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

                                 1212--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 9, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  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 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-B of the tax law is amended  by  adding  a  new
subdivision 49 to read as follows:
  49. 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06530-02-6
              

S. 1212--A                          2

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.
  (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 SIXTEEN, 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

S. 1212--A                          3

  (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
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

S. 1212--A                          4

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
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 SIXTEEN, IN WHICH THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED IN
SERVICE.
  S 3. This act shall take effect immediately.