We are considering installing a geothermal unit. Would this be considered an improvement and raise our assessed value and therefore our property taxes or is this considered more of a repair /replacement as if you were to replace a furnace?
(Note: this also applies to
solar, wind, or farm waste energy systems)
One assessor we asked replied: "The question of adding value for this is determined by each assessor. I would select geo-thermal as the heat source in the property inventory, but not add additional value for it."
Each county, city, town, village and school district (except the city school districts of New York, Buffalo, Rochester, Syracuse, and Yonkers) may choose whether to disallow the exemption with respect to solar, wind, or farm waste energy systems, that began construction after January 1, 1991 and before January 1, 2025, and to micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat and power generating equipment systems, or electric energy storage equipment and electric energy storage systems constructed after January 1, 2018 or the effective date of the local law or resolution, whichever is later.
The option must be exercised by counties, cities, towns, and villages through adoption of a local law and by school districts by adoption of a resolution. You must first check with your local assessor to see if the municipality allows such exemptions. The assessor can then let you know the procedure for that particular jurisdiction. There may be no additional assessment to the property and it will be added as an additional heat source. You may also be asked to enter into a contract of payment in lieu of taxes. This is explained in
Form RP-487, Exemption Application
Also see: Assess Manual Exemption Administration