senate Bill S7711

Signed By Governor
2011-2012 Legislative Session

Provides for the amount of tax abatement for solar generating systems in cities of one million or more

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A10620 - Signed by Governor


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

do you support this bill?

Actions

view actions (9)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2012 signed chap.401
Aug 06, 2012 delivered to governor
Jun 21, 2012 returned to assembly
passed senate
3rd reading cal.1519
substituted for s7711
Jun 21, 2012 substituted by a10620
ordered to third reading cal.1519
Jun 14, 2012 referred to rules

Votes

view votes

S7711 - Bill Details

See Assembly Version of this Bill:
A10620
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยงยง499-bbbb & 499-cccc, RPT L

S7711 - Bill Texts

view summary

Provides for the amount of tax abatement for solar generating systems in cities of one million or more.

view sponsor memo
BILL NUMBER:S7711

TITLE OF BILL:
An act
to amend the real property tax law, in relation to a solar electric
generating system tax abatement for certain properties in a city of one
million or more persons

SUMMARY OF PROVISIONS:
This bill would amend subdivision one of section
499-bbbb of the Real Property Tax Law (RPTL) by adding a new paragraph
(c) and would amend subdivision one of section 499-cccc of the RPTL.

If the solar electric generating system is placed in service on or
after January 1, 2013 and before January 1, 2015, the amount of the
tax abatement would be 2.5% of eligible solar electric generating
system expenditures in each year of the four-year compliance period.
However, the benefit in each tax year would be limited to the lesser
of the amount of taxes payable or $62,500. "Eligible solar electric
generating system expenditures" include reasonable 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 the solar electric generating system.

REASONS FOR SUPPORT:
The City of New York strongly supports this
legislation, which would extend an existing incentive program to
encourage the installation of solar electric generating systems, in
connection with class one, class two and class four properties in the
City.

This program is aligned with the Mayor's long-term sustainability
plan, PlaNYC, first issued in April 2007, which set a 30% greenhouse
gas emission reduction target for 2030 and committed to providing
cleaner, more reliable power for every New Yorker. These goals will
be achieved through efforts to improve energy efficiency and clean
our energy supply. In the near term, the City will still rely heavily
on conventional energy sources, such as electricity generated by
natural gas. However the installation of solar energy can play an
important role in the transition to cleaner energy.

Of all the renewable energy sources, solar currently has the greatest
potential to generate electricity within New York City. The
technology is commercially available and there is ample space for
solar systems on the City's rooftops. Furthermore, because solar
energy production is greatest during hot summer days when energy
demand is at its peak, it is useful as a load management tool and can
help
to reduce harmful air emissions from peaking power plants. Despite
these benefits, solar energy is not yet competitive with conventional
sources of electricity on a market basis, and for this reason, the
City committed in PlaNYC to work with the State to provide targeted
incentives for solar energy and eliminate barriers that inhibit growth.


The intent of 2008 legislation creating the tax abatement was to
accelerate growth by helping to mitigate the cost premium for
installing solar in New York City relative to the rest of the
metropolitan region. At the time, it cost nearly 30% more to install
solar in New York City than it did in Westchester County. This cost
premium stemmed from higher labor costs, as well as higher
transaction costs related to the City's extensive interconnection,
permitting and inspection requirements.

Since creating the tax abatement, New York City has experienced
significant growth in installed solar capacity. Nearly 150 abatements
were awarded through City Fiscal Year 2011 and another 244
applications are currently being considered in 2012. The City went
from having 2 megawatts (MW) of installed solar capacity in 2008 to
8.4 MW today. This 300% growth rate was nearly double that of
Westchester County over the same period. Overall, the solar property
tax abatement has leveraged tens of millions of investment with
relatively little cost to the City.

The tax abatement program has helped to improve the economics of
installing solar in New York City and mitigate the cost premium. Last
year, installed costs in the City were 16% higher than Westchester
County, and in 2012 the differential appears to be closer to 10%.
This narrowing likely resulted from an influx of new solar developers
who were attracted by the City's abatement program, thus creating a
more competitive marketplace for consumers. The City and Con Edison
have also streamlined the process for permitting and interconnecting
solar, which has helped to lower transaction costs. Finally, all U.S.
consumers benefited from lower capital costs thanks to technology
innovation and global productivity in the solar sector.

To reflect the increased cost competitiveness of installing solar in
New York City, the City seeks to renew the abatement at a level of
10% of total capital costs, down from the current 20% rate. The City
believes that a 10% total abatement rate will continue to serve as an
effective incentive while controlling the fiscal costs of the
abatement as demand for it grows.

Renewal of the property tax abatement will foster continued growth in
New York City's solar energy supply and stimulate economic
development throughout the City and State. The City remains committed
to investment in solar as an alternative energy source and believes
that continuation of the program is vital to achieving that objective.

Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7711

                            I N  S E N A T E

                              June 14, 2012
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property tax law, in relation to a solar  elec-
  tric  generating system tax abatement for certain properties in a city
  of one million or more persons

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

  Section  1. Subdivision 1 of section 499-bbbb of the real property tax
law, as added by chapter 473 of the laws of 2008, is amended to read  as
follows:
  1. The amount of such tax abatement shall be as follows:
  (a) if the solar electric generating system is placed in service on or
after  the  effective  date  of this title and before January first, two
thousand eleven, for each year of the compliance period such tax  abate-
ment  shall  be  the  lesser  of  (i) eight and three-fourths percent of
eligible solar electric generating system expenditures, (ii) the  amount
of  taxes  payable  in  such  tax year, or (iii) sixty-two thousand five
hundred dollars; or
  (b) if the solar electric generating system is placed in service on or
after January first, two thousand eleven, and before January first,  two
thousand  thirteen,  for  each  year  of  the compliance period such tax
abatement shall be the lesser of (i)  five  percent  of  eligible  solar
electric  generating system expenditures, (ii) the amount of taxes paya-
ble in such tax year, or (iii) sixty-two thousand five hundred  dollars;
OR
  (C) IF THE SOLAR ELECTRIC GENERATING SYSTEM IS PLACED IN SERVICE ON OR
AFTER  JANUARY  FIRST,  TWO THOUSAND THIRTEEN, AND BEFORE JANUARY FIRST,
TWO THOUSAND FIFTEEN, FOR EACH YEAR OF THE COMPLIANCE  PERIOD  SUCH  TAX
ABATEMENT  SHALL  BE  THE  LESSER  OF (I) TWO AND FIVE-TENTHS PERCENT OF
ELIGIBLE SOLAR ELECTRIC GENERATING SYSTEM EXPENDITURES, (II) THE  AMOUNT
OF  TAXES  PAYABLE  IN  SUCH  TAX YEAR, OR (III) SIXTY-TWO THOUSAND FIVE
HUNDRED DOLLARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16199-01-2

S. 7711                             2

  S 2. Subdivision 1 of section 499-cccc of the real property  tax  law,
as  added  by  chapter  473  of  the laws of 2008, is amended to read as
follows:
  1. To obtain a tax abatement pursuant to this title, an applicant must
file  an  application  for tax abatement, which may be filed on or after
January first, two thousand nine, and on or before March fifteenth,  two
thousand [thirteen] FIFTEEN.
  S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.