S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    637
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by  M. of A. CARROLL, DINOWITZ, COLTON, EPSTEIN, FAHY, HYND-
   MAN, STIRPE, SIMON, OTIS -- Multi-Sponsored by -- M. of A.  DAVILA  --
   read once and referred to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to creating a tax
   abatement for geothermal wells

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 487-b to read as follows:
   § 487-B. TAX ABATEMENT FOR GEOTHERMAL WELLS. 1. DEFINITIONS. WHEN USED
 IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "ARCHITECT"  SHALL MEAN A PERSON LICENSED AND REGISTERED TO PRAC-
 TICE THE PROFESSION OF ARCHITECTURE UNDER THE EDUCATION LAW.
   (B) "COMPLIANCE PERIOD" SHALL MEAN THE TAX YEAR IN WHICH A TAX  ABATE-
 MENT COMMENCES AND THE THREE TAX YEARS IMMEDIATELY THEREAFTER.
   (C)  "ELIGIBLE GEOTHERMAL WELL SYSTEM EXPENDITURES" SHALL MEAN REASON-
 ABLE EXPENDITURES FOR  MATERIALS,  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 A GEOTHERMAL WELL SYSTEM INSTALLED IN A
 BUILDING. SUCH ELIGIBLE EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER
 FINANCE CHARGES, OR ANY EXPENDITURES INCURRED USING A FEDERAL, STATE  OR
 LOCAL GRANT.
   (D) "ENGINEER" SHALL MEAN A PERSON LICENSED AND REGISTERED TO PRACTICE
 THE PROFESSION OF ENGINEERING UNDER THE EDUCATION LAW.
   (E)  "GEOTHERMAL  WELL  SYSTEM"  SHALL  MEAN  A  SYSTEM WHICH USES THE
 EARTH'S NATURAL TEMPERATURE UNDER THE  GROUND  TO  HEAT  AND/OR  COOL  A
 BUILDING.
   2.  REAL PROPERTY TAX ABATEMENT. AN ELIGIBLE BUILDING SHALL RECEIVE AN
 ABATEMENT OF REAL PROPERTY TAXES AS PROVIDED IN  THIS  SECTION  AND  THE
 RULES PROMULGATED HEREUNDER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01086-01-3
              

 A. 637                              2
 
   (A)  THE AMOUNT OF SUCH TAX ABATEMENT SHALL BE IF A GEOTHERMAL WELL IS
 PLACED IN SERVICE ON OR AFTER JANUARY FIRST, TWO  THOUSAND  TWENTY-FIVE,
 AND  BEFORE  JANUARY  FIRST, TWO THOUSAND TWENTY-SEVEN, FOR EACH YEAR OF
 THE COMPLIANCE PERIOD SUCH TAX ABATEMENT SHALL BE THE LESSER OF (I)  TEN
 PERCENT  OF  ELIGIBLE  GEOTHERMAL  WELL EXPENDITURES, (II) THE AMOUNT OF
 TAXES PAYABLE IN SUCH TAX YEAR, OR (III) SIXTY-TWO THOUSAND FIVE HUNDRED
 DOLLARS.
   (B) SUCH TAX ABATEMENT SHALL COMMENCE  ON  JULY  FIRST  FOLLOWING  THE
 APPROVAL  OF AN APPLICATION FOR TAX ABATEMENT BY THE DEPARTMENT, AND MAY
 NOT BE CARRIED OVER TO ANY SUBSEQUENT TAX YEAR.
   (C) WITH RESPECT TO ANY BUILDING  HELD  IN  THE  CONDOMINIUM  FORM  OF
 OWNERSHIP  THAT  RECEIVES A TAX ABATEMENT PURSUANT TO THIS SECTION, SUCH
 TAX ABATEMENT BENEFITS SHALL BE APPORTIONED AMONG ALL OF THE CONDOMINIUM
 TAX LOTS WITHIN SUCH ELIGIBLE BUILDING.
   (D) IF, AS A RESULT OF APPLICATION TO THE DEPARTMENT OR A COURT  ORDER
 OR  ACTION BY THE DEPARTMENT, THE BILLABLE ASSESSED VALUE FOR ANY FISCAL
 YEAR IN WHICH THE TAX ABATEMENT IS TAKEN IS REDUCED AFTER THE ASSESSMENT
 ROLL BECOMES FINAL, THE DEPARTMENT SHALL RECALCULATE  THE  ABATEMENT  SO
 THAT  THE ABATEMENT GRANTED SHALL NOT EXCEED THE ANNUAL TAX LIABILITY AS
 SO REDUCED. THE AMOUNT EQUAL TO THE  DIFFERENCE  BETWEEN  THE  ABATEMENT
 ORIGINALLY  GRANTED  AND  THE  ABATEMENT  AS  SO  RECALCULATED  SHALL BE
 DEDUCTED FROM ANY REFUND OTHERWISE PAYABLE OR REMISSION OTHERWISE DUE AS
 A RESULT OF SUCH REDUCTION IN BILLABLE ASSESSED VALUE.
   (E) THE TAX ABATEMENT SHALL BE CONDITIONED UPON:
   (I) CONTINUING COMPLIANCE DURING THE COMPLIANCE PERIOD WITH ALL APPLI-
 CABLE  PROVISIONS  OF  LAW,  INCLUDING  WITHOUT  LIMITATION  THE   LOCAL
 CONSTRUCTION  AND  FIRE CODES, MAINTAINING THE GEOTHERMAL WELL SYSTEM IN
 SUCH A MANNER THAT IT CONTINUOUSLY CONSTITUTES A GEOTHERMAL WELL SYSTEM,
 AND PERMITTING FOR INSPECTIONS OF THE GEOTHERMAL  WELL  SYSTEM  AND  ANY
 RELATED STRUCTURES AND EQUIPMENT UPON REASONABLE NOTICE; AND
   (II)  REAL  ESTATE TAXES, WATER AND SEWER CHARGES, PAYMENTS IN LIEU OF
 TAXES OR OTHER MUNICIPAL CHARGES WITH RESPECT TO THE PROPERTY THE GEOTH-
 ERMAL WELL SYSTEM IS LOCATED ON OR IS SERVICING NOT HAVING BEEN DUE  AND
 OWING DURING THE COMPLIANCE PERIOD FOR A PERIOD OF SIX MONTHS OR MORE.
   3. APPLICATION FOR TAX ABATEMENT. (A) TO OBTAIN A TAX ABATEMENT PURSU-
 ANT  TO  THIS  SECTION,  AN  APPLICANT SHALL FILE AN APPLICATION FOR TAX
 ABATEMENT ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ON OR
 BEFORE MARCH FIFTEENTH, TWO THOUSAND TWENTY-SEVEN FOR ELIGIBLE  GEOTHER-
 MAL WELL EXPENDITURES.
   (B)  SUCH  APPLICATION  SHALL  BE  FILED NO LATER THAN MARCH FIFTEENTH
 BEFORE THE FIRST TAX YEAR, BEGINNING  JULY  FIRST,  FOR  WHICH  THE  TAX
 ABATEMENT IS SOUGHT.
   (C) SUCH APPLICATION SHALL CONTAIN THE FOLLOWING:
   (I)  THE  NAME  AND  ADDRESS  OF THE APPLICANT AND THE LOCATION OF THE
 GEOTHERMAL WELL SYSTEM.
   (II) PROOF THAT THE APPLICANT RECEIVED  ALL  REQUIRED  CERTIFICATIONS,
 PERMITS AND OTHER APPROVALS TO CONSTRUCT THE GEOTHERMAL WELL SYSTEM.
   (III)  CERTIFICATIONS  IN A FORM PRESCRIBED BY THE DEPARTMENT, FROM AN
 ARCHITECT, ENGINEER OR OTHER CERTIFIED OR  LICENSED  PROFESSIONAL,  THAT
 THE GEOTHERMAL WELL SYSTEM HAS BEEN PLACED IN SERVICE IN ACCORDANCE WITH
 THIS  SECTION,  THE  RULES PROMULGATED HEREUNDER, AND LOCAL CONSTRUCTION
 AND FIRE CODES.   ALL CERTIFICATIONS REQUIRED BY  THIS  SECTION  OR  THE
 RULES  PROMULGATED  HEREUNDER SHALL SET FORTH THE SPECIFIC FINDINGS UPON
 WHICH THE CERTIFICATION IS BASED, AND SHALL INCLUDE  INFORMATION  SUFFI-
 CIENT  TO  IDENTIFY  THE LOCATION OF THE GEOTHERMAL WELL, THE CERTIFYING
 A. 637                              3
 
 ENGINEER, ARCHITECT OR OTHER PROFESSIONAL, AND SUCH OTHER INFORMATION AS
 MAY BE PRESCRIBED BY THE DEPARTMENT.
   (IV)  AN  AGREEMENT  TO  PERMIT FOR INSPECTIONS OF THE GEOTHERMAL WELL
 SYSTEM AND ANY RELATED STRUCTURES AND EQUIPMENT UPON REASONABLE NOTICE.
   (V) ANY OTHER INFORMATION OR CERTIFICATIONS REQUIRED BY THE DEPARTMENT
 PURSUANT TO THIS SECTION AND THE RULES PROMULGATED HEREUNDER.
   (D) AN APPLICATION FOR TAX ABATEMENT SHALL BE IN ANY FORMAT PRESCRIBED
 BY THE DEPARTMENT, INCLUDING ELECTRONIC FORM.
   (E) AN APPLICATION FOR TAX ABATEMENT SHALL BE APPROVED BY THE  DEPART-
 MENT  UPON  DETERMINING  THAT THE APPLICANT HAS SUBMITTED PROOF THAT THE
 REQUIREMENTS FOR OBTAINING A TAX ABATEMENT PURSUANT TO THIS SECTION  AND
 THE RULES PROMULGATED HEREUNDER HAVE BEEN MET. THE BURDEN OF PROOF SHALL
 BE  ON  THE  APPLICANT TO SHOW BY CLEAR AND CONVINCING EVIDENCE THAT THE
 REQUIREMENTS FOR GRANTING A TAX ABATEMENT HAVE BEEN SATISFIED.
   (F) UPON APPROVAL OF AN APPLICATION FOR TAX ABATEMENT, THE TAX  ABATE-
 MENT  SHALL  BE  APPLIED,  PROVIDED THERE ARE NO OUTSTANDING REAL ESTATE
 TAXES, WATER AND SEWER CHARGES, PAYMENTS  IN  LIEU  OF  TAXES  OR  OTHER
 MUNICIPAL  CHARGES  WITH  RESPECT  TO  THE  PROPERTY THE GEOTHERMAL WELL
 SYSTEM IS LOCATED ON OR IS SERVICING.
   4. REVOCATION OF TAX ABATEMENT. (A) THE DEPARTMENT  SHALL  REVOKE,  IN
 WHOLE  OR  IN  PART,  ANY TAX ABATEMENT GRANTED PURSUANT TO THIS SECTION
 WHENEVER THE DEPARTMENT HAS DETERMINED THAT:
   (I) AN APPLICANT HAS FAILED TO  COMPLY  WITH  A  REQUIREMENT  OF  THIS
 SECTION OR ANY RULE PROMULGATED HEREUNDER AT ANY TIME DURING THE COMPLI-
 ANCE PERIOD, INCLUDING WITHOUT LIMITATION ANY OF THE CONTINUING REQUIRE-
 MENTS SET FORTH IN SUBDIVISION TWO OF THIS SECTION;
   (II)  THE  PROPERTY  THE  GEOTHERMAL  WELL  SYSTEM IS LOCATED ON OR IS
 SERVICING HAS NOT BEEN IN COMPLIANCE AT ANY TIME DURING  THE  COMPLIANCE
 PERIOD  WITH A REQUIREMENT OF THIS SECTION OR ANY RULE PROMULGATED HERE-
 UNDER;
   (III) THE GEOTHERMAL WELL SYSTEM FOR WHICH A TAX ABATEMENT WAS GRANTED
 HAS AT ANY TIME DURING THE COMPLIANCE PERIOD FAILED TO MEET ANY REQUIRE-
 MENT FOR A GEOTHERMAL WELL SYSTEM PURSUANT TO THIS SECTION OR  ANY  RULE
 PROMULGATED HEREUNDER;
   (IV)  THE GEOTHERMAL WELL SYSTEM HAS BECOME A FIRE OR SAFETY HAZARD AT
 ANY TIME DURING THE COMPLIANCE PERIOD; OR
   (V) AN APPLICATION, CERTIFICATION, REPORT OR OTHER DOCUMENT  SUBMITTED
 BY  THE APPLICANT CONTAINS A FALSE OR MISLEADING STATEMENT AS TO A MATE-
 RIAL FACT OR OMITS TO STATE ANY MATERIAL FACT NECESSARY IN ORDER TO MAKE
 THE STATEMENT THEREIN NOT FALSE OR MISLEADING.
   (B) THE DEPARTMENT MAY REVOKE, IN WHOLE OR IN PART, ANY TAX  ABATEMENT
 GRANTED  PURSUANT  TO  THIS  SECTION  WHENEVER IT HAS DETERMINED THAT AN
 APPLICANT HAS FAILED TO COMPLY WITH THE CONTINUING REQUIREMENT SET FORTH
 IN SUBPARAGRAPH (II)  OF  PARAGRAPH  (E)  OF  SUBDIVISION  TWO  OF  THIS
 SECTION.
   (C) AN APPLICANT SHALL PAY, WITH INTEREST, SUCH PART OF ANY TAX ABATE-
 MENT  RECEIVED  PURSUANT  TO  THIS SECTION THAT REPRESENTS THE PERIOD OF
 NON-COMPLIANCE AS DETERMINED BY THE DEPARTMENT. IN ADDITION, THE DEPART-
 MENT MAY DECLARE ANY  APPLICANT  INELIGIBLE  FOR  FUTURE  TAX  ABATEMENT
 PURSUANT  TO  THIS  SECTION IF ANY APPLICATION, CERTIFICATION, REPORT OR
 OTHER DOCUMENT SUBMITTED BY THE APPLICANT CONTAINS A FALSE OR MISLEADING
 STATEMENT AS TO A MATERIAL FACT OR OMITS  TO  STATE  ANY  MATERIAL  FACT
 NECESSARY  IN  ORDER TO MAKE THE STATEMENT THEREIN NOT FALSE OR MISLEAD-
 ING.
   (D) ALL TAXES, WITH INTEREST, REQUIRED TO BE PAID RETROACTIVELY PURSU-
 ANT TO THIS SUBDIVISION SHALL CONSTITUTE A TAX LIEN AS OF THE DATE IT IS
 A. 637                              4
 
 DETERMINED SUCH TAXES AND INTEREST  ARE  OWED.  ALL  INTEREST  SHALL  BE
 CALCULATED  FROM  THE DATE THE TAXES WOULD HAVE BEEN DUE BUT FOR THE TAX
 ABATEMENT GRANTED PURSUANT TO THIS SECTION AT  THE  APPLICABLE  RATE  OR
 RATES OF INTEREST IMPOSED GENERALLY FOR NON-PAYMENT OF REAL PROPERTY TAX
 WITH RESPECT TO SUCH TAXED PROPERTY FOR THE PERIOD IN QUESTION.
   § 2. This act shall take effect immediately.