S T A T E O F N E W Y O R K
________________________________________________________________________
7822
I N S E N A T E
May 12, 2016
___________
Introduced by Sen. AMEDORE -- 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 business fran-
chise and personal income tax credits for certain renewable energy
system equipment; to repeal subsection (g-1) of section 606 of such
law relating to solar energy system equipment; and providing for the
repeal of such provisions upon the expiration thereof
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 24-a to read follows:
24-A. CREDIT FOR RESIDENTIAL RENEWABLE ENERGY SYSTEM EQUIPMENT. (A)
ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAX IMPOSED BY THIS ARTICLE, EQUAL TO TWENTY-FIVE PERCENT OF QUALIFIED
RESIDENTIAL RENEWABLE ENERGY SYSTEM EQUIPMENT EXPENDITURES, EXCEPT AS
PROVIDED IN SUBPARAGRAPH (IV) OF PARAGRAPH (B) OF THIS SUBDIVISION. THIS
CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR QUALIFIED RESIDENTIAL
RENEWABLE ENERGY SYSTEM EQUIPMENT IN EACH RESIDENCE.
(B) QUALIFIED RESIDENTIAL RENEWABLE ENERGY SYSTEM EQUIPMENT EXPENDI-
TURES. (I) THE TERM "QUALIFIED RESIDENTIAL RENEWABLE ENERGY SYSTEM
EQUIPMENT EXPENDITURES" MEANS EXPENDITURES FOR:
(A) THE PURCHASE OF RENEWABLE ENERGY SYSTEM EQUIPMENT WHICH IS
INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED
IN THIS STATE AND (II) WHICH IS OWNED BY THE TAXPAYER AT THE TIME THE
RENEWABLE ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE;
(B) THE LEASE OF RENEWABLE ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN
AGREEMENT THAT SPANS TEN YEARS WHERE SUCH EQUIPMENT IS 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 OWNED BY
THE TAXPAYER AT THE TIME THE RENEWABLE ENERGY SYSTEM EQUIPMENT IS PLACED
IN SERVICE; OR
(C) THE PURCHASE OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED IS PRODUCED BY RENEWABLE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14024-02-6
S. 7822 2
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 OWNED BY THE TAXPAYER AT THE
TIME THE RENEWABLE ENERGY SYSTEM IS PLACED IN SERVICE.
(II) 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 RENEWABLE ENERGY SYSTEM EQUIPMENT.
(III) SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF RENEWABLE ENERGY
SYSTEM EQUIPMENT SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES.
(IV) SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF RENEWABLE ENERGY
SYSTEM EQUIPMENT OR THE PURCHASE OF POWER UNDER AN AGREEMENT DESCRIBED
IN CLAUSES (B) AND (C) OF SUBPARAGRAPH (I) 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 (A) OF THIS SUBDIVISION SHALL ONLY APPLY TO THE
TOTAL AGGREGATE AMOUNT OF ALL PAYMENTS TO BE MADE PURSUANT TO AN AGREE-
MENT REFERENCED IN CLAUSES (B) AND (C) OF SUBPARAGRAPH (I) OF THIS PARA-
GRAPH, 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.
(C) RENEWABLE ENERGY SYSTEM EQUIPMENT. THE TERM "RENEWABLE ENERGY
SYSTEM EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS
UTILIZING A RENEWABLE ENERGY RESOURCE, AS DEFINED IN SUBDIVISION TWELVE
OF SECTION 1-103 OF THE ENERGY LAW, WHICH, WHEN INSTALLED IN A RESIDENCE
OR RESIDENCES, PRODUCES ENERGY DESIGNED TO PROVIDE HEATING, COOLING, HOT
WATER OR ELECTRICITY FOR USE IN SUCH RESIDENCE OR RESIDENCES.
(D) 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
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT 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 MAY BE CARRIED OVER TO THE NEXT FIVE TAXABLE YEARS FOLLOWING THE
TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE
DEDUCTED FOR THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(E) GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE
INCURRED IN PURCHASING AND INSTALLING RENEWABLE ENERGY SYSTEM EQUIPMENT,
THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAY-
ER, WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION OF SUCH EQUIP-
MENT AND WHICH WAS NOT INCLUDED IN THE FEDERAL GROSS INCOME OF THE
TAXPAYER, SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH EXPENDITURES.
S 2. Subsection (g-1) of section 606 of the tax law is REPEALED, and a
new subsection (g-1) is added to read as follows:
(G-1) RENEWABLE ENERGY SYSTEM EQUIPMENT CREDIT. (1) GENERAL. AN INDI-
VIDUAL TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF QUALIFIED RENEWABLE ENERGY
SYSTEM EQUIPMENT EXPENDITURES, EXCEPT AS PROVIDED IN SUBPARAGRAPH (D) OF
PARAGRAPH TWO OF THIS SUBSECTION. THIS CREDIT SHALL NOT EXCEED FIVE
THOUSAND DOLLARS FOR QUALIFIED RENEWABLE ENERGY EQUIPMENT.
(2) QUALIFIED RENEWABLE ENERGY SYSTEM EQUIPMENT EXPENDITURES. (A) THE
TERM "QUALIFIED RENEWABLE ENERGY SYSTEM EQUIPMENT EXPENDITURES" MEANS
EXPENDITURES FOR:
S. 7822 3
(I) THE PURCHASE OF RENEWABLE ENERGY SYSTEM EQUIPMENT WHICH IS
INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED
IN THIS STATE AND (II) WHICH IS OWNED BY THE TAXPAYER AT THE TIME THE
RENEWABLE ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE;
(II) THE LEASE OF RENEWABLE ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN
AGREEMENT 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 IS OWNED
BY THE TAXPAYER AT THE TIME THE RENEWABLE 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 RENEWABLE
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 OWNED BY THE TAXPAYER AT THE
TIME THE RENEWABLE 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 RENEWABLE ENERGY SYSTEM EQUIPMENT.
(C) SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF RENEWABLE ENERGY
SYSTEM EQUIPMENT SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES.
(D) SUCH QUALIFIED EXPENDITURES FOR THE LEASE OF RENEWABLE 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 CLAUSE (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) RENEWABLE ENERGY SYSTEM EQUIPMENT. THE TERM "RENEWABLE ENERGY
SYSTEM EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS
UTILIZING A RENEWABLE ENERGY RESOURCE, AS DEFINED IN SUBDIVISION TWELVE
OF SECTION 1-103 OF THE ENERGY LAW, WHICH, WHEN INSTALLED IN A RESIDENCE
OR RESIDENCES, PRODUCES ENERGY DESIGNED TO PROVIDE HEATING, COOLING, HOT
WATER OR ELECTRICITY FOR USE IN SUCH RESIDENCE OR RESIDENCES.
(4) MULTIPLE TAXPAYERS. WHERE RENEWABLE 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 RENEWABLE ENERGY SYSTEM EQUIPMENT CONTRIBUTED
BY EACH TAXPAYER.
(5) PROPORTIONATE SHARE. WHERE RENEWABLE 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.
S. 7822 4
(6) GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE
INCURRED IN PURCHASING AND INSTALLING RENEWABLE ENERGY SYSTEM EQUIPMENT,
THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAY-
ER, WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION OF SUCH EQUIP-
MENT AND WHICH WAS NOT INCLUDED IN THE FEDERAL GROSS INCOME OF THE
TAXPAYER, SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH EXPENDITURES.
(7) WHEN CREDIT ALLOWED. THE CREDIT PROVIDED FOR IN THIS SUBSECTION
SHALL BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR IN WHICH THE RENEWABLE
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.
S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
(XLIII) RENEWABLE ENERGY CREDIT FOR RESIDENTIAL
SYSTEM EQUIPMENT CREDIT RENEWABLE ENERGY SYSTEM
UNDER SUBSECTION (G-1) EQUIPMENT UNDER SUBDIVISION
TWENTY-FOUR-A OF SECTION
TWO HUNDRED TEN-B
S 4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to tax
years commencing on or after such date. Furthermore, this act shall
expire and be deemed repealed 10 years after such effective date.
