New York State has enacted an exemption from state sales and use tax for residential energy storage and their installation within the state’s 2024-2025 budget package, A08808. The exemption details that for “residential energy storage system equipment”, the components in question must be used for storing electricity for use to provide heating, cooling, hot water, or electricity at a later time. This exemption also applies to the sale of electricity by a person who is primarily engaged in the sale of storage system equipment or electricity generated by the equipment as long as the equipment is owned by someone other than the purchaser of the electricity, installed on the residential property of the purchaser, and used to provide heating, cooling, hot water, or electricity. This exemption is offered between June 1,2024- June 1, 2026.
New York taxpayers who own or service these storage systems should ensure they are taking advantage of all the tax exemptions they are able to as long as they are effective. In addition, New York taxpayers who may be considering having one installed should be aware of the exemptions on installing them and on the storage systems themselves. (Ch. 58 (A08808), Laws 2024)