senate Bill S4710A

2013-2014 Legislative Session

Establishes a tax credit for alternative energy systems and generating 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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Senate Actions - UPPERCASE
Jan 17, 2014 print number 4710a
amend and recommit to energy and telecommunications
Jan 08, 2014 referred to energy and telecommunications
Apr 18, 2013 referred to energy and telecommunications

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S4710 - Bill Details

See Assembly Version of this Bill:
A936B
Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §28-a, amd §§210, 606, 1456 & 1511, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2483A, A8635A
2009-2010: S1361A

S4710 - Bill Texts

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Establishes an alternative energy systems and generating equipment tax credit for qualified expenditures meeting the criteria prescribed by the department of taxation and finance, in consultation with the department of environmental conservation and the New York state energy research and development authority, for taxpayers subject to tax under articles nine-A, twenty-two, thirty-two and thirty-three of the tax law whose business is not substantially engaged in the commercial generation, distribution, transmission or servicing of energy or energy products.

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BILL NUMBER:S4710

TITLE OF BILL: An act to amend the tax law, in relation to
establishing a tax credit for alternative energy systems and
generating equipment

PURPOSE: The purpose of this legislation is to encourage the
investment in and continued use of alternative energy systems and
generating equipment through tax credits which will assist in
offsetting the initial costs of constructing and installing solar and
wind energy system equipment and fuel cell electric generating
equipment.

SUMMARY OF PROVISIONS:

Section 1 - would amend the tax law by adding a new section 28-a to
establish a tax credit for alternative energy systems and generating
equipment.

Sections 2, 3, 4, 5 and 6 - amend the tax law to allow for alternative
energy systems and generating equipment credits, as would be
established pursuant to section one of this legislation, within
Articles nine-a, twenty-two, thirty-two and thirty-three of the tax
law.

Section 7 - Effective date.

EXISTING LAW: A personal income tax credit currently exists for
individuals who invest in solar electric technologies for residential
use.

JUSTIFICATION: The provision of a tax credit for business
corporations would encourage the business community to invest in
alternative energy systems. The additional investment in solar energy
and fuel cell electric generating equipment would enhance the
diversification of New York's reliance on non-renewable technologies
and help protect our environment with cleaner energy sources. A tax
credit to assist businesses in offsetting the cost of developing and
installing these self-sufficient and renewable energy systems would
provide the additional incentive for these businesses to invest in
such equipment thereby decreasing their need for traditional energy
sources.

LEGISLATIVE HISTORY: 2009-10: S.1361A Referred to Investigations &
Government Operations 2007-08: S.l634B Passed Senate

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to taxable years beginning on and after January 1, 2014.

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

                                  4710

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 18, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

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 28-a to read
as follows:
  S  28-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
ENERGY DESIGNED TO PROVIDE HEATING, COOLING, HOT WATER  OR  ELECTRICITY.
SUCH  ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS PART

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03486-02-3

S. 4710                             2

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 "FARM WASTE ELECTRIC GENERATING EQUIPMENT"  MEANS  EQUIP-
MENT  THAT GENERATES ELECTRIC ENERGY FROM BIOGAS PRODUCED BY THE ANAERO-
BIC DIGESTION OF AGRICULTURAL WASTE, SUCH AS LIVESTOCK  MANURE,  FARMING
WASTES AND FOOD PROCESSING WASTES WITH A RATED CAPACITY OF NOT MORE THAN
FIVE HUNDRED KILOWATTS, THAT IS:
  (I)  MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH APPLICA-
BLE GOVERNMENT AND INDUSTRY STANDARDS;
  (II) CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH
AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES;
  (III) OPERATED IN  COMPLIANCE  WITH  ANY  STANDARDS  AND  REQUIREMENTS
ESTABLISHED UNDER THIS SECTION;
  (IV)  FUELED  AT  A  MINIMUM  OF  NINETY PERCENT ON AN ANNUAL BASIS BY
BIOGAS PRODUCED FROM THE ANAEROBIC DIGESTION OF AGRICULTURAL WASTE  SUCH
AS LIVESTOCK MANURE MATERIALS, CROP RESIDUES, AND FOOD PROCESSING WASTE;
AND
  (V)  FUELED  BY  BIOGAS GENERATED BY ANAEROBIC DIGESTION WITH AT LEAST
FIFTY PERCENT BY WEIGHT OF ITS FEEDSTOCK BEING LIVESTOCK MANURE  MATERI-
ALS ON AN ANNUAL BASIS.
  (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

S. 4710                             3

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
(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, GEOTHERMAL  RESOURCE
TRANSFER  SYSTEM  EQUIPMENT AND/OR FARM WASTE ELECTRIC GENERATING EQUIP-
MENT DIRECTLY RELATED TO THE CONSTRUCTION OR INSTALLATION OF SUCH EQUIP-
MENT 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 QUALIFIED 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 QUALIFIED 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 EXPENDITURE.
  (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 FARM WASTE ELECTRIC GENERATING
EQUIPMENT. THE AMOUNT OF CREDIT FOR THE  PURCHASE  AND  INSTALLATION  OF
ELIGIBLE  FUEL  CELL  ELECTRIC  GENERATING  EQUIPMENT  AND/OR GEOTHERMAL
RESOURCE TRANSFER SYSTEM 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 TAXPAY-
ERS 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

S. 4710                             4

FOR A CREDIT COMPONENT CERTIFICATE TO THE DIRECTOR OF THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY UPON THE SUCCESSFUL  INSTALLA-
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, GEOTH-
ERMAL RESOURCE TRANSFER SYSTEM EQUIPMENT OR FARM WASTE ELECTRIC GENERAT-
ING 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 INOPERATIVENESS OF SUCH  EQUIPMENT
BEYOND ANY REASONABLE CONTROL OR EFFORTS OF THE TAXPAYER OR THE REPLACE-
MENT OF SUCH EQUIPMENT BY MORE EFFICIENT AND TECHNICALLY ADVANCED ALTER-
NATIVE  ENERGY  SYSTEMS  APPROVED  BY  THE COMMISSIONER OF ENVIRONMENTAL

S. 4710                             5

CONSERVATION AND THE PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY. SUCH EARLY  DISPOSITION  SHALL  NOT  INCLUDE  THE
TRANSFER  OF  OWNERSHIP INTEREST OF THE PROPERTY 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 PRESIDENT 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 47
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (WW)
  (3) ARTICLE 32: SECTION 1456, SUBSECTION (AA)
  (4) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
  S 2. Section 210 of the tax law is amended by adding a new subdivision
47 to read as follows:
  47.  ALTERNATIVE  ENERGY  SYSTEMS  AND GENERATING EQUIPMENT CREDIT.  A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION  TWENTY-EIGHT-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 ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT  OF
CREDIT  THUS  NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xxxvi)  to  read  as
follows:

(XXXVI) CREDIT FOR ALTERNATIVE          QUALIFYING EXPENDITURES
ENERGY SYSTEMS AND                      UNDER SUBDIVISION FORTY-SEVEN
GENERATING EQUIPMENT                    OF SECTION TWO HUNDRED
UNDER SUBSECTION (WW)                   TEN
  S  4. Section 606 of the tax law is amended by adding a new subsection
(ww) to read as follows:
  (WW) 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-EIGHT-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, 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 5. Section 1456 of the tax law is amended by adding a new subsection
(aa) to read as follows:
  (AA)  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-EIGHT-A OF THIS CHAPTER, AGAINST
THE TAX IMPOSED BY THIS ARTICLE.

S. 4710                             6

  (2) THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR WILL
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  CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREAT-
ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
SAND  EIGHTY-EIGHT  OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE
PAID THEREON.
  S 6. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (dd) to read as follows:
  (DD)  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-EIGHT-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 WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF  THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S  7.  This act shall take effect immediately and shall apply to taxa-
ble years commencing on and after January 1, 2014.

Co-Sponsors

S4710A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A936B
Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §28-a, amd §§210, 606, 1456 & 1511, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2483A, A8635A
2009-2010: S1361A

S4710A (ACTIVE) - Bill Texts

view summary

Establishes an alternative energy systems and generating equipment tax credit for qualified expenditures meeting the criteria prescribed by the department of taxation and finance, in consultation with the department of environmental conservation and the New York state energy research and development authority, for taxpayers subject to tax under articles nine-A, twenty-two, thirty-two and thirty-three of the tax law whose business is not substantially engaged in the commercial generation, distribution, transmission or servicing of energy or energy products.

view sponsor memo
BILL NUMBER:S4710A

TITLE OF BILL: An act to amend the tax law, in relation to
establishing a tax credit for alternative energy systems and
generating equipment

PURPOSE: The purpose of this legislation is to encourage the
investment in and continued use of alternative energy systems and
generating equipment through tax credits which will assist in
offsetting the initial costs of constructing and installing solar and
wind energy system equipment and fuel cell electric generating
equipment.

SUMMARY OF PROVISIONS:

Section 1 - would amend the tax law by adding a new section 28-a to
establish a tax credit for alternative energy systems and generating
equipment.

Sections 2, 3, 4, 5 and 6 - amend the tax law to allow for alternative
energy systems and generating equipment credits, as would be
established pursuant to section one of this legislation, within
Articles nine-a, twenty-two, thirty-two and thirty-three of the tax
law.

Section 7 - Effective date.

EXISTING LAW: A personal income tax credit currently exists for
individuals who invest in solar electric technologies for residential
use.

JUSTIFICATION: The provision of a tax credit for business corporations
would encourage the business community to invest in alternative energy
systems. The additional investment in solar energy and fuel cell
electric generating equipment would enhance the diversification of New
York's reliance on non-renewable technologies and help protect our
environment with cleaner energy sources. A tax credit to assist
businesses in offsetting the cost of developing and installing these
self-sufficient and renewable energy systems would provide the
additional incentive for these businesses to invest in such equipment
thereby decreasing their need for traditional energy sources.

LEGISLATIVE HISTORY: 2009-10: S.1361A Referred to Investigations &
Government Operations 2007-08: S.1634B Passed Senate

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately and shall apply
to taxable years beginning on and after January 1, 2015.

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

                                 4710--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 18, 2013
                               ___________

Introduced  by Sens. MAZIARZ, TKACZYK -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications  -- recommitted to the Committee on Energy and Telecom-
  munications in accordance with Senate Rule  6,  sec.  8  --  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 28-a to read
as follows:
  S  28-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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03486-04-4

S. 4710--A                          2

  (I) SOLAR ELECTRIC GENERATING EQUIPMENT WHICH SHALL MEAN  AN  ARRANGE-
MENT  OR  COMBINATION OF COMPONENTS UTILIZING SOLAR RADIATION TO PRODUCE
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 "FARM WASTE ELECTRIC GENERATING EQUIPMENT" MEANS EQUIP-
MENT THAT GENERATES ELECTRIC ENERGY FROM BIOGAS PRODUCED BY THE  ANAERO-
BIC  DIGESTION  OF AGRICULTURAL WASTE, SUCH AS LIVESTOCK MANURE, FARMING
WASTES AND FOOD PROCESSING WASTES WITH A RATED CAPACITY OF NOT MORE THAN
FIVE HUNDRED KILOWATTS, THAT IS:
  (I) MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH  APPLICA-
BLE GOVERNMENT AND INDUSTRY STANDARDS;
  (II) CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH
AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES;
  (III)  OPERATED  IN  COMPLIANCE  WITH  ANY  STANDARDS AND REQUIREMENTS
ESTABLISHED UNDER THIS SECTION;
  (IV) FUELED AT A MINIMUM OF NINETY  PERCENT  ON  AN  ANNUAL  BASIS  BY
BIOGAS  PRODUCED FROM THE ANAEROBIC DIGESTION OF AGRICULTURAL WASTE SUCH
AS LIVESTOCK MANURE MATERIALS, CROP RESIDUES, AND FOOD PROCESSING WASTE;
AND
  (V) FUELED BY BIOGAS GENERATED BY ANAEROBIC DIGESTION  WITH  AT  LEAST
FIFTY  PERCENT BY WEIGHT OF ITS FEEDSTOCK BEING LIVESTOCK MANURE MATERI-
ALS ON AN ANNUAL BASIS.
  (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.

S. 4710--A                          3

  (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
(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, GEOTHERMAL RESOURCE
TRANSFER SYSTEM EQUIPMENT AND/OR FARM WASTE ELECTRIC  GENERATING  EQUIP-
MENT DIRECTLY RELATED TO THE CONSTRUCTION OR INSTALLATION OF SUCH EQUIP-
MENT  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 QUALIFIED 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 QUALIFIED  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 EXPENDITURE.
  (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 FARM WASTE ELECTRIC GENERATING
EQUIPMENT.  THE  AMOUNT  OF  CREDIT FOR THE PURCHASE AND INSTALLATION OF
ELIGIBLE FUEL  CELL  ELECTRIC  GENERATING  EQUIPMENT  AND/OR  GEOTHERMAL
RESOURCE  TRANSFER  SYSTEM  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 TAXPAY-
ERS 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 FIFTEEN, THAT ACCREDIT TO THE TAXPAYER'S CREDIT

S. 4710--A                          4

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-
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, GEOTH-
ERMAL RESOURCE TRANSFER SYSTEM EQUIPMENT OR FARM WASTE ELECTRIC GENERAT-
ING  EQUIPMENT  WITHIN  FIVE  YEARS  OF  THE CREDIT ALLOWANCE YEAR SHALL
RESULT IN THE RECAPTURE OF  CURRENT  AND  PREVIOUSLY  RECEIVED  BENEFITS

S. 4710--A                          5

UNLESS  SUCH DISPOSITION IS DUE TO THE INOPERATIVENESS OF SUCH EQUIPMENT
BEYOND ANY REASONABLE CONTROL OR EFFORTS OF THE TAXPAYER OR THE REPLACE-
MENT OF SUCH EQUIPMENT BY MORE EFFICIENT AND TECHNICALLY ADVANCED ALTER-
NATIVE  ENERGY  SYSTEMS  APPROVED  BY  THE COMMISSIONER OF ENVIRONMENTAL
CONSERVATION AND THE PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY. SUCH EARLY  DISPOSITION  SHALL  NOT  INCLUDE  THE
TRANSFER  OF  OWNERSHIP INTEREST OF THE PROPERTY 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 PRESIDENT 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 48
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (XX)
  (3) ARTICLE 32: SECTION 1456, SUBSECTION (AA)
  (4) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
  S 2. Section 210 of the tax law is amended by adding a new subdivision
48 to read as follows:
  48. ALTERNATIVE ENERGY SYSTEMS AND GENERATING  EQUIPMENT  CREDIT.    A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION TWENTY-EIGHT-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 ALLOWED UNDER  THIS  SUBDIVI-
SION  FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF
CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED  AS  AN
OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is amended by adding a new clause (xxxvii) to read as
follows:

(XXXVII) CREDIT FOR ALTERNATIVE         QUALIFYING EXPENDITURES
ENERGY SYSTEMS AND                      UNDER SUBDIVISION FORTY-EIGHT
GENERATING EQUIPMENT                    OF SECTION TWO HUNDRED
UNDER SUBSECTION (XX)                   TEN
  S 4. 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  (xx)  is
added to read as follows:
  (XX)  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-EIGHT-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,  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. 4710--A                          6

  S 5. Section 1456 of the tax law is amended by adding a new subsection
(aa) to read as follows:
  (AA)  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-EIGHT-A OF THIS CHAPTER, AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (2) THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR WILL
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  CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREAT-
ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
SAND  EIGHTY-EIGHT  OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE
PAID THEREON.
  S 6. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (dd) to read as follows:
  (DD)  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-EIGHT-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 WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF  THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S  7.  This act shall take effect immediately and shall apply to taxa-
ble years commencing on and after January 1, 2015.

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