Bill Text: NY A02177 | 2015-2016 | General Assembly | Amended


Bill Title: Establishes a tax credit for the purchase and installation of geothermal energy systems.

Spectrum: Slight Partisan Bill (Democrat 31-14)

Status: (Introduced - Dead) 2015-06-01 - substituted by s2905 [A02177 Detail]

Download: New_York-2015-A02177-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        2177--A
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 15, 2015
                                      ___________
       Introduced  by  M. of A. RYAN -- read once and referred to the Committee
         on Ways and Means  --  committee  discharged,  bill  amended,  ordered
         reprinted as amended and recommitted to said committee
       AN  ACT  to  amend the tax law, in relation to establishing a credit for
         geothermal energy systems
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  606  of  the  tax law is amended by adding a new
    2  subsection (g-3) to read as follows:
    3    (G-3) GEOTHERMAL ENERGY SYSTEMS CREDIT.   (1) GENERAL.  AN  INDIVIDUAL
    4  TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
    5  CLE  EQUAL  TO TWENTY-FIVE PERCENT OF QUALIFIED GEOTHERMAL ENERGY SYSTEM
    6  EXPENDITURES, EXCEPT AS PROVIDED IN SUBPARAGRAPH (D) OF PARAGRAPH TWO OF
    7  THIS SUBSECTION. THIS CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS  FOR
    8  A  QUALIFIED  GEOTHERMAL  ENERGY  SYSTEM  PLACED  IN SERVICE ON OR AFTER
    9  SEPTEMBER FIRST, TWO THOUSAND FIFTEEN.
   10    (2) QUALIFIED GEOTHERMAL ENERGY SYSTEMS  EXPENDITURES.  (A)  THE  TERM
   11  "QUALIFIED  GEOTHERMAL  ENERGY  SYSTEM  EXPENDITURES" MEANS EXPENDITURES
   12  FOR:
   13    (I) THE PURCHASE  OF  GEOTHERMAL  ENERGY  SYSTEM  EQUIPMENT  WHICH  IS
   14  INSTALLED  IN  CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED
   15  IN THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR HER PRIN-
   16  CIPAL RESIDENCE AT THE TIME THE GEOTHERMAL ENERGY  SYSTEM  EQUIPMENT  IS
   17  PLACED IN SERVICE;
   18    (II)  THE  LEASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN
   19  AGREEMENT THAT SPANS AT LEAST TEN YEARS WHERE SUCH EQUIPMENT OWNED BY  A
   20  PERSON  OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH RESIDEN-
   21  TIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS  USED
   22  BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE GEOTH-
   23  ERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04961-04-5
       A. 2177--A                          2
    1    (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
    2  LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED IS GENERATED BY  GEOTHER-
    3  MAL  ENERGY  SYSTEM  EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER
    4  WHICH IS INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS  (I)
    5  LOCATED  IN THIS STATE AND (II) USED BY THE TAXPAYER AS HIS OR HER PRIN-
    6  CIPAL RESIDENCE AT THE TIME THE GEOTHERMAL ENERGY  SYSTEM  EQUIPMENT  IS
    7  PLACED IN SERVICE.
    8    (B) SUCH QUALIFIED EXPENDITURES SHALL INCLUDE EXPENDITURES FOR MATERI-
    9  ALS, LABOR COSTS PROPERLY ALLOCABLE TO ON-SITE PREPARATION, ASSEMBLY AND
   10  ORIGINAL  INSTALLATION,  ARCHITECTURAL  AND  ENGINEERING  SERVICES,  AND
   11  DESIGNS AND PLANS DIRECTLY RELATED TO THE CONSTRUCTION  OR  INSTALLATION
   12  OF THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT.
   13    (C)  SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF GEOTHERMAL ENERGY
   14  SYSTEM EQUIPMENT SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES.
   15    (D) SUCH QUALIFIED EXPENDITURES FOR THE  LEASE  OF  GEOTHERMAL  ENERGY
   16  SYSTEM  EQUIPMENT  OR THE PURCHASE OF POWER UNDER AN AGREEMENT DESCRIBED
   17  IN CLAUSE (II) OR (III) OF SUBPARAGRAPH  (A)  OF  THIS  PARAGRAPH  SHALL
   18  INCLUDE  AN  AMOUNT  EQUAL  TO ALL PAYMENTS MADE DURING THE TAXABLE YEAR
   19  UNDER SUCH AGREEMENT. PROVIDED, HOWEVER,  SUCH  CREDITS  SHALL  ONLY  BE
   20  ALLOWED  FOR  FOURTEEN  YEARS AFTER THE FIRST TAXABLE YEAR IN WHICH SUCH
   21  CREDIT IS ALLOWED. PROVIDED FURTHER, HOWEVER,  THE  TWENTY-FIVE  PERCENT
   22  LIMITATION  IN  PARAGRAPH ONE OF THIS SUBSECTION SHALL ONLY APPLY TO THE
   23  TOTAL AGGREGATE AMOUNT OF ALL PAYMENTS TO BE MADE PURSUANT TO AN  AGREE-
   24  MENT  REFERENCED  IN  CLAUSE  (II)  OR (III) OF SUBPARAGRAPH (A) OF THIS
   25  PARAGRAPH, AND SHALL NOT APPLY TO  INDIVIDUAL  PAYMENTS  MADE  DURING  A
   26  TAXABLE  YEAR  UNDER SUCH AGREEMENT EXCEPT TO THE EXTENT SUCH LIMITATION
   27  ON AN AGGREGATE BASIS HAS BEEN REACHED.
   28    (3) GEOTHERMAL ENERGY SYSTEM EQUIPMENT. THE  TERM  "GEOTHERMAL  ENERGY
   29  SYSTEM EQUIPMENT" SHALL MEAN A SYSTEM WHOSE ORIGINAL USE BEGINS WITH THE
   30  TAXPAYER;  WHICH  MEETS  THE ELIGIBILITY CRITERIA, IF ANY, PRESCRIBED BY
   31  THE DEPARTMENT; AND WHICH IS A GROUND COUPLED SOLAR THERMAL SYSTEM  THAT
   32  UTILIZES  THE  SOLAR THERMAL ENERGY STORED IN THE GROUND OR IN BODIES OF
   33  WATER TO PRODUCE HEAT, AND WHICH IS COMMONLY KNOWN AS OR REFERRED TO  AS
   34  A GROUND SOURCE HEAT PUMP SYSTEM.
   35    (4)  MULTIPLE  TAXPAYERS.  WHERE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS
   36  PURCHASED AND INSTALLED IN A PRINCIPAL RESIDENCE SHARED BY TWO  OR  MORE
   37  TAXPAYERS,  THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR
   38  EACH SUCH TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF  THE
   39  TOTAL  EXPENDITURE  FOR SUCH GEOTHERMAL ENERGY SYSTEM EQUIPMENT CONTRIB-
   40  UTED BY EACH TAXPAYER.
   41    (5) PROPORTIONATE SHARE. WHERE GEOTHERMAL ENERGY SYSTEM  EQUIPMENT  IS
   42  PURCHASED  AND  INSTALLED  BY  A CONDOMINIUM MANAGEMENT ASSOCIATION OR A
   43  COOPERATIVE HOUSING CORPORATION, A TAXPAYER  WHO  IS  A  MEMBER  OF  THE
   44  CONDOMINIUM MANAGEMENT ASSOCIATION OR WHO IS A TENANT-STOCKHOLDER IN THE
   45  COOPERATIVE  HOUSING  CORPORATION MAY FOR THE PURPOSE OF THIS SUBSECTION
   46  CLAIM A PROPORTIONATE SHARE OF THE TOTAL EXPENSE AS THE EXPENDITURE  FOR
   47  THE PURPOSES OF THE CREDIT ATTRIBUTABLE TO HIS PRINCIPAL RESIDENCE.
   48    (6)  GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE
   49  INCURRED IN PURCHASING AND INSTALLING GEOTHERMAL  ENERGY  SYSTEM  EQUIP-
   50  MENT,  THE  AMOUNT  OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE
   51  TAXPAYER, WHICH WAS USED FOR THE PURCHASE AND/OR  INSTALLATION  OF  SUCH
   52  EQUIPMENT  AND WHICH WAS NOT INCLUDED IN THE FEDERAL GROSS INCOME OF THE
   53  TAXPAYER, SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH EXPENDITURES.
   54    (7) WHEN CREDIT ALLOWED. THE  CREDIT  PROVIDED  FOR  HEREIN  SHALL  BE
   55  ALLOWED  WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO THOUSAND
       A. 2177--A                          3
    1  FIFTEEN, IN WHICH THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT  IS  PLACED  IN
    2  SERVICE.
    3    (8)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
    4  OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR
    5  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
    6  CARRIED  OVER  TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
    7  WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
    8  TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
    9    S 2. This act shall take effect immediately and shall apply to taxable
   10  years commencing on and after January 1, 2015.
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