Senate Bill S8550

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8550
 
                             I N  S E N A T E
 
                              March 11, 2022
                                ___________
 
 Introduced  by Sen. KAMINSKY -- 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 residential solar tax  cred-
   its
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

    Section 1. Subsection (g-1) of section  606  of  the  tax  law,    as
 amended  by  chapter  378  of  the laws of 2005,   paragraphs 1 and 2 as
 amended by chapter 375 of the laws of  2012,  paragraph  3  as  amended,
 paragraph 5 as added, and paragraphs 6, 7 and 8 as renumbered by chapter
 128 of the laws of 2007, is amended to read as follows:
   (g-1) Solar 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 solar energy system equip-
 ment  expenditures,  except as provided in subparagraph (D) of paragraph
 two of this subsection. This credit  shall  not  exceed  three  thousand
 seven  hundred fifty dollars for qualified solar energy equipment placed
 in service before September first, two thousand six, [and] five thousand
 dollars for qualified solar energy equipment placed  in  service  on  or
 after  September  first,  two  thousand  six AND BEFORE APRIL FIRST, TWO
 THOUSAND TWENTY-TWO, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENERGY
 EQUIPMENT PLACED IN SERVICE ON OR AFTER APRIL FIRST, TWO THOUSAND  TWEN-
 TY-TWO.
   (2) Qualified solar energy system equipment expenditures. (A) The term
 "qualified  solar  energy  system equipment expenditures" means expendi-
 tures for:
   (i) the purchase of solar energy system equipment which  is  installed
 in  connection  with  residential  property which is (I) located in this
 state and (II) which is used by the taxpayer as  his  or  her  principal
 residence  at  the  time  the solar energy system equipment is placed in
 service;
   (ii) the lease of solar 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.
              

                                                            LBD14845-02-2
 S. 8550                             2
 
 tial property which is (I) located in this state and (II) which is  used
 by  the taxpayer as his or her principal residence at the time the solar
 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  solar
 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 used by the taxpayer as his or
 her principal residence at the time the solar 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 solar energy system equipment.
   (C) Such qualified expenditures  for  the  purchase  of  solar  energy
 system equipment shall not include interest or other finance charges.
   (D)  Such  qualified expenditures for the lease of solar 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 clauses (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)  Solar  energy  system  equipment.  The  term "solar energy system
 equipment" shall  mean  an  arrangement  or  combination  of  components
 utilizing solar radiation, which, when installed in a residence, produc-
 es  AND STORES energy designed to provide heating, cooling, hot water or
 electricity for use in such residence. Such  arrangement  or  components
 shall  not  include equipment connected to solar energy system equipment
 that is a component of part or parts of a  non-solar  energy  system  or
 which  uses  any sort of recreational facility or equipment as a storage
 medium. Solar energy system equipment that generates  AND  STORES  elec-
 tricity  for  use in a residence must conform to applicable requirements
 set forth in section sixty-six-j of the public  service  law.  Provided,
 however,  where solar energy system equipment is purchased and installed
 by a condominium management association or a cooperative housing  corpo-
 ration,  for  purposes of this subsection only, the term "ten kilowatts"
 in such section sixty-six-j shall be read  as  ["fifty]  "TEN  kilowatts
 MULTIPLIED  BY  THE NUMBER OF OWNER-OCCUPIED UNITS IN THE COOPERATIVE OR
 CONDOMINIUM MANAGEMENT ASSOCIATION."
   (4)  Multiple  taxpayers.  Where  solar  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 solar energy system equipment contributed  by
 each taxpayer.
   (5)  Proportionate  share.  Where  solar  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
 S. 8550                             3
 
 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] THEIR principal resi-
 dence.
   (6) Grants. For purposes of determining the amount of the  expenditure
 incurred in purchasing and installing solar 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 nineteen
 hundred ninety-seven, in which the  solar  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. IN LIEU OF CARRYING OVER ANY SUCH
 EXCESS, A TAXPAYER WHO QUALIFIES AS  AN  OWNER  OF  A  NEW  BUSINESS  AS
 DEFINED IN PARAGRAPH TEN OF SUBSECTION (A) OF THIS SECTION MAY, AT THEIR
 OPTION,  RECEIVE  SUCH  EXCESS  AS A REFUND. ANY REFUND PAID PURSUANT TO
 THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT  OF  TAX
 AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED,
 HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2.  This act shall take effect immediately.