called Green Tax Credits because of their connection to environmental issues. The New York State Energy Tax Credit was put into effect in the 2000-2001 budget year and originally would offer up to 25 million dollars of tax credits.
Energy efficiency is a rather vague term from a legal standpoint. The New York State Energy Tax Credit was directed at companies and individuals that were applying the most advanced technology and most modern methods to the problem of reducing energy consumption. This could range anywhere from solar panels on the roof to better insulation. The environmental community praised the tax credit, but did so guardedly. New York State is a major consumer of energy and pollution in the State remains a major problem in the New York City area.
New York has made energy reduction and environmental improvement a major priority of the State Government. The New York State Energy Tax Credit is targeted at both commercial and residential buildings and rewards credits for money spent on such things as improved insulation. It is not necessary that the improvement meet the very rigid Green environmental standards, but it must be shown to have created a significant reduction in energy consumption.
The credits, it must be remembered, are for only a certain limited portion of the investment made to improve the buildings or to adjust new buildings to a higher standard. However, as a credit, it does come directly off of the tax owed as opposed to a deduction that merely reduces the taxable amount
The New York State Energy Tax Credit, and similar credits in other States that have instituted tax relief for environmental concerns, are an example of a very proactive use of tax law to encourage activity that is in the best interest of all. The total environmental impact of our out of control energy use is staggering. The ability to recognize some tax relief while at the same time doing something positive to address this problem is something that should not be ignored. Information on the New York State Energy Tax Credit is easily available from New York State agencies.