NY State Senate Bill 2019-S8219

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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
Apr 22, 2020	referred to budget and revenue

co-Sponsors

2019-S8219 (ACTIVE) - Details

See Assembly Version of this Bill:: A10286
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3277, A7316
2023-2024: S4547, A4954

2019-S8219 (ACTIVE) - Summary

Establishes sales tax exemptions for residential and commercial energy storage systems equipment.

2019-S8219 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8219

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a sales tax
exemption for energy storage

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation would exempt, from state sales and use taxes, retail
sale and installation of energy storage equipment, for both residential
and commercial uses. The legislation would also provide local govern-
ments with the authority to exempt energy storage from local sales and
use taxes.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 1115 of the tax law by adding subdivisions

(11) and (mm) so that residential energy storage systems equipment and

the service of installing such systems are exempt from state sales and
use taxes.

Sections 2 and 3: Amends section 1210 of the tax law so that local
governments have the option to apply such exemptions locally.

 
JUSTIFICATION:

New York State tax law provides sales and use tax exemptions for a
number of activities, products, and services. Notably, the sale and
installation of residential and commercial solar energy equipment and
commercial fuel cells are exempt from the state sales and use tax and
certain localities have followed suit.  The energy storage energy has
attempted to rely on existing sections of the state tax law to seek a
similar exemption from state sales and use taxes. For example, Section
1115(a)(12) of the tax law provides an exemption for machinery and
equipment for use and consumption directly and predominantly in the
production of electricity by generating. Section 1105-B of the tax law
also exempts parts, tools, and supplies used in the production of elec-
tricity for sale by generating. Receipts from the services of install-
ing, repairing, maintaining, or servicing such machinery, equipment,
parts, tools, and supplies are exempt from the tax imposed on these
services under section 1105(c) (3).

However, according to an advisory opinion (1) issued by the Department
of Tax and Finance in relation to a specific project, the energy storage
equipment must first be considered a generation facility, and section
1115(a) (12) of the tax law requires that the machinery and equipment be
used directly and predominantly in the production of electricity for
sale by generating. This interpretation is problematic for energy stor-
age which is typically used to inject energy into the energy grid less
than 50 percent of the time.

Moreover, energy storage is not considered generation under Public
Service Law, and thus attempting to define it as generation for the
purposes of tax law could create a more complex and troublesome legal
situation in relation to the treatment of storage for other purposes.
In 2019, New York State codified the most aggressive climate goals in
the nation, requiring New York to achieve 100 percent carbon-free energy
by 2040 (The Climate Leadership and Community Protection Act).  In addi-
tion to greenhouse gas reduction goals, the CLCPA requires the state to
have three gigawatts of energy storage installed by 2030.  Energy stor-
age is a key enabling technology to achieve the 'state's renewable ener-
gy and climate goals, providing increased grid flexibility, enabling the
wide scale deployment of renewable energy, promoting efficient use of
grid resources, and enhancing grid resiliency. The state Public Service
Commission recognized the critical role for storage in its Energy Stor-
age Order adopting the state's roadmap for storage and authorizing the
state Energy Research and Development Authority (NYSERDA) to implement
new incentive programs for energy storage. While these efforts have
jumpstarted energy storage projects across the state, the cost of
deploying and siting energy storage remains high.

This legislation will help reduce the cost of deploying energy storage
projects by providing an exemption from state taxes for the sale and
installation of energy storage equipment, both residential and commer-
cial, and providing municipalities the option to grant such exemptions
for local sales tax. The legislation will give energy storage technology
similar tax exemptions to solar energy and fuels cells, creating a fair
and level playing field for clean energy technologies while stimulating
the state's economy and creating new green collar jobs.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Undetermined.

 
EFFECTIVE DATE:
Immediately.

2019-S8219 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8219
 
                             I N  S E N A T E
 
                              April 22, 2020
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to  establishing  a  sales  tax
   exemption for energy storage
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 1115 of the tax law is amended by  adding  two  new
 subdivisions (ll) and (mm) to read as follows:
   (LL)  THE  FOLLOWING  SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
 RECEIPTS FROM THE RETAIL SALE OF, AND CONSIDERATION GIVEN OR  CONTRACTED
 TO  BE  GIVEN FOR, OR FOR THE USE OF, RESIDENTIAL ENERGY STORAGE SYSTEMS
 EQUIPMENT AND THE SERVICE OF INSTALLING SUCH SYSTEMS. FOR  THE  PURPOSES
 OF  THIS  SUBDIVISION,  "RESIDENTIAL  ENERGY  STORAGE SYSTEMS EQUIPMENT"
 SHALL MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS  INSTALLED  IN  A
 RESIDENCE  THAT  STORES  ELECTRICITY  FOR USE AT A LATER TIME TO PROVIDE
 HEATING, COOLING, HOT WATER AND/OR ELECTRICITY.
   (2) RECEIPTS FROM THE  SALE  OF  ELECTRICITY  BY  A  PERSON  PRIMARILY
 ENGAGED  IN THE SALE OF ENERGY STORAGE SYSTEM EQUIPMENT AND/OR ELECTRIC-
 ITY GENERATED BY SUCH EQUIPMENT PURSUANT TO A  WRITTEN  AGREEMENT  UNDER
 WHICH SUCH ELECTRICITY IS GENERATED BY RESIDENTIAL ENERGY SYSTEM STORAGE
 EQUIPMENT  THAT  IS:   (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF
 SUCH ELECTRICITY; (B) INSTALLED ON RESIDENTIAL PROPERTY OF THE PURCHASER
 OF SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER
 OR ELECTRICITY.
   (MM) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER  THIS  ARTICLE:  (1)
 RECEIPTS  FROM THE RETAIL SALE OF, AND CONSIDERATION GIVEN OR CONTRACTED
 TO BE GIVEN FOR, OR FOR THE USE OF, COMMERCIAL  ENERGY  STORAGE  SYSTEMS
 EQUIPMENT  AND  THE SERVICE OF INSTALLING SUCH SYSTEMS. FOR THE PURPOSES
 OF THIS SUBDIVISION, "COMMERCIAL ENERGY STORAGE SYSTEMS EQUIPMENT" SHALL
 MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON  NON-RE-
 SIDENTIAL  PREMISES  THAT  STORES ELECTRICITY FOR USE AT A LATER TIME TO
 PROVIDE HEATING, COOLING, HOT WATER AND/OR ELECTRICITY. SUCH ARRANGEMENT
 OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS PART  OF  A  NON-SOLAR
 ENERGY SYSTEM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15984-01-0

 S. 8219                             2
 
   (2)  RECEIPTS  FROM  THE  SALE  OF  ELECTRICITY  BY A PERSON PRIMARILY
 ENGAGED IN THE SALE OF ENERGY STORAGE SYSTEM EQUIPMENT AND/OR  ELECTRIC-
 ITY  GENERATED  BY  SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER
 WHICH THE ELECTRICITY IS GENERATED BY COMMERCIAL ENERGY SYSTEM EQUIPMENT
 THAT  IS:  (A)  OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH ELEC-
 TRICITY; (B) INSTALLED ON THE NON-RESIDENTIAL PREMISES OF THE  PURCHASER
 OF SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER
 OR ELECTRICITY TO SUCH PREMISES.
   § 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
 amended  by  section  2  of  part  WW and subparagraph (i) as separately
 amended by section 5 of part Z of chapter 60 of the  laws  of  2016,  is
 amended to read as follows:
   (1) Either, all of the taxes described in article twenty-eight of this
 chapter,  at  the same uniform rate, as to which taxes all provisions of
 the local laws, ordinances or resolutions imposing such taxes  shall  be
 identical,  except as to rate and except as otherwise provided, with the
 corresponding provisions in such  article  twenty-eight,  including  the
 definition  and  exemption  provisions  of  such  article, so far as the
 provisions of such article twenty-eight can be made  applicable  to  the
 taxes  imposed  by  such  city  or  county and with such limitations and
 special provisions as are set forth in this article. The  taxes  author-
 ized  under  this  subdivision  may  not  be imposed by a city or county
 unless the local law, ordinance or resolution imposes such taxes  so  as
 to  include  all  portions  and all types of receipts, charges or rents,
 subject to state tax under  sections  eleven  hundred  five  and  eleven
 hundred  ten  of  this  chapter, except as otherwise provided.   (i) Any
 local law, ordinance or resolution enacted by any city of less than  one
 million  or by any county or school district, imposing the taxes author-
 ized by this subdivision, shall, notwithstanding any provision of law to
 the contrary, exclude from the operation of such local taxes  all  sales
 of  tangible  personal  property  for  use  or  consumption directly and
 predominantly in the production  of  tangible  personal  property,  gas,
 electricity,  refrigeration  or steam, for sale, by manufacturing, proc-
 essing, generating, assembly, refining, mining or  extracting;  and  all
 sales of tangible personal property for use or consumption predominantly
 either  in  the  production  of tangible personal property, for sale, by
 farming or in a commercial horse boarding operation, or in both; and all
 sales of fuel sold for use in commercial aircraft and  general  aviation
 aircraft; and, unless such city, county or school district elects other-
 wise,  shall omit the provision for credit or refund contained in clause
 six of subdivision (a) or subdivision  (d)  of  section  eleven  hundred
 nineteen  of  this chapter.  (ii) Any local law, ordinance or resolution
 enacted by any city, county  or  school  district,  imposing  the  taxes
 authorized  by this subdivision, shall omit the residential solar energy
 systems equipment and electricity exemption provided for in  subdivision
 (ee),  the  commercial  solar  energy  systems equipment and electricity
 exemption provided for in subdivision (ii),  the  commercial  fuel  cell
 electricity  generating  systems  equipment and electricity generated by
 such equipment exemption provided for in subdivision (kk), THE  RESIDEN-
 TIAL ENERGY STORAGE SYSTEMS EQUIPMENT AND ELECTRICITY EXEMPTION PROVIDED
 FOR IN SUBDIVISION (LL), THE COMMERCIAL ENERGY STORAGE SYSTEMS EQUIPMENT
 AND  ELECTRICITY  EXEMPTION  PROVIDED  FOR  IN  SUBDIVISION (MM) and the
 clothing and footwear exemption provided  for  in  paragraph  thirty  of
 subdivision  (a)  of  section  eleven  hundred  fifteen of this chapter,
 unless such city, county or school district elects otherwise as to  such
 residential  solar  energy  systems equipment and electricity exemption,

 S. 8219                             3
 
 such  commercial  solar  energy  systems   equipment   and   electricity
 exemption, commercial fuel cell electricity generating systems equipment
 and  electricity  generated by such equipment exemption or such clothing
 and footwear exemption.
   §  3.  Subdivision  (d)  of section 1210 of the tax law, as amended by
 section 4 of part WW of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (d)  A local law, ordinance or resolution imposing any tax pursuant to
 this section, increasing or decreasing the rate of such  tax,  repealing
 or  suspending  such tax, exempting from such tax the energy sources and
 services described in paragraph three of subdivision (a) or of  subdivi-
 sion  (b)  of  this  section or changing the rate of tax imposed on such
 energy sources and services  or  providing  for  the  credit  or  refund
 described  in  clause  six  of subdivision (a) of section eleven hundred
 nineteen of this chapter, or electing or  repealing  the  exemption  for
 residential  solar  equipment  and  electricity  in  subdivision (ee) of
 section eleven hundred fifteen of this article,  or  the  exemption  for
 commercial  solar  equipment  and  electricity  in  subdivision  (ii) of
 section eleven hundred fifteen of this article, or electing or repealing
 the exemption for commercial fuel cell  electricity  generating  systems
 equipment  and  electricity  generated  by such equipment in subdivision
 (kk) of section eleven hundred fifteen of this article, OR THE EXEMPTION
 FOR RESIDENTIAL ENERGY STORAGE EQUIPMENT OR ELECTRICITY  IN  SUBDIVISION
 (LL) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, OR THE EXEMPTION
 FOR  COMMERCIAL ENERGY STORAGE EQUIPMENT AND ELECTRICITY IN SECTION (MM)
 OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE must  go  into  effect
 only  on  one of the following dates: March first, June first, September
 first or December first; provided, that a local law, ordinance or resol-
 ution providing for the  exemption  described  in  paragraph  thirty  of
 subdivision  (a)  of  section  eleven hundred fifteen of this chapter or
 repealing any such exemption or a local  law,  ordinance  or  resolution
 providing for a refund or credit described in subdivision (d) of section
 eleven  hundred  nineteen of this chapter or repealing such provision so
 provided must go into effect only on March first.  No  such  local  law,
 ordinance  or  resolution  shall be effective unless a certified copy of
 such law, ordinance or resolution is mailed by registered  or  certified
 mail to the commissioner at the commissioner's office in Albany at least
 ninety  days  prior  to the date it is to become effective. However, the
 commissioner  may  waive  and  reduce  such  ninety-day  minimum  notice
 requirement  to a mailing of such certified copy by registered or certi-
 fied mail within a period of not less than thirty  days  prior  to  such
 effective  date  if  the commissioner deems such action to be consistent
 with the commissioner's duties under section  twelve  hundred  fifty  of
 this  article  and  the  commissioner  acts  by  resolution.  Where  the
 restriction provided for in section twelve hundred twenty-three of  this
 article  as  to  the  effective date of a tax and the notice requirement
 provided for therein are  applicable  and  have  not  been  waived,  the
 restriction  and  notice  requirement  in section twelve hundred twenty-
 three of this article shall also apply.
   § 4. This act shall take effect immediately.

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Senate Bill S8219

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2019-S8219 (ACTIVE) - Details

2019-S8219 (ACTIVE) - Summary

2019-S8219 (ACTIVE) - Sponsor Memo

2019-S8219 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8219

Share this bill

Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

Jen Metzger

2019-S8219 (ACTIVE) - Details

2019-S8219 (ACTIVE) - Summary

2019-S8219 (ACTIVE) - Sponsor Memo

2019-S8219 (ACTIVE) - Bill Text download pdf

Comments