S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10146
 
                           I N  A S S E M B L Y
 
                               May 10, 2024
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Barrett) --
   read once and referred to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to  providing  an
   exemption from taxation for capital improvements to residential build-
   ings to reduce carbon emissions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 421-q to read as follows:
   §  421-Q. EXEMPTION FROM TAXATION FOR CAPITAL IMPROVEMENTS TO RESIDEN-
 TIAL BUILDINGS TO REDUCE CARBON EMISSIONS. 1. FOR THE PURPOSES  OF  THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "ELIGIBLE  REAL  PROPERTY"  MEANS  ANY OWNER-OCCUPIED BUILDING OR
 STRUCTURE DESIGNED AND OCCUPIED EXCLUSIVELY FOR RESIDENTIAL PURPOSES  BY
 NOT MORE THAN TWO FAMILIES.
   (B)  "ELIGIBLE  IMPROVEMENTS"  SHALL  BE LIMITED TO CATEGORIES OF WORK
 THAT RESULT IN A REDUCTION OF GREENHOUSE GAS EMISSIONS FOR  THE   BUILD-
 ING,  PROVIDED  FURTHER  THAT  SUCH WORK SHALL BE IN CONFORMITY WITH ALL
 APPLICABLE STATE AND LOCAL LAWS.  ELIGIBLE IMPROVEMENTS  SHALL  INCLUDE,
 BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING TYPES OF IMPROVEMENTS:
   (I)  REPLACEMENT, REPAIR OR INSTALLATION OF NEW SYSTEMS FOR HEATING OR
 COOLING, INCLUDING DOMESTIC HOT WATER;
   (II) INSTALLATION OF SOLAR, ENERGY STORAGE,  OR  OTHER  MECHANISMS  TO
 OFFSET USE OF ENERGY FROM THE ELECTRICAL GRID;
   (III)  REPLACEMENT  OR  INSTALLATION  OF  INSULATION  IN WALLS, ROOFS,
 FLOORING, WINDOWS, EAVES, AND AROUND PIPES;
   (IV) REPLACEMENT OR INSTALLATION OF THERMOSTATS TO CONTROL TEMPERATURE
 AND BUILDING MANAGEMENT SYSTEMS;
   (V) INSTALLATION OF ENERGY EFFICIENT APPLIANCES, FIXTURES,  OR  LIGHT-
 ING; AND
   (VI)  REPAIR,  REPLACEMENT  OR  MODIFICATION OF THE ELECTRICAL SYSTEM,
 AND/OR WIRING ASSOCIATED THEREWITH.
   (C) "EXEMPTION BASE" MEANS THE AMOUNT OF INCREASED ASSESSED  VALUE  ON
 ELIGIBLE REAL PROPERTY RESULTING FROM ELIGIBLE IMPROVEMENTS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15548-01-4
 A. 10146                            2
 
   2.  ELIGIBLE  REAL  PROPERTY  RECONSTRUCTED,  ALTERED OR IMPROVED AS A
 RESULT OF ELIGIBLE IMPROVEMENTS SUBSEQUENT TO THE EFFECTIVE DATE OF THIS
 SECTION SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM  LEVIES  TO
 THE  EXTENT PROVIDED IN THIS SECTION, PROVIDED THAT AFTER A PUBLIC HEAR-
 ING, THE GOVERNING BOARD OF THE APPLICABLE COUNTY, CITY, TOWN OR VILLAGE
 ADOPTS  A  LOCAL LAW AND A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT
 SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, ADOPTS  A  RESOLUTION
 TO  GRANT  THE  EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION. A COPY OF
 SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH  THE  COMMISSIONER  AND
 THE  ASSESSOR  OF SUCH   COUNTY,  CITY, TOWN OR VILLAGE WHO PREPARES THE
 ASSESSMENT ROLL ON WHICH THE TAXES OF SUCH COUNTY, CITY,  TOWN,  VILLAGE
 OR SCHOOL DISTRICT ARE LEVIED.
   3.  ELIGIBLE  REAL  PROPERTY SUBJECT TO ELIGIBLE IMPROVEMENTS SHALL BE
 EXEMPT FROM TAXATION FOR A PERIOD OF TWENTY YEARS.  FOR  THE  FIRST  TEN
 YEARS  AFTER  THE ELIGIBLE IMPROVEMENTS HAVE BEEN COMPLETED, ONE HUNDRED
 PERCENT OF THE EXEMPTION  BASE  SHALL  BE  EXEMPT  FROM  TAXATION.  SUCH
 EXEMPTION  SHALL  DECREASE BY   TEN PERCENT ANNUALLY OVER THE SUBSEQUENT
 TEN YEARS.
   4. THE EXEMPTION ESTABLISHED IN THIS SECTION  SHALL  BE  GRANTED  ONLY
 UPON  APPLICATION  BY THE OWNER OF SUCH BUILDING ON A FORM PRESCRIBED BY
 THE COMMISSIONER. THE APPLICATION SHALL BE FILED WITH  THE  ASSESSOR  OF
 THE  CITY,  TOWN, VILLAGE OR   COUNTY   HAVING THE  POWER  TO ASSESS THE
 APPLICABLE ELIGIBLE REAL PROPERTY FOR TAXATION ON OR BEFORE  THE  APPRO-
 PRIATE TAXABLE STATUS DATE OF SUCH CITY, TOWN, VILLAGE OR COUNTY.
   5. IF SATISFIED  THAT  THE  APPLICANT  IS  ENTITLED  TO  AN  EXEMPTION
 PURSUANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND
 SUCH   ELIGIBLE REAL PROPERTY  SHALL  THEREAFTER BE EXEMPT FROM TAXATION
 AND SPECIAL AD VALOREM LEVIES AS HEREIN PROVIDED COMMENCING  WITH    THE
 ASSESSMENT    ROLL PREPARED   ON   THE   BASIS  OF  THE  TAXABLE  STATUS
 DATE REFERRED TO IN SUBDIVISION FOUR OF THIS SECTION. THE ASSESSED VALUE
 OF ANY  EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE  ENTERED  BY
 THE  ASSESSOR  ON THE ASSESSMENT   ROLL   WITH   THE  ELIGIBLE PROPERTY,
 WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
   6. IN THE EVENT THAT ELIGIBLE REAL PROPERTY GRANTED    AN    EXEMPTION
 PURSUANT    TO THIS  SECTION  CEASES  TO  BE USED PRIMARILY FOR RESIDEN-
 TIAL PURPOSES OR TITLE THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS OR
 DISTRIBUTEES   OF THE OWNER, THE  EXEMPTION  GRANTED  PURSUANT  TO  THIS
 SECTION SHALL CEASE.
   7.  (A)   A   COUNTY,  CITY, TOWN OR VILLAGE MAY, BY ITS LOCAL LAW, OR
 SCHOOL DISTRICT, BY ITS RESOLUTION MAY:
   (I)  REDUCE THE PER CENTUM OF EXEMPTION OTHERWISE ALLOWED  PURSUANT TO
 THIS SECTION; OR
   (II)  LIMIT OR EXPAND ELIGIBLE  IMPROVEMENTS  ELIGIBLE  FOR  EXEMPTION
 PURSUANT TO THIS SECTION.
   (B)  NO  SUCH  LOCAL  LAW  OR  RESOLUTION  SHALL  REDUCE  OR REPEAL AN
 EXEMPTION  GRANTED PURSUANT TO THIS SECTION UNTIL THE EXPIRATION  OF THE
 PERIOD FOR WHICH SUCH EXEMPTION WAS GRANTED.
   § 2. This act shall take effect immediately and shall apply to assess-
 ment rolls based on taxable status dates  occurring  on  or  after  such
 effective date.