Assembly Bill A10691

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

                                  10691

                          I N  A S S E M B L Y

                              June 13, 2016
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Paulin) --
  read once and referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to wind energy system equipment
  credit

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

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (g-3) to read as follows:
  (G-3) WIND ENERGY SYSTEM EQUIPMENT CREDIT. (1) GENERAL.  AN INDIVIDUAL
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE EQUAL TO TWENTY-FIVE PERCENT OF QUALIFIED WIND ENERGY SYSTEM  EQUIP-
MENT  EXPENDITURES,  EXCEPT AS PROVIDED IN SUBPARAGRAPH (D) OF PARAGRAPH
TWO OF THIS SUBSECTION.  THIS CREDIT SHALL NOT EXCEED  FIFTEEN  THOUSAND
DOLLARS  FOR A RESIDENTIAL INSTALLATION OR SEVENTY-FIVE THOUSAND DOLLARS
FOR A FARM OR COMMERCIAL INSTALLATION.
  (2) QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES. (A) THE  TERM
"QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES" MEANS EXPENDITURES
FOR:
  (I) THE PURCHASE OF WIND ENERGY SYSTEM EQUIPMENT WHICH IS INSTALLED IN
CONNECTION  WITH  RESIDENTIAL, AGRICULTURAL OR COMMERCIAL PROPERTY WHICH
IS (I) LOCATED IN THIS STATE AND (II) WHICH, IF RESIDENTIAL, IS USED  BY
THE  TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE OR FARM OPERATION AT THE
TIME THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE;
  (II) THE LEASE OF WIND ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN  AGREE-
MENT  THAT  SPANS  AT  LEAST  TEN  YEARS WHERE SUCH EQUIPMENT OWNED BY A
PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH  RESIDEN-
TIAL  PROPERTY  WHICH  IS  (I)  LOCATED IN THIS STATE AND (II) WHICH, IF
RESIDENTIAL, IS USED BY THE TAXPAYER AS HIS OR HER  PRINCIPAL  RESIDENCE
OR FARM OPERATION AT THE TIME THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED
IN SERVICE; OR
  (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
LEAST TEN YEARS WHERE UNDER THE POWER PURCHASED  IS  GENERATED  BY  WIND
ENERGY  SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER WHICH
IS INSTALLED IN  CONNECTION  WITH  RESIDENTIAL  PROPERTY  WHICH  IS  (I)

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

                                                           LBD15844-01-6

A. 10691                            2

LOCATED  IN  THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR
HER PRINCIPAL RESIDENCE OR FARM OPERATION AT THE TIME  THE  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, PLANS AND PERMITTING DIRECTLY RELATED TO  THE  CONSTRUCTION  OR
INSTALLATION OF THE WIND ENERGY SYSTEM EQUIPMENT.
  (C) SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF WIND ENERGY SYSTEM
EQUIPMENT SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES.
  (D)  SUCH  QUALIFIED  EXPENDITURES FOR THE LEASE OF 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 BE
BASED ON THE APPRAISED VALUE OF THE WIND ENERGY SYSTEM(S) AS  DETERMINED
BY A QUALIFIED THIRD PARTY APPRAISER.
  (3)  WIND ENERGY SYSTEM EQUIPMENT. THE TERM "WIND ENERGY SYSTEM EQUIP-
MENT" SHALL MEAN ONE OR MORE WIND TURBINES WITH A COMBINED RATED CAPACI-
TY OF NOT MORE THAN ONE HUNDRED KILOWATTS FOR A NEW YORK CUSTOMER GENER-
ATOR THAT IS MANUFACTURED, INSTALLED AND  OPERATED  IN  ACCORDANCE  WITH
APPLICABLE  GOVERNMENT  AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE
ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC  CORPORATION'S
TRANSMISSION  AND  DISTRIBUTION  FACILITIES,  AND  THAT  IS  OPERATED IN
COMPLIANCE WITH ANY  STANDARDS  AND  REQUIREMENTS  ESTABLISHED  BY  THIS
SECTION.
  (A)  WIND TURBINES INSTALLED AFTER JUNE THIRTIETH, TWO THOUSAND SEVEN-
TEEN MUST BE CERTIFIED TO AWEA 9.1-2009 OR, IF THEIR ROTOR AREA  EXCEEDS
200M2,  TO  IEC 61400-11, IEC 61400-12, AND IEC 61400-1 BY AN ACCREDITED
CERTIFICATION BODY. WIND TURBINES THAT ARE LISTED ON THE NEW YORK  STATE
ENERGY  RESEARCH  AND DEVELOPMENT AUTHORITY APPROVED TURBINE LIST OR THE
CESA ITAC UNIFIED LIST OF WIND TURBINES AT THE TIME OF INSTALLATION  ARE
EXEMPT FROM THESE REQUIREMENTS.
  (B)  WIND  TURBINES  MUST CARRY, AS A MINIMUM, A FIVE YEAR WARRANTY ON
THE EQUIPMENT AND INSTALLATION.
  (C) WIND TURBINES MUST BE INSTALLED ON TOWERS OF AT LEAST EIGHTY  FEET
IN HEIGHT.
  (4)   MULTIPLE  TAXPAYERS.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
PURCHASED AND INSTALLED IN A PRINCIPAL RESIDENCE 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 WIND ENERGY SYSTEM EQUIPMENT CONTRIBUTED BY
EACH TAXPAYER.
  (5)  PROPORTIONATE  SHARE.  WHERE  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 PRINCIPAL RESIDENCE.
  (6)  GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE
INCURRED IN PURCHASING AND INSTALLING WIND ENERGY SYSTEM EQUIPMENT,  THE
AMOUNT  OF  ANY  FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAYER,
WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION  OF  SUCH  EQUIPMENT
AND  WHICH WAS NOT INCLUDED IN THE FEDERAL GROSS INCOME OF THE TAXPAYER,
SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH EXPENDITURES.

A. 10691                            3

  (7) WHEN CREDIT ALLOWED. THE  CREDIT  PROVIDED  FOR  HEREIN  SHALL  BE
ALLOWED  WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO THOUSAND
SIXTEEN, IN WHICH THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE.
  (8)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION  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.
  (9) CREDIT TO BE CLAIMED BY THE OWNER.  THE  CREDITS  ALLOWABLE  UNDER
THIS  SUBSECTION  SHALL BE CLAIMED BY THE PERSON OR ENTITY THAT OWNS THE
WIND ENERGY SYSTEM EQUIPMENT.
  S 2. This act shall take effect immediately.