senate Bill S3238A

Provides for separate personal income tax credits for solar electric, solar thermal and wind energy systems installed upon the residence of a taxpayer

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Bill Status


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

  • 14 / Feb / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 02 / Jun / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 22 / May / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 22 / May / 2012
    • PRINT NUMBER 3238A
  • 31 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

Provides for separate personal income tax credits for solar electric, solar thermal and wind energy systems installed upon any residence of a taxpayer.

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Bill Details

See Assembly Version of this Bill:
A4247A
Versions:
S3238
S3238A
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S7710, A9930

Votes

6
0
6
Aye
0
Nay
1
aye with reservations
0
absent
1
excused
0
abstained
show Investigations and Government Operations committee vote details
aye wr (1)
excused (1)

Sponsor Memo

BILL NUMBER:S3238A

TITLE OF BILL:
An act to amend the tax law, in relation to the personal income tax
credit for solar and wind energy systems

PURPOSE OR GENERAL IDEA OF BILL:
The bill provides for the separate personal income tax credits for solar
electric, solar thermal and wind energy systems installed upon the resi-
dence of a taxpayer.

SUMMARY OF SPECIFIC PROVISIONS:
Paragraph 1 of the subsection (g-1) of section 606 of the tax law, as
amended by chapter 378 of the laws of 2005; Subparagraph (A) of para-
graph 2 of subsection (g-1) of section 606 of the tax law, as amended by
chapter 378 of the laws of 2005; Paragraph 3 of subsection (g-1) of
section 606 of the tax law as amended by chapter 128 of the laws of
2007; paragraph 4 of subsection (g-1) of section 606 of the tax law, as
amended by chapter 378 of the laws of 2005; paragraph 5 of subsection
(g-1) of section 606 of the tax law, as added by chapter 128 of the laws
of 2007; Section 606 of the tax law is amended by adding a new
subsection (g-3).

JUSTIFICATION:
There is a national trend for Americans to use green, efficient energy
systems. The price of gas continues to rise as Americans, and especially
New Yorkers are finding themselves in a situation where everyday
expenses are becoming too much of a burden. Providing a tax credit for
those who install solar thermal and wind energy systems provides a great
investment for the future because it saves taxpayers money, especially
during one of the worst recessions the state, and the nation, has ever
seen.

PRIOR LEGISLATIVE HISTORY:
S.7710 of 2010 Referred to Investigations and Government Operations

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect on the first of January 1, 2013 and apply to
taxable years after such date.

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

                                 3238--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 14, 2011
                               ___________

Introduced  by  Sens. MAZIARZ, GRISANTI, DUANE, JOHNSON, O'MARA, RANZEN-
  HOFER, SEWARD, YOUNG -- read  twice  and  ordered  printed,  and  when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations -- recommitted to the Committee on Investigations and
  Government Operations in accordance with Senate  Rule  6,  sec.  8  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the tax law, in relation  to  the  personal  income  tax
  credit for solar and wind energy systems

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

  Section 1. Paragraph 1 of subsection (g-1) of section 606 of  the  tax
law,  as  amended by chapter 378 of the laws of 2005, 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. This credit  shall  not
exceed  (A)  three  thousand  seven  hundred fifty dollars for qualified
solar energy equipment placed in service  before  September  first,  two
thousand  six,  and (B) five thousand dollars for qualified solar energy
equipment placed in service on or after September  first,  two  thousand
six  BUT  PRIOR  TO  JANUARY  FIRST, TWO THOUSAND THIRTEEN, AND (C) FIVE
THOUSAND DOLLARS FOR QUALIFIED SOLAR ENERGY EQUIPMENT THAT  IS  A  SOLAR
THERMAL  ENERGY  SYSTEM PLACED IN SERVICE ON OR AFTER JANUARY FIRST, TWO
THOUSAND THIRTEEN, AND (D) FIVE THOUSAND  DOLLARS  FOR  QUALIFIED  SOLAR
ENERGY  EQUIPMENT  THAT  IS  A  SOLAR  ELECTRIC  ENERGY SYSTEM PLACED IN
SERVICE ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN.
  S 2. Subparagraph (A) of paragraph 2 of subsection  (g-1)  of  section
606  of  the  tax law, as amended by chapter 378 of the laws of 2005, is
amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07657-02-2

S. 3238--A                          2

  (A) The term "qualified solar energy  system  equipment  expenditures"
means  expenditures for the purchase of solar energy system equipment, A
SOLAR THERMAL ENERGY SYSTEM, OR A SOLAR ELECTRIC ENERGY SYSTEM which  is
installed  in  connection with residential property which is (i) located
in  this  state  and (ii) which is used by the taxpayer as ANY OF his or
her [principal residence] RESIDENCES at the time the solar energy system
equipment, A SOLAR THERMAL ENERGY SYSTEM, OR  A  SOLAR  ELECTRIC  ENERGY
SYSTEM is placed in service.
  S 3. Paragraph 3 of subsection (g-1) of section 606 of the tax law, as
amended  by  chapter  128  of  the  laws  of 2007, is amended to read as
follows:
  (3) Solar energy system equipment. (A) The term "solar  energy  system
equipment"  shall  mean  an  arrangement  or  combination  of components
utilizing solar radiation, which, when installed in a residence, produc-
es energy designed to provide heating, cooling, hot water or electricity
for use in such residence. Such  arrangement  or  components  shall  not
include  equipment  connected to solar energy system equipment that is a
component of part or parts of a non-solar energy system  or  which  uses
any  sort  of  recreational  facility  or equipment as a storage medium.
[Solar energy system equipment that generates electricity for use  in  a
residence]
  (B)  THE  TERM  "SOLAR  THERMAL ENERGY SYSTEM" SHALL MEAN SOLAR ENERGY
EQUIPMENT THAT IS AN ARRANGEMENT OR COMBINATION OF COMPONENTS  UTILIZING
SOLAR  RADIATION,  WHICH, WHEN INSTALLED IN A RESIDENCE, PRODUCES ENERGY
DESIGNED TO PROVIDED HEATING, COOLING OR HOT WATER FOR USE IN SUCH RESI-
DENCE.
  (C) THE TERM "SOLAR ELECTRIC ENERGY SYSTEM" SHALL  MEAN  SOLAR  ENERGY
EQUIPMENT  THAT IS AN ARRANGEMENT OR COMBINATION OF COMPONENTS UTILIZING
SOLAR RADIATION, WHICH, WHEN INSTALLED IN A RESIDENCE,  PRODUCES  ENERGY
DESIGNED  TO PROVIDE ELECTRICITY FOR USE IN SUCH RESIDENCE. SUCH SYSTEMS
must conform to applicable requirements set forth in section sixty-six-j
of the public service law. Provided, however,  where  A  solar  ELECTRIC
energy  system  [equipment]  is purchased and installed by a condominium
management  association  or  a  cooperative  housing  corporation,   for
purposes  of  this  subsection  only,  the  term "ten kilowatts" in such
section sixty-six-j shall be read as "fifty kilowatts."
  S 4. Paragraph 4 of subsection (g-1) of section 606 of the tax law, as
amended by chapter 378 of the laws  of  2005,  is  amended  to  read  as
follows:
  (4)  Multiple  taxpayers.  Where  solar  energy  system  equipment  is
purchased and installed in a [principal] residence shared by two or more
taxpayers, the amount of the credit allowable under this subsection  for
each  such taxpayer shall be prorated according to the percentage of the
total expenditure for such solar energy system equipment contributed  by
each taxpayer.
  S 5. Paragraph 5 of subsection (g-1) of section 606 of the tax law, as
added by chapter 128 of the laws of 2007, is amended to read as follows:
  (5)  Proportionate  share.  Where  solar  energy  system  equipment is
purchased and installed by a condominium  management  association  or  a
cooperative  housing  corporation,  a  taxpayer  who  is a member of the
condominium management association or who is a tenant-stockholder in the
cooperative housing corporation may for the purpose of  this  subsection
claim  a proportionate share of the total expense as the expenditure for
the purposes of the credit attributable to his [principal] OR HER  resi-
dence.

S. 3238--A                          3

  S  6. Section 606 of the tax law is amended by adding a new subsection
(g-3) to read as follows:
  (G-3)  WIND ENERGY SYSTEM EQUIPMENT CREDIT. (1) GENERAL. AN INDIVIDUAL
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE EQUAL TO TWENTY-FIVE PERCENT OF QUALIFIED WIND ENERGY SYSTEM  EQUIP-
MENT  EXPENDITURES.  THIS  CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS
FOR QUALIFIED WIND ENERGY EQUIPMENT.
  (2) QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES. (A) THE  TERM
"QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES" MEANS EXPENDITURES
FOR  THE  PURCHASE OF WIND ENERGY SYSTEM EQUIPMENT WHICH IS INSTALLED IN
CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED IN THIS  STATE
AND  (II)  WHICH IS USED BY THE TAXPAYER AS ANY OF HIS OR HER RESIDENCES
AT THE TIME THE WIND 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 WIND ENERGY SYSTEM EQUIPMENT.
  (C) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE  INTEREST  OR  OTHER
FINANCE CHARGES.
  (3)  WIND ENERGY SYSTEM EQUIPMENT. THE TERM "WIND ENERGY SYSTEM EQUIP-
MENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION OF  COMPONENTS  UTILIZING
WIND,  WHICH, WHEN INSTALLED IN A RESIDENCE, PRODUCES ENERGY DESIGNED TO
PROVIDE ELECTRICITY FOR USE  IN  SUCH  RESIDENCE.  SUCH  ARRANGEMENT  OR
COMPONENTS  SHALL  NOT INCLUDE EQUIPMENT CONNECTED TO WIND ENERGY SYSTEM
EQUIPMENT THAT IS A COMPONENT OF PART OR  PARTS  OF  A  NON-WIND  ENERGY
SYSTEM OR WHICH USES ANY SORT OF RECREATIONAL FACILITY OR EQUIPMENT AS A
STORAGE  MEDIUM. WIND ENERGY SYSTEM EQUIPMENT THAT GENERATES ELECTRICITY
FOR USE IN A RESIDENCE MUST CONFORM TO APPLICABLE REQUIREMENTS SET FORTH
IN SECTION SIXTY-SIX-L OF THE PUBLIC  SERVICE  LAW.  PROVIDED,  HOWEVER,
WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS  PURCHASED AND INSTALLED BY A
CONDOMINIUM MANAGEMENT ASSOCIATION OR A COOPERATIVE HOUSING CORPORATION,
FOR PURPOSES OF THIS SUBSECTION ONLY, THE TERM  "TWENTY-FIVE  KILOWATTS"
IN SUCH SECTION SIXTY-SIX-L SHALL BE READ AS "FIFTY KILOWATTS."
  (4)   MULTIPLE  TAXPAYERS.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
PURCHASED AND INSTALLED IN A RESIDENCE SHARED BY TWO OR MORE  TAXPAYERS,
THE  AMOUNT  OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR EACH SUCH
TAXPAYER SHALL BE PRORATED ACCORDING TO  THE  PERCENTAGE  OF  THE  TOTAL
EXPENDITURE  FOR  SUCH  WIND ENERGY SYSTEM EQUIPMENT CONTRIBUTED BY EACH
TAXPAYER.
  (5)  PROPORTIONATE  SHARE.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
PURCHASED  AND  INSTALLED  BY  A CONDOMINIUM MANAGEMENT ASSOCIATION OR A
COOPERATIVE HOUSING CORPORATION, A TAXPAYER  WHO  IS  A  MEMBER  OF  THE
CONDOMINIUM MANAGEMENT ASSOCIATION OR WHO IS A TENANT-STOCKHOLDER IN THE
COOPERATIVE  HOUSING  CORPORATION MAY FOR THE PURPOSE OF THIS SUBSECTION
CLAIM A PROPORTIONATE SHARE OF THE TOTAL EXPENSE AS THE EXPENDITURE  FOR
THE PURPOSES OF THE CREDIT ATTRIBUTABLE TO HIS OR HER RESIDENCE.
  (6)  GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE
INCURRED IN PURCHASING AND INSTALLING WIND ENERGY SYSTEM EQUIPMENT,  THE
AMOUNT  OF  ANY  FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAYER,
WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION  OF  SUCH  EQUIPMENT
AND  WHICH WAS NOT INCLUDED IN THE FEDERAL GROSS INCOME OF THE TAXPAYER,
SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH EXPENDITURES.
  (7) WHEN CREDIT ALLOWED. THE CREDIT PROVIDED FOR  IN  THIS  SUBSECTION
SHALL  BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO

S. 3238--A                          4

THOUSAND TWELVE, IN WHICH THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED  IN
SERVICE.
  (8)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR
SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
CARRIED  OVER  TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 7. This act shall take effect on January 1, 2013 and shall apply  to
taxable years beginning on and after such date.

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