Pataki signs solar-energy bill

New legislation signed into law by Gov. Pataki on Monday is intended to promote the use of solar energy in New York state.

The new law exempts solar-energy equipment from state sales taxes, and it expands tax incentives for homeowners who install solar-energy equipment.

The maximum allowable tax credit will now be $5,000, up from the previous limit of $3,750. Consumers can receive the tax credit for up to 25 percent of the cost of heating, cooling and hot-water equipment that utilizes solar energy.

The sales-tax exemption will take effect on Sept. 1. The tax-credit expansion applies to taxable years beginning Jan. 1, 2006.