S T A T E   O F   N E W   Y O R K
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                                 2536--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2013
                               ___________

Introduced  by M. of A. CROUCH, FINCH, BARCLAY, McDONOUGH -- Multi-Spon-
  sored by -- M.  of A. HAWLEY, KOLB, McKEVITT, THIELE -- read once  and
  referred  to  the Committee on Ways and Means -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee

AN  ACT  to  amend the tax law, in relation to establishing a tax credit
  for alternative energy systems and generating equipment

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

  Section 1. The tax law is amended by adding a new section 24-a to read
as follows:
  S  24-A.  CREDIT  FOR ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIP-
MENT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWEN-
TY-TWO, THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER,  WHOSE  BUSINESS  IS
NOT  SUBSTANTIALLY  ENGAGED  IN THE COMMERCIAL GENERATION, DISTRIBUTION,
TRANSMISSION OR SERVICING OF ENERGY OR ENERGY PRODUCTS, AND WHO  EMPLOYS
ONE  OR  MORE  FULL-TIME EMPLOYEES, EXCLUDING GENERAL EXECUTIVE OFFICERS
(IN THE CASE OF A CORPORATION), SHALL BE ALLOWED A CREDIT  AGAINST  SUCH
TAX,  PURSUANT  TO  THE PROVISIONS REFERENCED IN SUBDIVISION (E) OF THIS
SECTION. THE CREDIT SHALL BE ALLOWED FOR  QUALIFIED  EXPENDITURES  WHICH
MEET  THE ELIGIBILITY CRITERIA, IF ANY, PRESCRIBED BY THE DEPARTMENT, IN
CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION  AND  THE
NEW  YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, DISBURSED IN
NEW YORK STATE.
  (B) DEFINITIONS. FOR THE PURPOSES OF  THIS  SECTION:    (1)  THE  TERM
"SOLAR  AND  WIND ENERGY SYSTEM EQUIPMENT" SHALL REFER TO A SYSTEM WHICH
SHALL MEET THE ELIGIBILITY REQUIREMENTS SET BY THE DEPARTMENT  OF  ENVI-
RONMENTAL  CONSERVATION  AND  THE NEW YORK STATE ENERGY AND RESEARCH AND
DEVELOPMENT AUTHORITY WHICH SERVES AS:
  (I) SOLAR ELECTRIC GENERATING EQUIPMENT WHICH SHALL MEAN  AN  ARRANGE-
MENT  OR  COMBINATION OF COMPONENTS UTILIZING SOLAR RADIATION TO PRODUCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06362-02-3
              

A. 2536--A                          2

ENERGY DESIGNED TO PROVIDE HEATING, COOLING, HOT WATER  OR  ELECTRICITY.
SUCH  ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS PART
OF A NON-SOLAR ENERGY SYSTEM OR WHICH  USES  ANY  SORT  OF  RECREATIONAL
FACILITY OR EQUIPMENT AS A STORAGE MEDIUM;
  (II) A WIND ENERGY SYSTEM, WHICH SHALL MEAN AN ARRANGEMENT OR COMBINA-
TION  OF  COMPONENTS  DESIGNED  TO  GENERATE  AND PROVIDE ELECTRICITY OR
MECHANICAL ENERGY THROUGH THE PROCESS OF CONVERTING  FORCE  PROVIDED  BY
WIND INTO MECHANICAL AND/OR ELECTRICAL ENERGY, AND STORING OR DISTRIBUT-
ING SUCH ENERGY.
  (2)  THE TERM "FUEL CELL ELECTRIC GENERATING EQUIPMENT" SHALL REFER TO
ON-SITE ELECTRICITY GENERATION SYSTEMS, LOCATED IN REAL PROPERTY LOCATED
IN NEW YORK STATE UTILIZING  PROTON  EXCHANGE  MEMBRANE  FUEL  CELLS  OR
MOLTEN  CARBONATE  FUEL  CELL TECHNOLOGIES.   "FUEL CELL" MEANS A DEVICE
THAT PRODUCES ELECTRICITY DIRECTLY FROM  HYDROGEN  OR  HYDROCARBON  FUEL
THROUGH A NON-COMBUSTIVE ELECTROCHEMICAL PROCESS.
  (3)  THE  TERM  "GEOTHERMAL  RESOURCE  TRANSFER SYSTEM" MEANS A SYSTEM
TRANSFERRING ENERGY THROUGH THE USE OF A  RESOURCE  IN  NEW  YORK  STATE
INCLUDING:
  (I)  ALL  PRODUCTS OF GEOTHERMAL PROCESSES EMBRACING INDIGENOUS STEAM,
HOT WATER, AND HOT BRINES;
  (II) STEAM AND OTHER GASES, HOT WATER AND HOT  BRINES  RESULTING  FROM
WATER,  GAS,  OR  OTHER  FLUIDS  ARTIFICIALLY INTRODUCED INTO GEOTHERMAL
FORMATIONS;
  (III) HEAT OR OTHER ASSOCIATED ENERGY FOUND IN GEOTHERMAL  FORMATIONS;
AND
  (IV)  ANY  BYPRODUCTS  DERIVED  FROM THEM, WHERE "BYPRODUCT" MEANS ANY
MINERAL OR MINERALS (EXCLUSIVE OF  OIL,  HYDROCARBON  GAS,  AND  HELIUM)
WHICH  ARE  FOUND  IN  SOLUTION  OR IN ASSOCIATION WITH OTHER GEOTHERMAL
RESOURCES AND WHICH HAVE A VALUE OF LESS THAN  SEVENTY-FIVE  PERCENT  OF
THE VALUE OF THE GEOTHERMAL STEAM OR ARE NOT, BECAUSE OF QUANTITY, QUAL-
ITY,  OR  TECHNICAL DIFFICULTIES IN EXTRACTION AND PRODUCTION, OF SUFFI-
CIENT VALUE TO WARRANT EXTRACTION AND PRODUCTION BY THEMSELVES.
  (4) THE TERM "BIOMASS ENERGY CONVERSION EQUIPMENT" SHALL  MEAN  EQUIP-
MENT   THAT   CONVERTS  FOREST  AND/OR  AGRICULTURAL  MATERIALS  THROUGH
COMBUSTION, GASIFICATION, OR PYROLYSIS INTO HEAT, ELECTRICITY,  OR  HEAT
AND ELECTRICITY THAT IS:
  (I)  MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH APPLICA-
BLE GOVERNMENT AND INDUSTRY STANDARDS,
  (II) IN THE CASE OF BIOMASS-GENERATED ELECTRICITY, EITHER USED TO MEET
THE ELECTRICITY REQUIREMENTS OF THE OWNER OR THE OWNER AND USERS LOCATED
WITHIN ONE-HALF MILE OF THE INSTALLED EQUIPMENT,  OR  CONNECTED  TO  THE
ELECTRIC  SYSTEM  AND  OPERATED  IN  CONJUNCTION WITH AN ELECTRIC CORPO-
RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES,
  (III) IN THE CASE OF BIOMASS-GENERATED HEAT, EITHER USED TO  MEET  THE
REQUIREMENTS  OF  THE  OWNER  OR  OF OTHER BUSINESSES AND HEAT CUSTOMERS
LOCATED WITHIN ONE-QUARTER MILE OF THE INSTALLED EQUIPMENT.
  (5) THE TERM "CREDIT ALLOWANCE YEAR" MEANS THE FIRST TAXABLE YEAR WITH
RESPECT TO WHICH THE CREDIT MAY BE CLAIMED PURSUANT TO THE INITIAL CRED-
IT COMPONENT CERTIFICATE ISSUED PURSUANT  TO  SUBDIVISION  (D)  OF  THIS
SECTION.
  (6)  THE  TERM  "TAXABLE  YEAR"  MEANS  THE TAXABLE YEAR OF A BUSINESS
TAXPAYER FILING A NEW YORK STATE TAX RETURN UNDER ARTICLE NINE-A,  TWEN-
TY-TWO, THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER. IF THE BUSINESS DOES
NOT  HAVE A TAXABLE YEAR BECAUSE IT IS EXEMPT FROM TAXATION OR OTHERWISE
IS NOT REQUIRED TO FILE SUCH A RETURN UNDER ANY OF  SUCH  STATUTES,  THE
TERM  "TAXABLE  YEAR"  MEANS (I) THE BUSINESS'S FEDERAL TAXABLE YEAR, OR

A. 2536--A                          3

(II) IF THE BUSINESS DOES NOT HAVE A FEDERAL  TAXABLE  YEAR,  THE  GIVEN
CALENDAR YEAR.
  (7)  "QUALIFIED  EXPENDITURES"  SHALL BE REMITTED COSTS 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  SOLAR  AND  WIND  ENERGY SYSTEM EQUIPMENT, SOLAR ELECTRIC GENERATING
EQUIPMENT, FUEL CELL ELECTRIC  GENERATING  EQUIPMENT  AND/OR  GEOTHERMAL
RESOURCE  TRANSFER SYSTEM EQUIPMENT DIRECTLY RELATED TO THE CONSTRUCTION
OR INSTALLATION OF SUCH EQUIPMENT INTENDED FOR THE ORIGINAL USE OF  SAID
TAXPAYER,  AT, OR DIRECTLY RELATED TO, A PROPERTY IN NEW YORK STATE THAT
OPERATES AS THE SITUS OF A BUSINESS ENTITY OF SAID TAXPAYER. SUCH QUALI-
FIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR  OTHER  FINANCE  CHARGES
WHETHER  SUCH  CHARGES  ACCRUE AS A RESULT OF LEASE OR OWNERSHIP OF SUCH
EQUIPMENT.  FOR PURPOSES OF DETERMINING THE EXPENSES SERVING  AS  QUALI-
FIED  EXPENDITURES  UNDER  THIS SECTION, ANY AMOUNT OF FEDERAL, STATE OR
LOCAL GRANT RECEIVED BY  THE  TAXPAYER  USED  FOR  THE  PURCHASE  AND/OR
INSTALLATION  OF SUCH EQUIPMENT AND WHICH IS NOT INCLUDED IN THE FEDERAL
GROSS INCOME OF THE TAXPAYER SHALL NOT SERVE AS  A  QUALIFYING  EXPENDI-
TURE.
  (C)  ALLOWANCE OF CREDIT. (1) QUALIFIED ALTERNATIVE ENERGY SYSTEMS AND
GENERATING EQUIPMENT EXPENSES. QUALIFIED ALTERNATIVE ENERGY SYSTEMS  AND
GENERATING EQUIPMENT EXPENSES ARE THOSE QUALIFIED EXPENDITURES GENERATED
FROM  THE  PURCHASE AND INSTALLATION OF ELIGIBLE EQUIPMENT AS ENUMERATED
IN SUBDIVISION (B) OF THIS SECTION.
  (2) CREDIT FOR SOLAR AND WIND ENERGY SYSTEM EQUIPMENT. THE  AMOUNT  OF
CREDIT  FOR  THE  PURCHASE  AND  INSTALLATION OF ELIGIBLE SOLAR AND WIND
ENERGY SYSTEM EQUIPMENT SHALL BE FIFTY PERCENT OF THE QUALIFIED EXPENSES
FOR TAXPAYERS UNDER ARTICLE  NINE-A,  THIRTY-TWO  OR  THIRTY-THREE,  AND
FORTY-FIVE PERCENT OF THE QUALIFIED EXPENSES FOR TAXPAYERS UNDER ARTICLE
TWENTY-TWO  OF  THIS  CHAPTER, INCURRED IN PURCHASING AND INSTALLING ANY
SUCH SYSTEM OR COMBINATION THEREOF.
  (3) CREDIT FOR FUEL CELL  ELECTRIC  GENERATING  EQUIPMENT,  GEOTHERMAL
RESOURCE  TRANSFER  SYSTEM  EQUIPMENT  AND/OR  BIOMASS ENERGY CONVERSION
EQUIPMENT. THE AMOUNT OF CREDIT FOR THE  PURCHASE  AND  INSTALLATION  OF
ELIGIBLE  FUEL  CELL  ELECTRIC GENERATING EQUIPMENT, GEOTHERMAL RESOURCE
TRANSFER SYSTEM EQUIPMENT AND/OR  BIOMASS  ENERGY  CONVERSION  EQUIPMENT
SHALL  BE  FORTY-FIVE  PERCENT  OF  THE QUALIFIED EXPENSES FOR TAXPAYERS
UNDER ARTICLE  NINE,  NINE-A,  THIRTY-TWO  OR  THIRTY-THREE,  AND  FORTY
PERCENT OF THE QUALIFIED EXPENSES FOR TAXPAYERS UNDER ARTICLE TWENTY-TWO
OF THIS CHAPTER, INCURRED IN PURCHASING AND INSTALLING ANY SUCH SYSTEM.
  (4)  MULTIPLE TAXPAYERS. WHERE QUALIFYING EXPENDITURES ARE ACCUMULATED
FROM THE CONSTRUCTION AND/OR THE INSTALLATION OF QUALIFYING  ALTERNATIVE
SYSTEMS  AND  GENERATING  EQUIPMENT ARE SHARED BY TWO OR MORE TAXPAYERS,
THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SECTION SHALL BE  PRORATED
ACCORDING  TO THE PERCENTAGE OF THE TOTAL EXPENDITURE FOR SUCH EQUIPMENT
CONTRIBUTED BY EACH TAXPAYER.
  (D) CREDIT QUALIFICATION. (1) REALIZATION OF  CREDIT.  CREDITS  EARNED
UNDER THIS SECTION SHALL BE QUALIFYING EXPENDITURES INCURRED AFTER JANU-
ARY FIRST, TWO THOUSAND FOURTEEN, THAT ACCREDIT TO THE TAXPAYER'S CREDIT
ALLOWANCE  YEAR  AND  EACH  SUBSEQUENT  TAXABLE  YEAR  ACCORDING  TO THE
PROVISIONS OF SUBDIVISION (C) OF THIS SECTION.
  (2) CREDIT COMPONENT CERTIFICATE. A TAXPAYER WHO  WISHES  TO  MAKE  AN
INITIAL CLAIM FOR CREDITS UNDER THIS SECTION SHALL SUBMIT AN APPLICATION
FOR A CREDIT COMPONENT CERTIFICATE TO THE DIRECTOR OF THE NEW YORK STATE
ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY UPON THE SUCCESSFUL INSTALLA-

A. 2536--A                          4

TION AND OPERATION FOR AT LEAST  THREE  CONTINUOUS  MONTHS  OF  ELIGIBLE
EQUIPMENT  THAT RATE AS QUALIFIED EXPENDITURES. THE PRESIDENT OF THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY,  IN  CONSULTATION
WITH  THE  COMMISSIONER  AND THE COMMISSIONER OF ENVIRONMENTAL CONSERVA-
TION, SHALL PRESCRIBE THE REQUIREMENTS FOR THE ACCEPTANCE OF SUCH APPLI-
CATION, BUT AT A MINIMUM THE APPLICATION SHALL LIST THE AMOUNT OF QUALI-
FYING EXPENDITURES, THE  RATING  CAPACITY  IN  KILOWATT  HOURS  OF  SUCH
EQUIPMENT,  AND  THE  ANTICIPATED  REDUCTION  IN THE USE OF CONVENTIONAL
ENERGY GENERATION SOURCES REALIZED THROUGH THE USE  OF  SUCH  EQUIPMENT.
SUCH  APPLICATION  SHALL  REQUIRE  A  FEE OF FIFTY DOLLARS FOR EACH FIVE
MILLION DOLLARS OF GROSS RECEIPTS LISTED BY THE TAXPAYER FOR THE TAXABLE
YEAR IMMEDIATELY PRECEDING THE INITIAL CREDIT ALLOWANCE YEAR  AFTER  THE
FIRST  FIVE MILLION DOLLARS IN GROSS RECEIPTS FOR SUCH TAXABLE YEAR. ANY
EXPANSION OF ALTERNATIVE RATED CAPACITY ADHERING TO INCREASED QUALIFYING
EXPENDITURES BEYOND SUCH  EXPENDITURES  UTILIZED  IN  A  PRIOR  ACCEPTED
APPLICATION  SHALL  REQUIRE AN ADDITIONAL APPLICATION FOR FURTHER CREDIT
CLAIMS UNDER THIS SECTION.
  (3) ISSUANCE OF CERTIFICATE. THE PRESIDENT OF THE NEW YORK STATE ENER-
GY RESEARCH AND DEVELOPMENT AUTHORITY SHALL  REVIEW  APPLICATIONS  FILED
UNDER  THIS  SECTION  TO  VERIFY AN ELIGIBLE BUSINESS'S CLAIMED BENEFITS
UNDER THIS SECTION. THE PRESIDENT SHALL SUPPLY TO EACH COMPANY A CERTIF-
ICATE MARKING THE APPROVAL OF QUALIFYING EXPENSES FOR APPLICATION TO THE
COMMISSIONER FOR CREDITS UNDER THIS SECTION WITHIN NINETY  DAYS  OF  THE
RECEIPT  OF  SUCH  APPLICATION.  A  COPY  OF  THIS  CERTIFICATE SHALL BE
ATTACHED TO ANY RETURNS SUCH TAXPAYER IS REQUIRED  TO  FILE  UNDER  THIS
CHAPTER.  IF  ANY EXPENSES USED AS PART OF THE CREDIT BASE OF QUALIFYING
EXPENDITURES ARE DENIED FOR SUCH CREDIT CLAIM BY THE  PRESIDENT  OF  THE
NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SUCH DENIAL
SHALL BE REPORTED TO THE TAXPAYER AND THE COMMISSIONER WITH  A  DETAILED
EXPLANATION OF THE RATIONALE FOR SUCH DENIAL.
  (4) REVOCATION OF BENEFITS. IN ADDITION TO ANY OTHER PENALTIES ENUMER-
ATED UNDER THIS CHAPTER, A VIOLATION OF THE TERMS OF THIS SUBDIVISION OR
ANY  WILLFUL  MISREPRESENTATION  OF ANY OF THE TERMS OF THIS SECTION MAY
RESULT IN THE RESCINDING OF THE CERTIFICATE ISSUED UNDER THIS  PARAGRAPH
AND  A RECAPTURE OF CURRENT AND PREVIOUSLY RECEIVED BENEFITS. THE PRESI-
DENT OF THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY
SHALL REPORT TO THE COMMISSIONER ANY DETERMINATIONS OF VIOLATIONS OF THE
TERMS  OF  THIS SECTION.  THE COMMISSIONER AND THE COMMISSIONER OF ENVI-
RONMENTAL CONSERVATION SHALL MAKE RECOMMENDATIONS TO  THE  PRESIDENT  OF
THE  NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FOR THE
RESCINDING OF ANY CERTIFICATE ISSUED PURSUANT TO THIS SECTION  THAT  THE
COMMISSIONER  OF  ENVIRONMENTAL  CONSERVATION  DETERMINES RESULTS FROM A
WILLFUL FALSE CLAIM OF THE CAPABILITIES OR AMOUNT OF QUALIFYING EXPENDI-
TURES OF SOLAR AND WIND ENERGY SYSTEM EQUIPMENT AND FUEL  CELL  ELECTRIC
GENERATING EQUIPMENT.
  (5)  EARLY  DISPOSITION.  THE  DISCONTINUED  USE OF ANY SOLAR AND WIND
ENERGY SYSTEM EQUIPMENT, FUEL  CELL  ELECTRIC  GENERATING  EQUIPMENT  OR
GEOTHERMAL  RESOURCE  TRANSFER SYSTEM EQUIPMENT WITHIN FIVE YEARS OF THE
CREDIT ALLOWANCE YEAR SHALL RESULT  IN  THE  RECAPTURE  OF  CURRENT  AND
PREVIOUSLY RECEIVED BENEFITS UNLESS SUCH DISPOSITION IS DUE TO THE INOP-
ERATIVENESS  OF  SUCH EQUIPMENT BEYOND ANY REASONABLE CONTROL OR EFFORTS
OF THE TAXPAYER OR THE REPLACEMENT OF SUCH EQUIPMENT BY  MORE  EFFICIENT
AND  TECHNICALLY  ADVANCED  ALTERNATIVE  ENERGY  SYSTEMS APPROVED BY THE
COMMISSIONER OF ENVIRONMENTAL CONSERVATION AND THE PRESIDENT OF THE  NEW
YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. SUCH EARLY DISPO-
SITION SHALL NOT INCLUDE THE TRANSFER OF OWNERSHIP INTEREST OF THE PROP-

A. 2536--A                          5

ERTY SUCH EQUIPMENT OPERATES WITHIN UNLESS THE TRANSFER RESULTS  IN  THE
CESSATION  OF  THE  OPERATION OF SUCH EQUIPMENT WITHIN FIVE YEARS OF THE
CREDIT ALLOWANCE YEAR. THE TAXPAYER SHALL ANNUALLY ATTEST TO THE  PRESI-
DENT  OF  THE  NEW  YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
THAT SUCH EQUIPMENT REMAINS IN QUALIFYING USE.
  (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 46
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (VV)
  (3) ARTICLE 32: SECTION 1456, SUBSECTION (Z)
  (4) ARTICLE 33: SECTION 1511, SUBDIVISION (CC).
  S 2. Section 210 of the tax law is amended by adding a new subdivision
46 to read as follows:
  46.  ALTERNATIVE  ENERGY  SYSTEMS  AND GENERATING EQUIPMENT CREDIT.  A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION  TWENTY-FOUR-A  OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE  YEAR
SHALL  NOT  REDUCE  THE  TAX  DUE  FOR SUCH YEAR TO LESS THAN THE HIGHER
AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE  OF  THIS
SECTION.  HOWEVER, IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT  OF
CREDIT  NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR YEARS MAY BE CARRIED OVER
TO ANY OR ALL OF THE FOLLOWING FIVE TAXABLE YEARS AND  MAY  BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
follows:

(XXXV) CREDIT FOR ALTERNATIVE        QUALIFYING EXPENDITURES
ENERGY SYSTEMS AND                   UNDER SUBDIVISION FORTY-SIX
GENERATING EQUIPMENT                 OF SECTION TWO HUNDRED
UNDER SUBSECTION (VV)                TEN
  S  4. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV) ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIPMENT  CREDIT.  (1)
ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-A OF THIS  CHAPTER,  AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, SUCH EXCESS AMOUNT MAY BE CARRIED OVER TO ANY OR ALL  OF  THE
FOLLOWING  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 5. Section 1456 of the tax law is amended by adding a new subsection
(z) to read as follows:
  (Z)  ALTERNATIVE  ENERGY SYSTEMS AND GENERATING EQUIPMENT CREDIT.  (1)
ALLOWANCE OF CREDIT. A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE
COMPUTED  AS  PROVIDED IN SECTION TWENTY-FOUR-A OF THIS CHAPTER, AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY  PARAGRAPH  THREE  OF  SUBSECTION  (B)  OF
SECTION  FOURTEEN  HUNDRED  FIFTY-FIVE OF THIS ARTICLE.  HOWEVER, IF THE
AMOUNT OF CREDITS ALLOWED UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE

A. 2536--A                          6

IN  SUCH  TAXABLE YEAR OR YEARS MAY BE CARRIED OVER TO ANY OR ALL OF THE
FOLLOWING FIVE TAXABLE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S  6.  Section 1511 of the tax law is amended by adding a new subdivi-
sion (cc) to read as follows:
  (CC) ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIPMENT CREDIT.   (1)
ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-A OF THIS  CHAPTER,  AGAINST
THE TAXES IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A  OF  THIS  ARTICLE.
HOWEVER, IF THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY
TAXABLE  YEAR  REDUCED THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS
NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR YEARS MAY BE CARRIED OVER TO  ANY
OR  ALL OF THE FOLLOWING FIVE TAXABLE YEARS AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 7.  This act shall take effect immediately and shall apply to  taxa-
ble years commencing on and after January 1, 2013.