S T A T E O F N E W Y O R K
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5541--A
2017-2018 Regular Sessions
I N A S S E M B L Y
February 10, 2017
___________
Introduced by M. of A. PAULIN, FAHY, HUNTER, TITONE, SEPULVEDA, ORTIZ,
JENNE, SCHIMMINGER, GALEF, STIRPE, L. ROSENTHAL -- Multi-Sponsored by
-- M. of A. ENGLEBRIGHT, HOOPER, MAGEE, ROZIC -- read once and
referred to the Committee on Ways and Means -- recommitted to the
Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the tax law, in relation to wind energy system equipment
credit; and providing for the repeal of certain provisions therefor
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 ONE HUNDRED 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-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09628-03-8
A. 5541--A 2
TIAL, 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; 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, AGRICULTURAL OR COMMERCIAL
PROPERTY WHICH IS (I) 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 OR SYSTEMS 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 RESIDENTIAL
CUSTOMER GENERATOR OR NINE HUNDRED KILOWATTS FOR A FARM OR COMMERCIAL
CUSTOMER GENERATOR, 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 ELEC-
TRIC 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 NINE-
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
A. 5541--A 3
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.
(7) WHEN CREDIT ALLOWED. THE CREDIT PROVIDED FOR HEREIN SHALL BE
ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO THOUSAND
EIGHTEEN, 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.
§ 2. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2019; provided, however, this
act shall expire and be deemed repealed January 1, 2029.