S T A T E O F N E W Y O R K
________________________________________________________________________
4533--C
2013-2014 Regular Sessions
I N S E N A T E
April 8, 2013
___________
Introduced by Sens. MAZIARZ, DeFRANCISCO, FELDER, RANZENHOFER, SAMPSON
-- read twice and ordered printed, and when printed to be committed to
the Committee on Energy and Telecommunications -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- reported favorably from said committee and
committed to the Committee on Finance -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- recommitted to the Committee on Energy and Telecommunications
in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the public service law and the tax law, in relation to
establishing an energy efficiency tax credit for single family and
multi-family homes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "energy
efficiency and carbon emission reduction tax credit act".
S 2. The public service law is amended by adding a new section 73 to
read as follows:
S 73. COORDINATION WITH CERTAIN PROVISIONS OF THE TAX LAW. THE DEPART-
MENT MAY REQUEST FROM THE DEPARTMENT OF TAXATION AND FINANCE OR THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY A SUMMARY OF
INSPECTION REPORTS PREPARED BY THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION
(BBB) OF SECTION SIX HUNDRED SIX OF THE TAX LAW. SUCH SUMMARY SHALL
INCLUDE THE TOTAL NUMBER OF RESIDENCES THAT HAVE BEEN GRANTED A CARBON
EMISSIONS REDUCTION CREDIT, A DESCRIPTION OF THE IMPROVEMENTS TO WHICH
THE CREDIT RELATES, AND AN INDICATION OF THE AMOUNT BY WHICH CARBON
EMISSIONS ARE TO BE REDUCED AND/OR THE AMOUNT BY WHICH FUEL USAGE IS
REDUCED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08685-10-4
S. 4533--C 2
S 3. Subsections (yy) and (zz) of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of 2003, are
relettered subsections (yyy) and (zzz) and a new subsection (bbb) is
added to read as follows:
(BBB) CARBON EMISSIONS REDUCTION CREDIT. (1) ALLOWANCE OF CREDIT.
SUBJECT TO APPROVAL BY THE DEPARTMENT PURSUANT TO THIS SECTION, A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE FOR COSTS INCURRED ON OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION
BY SUCH TAXPAYER WHICH ARE DIRECTLY ASSOCIATED WITH INSTALLING ANY
IMPROVEMENT TO A HEATING OR COOLING SYSTEM WHICH WILL INCREASE EFFICIEN-
CY BY AT LEAST TEN PERCENT OR REDUCE FUEL USAGE BY AT LEAST TEN PERCENT
AND LEAD TO A SIGNIFICANT REDUCTION IN CARBON EMISSIONS AS DEFINED BY
THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY GUIDELINES,
PROVIDED THAT SUCH PROJECT SHALL HAVE A RETURN ON INVESTMENT OF FIVE
YEARS OR LESS AT MINIMUM. SUCH IMPROVEMENTS SHALL INCLUDE, BUT SHALL
NOT BE LIMITED TO, THE INSTALLATION OF A HIGH EFFICIENCY BOILER OR
FURNACE, AN IMPROVEMENT TO AND/OR REPLACEMENT OF A BURNER IN A BOILER,
THE INSTALLATION OF ON-SITE RENEWABLE GENERATION, A FUEL CATALYST SYSTEM
AS DEFINED IN THIS SUBSECTION, OR ANY OTHER IMPROVEMENT TO A HEATING
SYSTEM THAT SATISFIES THE CRITERIA SET FORTH IN THIS SUBSECTION.
NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBSECTION, FOR BOILERS
THAT ARE REGULATED BY THE NEW YORK CITY DEPARTMENT OF ENVIRONMENTAL
PROTECTION, THE IMPROVEMENTS MUST RESULT IN A REDUCTION OF PARTICULATE
MATTER THAT IS TWO AND ONE-HALF MICRONS OR LESS IN WIDTH (COMMONLY
REFERRED TO AS PM 2.5 EMISSIONS) OF AT LEAST FIFTY PERCENT.
(2) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE UP TO FIVE
THOUSAND DOLLARS FOR A SINGLE FAMILY HOME AND UP TO TWENTY-FIVE THOUSAND
DOLLARS FOR A MULTIPLE FAMILY DWELLING OF AT LEAST FIVE UNITS, TOWARDS
THE TOTAL COST OF DESIGNING, PURCHASING AND INSTALLING SUCH A HEATING
SYSTEM, WHICH COST SHALL INCLUDE THE DECOMMISSIONING AND REMOVAL OF
EXISTING EQUIPMENT. IN NO CASE SHALL THE AMOUNT OF THE APPLICABLE CREDIT
EXCEED THE AMOUNT OF THE INVESTMENT IN THE IMPROVEMENT MADE.
(3) MULTIPLE TAXPAYERS. IF THE PRINCIPAL RESIDENCE IS SHARED BY TWO OR
MORE TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR EACH SUCH ELIGIBLE TAXPAYER SHALL BE PRORATED ACCORDING TO THE
PERCENTAGE OF THE TOTAL EXPENDITURE FOR SUCH CONVERSION INCURRED BY EACH
TAXPAYER.
(4) APPLICATION FOR CREDIT. SUCH CREDIT SHALL BE GRANTED ONLY UPON
APPLICATION BY THE ELIGIBLE TAXPAYER OR TAXPAYERS ON A FORM PRESCRIBED
BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND
AFTER INSPECTION BY SUCH AUTHORITY, THE RESULTS OF WHICH SHALL BE SET
FORTH IN A REPORT PREPARED THEREBY. THE APPLICATION SHALL REQUIRE
SUBMISSION OF DOCUMENTATION OF THE CONVERSION, INCLUDING INVOICES FOR
ANY SERVICES USED AND CONTRACTED AND EQUIPMENT INSTALLED OR ADDED, AS
WELL AS ANY CONTRACTS WITH A HEATING SUPPLIER. THE APPLICATION AND
INSPECTION REPORT SHALL BE FILED WITH THE DEPARTMENT ON OR BEFORE THE
LAST DAY OF THE APPLICABLE TAXABLE YEAR, WHO SHALL APPROVE OR DISAPPROVE
SUCH APPLICATION. A COPY OF SUCH APPLICATION SHALL BE FILED WITH THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
(5) 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, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
S. 4533--C 3
(A) FOR PURPOSES OF THIS SUBSECTION, "PRINCIPAL RESIDENCE" FOR A
SINGLE FAMILY DWELLING SHALL MEAN THE RESIDENTIAL PROPERTY WHERE THE
TAXPAYER HAS HIS OR HER TRUE, FIXED, AND PERMANENT HOME TO WHICH, WHEN-
EVER ABSENT HE OR SHE INTENDS TO RETURN.
(B) "FUEL CATALYST SYSTEM" SHALL MEAN ANY HETEROGENEOUS METALLIC ALLOY
CATALYST OR "HMAC" COMPONENT THAT WHEN APPLIED TO A FURNACE OR BOILER
UTILIZING NUMBER 2 OIL LEADS TO REDUCED FUEL USAGE OF AT LEAST TEN
PERCENT, A SUBSTANTIAL REDUCTION IN CARBON EMISSIONS OR AN INCREASE IN
OVERALL EFFICIENCY OF AT LEAST TEN PERCENT WITH A RETURN ON INVESTMENT
OF FIVE YEARS OR UNDER.
(C) IN ORDER TO VERIFY A TAXPAYER'S CLAIM THAT A PARTICULAR PROPERTY
IS A PRINCIPAL RESIDENCE, THE DEPARTMENT MAY ACCEPT VARIOUS DOCUMENTS
THAT, TAKEN TOGETHER, ESTABLISH THAT THE TAXPAYER CLAIMING THE CREDIT
PROVIDED BY THIS SUBSECTION OCCUPIES THE PROPERTY AS A PRINCIPAL RESI-
DENCE, INCLUDING, BUT NOT LIMITED TO, THE TAXPAYER'S DRIVER'S LICENSE,
VOTER REGISTRATION CARD, CANCELLED CHECKS LISTING THE PROPERTY ADDRESS,
STATEMENTS SUCH AS MEDICAL, BANK OR CHARGE ACCOUNTS OR INCOME TAX
RECORDS INDICATING THE MAILING ADDRESS AND INSURANCE POLICIES.
(D) THE PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
MENT AUTHORITY SHALL PROVIDE ADDITIONAL DEFINITIONS AND GUIDELINES FOR
THE ELIGIBILITY OF AN IMPROVEMENT OR PROJECT, WHICH SHALL INCLUDE DEFIN-
ING THE PARAMETERS OF WHAT CONSTITUTES A SIGNIFICANT REDUCTION IN CARBON
EMISSIONS FOR A SINGLE FAMILY OR MULTIPLE FAMILY DWELLING AS WELL AS ANY
AND ALL APPLICABLE STANDARDS, OTHER THAN THOSE ENUMERATED IN THIS
SUBSECTION.
S 4. The New York state energy research and development authority
shall make available funding in the amount of $15 million for fiscal
years 2014-2015 and 2015-2016, and $3 million in each subsequent year
until fiscal year 2021-2022. Funding for the carbon emissions reduction
credit provided by subsection (bbb) of section 606 of the tax law, as
added by section three of this act, shall be provided through funds
collected pursuant to proceeds collected but not allocated by such
authority from the auction, pursuant to regulations of such authority,
of emission allowances allocated by the department of environmental
conservation to such authority pursuant to regulations adopted by such
department.
S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.