senate Bill S2448B

Exempts the sale and installation of fuel cell electric generating systems equipment from sales and compensating use taxes

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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

  • 17 / Jan / 2013
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 16 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 18 / Apr / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 18 / Apr / 2013
    • PRINT NUMBER 2448A
  • 18 / Dec / 2013
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 18 / Dec / 2013
    • PRINT NUMBER 2448B
  • 08 / Jan / 2014
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 10 / Feb / 2014
    • REPORTED AND COMMITTED TO FINANCE

Summary

Exempts the sale and installation of fuel cell electric generating systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.

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Bill Details

See Assembly Version of this Bill:
A6644A
Versions:
S2448
S2448A
S2448B
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd ยงยง1115 & 1210, Tax L

Votes

10
0
10
Aye
0
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Energy and Telecommunications committee vote details

Sponsor Memo

BILL NUMBER:S2448B

TITLE OF BILL: An act to amend the tax law, in relation to exempting
the sale or lease and installation of commercial fuel cell electric
generating equipment or the sale of electricity generated by such
equipment from state sales and compensating use tax and granting
municipalities the option to grant such exemption

PURPOSE:

To provide a tax exemption for the retail sale of and service of
installing commercial fuel cell electric generating equipment.

SUMMARY OF PROVISIONS:

Adds a new subdivision (jj) of section 1115 of the tax law to exempt
the retail sale or lease of commercial fuel cell electric generating
systems equipment and of the service of installing such systems or the
sale of electricity generated by such systems from the sales tax
imposed by section 1105 and 1111 of this article. In addition, the
term "fuel cell electricity generating system equipment" is defined.
Amends paragraph 1 of subdivision (a) of section 1210 of the tax law
to include the exemption of commercial fuel cell electric generating
equipment Adds a new subdivision (q) of section 1210 of the tax law to
allow any city with a population of one million or more, acting
through its local legislative body, to have the authority to provide
the same exemptions for commercial fuel cell electric generating
equipment from state sales and compensating use taxes described in
subdivision (ii) of section 1115 of this chapter. Such local
legislative body shall provide such exemption by enacting a
resolution.

EXISTING LAW:

These systems are not currently exempt from sales tax.

JUSTIFICATION:

Fuel cell electric generating technology has many advantages. Fuel
cells commonly provide power to host facilities during power outages,
enhancing storm response, and allowing critical facilities to remain
operational in such events, The fuel flexibility of this technology
unlocks a large portfolio of locally available fuels and the' existing
fuel infrastructure, which has the potential to increase the
reliability of the power system and to keep more energy dollars in New
York State. Fuel cells commonly provide power to host facilities
during power outages, enhancing storm response, and allowing critical
facilities to remain operational in such events. Fuel cells are
exceptionally efficient, they can stretch available supplies of fuel,
reduce energy costs and help reduce our dependence on foreign oil. The
scalability and resiliency of fuel cells makes them suitable for a
wide range of heat and power needs in electronics, homes, offices, and
factories. In addition, this technology has a low impact on their
surroundings, with near-silent operation and low emissions, making
them suitable in locations where combustion systems may not be
appropriate. Also, fuel cells may be used in conjunction with solar
panels or wind farms to produce electricity when renewable energy is


unavailable. The high capacity factors, fuel and efficiency,
associated with this technology make it equal or superior to renewable
technologies in the displacement of conventional fossil generation,
leading to lower air emissions, including carbon. For these reasons,
such technologies should be treated equally to renewable technologies
determining the eligibility of a tax exemption for the retail sale of
commercial fuel cell electric generating technologies. Qualified fuel
cell electric generating expenditures would include the material and
installation costs to produce energy designed to provide heating,
cooling, hot water, or electricity for commercial use.

FISCAL IMPLICATIONS:

None.

LEGISLATIVE HISTORY:

New bill.

EFFECTIVE DATE:

This act shall take effect immediately, provided that section one of
this act shall take effect on the first of January next succeeding the
date on which this act shall have become a law.

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

                                 2448--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations -- reported favorably from said committee and committed to the
  Committee  on  Finance  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said  committee  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to amend the tax law, in relation to exempting the sale or lease
  and installation of commercial fuel cell electric generating equipment
  or the sale of electricity generated  by  such  equipment  from  state
  sales  and compensating use tax and granting municipalities the option
  to grant such exemption

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

  Section  1.Section  1115  of  the  tax  law is amended by adding a new
subdivision (jj) to read as follows:
  (JJ) (1) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL FUEL  CELL  ELEC-
TRIC  GENERATING SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH
SYSTEMS SHALL BE EXEMPT FROM TAXES IMPOSED BY  SECTIONS  ELEVEN  HUNDRED
FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  (2)  RECEIPTS  FROM  THE  LEASE  OF  FUEL  CELL ELECTRICITY GENERATING
SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS 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  A  COMMERCIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II)
WHICH IS USED BY THE TAXPAYER AT HIS OR HER COMMERCIAL PREMISES  AT  THE
TIME  THE FUEL CELL ELECTRICITY GENERATING SYSTEM IS PLACED INTO SERVICE
SHALL BE EXEMPT FROM TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED  FIVE  AND
ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  (3)  RECEIPTS  FROM  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT
SPANS AT LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED IN GENERATED  BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07074-04-3

S. 2448--B                          2

FUEL  CELL  ELECTRICITY  GENERATING  SYSTEMS EQUIPMENT OWNED BY A PERSON
OTHER THAN THE TAXPAYER WHICH IS INSTALLED IN CONNECTION WITH COMMERCIAL
PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) USED BY THE TAXPAY-
ER  FOR  COMMERCIAL  PURPOSES  SHALL BE EXEMPT FROM THE TAXES IMPOSED BY
SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  (4) FOR THE PURPOSES  OF  THIS  SUBDIVISION,  "FUEL  CELL  ELECTRICITY
GENERATING  SYSTEMS  EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION
OF COMPONENTS INSTALLED UPON NON-RESIDENTIAL  PREMISES  THAT  UTILIZE  A
SOLID  OXIDE,  MOLTEN  CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC
ACID FUEL CELL THAT IS MANUFACTURED, INSTALLED AND OPERATED  IN  ACCORD-
ANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS. SUCH ARRANGEMENT
OR  COMPONENTS  SHALL  NOT  INCLUDE EQUIPMENT THAT IS PART OF A NON-FUEL
CELL ENERGY SYSTEM.
  S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by chapter 13 of the  laws  of  2013,  is  amended  to  read  as
follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter,  at  the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes  shall  be
identical,  except as to rate and except as otherwise provided, with the
corresponding provisions in such  article  twenty-eight,  including  the
definition  and  exemption  provisions  of  such  article, so far as the
provisions of such article twenty-eight can be made  applicable  to  the
taxes  imposed  by  such  city  or  county and with such limitations and
special provisions as are set forth in this article. The  taxes  author-
ized  under  this  subdivision  may  not  be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes  so  as
to  include  all  portions  and all types of receipts, charges or rents,
subject to state tax under  sections  eleven  hundred  five  and  eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
city,  county  or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy  systems  equipment
exemption  provided for in subdivision (ee), the commercial solar energy
systems equipment  exemption  provided  for  in  subdivision  (ii),  THE
COMMERCIAL  FUEL  CELL  ELECTRIC GENERATING EQUIPMENT EXEMPTION PROVIDED
FOR IN  SUBDIVISION  (JJ),  and  the  clothing  and  footwear  exemption
provided  for  in  paragraph thirty of subdivision (a) of section eleven
hundred fifteen of this chapter, unless  such  city,  county  or  school
district  elects  otherwise  as  to either such residential solar energy
systems equipment exemption, such commercial solar energy systems equip-

S. 2448--B                          3

ment exemption, SUCH COMMERCIAL FUEL CELL ELECTRIC GENERATING EXEMPTION,
or such clothing and footwear exemption.
  S  3.  Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
THE COMMERCIAL FUEL CELL ELECTRIC GENERATING  EQUIPMENT  EXEMPTION  FROM
STATE  SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (JJ) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A  RESOLUTION
IN  THE  FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION; WHEREUPON,
UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF  THIS
SECTION,  SUCH  ENACTMENT  OF  SUCH  RESOLUTION SHALL BE DEEMED TO BE AN
AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH  SECTION  ELEVEN
HUNDRED  SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF THEY
HAD BEEN DULY ENACTED BY THE  STATE  LEGISLATURE  AND  APPROVED  BY  THE
GOVERNOR.
  (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
CONTRACTED  TO  BE  GIVEN  FOR, OR FOR THE USE OF, PROPERTY AND SERVICES
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO  SUBDIVI-
SION (JJ) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES
AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
  SECTION  TWO. THIS RESOLUTION SHALL TAKE EFFECT JANUARY 1, (INSERT THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2014) AND SHALL APPLY TO SALES MADE,
SERVICES RENDERED AND USES OCCURRING ON OR AFTER THAT DATE IN ACCORDANCE
WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106,  1216  AND
1217 OF THE NEW YORK TAX LAW.
  S 4. This act shall take effect immediately, provided that section one
of  this  act  shall take effect on the first of January next succeeding
the date on which this act shall have become a law.

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