S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2635
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 24, 2019
                                ___________
 
 Introduced  by M. of A. CROUCH, BARCLAY, FINCH, McDONOUGH -- Multi-Spon-
   sored by -- M.  of A. HAWLEY, KOLB, THIELE -- read once  and  referred
   to the Committee on Ways and Means
 
 AN  ACT  to  amend the tax law, in relation to establishing a tax credit
   for alternative energy systems and generating equipment

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new section 24-b to read
 as follows:
   §  24-B.  CREDIT  FOR ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIP-
 MENT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWEN-
 TY-TWO OR THIRTY-THREE OF THIS CHAPTER, WHOSE BUSINESS IS  NOT  SUBSTAN-
 TIALLY  ENGAGED IN THE COMMERCIAL GENERATION, DISTRIBUTION, TRANSMISSION
 OR SERVICING OF ENERGY OR ENERGY PRODUCTS, AND WHO EMPLOYS ONE  OR  MORE
 FULL-TIME  EMPLOYEES,  EXCLUDING GENERAL EXECUTIVE OFFICERS (IN THE CASE
 OF A CORPORATION), SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX,  PURSUANT
 TO  THE  PROVISIONS  REFERENCED  IN SUBDIVISION (E) OF THIS SECTION. THE
 CREDIT SHALL BE ALLOWED FOR QUALIFIED EXPENDITURES WHICH MEET THE ELIGI-
 BILITY CRITERIA, IF ANY, PRESCRIBED BY THE DEPARTMENT,  IN  CONSULTATION
 WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE NEW YORK STATE
 ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, DISBURSED IN NEW YORK STATE.
   (B)  DEFINITIONS.  FOR  THE  PURPOSES  OF THIS SECTION:   (1) THE TERM
 "SOLAR AND WIND ENERGY SYSTEM EQUIPMENT" SHALL REFER TO A  SYSTEM  WHICH
 SHALL  MEET  THE ELIGIBILITY REQUIREMENTS SET BY THE DEPARTMENT OF ENVI-
 RONMENTAL CONSERVATION AND THE NEW YORK STATE ENERGY  AND  RESEARCH  AND
 DEVELOPMENT AUTHORITY WHICH SERVES AS:
   (I)  SOLAR  ELECTRIC GENERATING EQUIPMENT WHICH SHALL MEAN AN ARRANGE-
 MENT OR COMBINATION OF COMPONENTS UTILIZING SOLAR RADIATION  TO  PRODUCE
 ENERGY  DESIGNED  TO PROVIDE HEATING, COOLING, HOT WATER OR ELECTRICITY.
 SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS  PART
 OF  A  NON-SOLAR  ENERGY  SYSTEM  OR WHICH USES ANY SORT OF RECREATIONAL
 FACILITY OR EQUIPMENT AS A STORAGE MEDIUM;
   (II) A WIND ENERGY SYSTEM, WHICH SHALL MEAN AN ARRANGEMENT OR COMBINA-
 TION OF COMPONENTS DESIGNED  TO  GENERATE  AND  PROVIDE  ELECTRICITY  OR
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03049-01-9

 A. 2635                             2
 
 MECHANICAL  ENERGY  THROUGH  THE PROCESS OF CONVERTING FORCE PROVIDED BY
 WIND INTO MECHANICAL AND/OR ELECTRICAL ENERGY, AND STORING OR DISTRIBUT-
 ING SUCH ENERGY.
   (2)  THE TERM "FUEL CELL ELECTRIC GENERATING EQUIPMENT" SHALL REFER TO
 ON-SITE ELECTRICITY GENERATION SYSTEMS, LOCATED IN REAL PROPERTY LOCATED
 IN NEW YORK STATE UTILIZING  PROTON  EXCHANGE  MEMBRANE  FUEL  CELLS  OR
 MOLTEN  CARBONATE  FUEL  CELL TECHNOLOGIES.   "FUEL CELL" MEANS A DEVICE
 THAT PRODUCES ELECTRICITY DIRECTLY FROM  HYDROGEN  OR  HYDROCARBON  FUEL
 THROUGH A NON-COMBUSTIVE ELECTROCHEMICAL PROCESS.
   (3)  THE  TERM  "GEOTHERMAL  RESOURCE  TRANSFER SYSTEM" MEANS A SYSTEM
 TRANSFERRING ENERGY THROUGH THE USE OF A  RESOURCE  IN  NEW  YORK  STATE
 INCLUDING:
   (I)  ALL  PRODUCTS OF GEOTHERMAL PROCESSES EMBRACING INDIGENOUS STEAM,
 HOT WATER, AND HOT BRINES;
   (II) STEAM AND OTHER GASES, HOT WATER AND HOT  BRINES  RESULTING  FROM
 WATER,  GAS,  OR  OTHER  FLUIDS  ARTIFICIALLY INTRODUCED INTO GEOTHERMAL
 FORMATIONS;
   (III) HEAT OR OTHER ASSOCIATED ENERGY FOUND IN GEOTHERMAL  FORMATIONS;
 AND
   (IV)  ANY  BYPRODUCTS  DERIVED  FROM THEM, WHERE "BYPRODUCT" MEANS ANY
 MINERAL OR MINERALS (EXCLUSIVE OF  OIL,  HYDROCARBON  GAS,  AND  HELIUM)
 WHICH  ARE  FOUND  IN  SOLUTION  OR IN ASSOCIATION WITH OTHER GEOTHERMAL
 RESOURCES AND WHICH HAVE A VALUE OF LESS THAN  SEVENTY-FIVE  PERCENT  OF
 THE VALUE OF THE GEOTHERMAL STEAM OR ARE NOT, BECAUSE OF QUANTITY, QUAL-
 ITY,  OR  TECHNICAL DIFFICULTIES IN EXTRACTION AND PRODUCTION, OF SUFFI-
 CIENT VALUE TO WARRANT EXTRACTION AND PRODUCTION BY THEMSELVES.
   (4) THE TERM "BIOMASS ENERGY CONVERSION EQUIPMENT" SHALL  MEAN  EQUIP-
 MENT   THAT   CONVERTS  FOREST  AND/OR  AGRICULTURAL  MATERIALS  THROUGH
 COMBUSTION, GASIFICATION, OR PYROLYSIS INTO HEAT, ELECTRICITY,  OR  HEAT
 AND ELECTRICITY THAT IS:
   (I)  MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH APPLICA-
 BLE GOVERNMENT AND INDUSTRY STANDARDS,
   (II) IN THE CASE OF BIOMASS-GENERATED ELECTRICITY, EITHER USED TO MEET
 THE ELECTRICITY REQUIREMENTS OF THE OWNER OR THE OWNER AND USERS LOCATED
 WITHIN ONE-HALF MILE OF THE INSTALLED EQUIPMENT,  OR  CONNECTED  TO  THE
 ELECTRIC  SYSTEM  AND  OPERATED  IN  CONJUNCTION WITH AN ELECTRIC CORPO-
 RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES,
   (III) IN THE CASE OF BIOMASS-GENERATED HEAT, EITHER USED TO  MEET  THE
 REQUIREMENTS  OF  THE  OWNER  OR  OF OTHER BUSINESSES AND HEAT CUSTOMERS
 LOCATED WITHIN ONE-QUARTER MILE OF THE INSTALLED EQUIPMENT.
   (5) THE TERM "CREDIT ALLOWANCE YEAR" MEANS THE FIRST TAXABLE YEAR WITH
 RESPECT TO WHICH THE CREDIT MAY BE CLAIMED PURSUANT TO THE INITIAL CRED-
 IT COMPONENT CERTIFICATE ISSUED PURSUANT  TO  SUBDIVISION  (D)  OF  THIS
 SECTION.
   (6)  THE  TERM  "TAXABLE  YEAR"  MEANS  THE TAXABLE YEAR OF A BUSINESS
 TAXPAYER FILING A NEW YORK STATE TAX RETURN UNDER ARTICLE NINE-A,  TWEN-
 TY-TWO  OR THIRTY-THREE OF THIS CHAPTER. IF THE BUSINESS DOES NOT HAVE A
 TAXABLE YEAR BECAUSE IT IS EXEMPT FROM  TAXATION  OR  OTHERWISE  IS  NOT
 REQUIRED  TO  FILE  SUCH  A  RETURN UNDER ANY OF SUCH STATUTES, THE TERM
 "TAXABLE YEAR" MEANS (I) THE BUSINESS'S FEDERAL TAXABLE YEAR, OR (II) IF
 THE BUSINESS DOES NOT HAVE A FEDERAL TAXABLE YEAR,  THE  GIVEN  CALENDAR
 YEAR.
   (7)  "QUALIFIED  EXPENDITURES"  SHALL BE REMITTED COSTS FOR MATERIALS,
 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

 A. 2635                             3
 
 OF  SOLAR  AND  WIND  ENERGY SYSTEM EQUIPMENT, SOLAR ELECTRIC GENERATING
 EQUIPMENT, FUEL CELL ELECTRIC  GENERATING  EQUIPMENT  AND/OR  GEOTHERMAL
 RESOURCE  TRANSFER SYSTEM EQUIPMENT DIRECTLY RELATED TO THE CONSTRUCTION
 OR  INSTALLATION OF SUCH EQUIPMENT INTENDED FOR THE ORIGINAL USE OF SAID
 TAXPAYER, AT, OR DIRECTLY RELATED TO, A PROPERTY IN NEW YORK STATE  THAT
 OPERATES AS THE SITUS OF A BUSINESS ENTITY OF SAID TAXPAYER. SUCH QUALI-
 FIED  EXPENDITURES  SHALL  NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES
 WHETHER SUCH CHARGES ACCRUE AS A RESULT OF LEASE OR  OWNERSHIP  OF  SUCH
 EQUIPMENT.    FOR PURPOSES OF DETERMINING THE EXPENSES SERVING AS QUALI-
 FIED EXPENDITURES UNDER THIS SECTION, ANY AMOUNT OF  FEDERAL,  STATE  OR
 LOCAL  GRANT  RECEIVED  BY  THE  TAXPAYER  USED  FOR THE PURCHASE AND/OR
 INSTALLATION OF SUCH EQUIPMENT AND WHICH IS NOT INCLUDED IN THE  FEDERAL
 GROSS  INCOME  OF  THE TAXPAYER SHALL NOT SERVE AS A QUALIFYING EXPENDI-
 TURE.
   (C) ALLOWANCE OF CREDIT. (1) QUALIFIED ALTERNATIVE ENERGY SYSTEMS  AND
 GENERATING  EQUIPMENT EXPENSES. QUALIFIED ALTERNATIVE ENERGY SYSTEMS AND
 GENERATING EQUIPMENT EXPENSES ARE THOSE QUALIFIED EXPENDITURES GENERATED
 FROM THE PURCHASE AND INSTALLATION OF ELIGIBLE EQUIPMENT  AS  ENUMERATED
 IN SUBDIVISION (B) OF THIS SECTION.
   (2)  CREDIT  FOR SOLAR AND WIND ENERGY SYSTEM EQUIPMENT. THE AMOUNT OF
 CREDIT FOR THE PURCHASE AND INSTALLATION  OF  ELIGIBLE  SOLAR  AND  WIND
 ENERGY SYSTEM EQUIPMENT SHALL BE FIFTY PERCENT OF THE QUALIFIED EXPENSES
 FOR  TAXPAYERS  UNDER  ARTICLE  NINE-A  OR  THIRTY-THREE, AND FORTY-FIVE
 PERCENT OF THE QUALIFIED EXPENSES FOR TAXPAYERS UNDER ARTICLE TWENTY-TWO
 OF THIS CHAPTER, INCURRED IN PURCHASING AND INSTALLING ANY  SUCH  SYSTEM
 OR COMBINATION THEREOF.
   (3)  CREDIT  FOR  FUEL  CELL ELECTRIC GENERATING EQUIPMENT, GEOTHERMAL
 RESOURCE TRANSFER SYSTEM  EQUIPMENT  AND/OR  BIOMASS  ENERGY  CONVERSION
 EQUIPMENT.  THE  AMOUNT  OF  CREDIT FOR THE PURCHASE AND INSTALLATION OF
 ELIGIBLE FUEL CELL ELECTRIC GENERATING  EQUIPMENT,  GEOTHERMAL  RESOURCE
 TRANSFER  SYSTEM  EQUIPMENT  AND/OR  BIOMASS ENERGY CONVERSION EQUIPMENT
 SHALL BE FORTY-FIVE PERCENT OF  THE  QUALIFIED  EXPENSES  FOR  TAXPAYERS
 UNDER  ARTICLE  NINE,  NINE-A  OR THIRTY-THREE, AND FORTY PERCENT OF THE
 QUALIFIED EXPENSES FOR TAXPAYERS UNDER ARTICLE TWENTY-TWO OF THIS  CHAP-
 TER, INCURRED IN PURCHASING AND INSTALLING ANY SUCH SYSTEM.
   (4)  MULTIPLE TAXPAYERS. WHERE QUALIFYING EXPENDITURES ARE ACCUMULATED
 FROM THE CONSTRUCTION AND/OR THE INSTALLATION OF QUALIFYING  ALTERNATIVE
 SYSTEMS  AND  GENERATING  EQUIPMENT ARE SHARED BY TWO OR MORE TAXPAYERS,
 THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SECTION SHALL BE  PRORATED
 ACCORDING  TO THE PERCENTAGE OF THE TOTAL EXPENDITURE FOR SUCH EQUIPMENT
 CONTRIBUTED BY EACH TAXPAYER.
   (D) CREDIT QUALIFICATION. (1) REALIZATION OF  CREDIT.  CREDITS  EARNED
 UNDER THIS SECTION SHALL BE QUALIFYING EXPENDITURES INCURRED AFTER JANU-
 ARY  FIRST,  TWO THOUSAND TWENTY, THAT ACCREDIT TO THE TAXPAYER'S CREDIT
 ALLOWANCE YEAR  AND  EACH  SUBSEQUENT  TAXABLE  YEAR  ACCORDING  TO  THE
 PROVISIONS OF SUBDIVISION (C) OF THIS SECTION.
   (2)  CREDIT  COMPONENT  CERTIFICATE.  A TAXPAYER WHO WISHES TO MAKE AN
 INITIAL CLAIM FOR CREDITS UNDER THIS SECTION SHALL SUBMIT AN APPLICATION
 FOR A CREDIT COMPONENT CERTIFICATE TO THE DIRECTOR OF THE NEW YORK STATE
 ENERGY RESEARCH AND DEVELOPMENT AUTHORITY UPON THE SUCCESSFUL  INSTALLA-
 TION  AND  OPERATION  FOR  AT  LEAST THREE CONTINUOUS MONTHS OF ELIGIBLE
 EQUIPMENT THAT RATE AS QUALIFIED EXPENDITURES. THE PRESIDENT OF THE  NEW
 YORK  STATE  ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, IN CONSULTATION
 WITH THE COMMISSIONER AND THE COMMISSIONER  OF  ENVIRONMENTAL  CONSERVA-
 TION, SHALL PRESCRIBE THE REQUIREMENTS FOR THE ACCEPTANCE OF SUCH APPLI-
 CATION, BUT AT A MINIMUM THE APPLICATION SHALL LIST THE AMOUNT OF QUALI-

 A. 2635                             4
 
 FYING  EXPENDITURES,  THE  RATING  CAPACITY  IN  KILOWATT  HOURS OF SUCH
 EQUIPMENT, AND THE ANTICIPATED REDUCTION  IN  THE  USE  OF  CONVENTIONAL
 ENERGY  GENERATION  SOURCES  REALIZED THROUGH THE USE OF SUCH EQUIPMENT.
 SUCH  APPLICATION  SHALL  REQUIRE  A  FEE OF FIFTY DOLLARS FOR EACH FIVE
 MILLION DOLLARS OF GROSS RECEIPTS LISTED BY THE TAXPAYER FOR THE TAXABLE
 YEAR IMMEDIATELY PRECEDING THE INITIAL CREDIT ALLOWANCE YEAR  AFTER  THE
 FIRST  FIVE MILLION DOLLARS IN GROSS RECEIPTS FOR SUCH TAXABLE YEAR. ANY
 EXPANSION OF ALTERNATIVE RATED CAPACITY ADHERING TO INCREASED QUALIFYING
 EXPENDITURES BEYOND SUCH  EXPENDITURES  UTILIZED  IN  A  PRIOR  ACCEPTED
 APPLICATION  SHALL  REQUIRE AN ADDITIONAL APPLICATION FOR FURTHER CREDIT
 CLAIMS UNDER THIS SECTION.
   (3) ISSUANCE OF CERTIFICATE. THE PRESIDENT OF THE NEW YORK STATE ENER-
 GY RESEARCH AND DEVELOPMENT AUTHORITY SHALL  REVIEW  APPLICATIONS  FILED
 UNDER  THIS  SECTION  TO  VERIFY AN ELIGIBLE BUSINESS'S CLAIMED BENEFITS
 UNDER THIS SECTION. THE PRESIDENT SHALL SUPPLY TO EACH COMPANY A CERTIF-
 ICATE MARKING THE APPROVAL OF QUALIFYING EXPENSES FOR APPLICATION TO THE
 COMMISSIONER FOR CREDITS UNDER THIS SECTION WITHIN NINETY  DAYS  OF  THE
 RECEIPT  OF  SUCH  APPLICATION.  A  COPY  OF  THIS  CERTIFICATE SHALL BE
 ATTACHED TO ANY RETURNS SUCH TAXPAYER IS REQUIRED  TO  FILE  UNDER  THIS
 CHAPTER.  IF  ANY EXPENSES USED AS PART OF THE CREDIT BASE OF QUALIFYING
 EXPENDITURES ARE DENIED FOR SUCH CREDIT CLAIM BY THE  PRESIDENT  OF  THE
 NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SUCH DENIAL
 SHALL BE REPORTED TO THE TAXPAYER AND THE COMMISSIONER WITH  A  DETAILED
 EXPLANATION OF THE RATIONALE FOR SUCH DENIAL.
   (4) REVOCATION OF BENEFITS. IN ADDITION TO ANY OTHER PENALTIES ENUMER-
 ATED UNDER THIS CHAPTER, A VIOLATION OF THE TERMS OF THIS SUBDIVISION OR
 ANY  WILLFUL  MISREPRESENTATION  OF ANY OF THE TERMS OF THIS SECTION MAY
 RESULT IN THE RESCINDING OF THE CERTIFICATE ISSUED UNDER THIS  PARAGRAPH
 AND  A RECAPTURE OF CURRENT AND PREVIOUSLY RECEIVED BENEFITS. THE PRESI-
 DENT OF THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY
 SHALL REPORT TO THE COMMISSIONER ANY DETERMINATIONS OF VIOLATIONS OF THE
 TERMS  OF  THIS SECTION.  THE COMMISSIONER AND THE COMMISSIONER OF ENVI-
 RONMENTAL CONSERVATION SHALL MAKE RECOMMENDATIONS TO  THE  PRESIDENT  OF
 THE  NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FOR THE
 RESCINDING OF ANY CERTIFICATE ISSUED PURSUANT TO THIS SECTION  THAT  THE
 COMMISSIONER  OF  ENVIRONMENTAL  CONSERVATION  DETERMINES RESULTS FROM A
 WILLFUL FALSE CLAIM OF THE CAPABILITIES OR AMOUNT OF QUALIFYING EXPENDI-
 TURES OF SOLAR AND WIND ENERGY SYSTEM EQUIPMENT AND FUEL  CELL  ELECTRIC
 GENERATING EQUIPMENT.
   (5)  EARLY  DISPOSITION.  THE  DISCONTINUED  USE OF ANY SOLAR AND WIND
 ENERGY SYSTEM EQUIPMENT, FUEL  CELL  ELECTRIC  GENERATING  EQUIPMENT  OR
 GEOTHERMAL  RESOURCE  TRANSFER SYSTEM EQUIPMENT WITHIN FIVE YEARS OF THE
 CREDIT ALLOWANCE YEAR SHALL RESULT  IN  THE  RECAPTURE  OF  CURRENT  AND
 PREVIOUSLY RECEIVED BENEFITS UNLESS SUCH DISPOSITION IS DUE TO THE INOP-
 ERATIVENESS  OF  SUCH EQUIPMENT BEYOND ANY REASONABLE CONTROL OR EFFORTS
 OF THE TAXPAYER OR THE REPLACEMENT OF SUCH EQUIPMENT BY  MORE  EFFICIENT
 AND  TECHNICALLY  ADVANCED  ALTERNATIVE  ENERGY  SYSTEMS APPROVED BY THE
 COMMISSIONER OF ENVIRONMENTAL CONSERVATION AND THE PRESIDENT OF THE  NEW
 YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. SUCH EARLY DISPO-
 SITION SHALL NOT INCLUDE THE TRANSFER OF OWNERSHIP INTEREST OF THE PROP-
 ERTY SUCH EQUIPMENT OPERATES WITHIN UNLESS THE TRANSFER RESULTS  IN  THE
 CESSATION  OF  THE  OPERATION OF SUCH EQUIPMENT WITHIN FIVE YEARS OF THE
 CREDIT ALLOWANCE YEAR. THE TAXPAYER SHALL ANNUALLY ATTEST TO THE  PRESI-
 DENT  OF  THE  NEW  YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
 THAT SUCH EQUIPMENT REMAINS IN QUALIFYING USE.

 A. 2635                             5
 
   (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 53
   (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (JJJ)
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. ALTERNATIVE ENERGY SYSTEMS AND GENERATING  EQUIPMENT  CREDIT.    A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION TWENTY-FOUR-B OF THIS CHAPTER, AGAINST THE TAX IMPOSED  BY  THIS
 ARTICLE.  THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
 SHALL NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS  THAN  THE  AMOUNT
 PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED
 TEN OF THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE  UNDER
 THIS  SUBDIVISION  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
 ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR YEARS MAY BE
 CARRIED OVER TO ANY OR ALL OF THE FOLLOWING FIVE TAXABLE YEARS  AND  MAY
 BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:
 
 (XLIV) CREDIT FOR ALTERNATIVE        QUALIFYING EXPENDITURES
 ENERGY SYSTEMS AND                   UNDER SUBDIVISION FIFTY-THREE
 GENERATING EQUIPMENT                 OF SECTION TWO HUNDRED
 UNDER SUBSECTION (JJJ)               TEN-B
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (jjj) to read as follows:
   (JJJ) ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIPMENT CREDIT.  (1)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
 COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-B OF THIS  CHAPTER,  AGAINST
 THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH YEAR, SUCH EXCESS AMOUNT MAY BE CARRIED OVER TO ANY OR ALL  OF  THE
 FOLLOWING  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.
   §  5.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIPMENT CREDIT.   (1)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
 COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-B OF THIS  CHAPTER,  AGAINST
 THE TAXES IMPOSED BY THIS ARTICLE.
   (2)  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  MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
 FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A  OF  THIS  ARTICLE.
 HOWEVER, IF THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY
 TAXABLE  YEAR  REDUCED THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS
 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR YEARS MAY BE CARRIED OVER TO  ANY
 OR  ALL OF THE FOLLOWING FIVE TAXABLE YEARS AND MAY BE DEDUCTED FROM THE
 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   § 6.  This act shall take effect immediately and shall apply to  taxa-
 ble years commencing on and after January 1, 2019.