S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1575
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced  by  M.  of  A.  RIVERA,  BARRETT,  BRABENEC, BURKE, BURDICK,
   CARROLL, DAVILA, DILAN,  FAHY,  GALLAGHER,  GLICK,  HEVESI,  JACOBSON,
   KELLES,  LUNSFORD,  LUPARDO, MEEKS, MITAYNES, OTIS, PAULIN, SEAWRIGHT,
   SILLITTI, SIMON, THIELE, STERN, STECK, L. ROSENTHAL, GUNTHER  --  read
   once and referred to the Committee on Ways and Means

 AN  ACT  to amend the tax law, in relation to providing an exemption for
   geothermal heat pump systems equipment
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision (a) of section 1115 of the tax law is amended
 by adding a new paragraph 47 to read as follows:
   (47) RECEIPTS FROM THE RETAIL SALE OF RESIDENTIAL GEOTHERMAL HEAT PUMP
 SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE
 EXEMPT FROM TAX UNDER THIS ARTICLE.  FOR  PURPOSES  OF  THIS  PARAGRAPH,
 "RESIDENTIAL  GEOTHERMAL  HEAT  PUMP  SYSTEM  EQUIPMENT"  SHALL  MEAN AN
 ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED IN AND AROUND A RESI-
 DENTIAL BUILDING THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENER-
 GY SOURCE OR AS A THERMAL ENERGY SINK DESIGNED TO PROVIDE AND DISTRIBUTE
 HEATING, AND/OR COOLING, AND/OR HOT WATER, ALSO COMMONLY REFERRED TO  AS
 GROUND  SOURCE  HEAT  PUMP SYSTEMS. SUCH ARRANGEMENT OR COMPONENTS SHALL
 NOT INCLUDE ANY SORT OF RECREATIONAL FACILITY OR  EQUIPMENT  USED  AS  A
 STORAGE MEDIUM.
   §  2.  Section 1115 of the tax law is amended by adding a new subdivi-
 sion (ll) to read as follows:
   (LL) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL GEOTHERMAL HEAT  PUMP
 SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE
 EXEMPT  FROM  TAXES  IMPOSED  BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN
 HUNDRED TEN OF THIS ARTICLE. FOR PURPOSES OF THIS SUBDIVISION,  "COMMER-
 CIAL GEOTHERMAL HEAT PUMP SYSTEM EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR
 COMBINATION  OF COMPONENTS INSTALLED IN AND AROUND A COMMERCIAL BUILDING
 THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENERGY SOURCE OR AS  A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02393-01-3
              

 A. 1575                             2
 
 THERMAL  ENERGY  SINK DESIGNED TO PROVIDE AND DISTRIBUTE HEATING, AND/OR
 COOLING, AND/OR HOT WATER, ALSO COMMONLY REFERRED TO  AS  GROUND  SOURCE
 HEAT  PUMP SYSTEMS. SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE ANY
 SORT OF RECREATIONAL FACILITY OR EQUIPMENT USED AS A STORAGE MEDIUM.
   §  3.  Subparagraph (xiv) of paragraph 4 of subdivision (a) of section
 1210 of the tax law, as added by section 2 of part WW of chapter  60  of
 the  laws  of  2016, is amended and a new subparagraph (xvi) is added to
 paragraph 4 to read as follows:
   [(xiv)] (XV) shall  omit,  unless  such  city  elects  otherwise,  the
 exemption for commercial fuel cell electricity generating systems equip-
 ment and electricity generated by such equipment provided in subdivision
 (kk)  of  section  eleven  hundred fifteen of this chapter[.]; AND (XVI)
 SHALL OMIT UNLESS SUCH CITY ELECTS OTHERWISE, THE RESIDENTIAL GEOTHERMAL
 HEAT PUMP SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION PROVIDED  FOR  IN
 PARAGRAPH  FORTY-SEVEN  OF  SUBDIVISION  (A)  OF  SECTION ELEVEN HUNDRED
 FIFTEEN OF THIS CHAPTER; AND SHALL OMIT UNLESS SUCH CITY  ELECTS  OTHER-
 WISE,  THE COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND INSTAL-
 LATION EXEMPTION PROVIDED FOR IN  SUBDIVISION  (LL)  OF  SECTION  ELEVEN
 HUNDRED FIFTEEN OF THIS CHAPTER.
   §  4.  Subparagraph  (ii) of paragraph 1 of subdivision (a) of section
 1210 of the tax law, as amended by section 5 of part J of chapter 59  of
 the laws of 2021, is amended to read as follows:
   (ii) Any local law, ordinance or resolution enacted by any city, coun-
 ty  or  school  district, imposing the taxes authorized by this subdivi-
 sion, 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 RESIDENTIAL GEOTHERMAL  HEAT  PUMP
 SYSTEMS  EQUIPMENT  AND INSTALLATION EXEMPTION PROVIDED FOR IN PARAGRAPH
 FORTY-SEVEN OF SUBDIVISION (A),  THE  COMMERCIAL  GEOTHERMAL  HEAT  PUMP
 SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION PROVIDED FOR IN SUBDIVISION
 (LL)  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, such commercial solar energy systems equipment and  electric-
 ity  exemption,  commercial  fuel  cell  electricity  generating systems
 equipment and electricity generated by such equipment exemption or  such
 clothing  and  footwear exemption, SUCH RESIDENTIAL GEOTHERMAL HEAT PUMP
 SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION, SUCH COMMERCIAL GEOTHERMAL
 HEAT PUMP SYSTEMS EQUIPMENT AND INSTALLATION EXEMPTION OR SUCH  CLOTHING
 AND FOOTWEAR EXEMPTION.
   § 5. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as
 amended  by  section  6  of part J of chapter 59 of the laws of 2021, is
 amended to read as follows:
   (1) Or, one or more of the taxes described in subdivisions  (b),  (d),
 (e)  and (f) of section eleven hundred five of this chapter, at the same
 uniform rate, including the transitional provisions  in  section  eleven
 hundred  six  of  this  chapter  covering  such taxes, but not the taxes
 described in subdivisions (a) and (c) of section eleven hundred five  of
 this  chapter. Provided, further, that where the tax described in subdi-
 vision (b) of section eleven hundred five of this  chapter  is  imposed,
 the  compensating  use  taxes described in [clauses] PARAGRAPHS (E), (G)
 and (H) of subdivision (a) of section eleven hundred ten of this chapter
 A. 1575                             3
 
 shall also be imposed. Provided, further, that where the taxes described
 in subdivision (b) of section eleven hundred five of  this  chapter  are
 imposed,  such  taxes shall omit: (A) the provision for refund or credit
 contained  in subdivision (d) of section eleven hundred nineteen of this
 chapter with respect to such taxes described in such subdivision (b)  of
 section eleven hundred five unless such city or county elects to provide
 such  provision  or,  if  so  elected, to repeal such provision; (B) the
 exemption provided in paragraph two of subdivision (ee) of section elev-
 en hundred fifteen of this chapter unless such  county  or  city  elects
 otherwise;  (C)  the  exemption provided in paragraph two of subdivision
 (ii) of section eleven hundred fifteen  of  this  chapter,  unless  such
 county  or  city  elects  otherwise; [and] (D) the exemption provided in
 paragraph two of subdivision (kk) of section eleven hundred  fifteen  of
 this  chapter, unless such county or city elects otherwise; and provided
 further that where the tax described in subdivision (f) of such  section
 eleven  hundred five is imposed, such tax shall not apply to charges for
 admission to race tracks and simulcast  facilities;  (E)  THE  EXEMPTION
 PROVIDED  IN  PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A) OF SECTION ELEVEN
 HUNDRED FIFTEEN OF THIS CHAPTER,  UNLESS  SUCH  COUNTY  OR  CITY  ELECTS
 OTHERWISE; AND (F) THE EXEMPTION PROVIDED IN SUBDIVISION (LL) OF SECTION
 ELEVEN  HUNDRED  FIFTEEN  OF  THIS  CHAPTER,  UNLESS SUCH COUNTY OR CITY
 ELECTS OTHERWISE.
   § 6. 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]  CHAPTER,  or the
 exemption for commercial solar equipment and electricity in  subdivision
 (ii)  of  section  eleven  hundred fifteen of this [article] CHAPTER, 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]
 CHAPTER, OR ELECTING OR REPEALING THE EXEMPTION FOR RESIDENTIAL GEOTHER-
 MAL HEAT PUMP SYSTEMS EQUIPMENT AND INSTALLATION IN PARAGRAPH FORTY-SEV-
 EN  OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER
 OR ELECTING OR REPEALING THE EXEMPTION FOR  COMMERCIAL  GEOTHERMAL  HEAT
 PUMP  SYSTEMS  EQUIPMENT AND INSTALLATION IN SUBDIVISION (LL) OF SECTION
 ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER 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  resolution
 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  resol-
 ution  shall be effective unless a certified copy of such law, ordinance
 or resolution is mailed by registered or certified mail to  the  commis-
 A. 1575                             4
 
 sioner 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 certified mail within a period
 of not less than thirty days prior to such effective date if the commis-
 sioner 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.
   § 7. Subdivision (a) of section 1212 of the tax  law,  as  amended  by
 section  5  of  part WW of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (a) Any school district which is coterminous with,  partly  within  or
 wholly  within a city having a population of less than one hundred twen-
 ty-five thousand, is hereby authorized and empowered, by  majority  vote
 of  the  whole  number  of  its school authorities, to impose for school
 district purposes, within the territorial limits of such school district
 and without discrimination between residents and  nonresidents  thereof,
 the  taxes  described  in subdivision (b) of section eleven hundred five
 (but excluding the tax on prepaid telephone calling  services)  and  the
 taxes  described  in [clauses] PARAGRAPHS (E) and (H) of subdivision (a)
 of section eleven hundred ten, including the transitional provisions  in
 subdivision (b) of section eleven hundred six of this chapter, so far as
 such  provisions  can  be  made  applicable to the taxes imposed by such
 school district and with such limitations and special provisions as  are
 set  forth in this article, such taxes to be imposed at the rate of one-
 half, one, one and one-half, two, two  and  one-half  or  three  percent
 which  rate  shall be uniform for all portions and all types of receipts
 and uses subject to such taxes. In respect to such taxes, all provisions
 of the resolution imposing them, except as to rate and except as  other-
 wise   provided  herein,  shall  be  identical  with  the  corresponding
 provisions in [such] article twenty-eight of this chapter, including the
 applicable definition and exemption provisions of such article,  so  far
 as  the  provisions  of such article twenty-eight of this chapter can be
 made applicable to the taxes imposed by such school  district  and  with
 such  limitations  and special provisions as are set forth in this arti-
 cle. The taxes described in subdivision (b) of  section  eleven  hundred
 five  (but  excluding  the tax on prepaid telephone calling service) and
 [clauses] PARAGRAPHS (E) and (H) of subdivision (a)  of  section  eleven
 hundred  ten, including the transitional provision in subdivision (b) of
 such section eleven hundred six of this chapter, may not be  imposed  by
 such  school  district unless the resolution imposes such taxes so as to
 include all portions and all types of receipts and uses subject  to  tax
 under such subdivision (but excluding the tax on prepaid telephone call-
 ing service) and [clauses] PARAGRAPHS.  Provided, however, that, where a
 school  district imposes such taxes, such taxes shall omit the provision
 for refund or credit contained in  subdivision  (d)  of  section  eleven
 hundred nineteen of this chapter with respect to such taxes described in
 such  subdivision  (b) of section eleven hundred five unless such school
 district elects to provide such provision or, if so elected,  to  repeal
 such  provision, and shall omit the exemptions provided in paragraph two
 of subdivision (ee) and paragraph two of  subdivision  (ii)  of  section
 eleven  hundred  fifteen  of  this  chapter  unless such school district
 A. 1575                             5
 
 elects otherwise, and shall omit the exemption provided in paragraph two
 of subdivision (kk) of section eleven hundred fifteen  of  this  chapter
 unless  such  school  district  elects  otherwise,  AND  SHALL  OMIT THE
 EXEMPTION  PROVIDED  IN  PARAGRAPH  FORTY-SEVEN  OF  SUBDIVISION  (A) OF
 SECTION ELEVEN HUNDRED  FIFTEEN  OF  THIS  CHAPTER  UNLESS  SUCH  SCHOOL
 DISTRICT  ELECTS  OTHERWISE,  AND  SHALL  OMIT THE EXEMPTION PROVIDED IN
 SUBDIVISION (LL) OF SECTION  ELEVEN  HUNDRED  FIFTEEN  OF  THIS  CHAPTER
 UNLESS SUCH SCHOOL DISTRICT ELECTS OTHERWISE.
   § 8. Section 1224 of the tax law is amended by adding two new subdivi-
 sions (c-3) and (c-4) to read as follows:
   (C-3)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW:  (1) WHERE A COUNTY
 CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
 HAS ELECTED THE EXEMPTION FOR RESIDENTIAL GEOTHERMAL HEAT  PUMP  SYSTEMS
 EQUIPMENT AND INSTALLATION PROVIDED IN PARAGRAPH FORTY-SEVEN OF SUBDIVI-
 SION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, A CITY WITH-
 IN  SUCH  COUNTY SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT
 EQUIPMENT AND/OR INSTALLATION TO THE EXTENT OF ONE HALF OF  THE  MAXIMUM
 RATES  AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF
 THIS ARTICLE;
   (2) WHERE A CITY OF LESS THAN ONE MILLION HAS  ELECTED  THE  EXEMPTION
 FOR  RESIDENTIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT AND INSTALLATION
 PROVIDED IN PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A) OF  SECTION  ELEVEN
 HUNDRED  FIFTEEN  OF  THIS  CHAPTER,  THE  COUNTY  IN WHICH SUCH CITY IS
 LOCATED SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH  EXEMPT  EQUIP-
 MENT  AND/OR INSTALLATION TO THE EXTENT OF ONE HALF OF THE MAXIMUM RATES
 AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN  OF  THIS
 ARTICLE.
   (C-4)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW:  (1) WHERE A COUNTY
 CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
 HAS ELECTED THE EXEMPTION FOR COMMERCIAL GEOTHERMAL  HEAT  PUMP  SYSTEMS
 EQUIPMENT AND INSTALLATION PROVIDED IN SUBDIVISION (LL) OF SECTION ELEV-
 EN HUNDRED FIFTEEN OF THIS CHAPTER, A CITY WITHIN SUCH COUNTY SHALL HAVE
 THE  PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLA-
 TION TO THE EXTENT OF ONE HALF OF THE  MAXIMUM  RATES  AUTHORIZED  UNDER
 SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE;
   (2)  WHERE  A  CITY OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION
 FOR COMMERCIAL GEOTHERMAL HEAT PUMP SYSTEMS EQUIPMENT  AND  INSTALLATION
 PROVIDED  IN  SUBDIVISION (LL) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS
 CHAPTER, THE COUNTY IN WHICH SUCH CITY IS LOCATED SHALL HAVE  THE  PRIOR
 RIGHT  TO IMPOSE TAX ON SUCH EXEMPT EQUIPMENT AND/OR INSTALLATION TO THE
 EXTENT OF ONE HALF OF THE MAXIMUM RATES AUTHORIZED UNDER SUBDIVISION (A)
 OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE.
   § 9. This act shall take effect on the first day of a sales tax  quar-
 terly period, as described in subdivision (b) of section 1136 of the tax
 law,  beginning  at least ninety days after the date this act shall have
 become a law and shall apply to sales made on or after such date.