BILL NUMBER:  S1260A

 TITLE OF BILL :  An act to amend the tax law, in relation to
increasing the tax credit provided for solar energy system equipment

 PURPOSE :

To increase the allowable tax credit for the installation of solar
energy system equipment.

 SUMMARY OF PROVISIONS :

Amends paragraph 1 of subsection (g-1) of section 606 of the tax law
to allow for a tax credit up to $10,000 for qualified solar energy
equipment placed in service on or after September 1, 2016.

 EXISTING LAW :

The current tax credit cap for qualified solar energy equipment is
$5,002.

 JUSTIFICATION :

The allowable personal tax credit for solar energy equipment has not
been increased since 2005 despite the fact that the purchase and
installation costs remain higher than most New Yorkers can afford.
              

Solar energy technology has many advantages. It is a free and
renewable energy source; environmentally friendly (no noise or
smells); reduces or eliminates the cost of electricity; allows
consumers to receive incentives and rebates from governments and
utility companies; reduces reliance on foreign oil; and enables net
metering, giving consumers the opportunity to sell their excess
electricity or get a credit from the utility company.

Solar energy technology, however, still remains a costly alternative
to the use of readily available fossil fuel technologies. The greatest
obstacle to using this energy source is the initial cost of the
equipment used to harness the suns energy. By increasing the solar
energy equipment tax credit, more New Yorkers will be able to retrofit
their homes with solar energy systems. Consumer demand will drive down
the cost of solar panels, which will likely lead to an increase in
solar cells to generate electricity.

Qualified solar energy expenditures include material and installation
costs relating to components utilizing solar radiation to produce
energy designed to provide heating, cooling, hot water, or electricity
for residential use.

 FISCAL IMPLICATIONS :

2008: 3.2 million; 2011: $4.0 million; the fiscal impact cannot be
determined because the number of taxpayers who would take advantage of
and qualify for a solar energy tax credit of an increased amount (up
to $10,000) is uncertain.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years commencing on and after January 1, 2016.