BILL NUMBER: S7889

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to making the geothermal energy
systems credit refundable

 
PURPOSE:

Allows geothermal energy system taxpayers the option to carryover credit
of excess tax payments to the subsequent five taxable years or receive
such excess as a refund.

 
SUMMARY OF PROVISIONS:

Section 1 amends the tax law to add a new subsection paragraph to
section 606 allowing geothermal energy system taxpayers the option to
carryover the credits of excess tax payments to the subsequent five
taxable years and deduct that credit from the taxpayer's tax for such
year or years. Alternatively, such taxpayers may choose to receive a
refund for excess geothermal energy system taxes paid; provided that no
              

interest be paid on the refund.

Section 2 states the effective date.

 
JUSTIFICATION:

The tax law in New York does not presently allow taxpayers of geothermal
energy systems the ability to receive a tax refund for excess payments.
Tax credits and future deductions are satisfactory and adequate methods
of utilizing excess taxes paid for some wealthier and commercial New
York taxpayers, however, lower-income groups without comparable finan-
cial security or assets suffer from having to wait until the next taxa-
ble year to benefit from the taxes they overpaid.

Geothermal energy systems provide a solution to radically reduce the
heating and cooling needs for millions of homes and buildings across New
York.(1) However, state and federal sustainability mandates should be
achieved without harming the most vulnerable? This legislation provides
geothermal energy system taxpayers with the option to receive a refund
for excess tax payments-rather than being forced to wait a full year to
utilize money they already spent-based on their unique financial situ-
ations. Providing this financial empowerment and freedom to New York
taxpayers helps ensure a just transition to sustainability.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to taxable
years commencing on and after such date.
(1) CORECHEM, NY-GEO 2023 and How New York is Leading the Way in the
Field of Geothermal Energy,
 
HTTPS://CORECHEMINC.COM/NY-GEO-2023-AND-HOW-NEW-YORK-IS-LEADING-
THE-WAY-IN-THE-FIELD-OF-GEOTHERMAL-ENERGY/ (last visited Oct. 18,
2023).
(2) NYS DEP. OF PUB. SERVICE, Clean Energy Initiatives,
 
HTTPS://DPS.NY.GOV/CLEAN-ENERGY-INITIATIVEST-TEXT=THE%20
CLIMATE%20ACT%2OREQUIRES%2ONEWIN%/020THE%/020CLEAN%/020ENERGY%20 TRANSI-
TION (last visited Oct. 18, 2023); COUNCIL on ENV. Quality, Federal
Sustainability Plan,  
HTTPS://WWW.SUSTAINABILITY.GOV/ FEDERALSUSTAINA-
BILITYPLAN/ (last visited Oct. 18, 2023).