BILL NUMBER:S6242

TITLE OF BILL:
An act to amend the tax law, in relation to increasing the tax credit
provided for solar energy system equipment

PURPOSE:
To increase the allowable tax credit for the installation of solar ener-
gy system equipment.

SUMMARY OF PROVISIONS:
Amends paragraph 1 of subsection (g-1) of section 606 of the tax law to
allow for a tax credit up to $10,000 for qualified solar energy equip-
ment placed in service on or after September 1, 2012.

EXISTING LAW:
The current tax credit cap for qualified solar energy equipment is
$5,000.

JUSTIFICATION:
The allowable personal tax credit for solar energy equipment has not
been increased since 2005 despite the fact that the purchase and instal-
lation costs remain higher than most New Yorkers can afford.

Solar energy technology has many advantages. It is a free and renewable
energy source; environmentally friendly (no noise or smells); reduces or
              

eliminates the cost of electricity; allows consumers to receive incen-
tives and rebates from governments and utility companies; reduces reli-
ance on foreign oil; and enables net metering, giving consumers the
opportunity to sell their excess electricity or get a credit from the
utility company.

Solar energy technology, however, still remains a costly alternative to
the use of readily available fossil fuel technologies. The greatest
obstacle to using this energy source is the initial cost of the equip-
ment used to harness the suns energy. By increasing the solar energy
equipment tax credit, more New Yorkers will be able to retrofit their
homes with solar energy systems. Consumer demand will drive down the
cost of solar panels, which will likely lead to an increase in solar
cells to generate electricity.

Qualified solar energy expenditures include material and installation
costs relating to components utilizing solar radiation to produce energy
designed to provide heating, cooling, hot water, or electricity for
residential use.

FISCAL IMPLICATIONS:
2008: 3.2 million; 2011: $4.0 million; the fiscal impact cannot be
determined because the number of taxpayers who would take advantage of
and qualify for a solar energy tax credit of an increased amount (up to
$10,000) is uncertain.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on and after January 1, 2012.