NY State Senate Bill 2023-S3596B

Archive: Last Bill Status - In Senate Committee Finance 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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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 26, 2024	reported and committed to finance
Jan 03, 2024	referred to budget and revenue
Dec 20, 2023	print number 3596c
Dec 20, 2023	amend and recommit to finance
Sep 29, 2023	print number 3596b
Sep 29, 2023	amend and recommit to finance
May 11, 2023	print number 3596a
May 11, 2023	amend and recommit to finance
May 02, 2023	reported and committed to finance
Feb 01, 2023	referred to budget and revenue

Votes

- Mar 26, 2024 - Budget And Revenue Committee Vote
  S3596B
  
  Aye
  
  7
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Budget And Revenue Committee Vote: Mar 26, 2024
      
      aye (7)
      
      Addabbo Jr.
      
      Comrie
      
      Gounardes
      
      Krueger
      
      Murray
      
      Parker
      
      Weber
  May 2, 2023 - Budget And Revenue Committee Vote
  S3596B
  
  Aye
  
  7
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Budget And Revenue Committee Vote: May 2, 2023
      
      aye (7)
      
      Addabbo Jr.
      
      Comrie
      
      Gounardes
      
      Krueger
      
      Murray
      
      Parker
      
      Weber

Bill Amendments

Original

C (Active)

2023-S3596 - Details

See Assembly Version of this Bill:: A6739
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8550
2025-2026: S2626, A1373

2023-S3596 - Summary

Increases the amount of residential solar tax credits.

2023-S3596 - Sponsor Memo

                                 
BILL NUMBER: S3596

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to residential solar tax cred-
its

 
PURPOSE:

The purpose of this bill is to increase the maximum credit amount for
the personal income tax credit for residential solar energy systems..

 
SUMMARY OF PROVISIONS:

Section 1 subsection (g-1) of section 606 of the tax law, is amended to:

- Increase the tax credit maximum to $10,000 for equipment installed on
or after April 1, 2023

- Allow owners of a new business to receive the tax credit as a refund

 
JUSTIFICATION:.

The Climate Leadership and Community Protection Act requires the state
to have carbon-free electricity generation by 2040. Residential solar
and energy storage are excellent resources for removing demand from the
electricity grid to allow green energy generated from larger renewable
projects to power larger energy demands.

Though residential solar provides a net savings in energy costs, the
high upfront cost of installing solar panels is an obstacle that hinders
homeowners across New York from fitting their roofs with solar. Indeed.
with an initial installation cost in the five-figure range - a heavy
lift for many families - it can take several years for residents to
receive a return on their investment.
  Expanding the residential solor tax credit limit make the installation
of residential solar more affordable and accelerate it expansion assist-
ing the state in meeting our goals.

 
PRIOR LEGISLATIVE HISTORY:

2022: S8550 - Diet in Budget and Revenue

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Current law caps the solar tax credit at $5,000 or 25%, whichever is met
first,  per taxpayer. This bill would increase the maximum amount to $10
000 while keeping the 25% cap.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S3596 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3596
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- 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-THREE, AND TEN  THOUSAND  DOLLARS  FOR  QUALIFIED  SOLAR
 ENERGY EQUIPMENT PLACED IN SERVICE ON OR AFTER APRIL FIRST, TWO THOUSAND
 TWENTY-THREE.
   (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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07582-01-3

 S. 3596                             2
 
   (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-
 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.
 S. 3596                             3

   (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
 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.

2023-S3596A - Details

See Assembly Version of this Bill:: A6739
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8550
2025-2026: S2626, A1373

2023-S3596A - Summary

Increases the amount of residential solar tax credits.

2023-S3596A - Sponsor Memo

                                 
BILL NUMBER: S3596A

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to residential solar tax cred-
its

 
PURPOSE:

The purpose of this bill is to increase the maximum credit amount for
the personal income tax credit for residential solar energy systems.

 
SUMMARY OF PROVISIONS:

Section 1. subsection (g-1) of section 606 of the tax law, is amended
to:

-Increase the tax credit maximum to $10,000 for equipment installed on
or after January first, two thousand twenty-four.

-Allow owners of a new business to receive the tax credit as a refund.

 
JUSTIFICATION:

The Climate Leadership and Community Protection Act requires the state
to have carbon-free electricity generation by 2040. Residential solar
and energy storage are excellent resources for removing demand from the
electricity grid to allow green energy generated from larger renewable
projects to power larger energy demands.

Though residential solar provides a net savings in energy costs, the
high upfront cost of installing solar panels is an obstacle that hinders
homeowners across New York from fitting their roofs with solar. Indeed,
with an initial installation cost in the five-figure range - a heavy
lift for many families - it can take several years for residents to
receive a return on their investment.

Expanding the residential solar tax credit limit will make the installa-
tion of residential solar more affordable and accelerate its expansion,
assisting the state in meeting our goals.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: S8550 - Died in Budget and Revenue

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Current law caps the solar tax credit at $5,000 or 25%, whichever is met
first, per taxpayer. This bill would increase the maximum amount to
$10,000 while keeping the 25% cap.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S3596A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3596--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   reported  favorably from said committee and committed to the Committee
   on Finance -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 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 JANUARY FIRST, TWO
 THOUSAND TWENTY-FOUR, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENER-
 GY EQUIPMENT PLACED IN SERVICE ON OR AFTER JANUARY FIRST,  TWO  THOUSAND
 TWENTY-FOUR.
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07582-04-3

 S. 3596--A                          2
 
 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-
 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 MAY STORE energy designed to provide heating, cooling, hot water
 or electricity for use in such residence. Such arrangement or components
 MAY INCLUDE ELECTRIC ENERGY STORAGE EQUIPMENT BUT shall not include  ANY
 OTHER  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 electricity  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 condomin-
 ium management association or a  cooperative  housing  corporation,  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
 S. 3596--A                          3
 
 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
 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 AND REFUNDABILITY.  If the amount of the cred-
 it, 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 follow-
 ing 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.  FOR TAXABLE
 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR,  IF
 THE  AMOUNT  OF  THE CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL EXCEED
 THE TAXPAYER'S TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER  MEETS  THE
 DEFINITION  OF  LOW-TO-MODERATE  INCOME  OR  RESIDES  IN A DISADVANTAGED
 COMMUNITY, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
 SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.

2023-S3596B - Details

See Assembly Version of this Bill:: A6739
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8550
2025-2026: S2626, A1373

2023-S3596B - Summary

Increases the amount of residential solar tax credits.

2023-S3596B - Sponsor Memo

                                 
BILL NUMBER: S3596B

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to residential solar tax cred-
its

 
PURPOSE:

The purpose of this bill is to increase the maximum credit amount for
the personal income tax credit for residential solar energy systems.

 
SUMMARY OF PROVISIONS:

Section 1. subsection (g-1) of section 606 of the tax law, is amended
to:

-Increase the tax credit maximum to $10,000 for equipment installed on
or after January first, two thousand twenty-five.

-Allow owners of a new business to receive the tax credit as a refund.

 
JUSTIFICATION:

The Climate Leadership and Community Protection Act requires the state
to have carbon-free electricity generation by 2040. Residential solar
and energy storage are excellent resources for removing demand from the
electricity grid to allow green energy generated from larger renewable
projects to power larger energy demands.

Though residential solar provides a net savings in energy costs, the
high upfront cost of installing solar panels is an obstacle that hinders
homeowners across New York from fitting their roofs with solar.
Indeed,with an initial installation cost in the five-figure range - a
heavy lift for many families - it can take several years for residents
to receive a return on their investment.

Expanding the residential solar tax credit limit will make the installa-
tion of residential solar more affordable and accelerate its expansion,
assisting the state in meeting our goals.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: S8550 - Died in Budget and Revenue

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Current law caps the solar tax credit at $5,000 or 25%, whichever is met
first, per taxpayer. This bill would increase the maximum amount to
$10,000 while keeping the 25% cap.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S3596B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3596--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   reported  favorably from said committee and committed to the Committee
   on Finance -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said  committee  --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 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 JANUARY FIRST, TWO
 THOUSAND TWENTY-FIVE, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENER-
 GY EQUIPMENT PLACED IN SERVICE ON OR AFTER JANUARY FIRST,  TWO  THOUSAND
 TWENTY-FIVE.
   (2) Qualified solar energy system equipment expenditures. (A) The term
 "qualified  solar  energy  system equipment expenditures" means expendi-
 tures for:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07582-05-3

 S. 3596--B                          2
 
   (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] THEIR prin-
 cipal 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-
 tial  property which is (I) located in this state and (II) which is used
 by the taxpayer as [his or her] THEIR 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] THEIR 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 MAY STORE energy designed to provide heating, cooling, hot  water
 or electricity for use in such residence. Such arrangement or components
 MAY  INCLUDE ELECTRIC ENERGY STORAGE EQUIPMENT BUT shall not include ANY
 OTHER 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 electricity 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  condomin-
 ium  management  association  or  a cooperative housing corporation, 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."
 S. 3596--B                          3
 
   (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
 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 AND REFUNDABILITY.  If the amount of the cred-
 it,  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 follow-
 ing 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.  FOR TAXABLE
 YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, IF
 THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS  SUBSECTION  SHALL  EXCEED
 THE  TAXPAYER'S  TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER MEETS THE
 DEFINITION OF LOW-TO-MODERATE  INCOME  OR  RESIDES  IN  A  DISADVANTAGED
 COMMUNITY,  THE  EXCESS  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
 HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2023-S3596C (ACTIVE) - Details

See Assembly Version of this Bill:: A6739
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8550
2025-2026: S2626, A1373

2023-S3596C (ACTIVE) - Summary

Increases the amount of residential solar tax credits.

2023-S3596C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3596C

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to residential solar tax cred-
its

 
PURPOSE:

The purpose of this bill is to increase the maximum credit amount for
the personal income tax credit for residential solar energy systems.

 
SUMMARY OF PROVISIONS:

Section 1. subsection (g-1) of section 606 of the tax law, is amended
to:

-Increase the tax-credit maximum to $10,000 for equipment installed on
or after January first, two thousand twenty-five.

-Allow owners of a new business to receive the tax credit as a refund.

 
JUSTIFICATION:

The Climate Leadership and Community Protection Act requires the state
to have carbon-free electricity generation by 2040. Residential solar
and energy storage are excellent resources for removing demand from the
electricity grid to allow green energy generated from larger renewable
projects to power larger energy demands.

Though residential solar provides a net savings in energy costs, the
high upfront cost of installing solar panels is an obstacle that hinders
homeowners across New York from fitting their roofs with solar.
Indeed,with an initial installation cost in the five-figure range - a
heavy lift for many families - it can take several years for residents
to receive a return on their investment.

Expanding the residential solar tax credit limit will make the installa-
tion of residential solar more affordable and accelerate its expansion,
assisting the state in meeting our goals.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: S8550 - Died in Budget and Revenue

2023 Amendment: add definitions from existing law for "low-to-moderate
income" and "disadvantaged community."

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Current law caps the solar tax credit at $5,000 or 25%, whichever is met
first, per taxpayer. This bill would increase the maximum amount to
$10,000 while keeping the 25% cap.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S3596C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3596--C
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   reported  favorably from said committee and committed to the Committee
   on Finance -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said  committee  --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee -- committee discharged, bill amended, ordered reprinted  as
   amended and recommitted to said committee
 
 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  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-FIVE, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENER-
 GY  EQUIPMENT  PLACED IN SERVICE ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-FIVE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07582-07-3
 S. 3596--C                          2

   (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] THEIR prin-
 cipal  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-
 tial property which is (I) located in this state and (II) which is  used
 by  the  taxpayer  as [his or her] THEIR 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]  THEIR  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 MAY STORE energy designed to provide heating, cooling, hot water
 or electricity for use in such residence. Such arrangement or components
 MAY INCLUDE ELECTRIC ENERGY STORAGE EQUIPMENT BUT shall not include  ANY
 OTHER  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 electricity  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 condomin-
 ium management association or a  cooperative  housing  corporation,  for
 purposes  of  this  subsection  only,  the  term "ten kilowatts" in such
 S. 3596--C                          3
 
 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
 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 AND REFUNDABILITY.  If the amount of the cred-
 it,  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 follow-
 ing 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.  FOR TAXABLE
 YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, IF
 THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS  SUBSECTION  SHALL  EXCEED
 THE  TAXPAYER'S  TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER MEETS THE
 DEFINITION OF LOW TO MODERATE INCOME, AS DEFINED IN SUBDIVISION  (C)  OF
 SECTION  NINE HUNDRED SEVENTY-C OF THE GENERAL MUNICIPAL LAW, OR RESIDES
 IN A DISADVANTAGED COMMUNITY, AS DEFINED IN SUBDIVISION FIVE OF  SECTION
 75-0101  OF  THE  ENVIRONMENTAL  CONSERVATION  LAW,  THE EXCESS SHALL BE
 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
 CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.

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Senate Bill S3596B

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Archive: Last Bill Status - In Senate Committee Finance Committee

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co-Sponsors

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2023-S3596C (ACTIVE) - Bill Text download pdf

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co-Sponsors

2023-S3596C (ACTIVE) - Details

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