senate Bill S149B

Relates to tax credits provided for solar energy system equipment

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Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 28 / Apr / 2011
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 28 / Apr / 2011
    • PRINT NUMBER 149A
  • 06 / May / 2011
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 06 / May / 2011
    • PRINT NUMBER 149B
  • 07 / Jun / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 20 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1428
  • 20 / Jun / 2012
    • SUBSTITUTED BY A34B

Summary

Relates to tax credits provided for solar energy system equipment; provides credit for the lease of solar energy equipment and the purchase of power generated by solar equipment.

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Bill Details

See Assembly Version of this Bill:
A34B
Versions:
S149
S149A
S149B
Legislative Cycle:
2011-2012
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S8025, A11492

Votes

7
0
7
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S149B

TITLE OF BILL:
An act
to amend the tax law, in relation to tax credits provided for solar
energy system equipment

PURPOSE:
The purpose of this legislation is encourage homeowners to install and
utilize solar energy equipment by allowing individuals who lease such
equipment or purchase power under a written agreement with a third
party to benefit from a solar equipment tax credit.

SUMMARY OF PROVISIONS:
Section 1. Allows a taxpayer to qualify for a solar equipment tax
credit in cases where the lease of solar equipment under a written
agreement spans at least ten years or a power purchase agreement of
at least ten years from a third party is in force. Additionally this
section includes and clarifies expenditures for the lease of solar
energy system equipment.

JUSTIFICATION:
As we continue to move toward a greener economy it is very important
that residents be encouraged to utilize renewable forms of energy.
This should be true whether the taxpayer can afford to purchase and
install renewable generation such as solar equipment or if it is more
feasible for the individual to lease the equipment or contract with a
provider to purchase power. using the tax code to incentivize the
installation of solar equipment is the right way to encourage the
development of the renewable energy industry.

In addition to the obvious benefits to the taxpayer, the use of more
photovoltaic generation equipment will also benefit our environment
by reducing the negative effects of greenhouse gas emissions as well
and increasing our ability to become more energy independent.

LEGISLATIVE HISTORY:
S.8025 of 2009-2010; Referred to Investigations & Government Operations

FISCAL IMPLICATIONS:
Given the nature of how the credit will be taken and the fact that the
leases and power purchase agreements that are effected all last more
than ten years, it is estimated that this provision will have a fiscal
impact of less than $1,000,000 annually.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 149--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by Sens. MAZIARZ, MONTGOMERY -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations  and  Government  Operations  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT  to  amend  the tax law, in relation to tax credits provided for
  solar energy system equipment

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraphs  1 and 2 of subsection (g-1) of section 606 of
the tax law, as amended by chapter 378 of the laws of 2005 and  subpara-
graph  (B) of paragraph 2 as amended by chapter 251 of the laws of 2006,
is amended to read as follows:
  (1) General. An individual taxpayer shall be allowed a credit  against
the  tax  imposed by this article equal to twenty-five percent of quali-
fied solar energy system equipment expenditures, EXCEPT AS  PROVIDED  IN
SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION.  This credit shall
not  exceed  three  thousand  seven  hundred fifty dollars for qualified
solar energy equipment placed in service  before  September  first,  two
thousand  six,  and  five  thousand  dollars  for qualified solar energy
equipment placed in service on or after September  first,  two  thousand
six.
  (2) Qualified solar energy system equipment expenditures. (A) The term
"qualified  solar  energy  system equipment expenditures" means expendi-
tures for:
  (I) the purchase of solar energy system equipment which  is  installed
in  connection  with  residential property which is [(i)] (I) located in
this state and [(ii)] (II) which is used by the taxpayer as his  or  her

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00702-03-1

S. 149--B                           2

principal  residence  at  the  time the solar energy system equipment is
placed in service;
  (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
MENT  THAT  SPANS  AT  LEAST  TEN  YEARS WHERE SUCH EQUIPMENT OWNED BY A
PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH  RESIDEN-
TIAL  PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED
BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE  SOLAR
ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
  (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED  IS  GENERATED  BY  SOLAR
ENERGY  SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER WHICH
IS INSTALLED IN  CONNECTION  WITH  RESIDENTIAL  PROPERTY  WHICH  IS  (I)
LOCATED  IN  THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR
HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR ENERGY SYSTEM EQUIPMENT IS
PLACED IN SERVICE.
  (B) Such qualified expenditures shall include expenditures for materi-
als, labor costs properly allocable to on-site preparation, assembly and
original  installation,  architectural  and  engineering  services,  and
designs  and  plans directly related to the construction or installation
of the solar energy system equipment.
  (C) Such qualified expenditures  FOR  THE  PURCHASE  OF  SOLAR  ENERGY
SYSTEM EQUIPMENT shall not include interest or other finance charges.
  (D)  SUCH  QUALIFIED EXPENDITURES FOR THE LEASE OF SOLAR ENERGY SYSTEM
EQUIPMENT OR THE PURCHASE OF  POWER  UNDER  AN  AGREEMENT  DESCRIBED  IN
CLAUSES  (II)  OR  (III)  OF  SUBPARAGRAPH  (A)  OF THIS PARAGRAPH SHALL
INCLUDE AN AMOUNT EQUAL TO ALL PAYMENTS MADE  DURING  THE  TAXABLE  YEAR
UNDER  SUCH  AGREEMENT.  PROVIDED,  HOWEVER,  SUCH CREDITS SHALL ONLY BE
ALLOWED FOR FOURTEEN YEARS AFTER THE FIRST TAXABLE YEAR  IN  WHICH  SUCH
CREDIT  IS ALLOWED.   PROVIDED FURTHER, HOWEVER, THE TWENTY-FIVE PERCENT
LIMITATION IN PARAGRAPH ONE OF THIS SUBSECTION SHALL ONLY APPLY  TO  THE
TOTAL  AGGREGATE AMOUNT OF ALL PAYMENTS TO BE MADE PURSUANT TO AN AGREE-
MENT REFERENCED IN CLAUSES (II) OR (III) OF  SUBPARAGRAPH  (A)  OF  THIS
PARAGRAPH,  AND  SHALL  NOT  APPLY  TO INDIVIDUAL PAYMENTS MADE DURING A
TAXABLE YEAR UNDER SUCH AGREEMENT EXCEPT TO THE EXTENT  SUCH  LIMITATION
ON AN AGGREGATE BASIS HAS BEEN REACHED.
  S 2. This act shall take effect immediately.

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