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

                                  7317

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law and the real property tax law,  in  relation
  to establishing the carbon emissions reduction credit and the multiple
  dwelling carbon emissions reduction tax abatement

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

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (uu) to read as follows:
  (UU)  CARBON  EMISSIONS  REDUCTION  CREDIT.  (1)  ALLOWANCE OF CREDIT.
SUBJECT TO APPROVAL BY THE COMMISSION PURSUANT TO PARAGRAPH FOUR OF THIS
SUBSECTION, A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
BY THIS ARTICLE FOR COSTS INCURRED ON OR AFTER  THE  EFFECTIVE  DATE  OF
THIS SUBSECTION BY SUCH TAXPAYER, WHICH ARE DIRECTLY ASSOCIATED WITH THE
CONVERSION  OF  A HOME HEATING SYSTEM FROM ONE THAT BURNS NUMBER FOUR OR
NUMBER SIX FUEL OIL TO ONE THAT BURNS  A  LESS  CARBON-INTENSE  FUEL  OR
UTILIZES  A  RENEWABLE ENERGY SOURCE, IN HIS OR HER PRINCIPAL RESIDENCE,
IF SUCH RESIDENCE IS A SINGLE FAMILY DWELLING LOCATED IN THIS STATE. THE
AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWO THOUSAND DOLLARS, TOWARDS THE
TOTAL COST OF DESIGNATING, PURCHASING  AND  INSTALLING  SUCH  A  HEATING
SYSTEM,  WHICH  COST  SHALL  INCLUDE  THE DECOMMISSIONING AND REMOVAL OF
EXISTING EQUIPMENT.
  (2) MULTIPLE TAXPAYERS. IF THE PRINCIPAL RESIDENCE IS SHARED BY TWO OR
MORE TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR EACH SUCH ELIGIBLE TAXPAYER  SHALL  BE  PRORATED  ACCORDING  TO  THE
PERCENTAGE OF THE TOTAL EXPENDITURE FOR SUCH CONVERSION INCURRED BY EACH
TAXPAYER.
  (3)  DEFINITIONS  AND  GUIDELINES.  (A)  THE PRESIDENT OF THE NEW YORK
STATE ENERGY RESEARCH AND  DEVELOPMENT  AUTHORITY  SHALL  PROVIDE  DEFI-
NITIONS  AND GUIDELINES FOR THE ELIGIBILITY OF HEATING SYSTEMS THAT BURN
LESS CARBON-INTENSE  FUELS  OR  UTILIZE  RENEWABLE  ENERGY  SOURCES,  AS
DESCRIBED  IN  PARAGRAPH  ONE  OF THIS SUBSECTION, AND SHALL SET MINIMUM
PERFORMANCE STANDARDS FOR SUCH SYSTEMS, PROVIDED THAT:

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

                                                           LBD14239-05-2

S. 7317                             2

  (I) LESS-CARBON INTENSE FUEL SHALL INCLUDE ONLY NUMBER TWO  FUEL  OIL,
BIOFUELS/BIODIESEL  BLENDS,  REVENUE-GRADE  WASTE GAS FROM LANDFILLS AND
DIGESTERS AND PROPANE WOODY BIOMASS; PROVIDED, HOWEVER, THAT NUMBER FOUR
FUEL OIL SHALL NOT QUALIFY AS A LESS-CARBON INTENSE FUEL.
  (II)  RENEWABLE ENERGY SOURCES SHALL INCLUDE, BUT SHALL NOT BE LIMITED
TO, SOLAR THERMAL AND GEOTHERMAL SYSTEMS.
  (B) FOR PURPOSES OF THIS SUBDIVISION, "PRINCIPAL RESIDENCE" MEANS  THE
RESIDENTIAL  PROPERTY WHERE THE TAXPAYER HAS HIS OR HER TRUE, FIXED, AND
PERMANENT HOME TO WHICH, WHENEVER ABSENT HE OR SHE INTENDS TO RETURN. IN
ORDER TO VERIFY A TAXPAYER'S CLAIM THAT A PARTICULAR PROPERTY IS A PRIN-
CIPAL RESIDENCE, THE COMMISSION MAY ACCEPT VARIOUS DOCUMENTS THAT, TAKEN
TOGETHER, ESTABLISH THAT THE TAXPAYER CLAIMING THE  CREDIT  PROVIDED  BY
THIS SUBDIVISION OCCUPIES THE PROPERTY AS A PRINCIPAL RESIDENCE, INCLUD-
ING,  BUT  NOT LIMITED TO, THE TAXPAYER'S DRIVER'S LICENSE, VOTER REGIS-
TRATION CARD, CANCELLED CHECKS LISTING THE PROPERTY ADDRESS,  STATEMENTS
SUCH  AS MEDICAL, BANK OR CHARGE ACCOUNTS OR INCOME TAX RECORDS INDICAT-
ING THE MAILING ADDRESS AND INSURANCE POLICIES.
  (4) APPLICATION FOR CREDIT. SUCH CREDIT SHALL  BE  GRANTED  ONLY  UPON
APPLICATION  BY  THE ELIGIBLE TAXPAYER OR TAXPAYERS ON A FORM PRESCRIBED
BY THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY  AND
AFTER  INSPECTION  BY  SUCH AUTHORITY, THE RESULTS OF WHICH SHALL BE SET
FORTH IN A  REPORT  PREPARED  THEREBY.  THE  APPLICATION  SHALL  REQUIRE
SUBMISSION  OF  DOCUMENTATION  OF THE CONVERSION, INCLUDING INVOICES FOR
ANY SERVICES USED AND CONTRACTED AND EQUIPMENT INSTALLED  OR  ADDED,  AS
WELL  AS  ANY  CONTRACTS  WITH  A  HEATING SUPPLIER. THE APPLICATION AND
INSPECTION REPORT SHALL BE FILED WITH THE TAX COMMISSION  ON  OR  BEFORE
THE LAST DAY OF THE APPLICABLE TAXABLE YEAR, WHO SHALL APPROVE OR DISAP-
PROVE  SUCH  APPLICATION. A COPY OF SUCH APPLICATION SHALL BE FILED WITH
THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
  (5) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  S 2. The real property tax law is amended  by  adding  a  new  section
421-n to read as follows:
  S  421-N.  MULTIPLE DWELLING CARBON EMISSIONS REDUCTION TAX ABATEMENT.
1. ANY OWNER OF A MULTIPLE DWELLING BUILDING WITH AT LEAST  FIVE  UNITS,
THE  HEATING  SYSTEM  OF  WHICH  HAS  BEEN CONVERTED FROM ONE THAT BURNS
NUMBER FOUR OR NUMBER SIX FUEL OIL TO ONE THAT BURNS A  LESS  CARBON-IN-
TENSE  FUEL OR UTILIZES A RENEWABLE ENERGY SOURCE ON OR AFTER THE EFFEC-
TIVE DATE OF THIS SECTION SHALL RECEIVE AN ABATEMENT OF  TAXES  ON  SUCH
REAL  PROPERTY WITH RESPECT TO THE TAXABLE YEAR IN WHICH SUCH CONVERSION
WAS COMPLETED, EQUALING THE LESSER OF (A)  EIGHTY  PERCENT,  UP  TO  ONE
HUNDRED  SEVENTY  THOUSAND  DOLLARS,  TOWARDS  THE TOTAL PROJECT COST OF
DESIGNING, PURCHASING AND INSTALLING SUCH A HEATING SYSTEM,  WHICH  COST
SHALL  INCLUDE THE DECOMMISSIONING AND REMOVAL OF EXISTING EQUIPMENT, OR
(B) THE AMOUNT OF TAXES PAYABLE IN SUCH YEAR; PROVIDED THAT THE  GOVERN-
ING  BODY  OF  A  CITY,  VILLAGE,  TOWN OR COUNTY, AFTER PUBLIC HEARING,
ADOPTS A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THEREFOR.
  2. THE PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY SHALL PROVIDE DEFINITIONS AND GUIDELINES FOR  THE  ELIGIBILITY
OF HEATING SYSTEMS THAT BURN LESS CARBON-INTENSE FUELS OR UTILIZE RENEW-
ABLE  ENERGY  SOURCES,  AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION,

S. 7317                             3

AND SHALL SET MINIMUM PERFORMANCE STANDARDS FOR SUCH  SYSTEMS,  PROVIDED
THAT:
  (A)  LESS-CARBON  INTENSE FUEL SHALL INCLUDE ONLY NUMBER TWO FUEL OIL,
BIOFUELS/BIODIESEL BLENDS, REVENUE-GRADE WASTE GAS  FROM  LANDFILLS  AND
DIGESTERS AND PROPANE WOODY BIOMASS; PROVIDED, HOWEVER, THAT NUMBER FOUR
FUEL OIL SHALL NOT QUALIFY AS A LESS-CARBON INTENSE FUEL.
  (B)  RENEWABLE  ENERGY SOURCES SHALL INCLUDE, BUT SHALL NOT BE LIMITED
TO, SOLAR THERMAL AND GEOTHERMAL SYSTEMS.
  3. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
OF  SUCH  BUILDING  ON  A  FORM  PRESCRIBED BY THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY AND AFTER INSPECTION BY SUCH AUTHORI-
TY, THE RESULTS OF WHICH SHALL BE SET FORTH IN A REPORT PREPARED  THERE-
BY.  THE  APPLICATION  SHALL  REQUIRE SUBMISSION OF DOCUMENTATION OF THE
CONVERSION, INCLUDING INVOICES FOR ANY SERVICES USED AND CONTRACTED  AND
EQUIPMENT  INSTALLED  OR  ADDED, AS WELL AS ANY CONTRACTS WITH A HEATING
SUPPLIER. THE APPLICATION AND INSPECTION REPORT SHALL BE FILED WITH  THE
ASSESSOR  OF  THE APPROPRIATE COUNTY, CITY, TOWN OR VILLAGE ON OR BEFORE
THE APPROPRIATE TAXABLE STATUS  DATE  OF  SUCH  COUNTY,  CITY,  TOWN  OR
VILLAGE.  A  COPY  OF  SUCH APPLICATION SHALL BE FILED WITH THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
  4. IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION  PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM
LEVIES  AS  PROVIDED IN THIS SECTION COMMENCING WITH THE ASSESSMENT ROLL
PREPARED ON THE BASIS OF THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVI-
SION THREE OF THIS SECTION. THE ASSESSED VALUE OF ANY EXEMPTION  GRANTED
PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESS-
MENT  ROLL  WITH  THE TAXABLE PROPERTY, WITH THE AMOUNT OF THE EXEMPTION
SHOWN IN A SEPARATE COLUMN.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2013.