senate Bill S1055

2011-2012 Legislative Session

Establishes a personal income tax credit for voltage regulation technology equipment

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to investigations and government operations
Jan 05, 2011 referred to investigations and government operations

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S1055 - Bill Details

See Assembly Version of this Bill:
A5610
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง606, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S4294, A4276

S1055 - Bill Texts

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Establishes a personal income tax credit for voltage regulation technology equipment.

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BILL NUMBER:S1055

TITLE OF BILL:
An act
to amend the tax law, in relation to establishing a personal income tax
credit for voltage regulation technology equipment

PURPOSE:
To encourage and establish incentives for the purchase and use of
voltage regulation technologies.

SUMMARY OF PROVISIONS:
Section 606 of the tax law is amended by adding
a new subsection (g3) voltage regulation technology equipment credit.
This subsection provides a tax credit equal to twenty-five percent
of qualified voltage regulation technology expenditures, not to
exceed five thousand dollars. Qualified voltage regulation technology
equipment expenditures shall include expenditures for materials,
labor costs properly allocable to on-site preparation, assembly and
installation, engineering services, designs and plans directly
related to the construction. The credit will be applied to the
taxable year in which such equipment is placed in service.

JUSTIFICATION:
The State of New York provides incentives to encourage
the use of wind, solar and other renewable energies. Similar
incentives for voltage regulation technologies could improve
efficiency of the electrical grid and save consumers money. Currently
it is theorized that up to (70%) of homes and businesses receive more
voltage than they need, which results in wasted energy. This wastage
is due to "line loss" through the transmission system, because
utilities have to insure that the last customer on the line still
receives the necessary amount of energy.

According to the U.S. Department of Energy, approximately (67%) of the
energy in the form of electricity is wasted between the point where
it is generated and enters the electrical grid, and the point where a
consumer uses the electricity.

However, recent technological advances have made it possible to
dynamically manage voltage at the point of consumption, substantially
lowering energy consumption and improving power quality.

The amortization period to consumers for a residential owner could be
3-5 years without the tax credit. With the credit it could be 2-3
years, depending upon whether one lived in higher or lower energy
cost section of New York.

LEGISLATIVE HISTORY:
2009-2010: S.4294/A.4276 - Referred to Investigations &
Government Operations

FISCAL IMPLICATIONS:
The cost for the installation for residential
homes is anticipated to be around $800. The cost for commercial
business are anticipated to range from approximately $800 to $15,000,


depending upon the size of the business. It is anticipated that
residential owners will recoup the cost of the equipment within 3-5
years without tax credit. With such a credit, the return on
investment for residence and business customers is expected to be
shorter. Higher energy cost areas in New York will experience quicker
returns on investments.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  1055

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens. PARKER, SAMPSON -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and Government Operations

AN  ACT  to  amend  the  tax law, in relation to establishing a personal
  income tax credit for voltage regulation technology equipment

  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 (g-3) to read as follows:
  (G-3) VOLTAGE REGULATION TECHNOLOGY EQUIPMENT CREDIT. (1)  GENERAL.  A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE  EQUAL  TO TWENTY-FIVE PERCENT OF QUALIFIED VOLTAGE REGULATION TECH-
NOLOGY EXPENDITURES. THIS CREDIT SHALL NOT EXCEED FIVE THOUSAND  DOLLARS
FOR QUALIFIED VOLTAGE REGULATION TECHNOLOGY EQUIPMENT.
  (2)  QUALIFIED  VOLTAGE  REGULATION TECHNOLOGY EQUIPMENT EXPENDITURES.
(A) VOLTAGE REGULATION TECHNOLOGY EQUIPMENT EXPENDITURES ARE  THE  COSTS
ASSOCIATED  WITH THE PURCHASE OF ON-SITE VOLTAGE REGULATION TECHNOLOGIES
WHICH REDUCE ENERGY CONSUMPTION, IMPROVE GRID EFFICIENCY, RAISE OR LOWER
VOLTAGE DYNAMICALLY AND ARE NINETY-NINE PERCENT OR MORE EFFICIENT ACROSS
A MINIMUM OF NINETY PERCENT OF THE LOAD CURVE.
  (B) QUALIFIED VOLTAGE  REGULATION  TECHNOLOGY  EQUIPMENT  EXPENDITURES
SHALL INCLUDE EXPENDITURES FOR MATERIALS, LABOR COSTS PROPERLY ALLOCABLE
TO ON-SITE PREPARATION, ASSEMBLY AND INSTALLATION, ENGINEERING SERVICES,
DESIGNS  AND  PLANS DIRECTLY RELATED TO THE CONSTRUCTION OR INSTALLATION
AND UTILITY COMPLIANCE COSTS.
  (C) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE  INTEREST  OR  OTHER
FINANCE CHARGES.
  (3)  MULTIPLE TAXPAYERS. WHERE VOLTAGE REGULATION TECHNOLOGY EQUIPMENT
IS PURCHASED AND INSTALLED IN A PRINCIPAL RESIDENCE  SHARED  BY  TWO  OR
MORE TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02151-01-1

S. 1055                             2

FOR  EACH SUCH TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF
THE TOTAL EXPENDITURE FOR SUCH VOLTAGE REGULATION  TECHNOLOGY  EQUIPMENT
CONTRIBUTED BY EACH TAXPAYER.
  (4)  GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE
INCURRED IN PURCHASING  AND  INSTALLING  VOLTAGE  REGULATION  TECHNOLOGY
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.
  (5)  WHEN CREDIT ALLOWED. THE CREDIT FOR VOLTAGE REGULATION TECHNOLOGY
EQUIPMENT PROVIDED FOR IN THIS SUBSECTION SHALL BE ALLOWED WITH  RESPECT
TO THE TAXABLE YEAR IN WHICH SUCH EQUIPMENT IS PLACED IN SERVICE.
  (6)  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 2. This act shall take effect immediately.

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