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

                                  6312

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             March 25, 2013
                               ___________

Introduced by M. of A. GABRYSZAK, SCHIMMINGER, KATZ, ENGLEBRIGHT, GALEF,
  GUNTHER,  BENEDETTO, MAISEL, FINCH, RAIA, ZEBROWSKI, PAULIN, ROSENTHAL
  -- Multi-Sponsored by -- M.   of  A.  ABBATE,  COOK,  CRESPO,  DUPREY,
  GIGLIO,  GLICK, HEASTIE, LIFTON, McKEVITT, PALMESANO, SWEENEY, THIELE,
  TITONE, WEISENBERG -- read once and referred to the Committee on  Ways
  and Means

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 375 of the laws of 2012, 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 (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 FIFTEEN, 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 FIFTEEN, 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 FIFTEEN.
  S 2. Subparagraph (A) of paragraph 2 of subsection  (g-1)  of  section
606  of  the  tax law, as amended by chapter 375 of the laws of 2012, is
amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09798-01-3

              

A. 6312                             2

  (A) The term "qualified solar energy  system  equipment  expenditures"
means expenditures for:
  (i)  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;
  (ii) the lease of solar energy system equipment, A SOLAR THERMAL ENER-
GY SYSTEM, OR A SOLAR ELECTRIC ENERGY SYSTEM under a  written  agreement
that  spans  at  least  ten years where such equipment owned by a person
other than the taxpayer 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; 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, A SOLAR THERMAL ENERGY SYSTEM, OR A SOLAR ELEC-
TRIC ENERGY SYSTEM 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 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."

A. 6312                             3

  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  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

A. 6312                             4

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
THOUSAND  FOURTEEN,  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, 2015 and shall apply to
taxable years beginning on and after such date.