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

                                  2553

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 22, 2013
                               ___________

Introduced by Sens. MARCELLINO, MAZIARZ -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations

AN ACT to amend the tax  law,  in  relation  to  exempting  energy  star
  products from sales and compensating use taxes; and granting credit or
  refund for taxes paid; and providing for reimbursement of such taxes

  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 46 to read as follows:
  46.  CREDIT  FOR  THE PURCHASE OR REPAIR OF ENERGY STAR PRODUCTS.  (A)
ALLOWANCE OF CREDIT. A TAXPAYER WHO, ON OR AFTER  OCTOBER  THIRTY-FIRST,
TWO  THOUSAND TWELVE AND BEFORE OCTOBER THIRTY-FIRST, TWO THOUSAND THIR-
TEEN, EITHER (I) PURCHASES  ENERGY  STAR  PRODUCTS,  OR  (II)  PAYS  FOR
REPAIRS TO ENERGY STAR PRODUCTS OWNED BY THE TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION,
AGAINST  THE  TAXES IMPOSED BY THIS ARTICLE, PROVIDED THAT SUCH TAXPAYER
HAS NOT APPLIED FOR OR RECEIVED A  REFUND  OF  SUCH  TAXES  PURSUANT  TO
SECTION ELEVEN HUNDRED THIRTY-NINE OF THIS CHAPTER. FOR PURPOSES OF THIS
SUBDIVISION, THE TERM "ENERGY STAR PRODUCTS" SHALL HAVE THE SAME MEANING
AS IN PARAGRAPH THIRTY-NINE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED
ONE OF THIS CHAPTER.
  (B)  AMOUNT  OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL THE AMOUNT OF
TAXES PAID BY THE TAXPAYER PURSUANT TO ARTICLES TWENTY-EIGHT  AND  TWEN-
TY-NINE  OF  THIS  CHAPTER  FOR  THE  PURCHASE  OR REPAIR OF ENERGY STAR
PRODUCTS, AS EVIDENCED BY DATED  RECEIPTS  LISTING  THE  VENDOR'S  NAME,
VENDOR'S  ADDRESS,  AND  THE AMOUNT OF SUCH TAX PAID, LESS ANY AMOUNT OF
SUCH TAXES THAT THE TAXPAYER DEDUCTED FOR FEDERAL INCOME TAX PURPOSES.
  (C) 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 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07232-01-3
              

S. 2553                             2

SUBDIVISION  ONE  OF  THIS  SECTION.    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  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  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  (D)  ANY  AMOUNT  OF  CREDIT  ALLOWED PURSUANT TO THIS SUBDIVISION FOR
WHICH THE TAXPAYER SUBSEQUENTLY RECEIVES A REFUND  PURSUANT  TO  SECTION
ELEVEN HUNDRED THIRTY-NINE OF THIS CHAPTER SHALL BE RECAPTURED AND ADDED
BACK IN THE TAXABLE YEAR THAT SUCH REFUND WAS RECEIVED.
  S  2. 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) ENERGY STAR TAX CREDIT        AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (VV)                SUBDIVISION FORTY-SIX OF SECTION
                                     TWO HUNDRED TEN
  S  3. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV) CREDIT FOR THE PURCHASE OF ENERGY STAR PRODUCTS. (1) ALLOWANCE OF
CREDIT. A TAXPAYER WHO, ON OR AFTER THE THIRTY-FIRST DAY OF OCTOBER, TWO
THOUSAND TWELVE AND BEFORE OCTOBER THIRTY-FIRST, TWO THOUSAND  THIRTEEN,
EITHER  (A)  PURCHASES  ENERGY STAR PRODUCTS, OR (B) PAYS FOR REPAIRS TO
ENERGY STAR PRODUCTS SHALL BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
PROVIDED  IN PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE TAXES IMPOSED
BY THIS ARTICLE, PROVIDED THAT SUCH TAXPAYER  HAS  NOT  APPLIED  FOR  OR
RECEIVED A REFUND OF SUCH TAXES PURSUANT TO SECTION ELEVEN HUNDRED THIR-
TY-NINE  OF  THIS  CHAPTER.  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM
"ENERGY STAR PRODUCTS" SHALL HAVE THE SAME MEANING AS IN PARAGRAPH THIR-
TY-NINE OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF  THIS  CHAP-
TER.
  (2)  AMOUNT  OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL THE AMOUNT OF
TAXES PAID BY THE TAXPAYER PURSUANT TO ARTICLES TWENTY-EIGHT  AND  TWEN-
TY-NINE  OF  THIS  CHAPTER  FOR  THE  PURCHASE  OR REPAIR OF ENERGY STAR
PRODUCTS, AS EVIDENCED BY DATED  RECEIPTS  LISTING  THE  VENDOR'S  NAME,
VENDOR'S  ADDRESS,  AND  THE AMOUNT OF SUCH TAX PAID, LESS ANY AMOUNT OF
SUCH TAXES THAT THE TAXPAYER DEDUCTED FOR FEDERAL INCOME TAX PURPOSES.
  (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS WILL 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
WILL BE PAID THEREON.
  (4) RECAPTURE OF CREDIT. ANY AMOUNT OF CREDIT ALLOWED PURSUANT TO THIS
SUBSECTION  FOR WHICH THE TAXPAYER SUBSEQUENTLY RECEIVES A REFUND PURSU-
ANT TO SECTION ELEVEN HUNDRED  THIRTY-NINE  OF  THIS  CHAPTER  SHALL  BE
RECAPTURED  AND  ADDED  BACK  IN  THE  TAXABLE YEAR THAT SUCH REFUND WAS
RECEIVED.
  S 4. Subdivision (b) of section 1101 of the  tax  law  is  amended  by
adding a new paragraph 39 to read as follows:
  (39) ENERGY STAR PRODUCT. ANY TANGIBLE PERSONAL PROPERTY FOR WHICH THE
ENERGY  STAR  LABEL  HAS BEEN AWARDED BY THE UNITED STATES ENVIRONMENTAL
PROTECTION AGENCY PURSUANT TO THE ENERGY STAR PROGRAM (SECTION 6294A  OF
TITLE 42 OF THE UNITED STATES CODE).

S. 2553                             3

  S  5.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
  (44)  RETAIL SALES OF ENERGY STAR PRODUCTS PURCHASED ON OR AFTER OCTO-
BER THIRTY-FIRST, TWO THOUSAND TWELVE AND BEFORE  OCTOBER  THIRTY-FIRST,
TWO  THOUSAND  THIRTEEN.  THE  EXEMPTION  PROVIDED FOR IN THIS PARAGRAPH
SHALL NOT APPLY TO THE RENTAL OR LEASING OF SUCH ENERGY STAR PRODUCTS.
  S 6. Section 1115 of the tax law is amended by adding a  new  subdivi-
sion (ii) to read as follows:
  (II)  SERVICES  OTHERWISE  TAXABLE  UNDER  PARAGRAPH  THREE OR FIVE OF
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED FIVE OR UNDER  SECTION  ELEVEN
HUNDRED TEN OF THIS ARTICLE AND ANY TANGIBLE PERSONAL PROPERTY OTHERWISE
TAXABLE  UNDER  SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE THAT IS USED
IN THE PERFORMANCE OF SUCH SERVICES SHALL BE EXEMPT FROM ANY TAX IMPOSED
PURSUANT TO SUCH PROVISIONS WHERE SUCH SERVICES ARE RENDERED DIRECTLY TO
ENERGY STAR PRODUCTS AND SUCH SERVICES WERE PROVIDED ON OR AFTER OCTOBER
THIRTY-FIRST, TWO THOUSAND TWELVE AND BEFORE OCTOBER  THIRTY-FIRST,  TWO
THOUSAND THIRTEEN.
  S  7.  Section 1139 of the tax law is amended by adding a new subdivi-
sion (i) to read as follows:
  (I) NOTWITHSTANDING ANY PROVISION OF THE  LAW  TO  THE  CONTRARY,  THE
COMMISSIONER  SHALL REFUND ANY TAX PAID PURSUANT TO THIS ARTICLE FOR THE
PURCHASE OR REPAIR OF ENERGY STAR PRODUCTS  THAT  ARE  EXEMPT  FROM  THE
TAXES  PURSUANT  TO PARAGRAPH FORTY-FOUR OF SUBDIVISION (A) AND SUBDIVI-
SION (II)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN  OF  THIS  ARTICLE,  AS
EVIDENCED BY DATED RECEIPTS LISTING THE VENDOR'S NAME, VENDOR'S ADDRESS,
AND  THE  AMOUNT  OF  SUCH  TAX PAID; PROVIDED THAT THE TAXPAYER HAS NOT
CLAIMED A CREDIT FOR SUCH TAXES PURSUANT TO EITHER SUBDIVISION FORTY-SIX
OF SECTION TWO HUNDRED TEN OR SUBSECTION (VV) OF SECTION SIX HUNDRED SIX
OF THIS CHAPTER. ALL THE PROVISIONS OF THIS SECTION SHALL APPLY  TO  THE
REFUND  AUTHORIZED BY THIS SUBDIVISION, PROVIDED, HOWEVER, THAT INTEREST
ALLOWABLE UNDER SUBDIVISION (D) OF THIS SECTION SHALL  BE  PAYABLE  FROM
THE  DATE  WHICH IS SIX MONTHS AFTER THE DATE THE APPLICATION FOR REFUND
IN PROCESSIBLE FORM IS RECEIVED.
  S 8. The tax law is amended by adding a new section 1261-b to read  as
follows:
  S  1261-B.  REIMBURSEMENT  FOR  LOST REVENUE RESULTING FROM EXEMPTIONS
FROM TAXES ADMINISTERED BY THE COMMISSIONER. ALL AMOUNTS THAT WOULD HAVE
BEEN  COLLECTED  AND  DEPOSITED  PURSUANT  TO  SECTION  TWELVE   HUNDRED
SIXTY-ONE   OF  THIS  PART  IF  THE  EXEMPTIONS  PROVIDED  BY  PARAGRAPH
FORTY-FOUR OF SUBDIVISION (A) AND SUBDIVISION  (II)  OF  SECTION  ELEVEN
HUNDRED  FIFTEEN OF THIS ARTICLE HAD NOT BEEN ENACTED SHALL BE DEPOSITED
IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWELVE HUNDRED SIXTY-ONE OF
THIS PART, PROVIDED THAT SUCH DEPOSITS SHALL BE MADE NO LATER  THAN  ONE
DAY  AFTER  THE  COMMISSIONER  HAS EITHER (A) ALLOWED CREDIT PURSUANT TO
EITHER SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED  TEN  OR  SUBSECTION
(VV)  OF SECTION SIX HUNDRED SIX OF THIS CHAPTER, OR (B) ISSUED A REFUND
PURSUANT TO SECTION ELEVEN HUNDRED  THIRTY-NINE  OF  THIS  CHAPTER,  AND
PROVIDED  FURTHER  THAT, NOTWITHSTANDING ANY PROVISION OF THE LAW TO THE
CONTRARY, ANY AMOUNTS PAID THAT WERE SUBSEQUENTLY RECAPTURED PURSUANT TO
EITHER SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED  TEN  OR  SUBSECTION
(VV)  OF  SECTION SIX HUNDRED SIX OF THIS CHAPTER SHALL BE DEDUCTED FROM
THE AMOUNT TO BE DEPOSITED PURSUANT TO SECTION TWELVE HUNDRED  SIXTY-ONE
OF  THIS  PART NO LATER THAN ONE DAY AFTER SUCH AMOUNTS HAVE BEEN RECAP-
TURED.
  S 9. This act shall take effect immediately.