senate Bill S7449

2013-2014 Legislative Session

Relates to establishing a corporate and a personal income tax credit for wind energy system 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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May 15, 2014 referred to investigations and government operations

S7449 - Bill Details

Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L

S7449 - Bill Texts

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Relates to establishing a corporate and a personal income tax credit for wind energy system equipment.

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BILL NUMBER:S7449

TITLE OF BILL: An act to amend the tax law, in relation to establishing
a corporate and a personal income tax credit for wind energy system
equipment

PURPOSE: Relates to establishing a corporate and a personal income tax
credit for wind energy system equipment

SUMMARY OF PROVISIONS:

Section 1 adds a new subdivision 50 to Section 210 of the tax law to
create the wind energy system equipment credit, which will allow custom-
er-generators a tax credit of twenty-five percent of qualified expendi-
tures on wind electric generating equipment, not to exceed seven thou-
sand five hundred dollars

Section 2 amends several subsections of section 606 of the tax law

Section 3 sets an immediate effective date.

JUSTIFICATION: New York has considerable wind energy resources, partic-
ularly in the central and western parts of the State. Small wind
turbines have been developed for residential and farm applications,
which provide a variety of public and private benefits. Wind energy has
emerged as a viable clean method for electric generation and can reduce
customer electric bills. Wind energy does not depend on imported fossil
fuel and avoids pollution from conventional electric power generation.
Small wind generators are cost effective, have zero-emissions and are an
environmentally responsible method for electric production. This tax
credit would encourage New Yorkers to move into this major sustainable
energy source, as well as helping attract a wind turbine manufacturer to
New York.

LEGISLATIVE HISTORY: This is a new bill.

LOCAL FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  7449

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen.  GIPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to establishing a corporate and
  a personal income tax credit for wind energy system equipment

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

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 50 to read as follows:
  50. WIND ENERGY SYSTEM EQUIPMENT CREDIT.  (A) GENERAL. A TAXPAYER, WHO
OWNS OR OPERATES WIND ENERGY SYSTEM EQUIPMENT, SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT  OF
QUALIFIED  WIND  ENERGY SYSTEM EQUIPMENT EXPENDITURES. THIS CREDIT SHALL
NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS.
  (B) QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES. (I) THE  TERM
"QUALIFIED  WIND  ENERGY  SYSTEM  EQUIPMENT EXPENDITURES" MEANS EXPENDI-
TURES, LIMITED TO THE EXPENDITURE CAP PRESCRIBED IN SUBPARAGRAPH (II) OF
THIS PARAGRAPH, FOR THE PURCHASE OF WIND ENERGY SYSTEM  EQUIPMENT  WHICH
IS  INSTALLED  IN  CONNECTION WITH PROPERTY WHICH IS (A) LOCATED IN THIS
STATE AND (B) WHICH IS USED BY THE TAXPAYER  AS  HIS  OR  HER  PRINCIPAL
PREMISES  AT  THE  TIME  THE  WIND  ENERGY SYSTEM EQUIPMENT IS PLACED IN
SERVICE.
  (II) FOR PURPOSES OF SUBPARAGRAPH (I)  OF  THIS  PARAGRAPH,  THE  TERM
"EXPENDITURE  CAP" SHALL MEAN THE PRODUCT OF (A) SIX DOLLARS AND (B) THE
NUMBER OF WATTS INCLUDED IN THE RATED CAPACITY OF THE WIND ENERGY SYSTEM
EQUIPMENT.
  (III) SUCH QUALIFIED EXPENDITURES SHALL INCLUDE EXPENDITURES FOR MATE-
RIALS, 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 WIND ENERGY SYSTEM EQUIPMENT.
  (IV)  SUCH  QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER
FINANCE CHARGES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15135-01-4

S. 7449                             2

  (C) WIND ENERGY SYSTEM EQUIPMENT. THE TERM "WIND ENERGY SYSTEM  EQUIP-
MENT"  SHALL  MEAN EQUIPMENT WHICH, WHEN INSTALLED AT A TAXPAYER'S PREM-
ISES, USES WIND ENERGY FOR THE PURPOSE OF GENERATING ELECTRICITY FOR USE
IN SUCH PREMISES.
  (D)   MULTIPLE  TAXPAYERS.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
PURCHASED AND INSTALLED IN A PRINCIPAL PREMISES SHARED BY  TWO  OR  MORE
TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
EACH  SUCH TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF THE
TOTAL EXPENDITURE FOR SUCH WIND ENERGY SYSTEM EQUIPMENT  CONTRIBUTED  BY
EACH TAXPAYER.
  (E)  WHEN  CREDIT ALLOWED. THE CREDIT FOR WIND ENERGY SYSTEM EQUIPMENT
PROVIDED FOR IN THIS SUBDIVISION SHALL BE ALLOWED WITH  RESPECT  TO  THE
TAXABLE  YEAR, COMMENCING AFTER TWO THOUSAND FOURTEEN, IN WHICH THE WIND
ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE.
  (F) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT,  AND  CARRYOVERS
OF  SUCH  CREDIT,  ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
CARRIED OVER TO THE 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  2.  The  subsection  heading  and paragraphs 1, 2, 3, 4, 5 and 7 of
subsection (g-1) of section 606 of the tax law, the  subsection  heading
and  paragraphs  4  and 7 as amended by chapter 378 of the laws of 2005,
paragraphs 1 and 2 as amended by chapter 375 of the laws of 2012,  para-
graph  3  as amended, paragraph 5 as added and paragraph 7 as renumbered
by chapter 128 of the laws of 2007, are amended to read as follows:
  Solar AND WIND energy system equipment credit.  (1) General. [An indi-
vidual] A taxpayer shall be allowed a credit against the tax imposed  by
this  article  equal  to  twenty-five percent of qualified solar OR WIND
energy system equipment expenditures, except as provided in subparagraph
(D) of paragraph two of this subsection. This credit  shall  not  exceed
three  thousand  seven  hundred fifty dollars for qualified solar energy
equipment placed in service before September first,  two  thousand  six,
and five thousand dollars for qualified solar energy equipment placed in
service  on  or after September first, two thousand six, AND SEVEN THOU-
SAND FIVE HUNDRED DOLLARS FOR QUALIFIED WIND ENERGY SYSTEM EQUIPMENT.
  (2) Qualified solar OR WIND energy system equipment expenditures.  (A)
The  term "qualified solar OR WIND energy system equipment expenditures"
means expenditures for:
  (i) the purchase of solar OR WIND energy  system  equipment  which  is
installed  in  connection with residential property which is (I) located
in this state and (II) which is used by the taxpayer as his or her prin-
cipal [residence] PREMISES at the time the solar OR WIND  energy  system
equipment is placed in service;
  (ii)  the lease of solar OR WIND energy system equipment under a writ-
ten agreement that spans at least ten years where such  equipment  owned
by  a  person  other  than  the taxpayer is installed in connection with
residential property which is (I) located in this state and  (II)  which
is  used by the taxpayer as his or her principal [residence] PREMISES at
the time the solar OR WIND energy system equipment is placed in service;
or
  (iii) the purchase of power under a written agreement  that  spans  at
least  ten years whereunder the power purchased is generated by solar OR
WIND energy system equipment owned by a person other than  the  taxpayer
which  is installed in connection with residential property which is (I)
located in this state and (II) which is used by the taxpayer as  his  or

S. 7449                             3

her  principal [residence] PREMISES at the time the solar OR WIND energy
system equipment is placed in service.
  (B) Such qualified expenditures shall include expenditures for materi-
als, 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 OR WIND energy system equipment.
  (C)  Such  qualified  expenditures  for  the purchase of solar OR WIND
energy system equipment shall not  include  interest  or  other  finance
charges.
  (D)  Such qualified expenditures for the lease of solar OR WIND energy
system equipment or the purchase of power under an  agreement  described
in  clauses  (ii)  or  (iii) of subparagraph (A) of this paragraph shall
include an amount equal to all payments made  during  the  taxable  year
under  such  agreement.  Provided,  however,  such credits shall only be
allowed for fourteen years after the first taxable year  in  which  such
credit  is  allowed.  Provided further, however, the twenty-five percent
limitation in paragraph one of this subsection shall only apply  to  the
total  aggregate amount of all payments to be made pursuant to an agree-
ment referenced in clauses (ii) or (iii) of  subparagraph  (A)  of  this
paragraph,  and  shall  not  apply  to individual payments made during a
taxable year under such agreement except to the extent  such  limitation
on an aggregate basis has been reached.
  (3)  Solar  OR  WIND  energy system equipment. The term "solar OR WIND
energy system equipment" shall mean an  arrangement  or  combination  of
components   utilizing  solar  radiation  OR  WIND  POWER,  which,  when
installed in a residence, produces energy designed to  provide  heating,
cooling,  hot water or electricity for use in such [residence] PREMISES.
Such arrangement or components shall not include equipment connected  to
solar  OR  WIND  energy  system equipment that is a component of part or
parts of a non-solar OR NON-WIND energy system or which uses any sort of
recreational facility or equipment as a storage medium.  Solar  OR  WIND
energy  system  equipment that generates electricity for use in a [resi-
dence] TAXPAYER'S PREMISES must conform to applicable  requirements  set
forth in section sixty-six-j of the public service law. Provided, howev-
er,  where  solar  OR  WIND  energy  system  equipment  is purchased and
installed by a condominium management association or a cooperative hous-
ing corporation, for purposes of this subsection  only,  the  term  "ten
kilowatts"  in  such  section  sixty-six-j shall be read as "fifty kilo-
watts."
  (4) Multiple taxpayers. Where solar OR WIND energy system equipment is
purchased and installed in a principal [residence]  PREMISES  shared  by
two  or  more  taxpayers,  the amount of the credit allowable under this
subsection for each such taxpayer shall be  prorated  according  to  the
percentage of the total expenditure for such solar OR WIND energy system
equipment contributed by each taxpayer.
  (5)  Proportionate  share. Where solar OR WIND energy system equipment
is purchased and installed by a condominium management association or  a
cooperative  housing  corporation,  a  taxpayer  who  is a member of the
condominium management association or who is a tenant-stockholder in the
cooperative housing corporation may for the purpose of  this  subsection
claim  a proportionate share of the total expense as the expenditure for
the purposes of the credit attributable to his OR  HER  principal  resi-
dence.
  (7)  When credit allowed. The credit FOR SOLAR ENERGY SYSTEM EQUIPMENT
provided for [herein] IN THIS SUBSECTION shall be allowed  with  respect

S. 7449                             4

to  the taxable year, commencing after nineteen hundred ninety-seven, in
which the solar energy system equipment is placed in service.  THE CRED-
IT FOR WIND ENERGY SYSTEM EQUIPMENT  PROVIDED  FOR  IN  THIS  SUBSECTION
SHALL  BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO
THOUSAND FOURTEEN, IN WHICH THE WIND ENERGY SYSTEM EQUIPMENT  IS  PLACED
IN SERVICE.
  S 3. This act shall take effect immediately.

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