NY State Senate Bill 2015-S7822

Senate Bill S7822

2015-2016 Legislative Session

Establishes renewable energy system equipment business franchise and personal income tax credits for residential properties; repealer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 12, 2016	referred to investigations and government operations

2015-S7822 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, rpld §606 sub (g-1), Tax L

2015-S7822 (ACTIVE) - Summary

Establishes renewable energy system equipment business franchise and personal income tax credits for residential properties; repeals the solar energy system personal income tax credit.

2015-S7822 (ACTIVE) - Sponsor Memo

2015-S7822 (ACTIVE) - Bill Text download pdf

                            
                    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.

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