S T A T E O F N E W Y O R K
________________________________________________________________________
7204
I N S E N A T E
May 5, 2014
___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to exemption from
taxation for certain energy systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The section heading and subdivisions 2, 3 and 4 of section
487 of the real property tax law, as amended by chapter 515 of the laws
of 2002, are amended to read as follows:
Exemption from taxation for certain [solar or wind energy systems or
farm waste] energy systems.
2. Real property which includes a solar or wind energy system [or],
farm waste energy system, MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL
ELECTRIC GENERATING SYSTEM, OR MICRO-COMBINED HEAT AND POWER GENERATING
EQUIPMENT SYSTEM approved in accordance with the provisions of this
section shall be exempt from taxation to the extent of any increase in
the value thereof by reason of the inclusion of such solar or wind ener-
gy system [or], farm waste energy system, MICRO-HYDROELECTRIC ENERGY
SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, OR MICRO-COMBINED HEAT AND
POWER GENERATING EQUIPMENT SYSTEM for a period of fifteen years. When a
solar or wind energy system or components thereof [or], farm waste ener-
gy system, MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTIC GENERAT-
ING SYSTEM, OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM
also serve as part of the building structure, the increase in value
which shall be exempt from taxation shall be equal to the assessed value
attributable to such system or components multiplied by the ratio of the
incremental cost of such system or components to the total cost of such
system or components.
3. The president of the authority shall provide definitions and guide-
lines for the eligibility for exemption of the solar and wind energy
equipment and systems [and], farm waste energy equipment and systems,
MICRO-HYDROELECTRIC EQUIPMENT AND SYSTEMS, FUEL CELL ELECTRIC GENERATING
EQUIPMENT AND SYSTEMS, AND MICRO-COMBINED HEAT AND POWER GENERATING
EQUIPMENT AND SYSTEMS described in paragraphs (a) [and], (b), (C), (D),
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14911-01-4
S. 7204 2
(E), (F), (G), (H), (I), (J), (K) AND (L) of subdivision one of this
section.
4. No solar or wind energy system [or], farm waste energy system,
MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM shall be
entitled to any exemption from taxation under this section unless such
system meets the guidelines set by the president of the authority and
all other applicable provisions of law.
S 2. Subdivision 1 of section 487 of the real property tax law is
amended by adding six new paragraphs (g), (h), (i), (j), (k) and (l) to
read as follows:
(G) "MICRO-HYDROELECTRIC ENERGY EQUIPMENT" MEANS ANY ENERGY STORAGE
DEVICE, PENSTOCK, TURBINE, GENERATOR AND OTHER MATERIALS, HARDWARE AND
EQUIPMENT NECESSARY TO THE PROCESS BY WHICH THE FLOW OF STREAM OR RIVER
WATER OR WATER FROM OTHER WATER BODIES IS (I) CONVERTED INTO ELECTRICAL
ENERGY; (II) PROTECTED FROM UNNECESSARY DISSIPATION; AND (III) DISTRIB-
UTED. IT DOES NOT INCLUDE PIPES, CONTROLS, INSULATION OR OTHER EQUIPMENT
WHICH ARE PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A
BUILDING. IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE
EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTAB-
LISHED BY LAW.
(H) "MICRO-HYDROELECTRIC ENERGY SYSTEM" MEANS AN ARRANGEMENT OR COMBI-
NATION OF MICRO-HYDROELECTRIC ENERGY EQUIPMENT DESIGNED TO PROVIDE ELEC-
TRICAL ENERGY BY THE USE OF FLOWING WATER. IT DOES NOT INCLUDE PIPES,
CONTROLS, INSULATION OR OTHER EQUIPMENT WHICH ARE PART OF THE NORMAL
HEATING, COOLING, OR INSULATION SYSTEM OF A BUILDING. IT DOES NOT
INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT SUCH MATERI-
ALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY LAW.
(I) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS A SOLID OXIDE,
MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL
WITH A COMBINED RATED CAPACITY OF NOT MORE THAN ONE THOUSAND FIVE
HUNDRED KILOWATTS. IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION
TO THE EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS
ESTABLISHED BY LAW.
(J) "FUEL CELL ELECTRIC GENERATING SYSTEM" MEANS AN ARRANGEMENT OR
COMBINATION OF EQUIPMENT DESIGNED TO PRODUCE ELECTRICAL ENERGY THROUGH
REACTION OF CHEMICALS, INCLUDING BUT NOT LIMITED TO HYDROGEN, OXYGEN,
METHANE AND NATURAL GAS.
(K) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT" MEANS AN
INTEGRATED, COGENERATING BUILDING HEATING AND ELECTRICAL POWER GENER-
ATION SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE ENGINE, FUEL
CELL OR OTHER TECHNOLOGY WITH A RATED CAPACITY OF AT LEAST ONE KILOWATT
AND NOT MORE THAN TEN KILOWATTS ELECTRIC AND ANY THERMAL OUTPUT THAT HAS
A DESIGN TOTAL FUEL USE EFFICIENCY IN THE PRODUCTION OF HEAT AND ELEC-
TRICITY OF NOT LESS THAN EIGHTY PERCENT, AND ANNUALLY PRODUCES AT LEAST
TWO THOUSAND KILOWATT HOURS OF USEFUL ENERGY IN THE FORM OF ELECTRICITY
THAT MAY WORK IN COMBINATION WITH SUPPLEMENTAL OR PARALLEL CONVENTIONAL
HEATING SYSTEMS, THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORD-
ANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS
CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH AN
ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES. IT DOES
NOT INCLUDE PIPES, CONTROLS, INSULATION OR OTHER EQUIPMENT WHICH ARE
PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A BUILDING.
IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT
SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY
LAW.
S. 7204 3
(L) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM" MEANS
AN ARRANGEMENT OR COMBINATION OF EQUIPMENT DESIGNED TO PRODUCE ELEC-
TRICAL ENERGY AND HEAT FOR A BUILDING OR ASSOCIATED BUILDINGS.
S 3. Subdivision 5 of section 487 of the real property tax law, as
amended by chapter 366 of the laws of 2010, is amended to read as
follows:
5. The exemption granted pursuant to this section shall only be appli-
cable to (A) solar or wind energy systems or farm waste energy systems
which are [(a)] (I) existing or constructed prior to July first, nine-
teen hundred eighty-eight or [(b)] (II) constructed subsequent to Janu-
ary first, nineteen hundred ninety-one and prior to January first, two
thousand [fifteen] SEVENTEEN, AND (B) MICRO-HYDROELECTRIC ENERGY
SYSTEMS, FUEL CELL ELECTRIC GENERATING SYSTEMS, OR MICRO-COMBINED HEAT
AND POWER GENERATING EQUIPMENT SYSTEMS WHICH ARE CONSTRUCTED SUBSEQUENT
TO JANUARY FIRST, TWO THOUSAND FIFTEEN AND PRIOR TO JANUARY FIRST, TWO
THOUSAND SEVENTEEN.
S 4. Subdivision 8 of section 487 of the real property tax law, as
amended by chapter 515 of the laws of 2002, and as further amended by
subdivision (b) of section 1 of part W of chapter 56 of the laws of
2010, is amended to read as follows:
8. Notwithstanding the provisions of subdivision two of this section,
a county, city, town or village may by local law or a school district,
other than a school district to which article fifty-two of the education
law applies, may by resolution provide EITHER (A) that no exemption
under this section shall be applicable within its jurisdiction with
respect to any solar or wind energy system or farm waste energy system
constructed subsequent to January first, nineteen hundred ninety-one or
the effective date of such local law, ordinance or resolution, whichever
is later, AND/OR (B) THAT NO EXEMPTION UNDER THIS SECTION SHALL BE
APPLICABLE WITHIN ITS JURISDICTION WITH RESPECT TO ANY MICRO-HYDROELEC-
TRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, OR MICRO-COM-
BINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM CONSTRUCTED SUBSEQUENT
TO JANUARY FIRST, TWO THOUSAND FIFTEEN OR THE EFFECTIVE DATE OF SUCH
LOCAL LAW, ORDINANCE OR RESOLUTION, WHICHEVER IS LATER. A copy of any
such local law or resolution shall be filed with the commissioner and
with the president of the authority.
S 5. This act shall take effect January 1, 2015.