Jack Nelson and Michael Bogin Publish “Rooftop Solar Systems Required by NYC Local Laws May Qualify for IRA’s Renewable Energy Tax Credits”
New York City local law now requires new roofs to install a solar photovoltaic (PV) electricity generating and/or green roof system. While these requirements became effective in 2019, given the slow pace of construction in New York City, many of the first roofs covered by the law have only recently been, or will soon be, installed. Meanwhile, the federal Inflation Reduction Act of 2022 (IRA) provides tax credits for qualifying renewable energy systems, including solar projects, provided that the project appears online after December 31, 2022, and that the construction begins before January 1, 2025. Developers and property owners may be considering whether to install solar PV systems or green roofs to meet their obligations under local law and/or to take advantage of the availability of federal tax credits in the IRA. Although this has not yet been addressed through guidance by the Internal Revenue Service or the U.S. Treasury Department, it appears that developers and property owners may be eligible for the IRA’s renewable energy tax credits if they install rooftop solar systems as required by local law.
Read more in our analysis of this developing issue, available here, recently published in the March 2024 edition of Environmental Law in New York by Jack Nelson and Michael Bogin.
Reprinted from Environmental Law in New York with permission. Copyright 2024 Matthew Bender & Company, Inc., a LexisNexis company. All rights reserved.