New York Tax and Finance Department Clarifies Local Sales Tax on Solar PPA Electricity

The New York State Department of Taxation and Finance issued a publication clarifying the local sales and use tax rates applicable to electricity generated by solar energy systems and sold under written power purchase agreements (PPAs). While solar PPA sales are exempt from the 4 percent state sales tax and the ⅜ percent Metropolitan Commuter Transportation District sales tax, local jurisdictions retain authority to determine whether to provide additional local exemptions. The publication identifies which counties and cities have elected to exempt such sales and distinguishes between residential (Part 1) and nonresidential (Part 2) transactions. Jurisdictions not listed in Part ...