Assembly Bill A2040

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2040
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2025
                                ___________
 
 Introduced by M. of A. STIRPE -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to  amend  the  tax  law, in relation to establishing the green
   building credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (qqq) to read as follows:
   (QQQ) GREEN BUILDING CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
 BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE  PROVIDED
 THAT  SUCH  TAXPAYER  CONSTRUCTS OR REHABILITATES QUALIFYING RESIDENTIAL
 REAL PROPERTY IN CONFORMITY WITH ENERGY EFFICIENCY STANDARDS ESTABLISHED
 BY THE NATIONAL ASSOCIATION OF HOME BUILDERS OR THE LEADERSHIP IN ENERGY
 AND ENVIRONMENTAL DESIGN RATING SYSTEM DEVELOPED BY  THE  UNITED  STATES
 GREEN  BUILDING  COUNCIL  AND  FASHIONS PROOF THEREOF IN ACCORDANCE WITH
 RULES AND REGULATIONS PROMULGATED BY THE COMMISSIONER OF THE  DEPARTMENT
 OF ENVIRONMENTAL CONSERVATION IN CONJUNCTION WITH THE COMMISSIONER.
   (2)  AMOUNT  OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE
 ALLOWABLE COSTS PAID OR INCURRED BY THE  TAXPAYER,  IF  THE  OWNER,  FOR
 EITHER THE CONSTRUCTION OR REHABILITATION OF QUALIFYING RESIDENTIAL REAL
 PROPERTY  IN  CONFORMITY WITH ENERGY EFFICIENCY STANDARDS ESTABLISHED BY
 THE NATIONAL ASSOCIATION OF HOME BUILDERS OR THE  LEADERSHIP  IN  ENERGY
 AND  ENVIRONMENTAL  DESIGN  RATING SYSTEM DEVELOPED BY THE UNITED STATES
 GREEN BUILDING COUNCIL; PROVIDED, HOWEVER, THAT SUCH  CREDIT  SHALL  NOT
 EXCEED TEN THOUSAND DOLLARS AND SHALL NOT BE AWARDED MORE THAN ONCE IN A
 PERIOD OF TEN YEARS.
   (3)  FOR  THE  PURPOSE  OF  THIS  SUBSECTION,  "ALLOWABLE COSTS" MEANS
 AMOUNTS PROPERLY CHARGEABLE TO AN ACCOUNT (OTHER THAN FOR  LAND),  WHICH
 ARE PAID OR INCURRED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX,
 FOR:  CONSTRUCTION OR REHABILITATION; COMMISSIONING COSTS; INTEREST PAID
 OR  INCURRED  DURING  THE  CONSTRUCTION OR REHABILITATION PERIOD; LEGAL,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03546-01-5
              

 A. 2040                             2
 
 ARCHITECTURAL, ENGINEERING AND  OTHER  PROFESSIONAL  FEES  ALLOCABLE  TO
 CONSTRUCTION OR REHABILITATION; CLOSING COSTS FOR CONSTRUCTION, REHABIL-
 ITATION OR MORTGAGE LOANS; RECORDING TAXES AND FILING FEES INCURRED WITH
 RESPECT TO CONSTRUCTION OR REHABILITATION; SITE COSTS (SUCH AS TEMPORARY
 ELECTRIC WIRING, SCAFFOLDING, DEMOLITION COSTS, AND FENCING AND SECURITY
 FACILITIES);  AND  COSTS  OF FURNITURE, CARPETING, PARTITIONS, WALLS AND
 WALL COVERINGS, CEILINGS, DRAPES, BLINDS, LIGHTING, PLUMBING, ELECTRICAL
 WIRING AND VENTILATION; PROVIDED THAT SUCH COSTS SHALL NOT  INCLUDE  THE
 COST  OF  TELEPHONE  SYSTEMS AND COMPUTERS (OTHER THAN ELECTRICAL WIRING
 COSTS) AND SHALL NOT INCLUDE THE COST  OF  FUEL  CELLS  OR  PHOTOVOLTAIC
 MODULES  (INCLUDING  INSTALLATION)  OR  THE COST OF NEW AIR CONDITIONING
 EQUIPMENT USING AN EPA-APPROVED NON-OZONE DEPLETING REFRIGERANT OR OTHER
 EPA-APPROVED REFRIGERANT APPROVED BY THE COMMISSIONER  OF  ENVIRONMENTAL
 CONSERVATION (EXCLUDING INSTALLATION).
   (4)  FOR  THE PURPOSES OF THIS SUBSECTION "QUALIFYING RESIDENTIAL REAL
 PROPERTY" SHALL MEAN THE PRINCIPAL PLACE OF RESIDENCE OF  AN  INDIVIDUAL
 TAXPAYER  WHO  CLAIMS A CREDIT PURSUANT TO THIS SUBSECTION. IN THE EVENT
 THAT SUCH PLACE OF RESIDENCE IS  A  MULTIPLE  DWELLING,  AS  DEFINED  BY
 SUBDIVISION  SEVEN  OF SECTION FOUR OF THE MULTIPLE DWELLING LAW, ALLOW-
 ABLE  COSTS  SHALL  ONLY  CONSTITUTE  THOSE  COSTS   INCURRED   DUE   TO
 CONSTRUCTION OR REHABILITATION UNDERTAKEN ON THE PORTION OF THE DWELLING
 THAT CONSTITUTES AN INDIVIDUAL TAXPAYER'S UNIT.
   (5)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 MAY  BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS
 AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (6) THE COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL  CONSERVATION,
 IN  CONJUNCTION  WITH  THE COMMISSIONER, SHALL PROMULGATE SUCH RULES AND
 REGULATIONS AS MAY BE NECESSARY  FOR  THE  DISTRIBUTION  OF  THE  CREDIT
 ESTABLISHED BY THIS SUBSECTION.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2027.