Bill Text: NY A01608 | 2021-2022 | General Assembly | Introduced
Bill Title: Creates a tax abatement for geothermal well systems.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2022-01-05 - referred to real property taxation [A01608 Detail]
Download: New_York-2021-A01608-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1608 2021-2022 Regular Sessions IN ASSEMBLY January 11, 2021 ___________ Introduced by M. of A. CARROLL, DINOWITZ, ENGLEBRIGHT, COLTON, EPSTEIN, FAHY, HYNDMAN, NIOU, STIRPE, SIMON -- Multi-Sponsored by -- M. of A. DAVILA, FRONTUS -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law, in relation to creating a tax abatement for geothermal wells The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property tax law is amended by adding a new 2 section 487-b to read as follows: 3 § 487-b. Tax abatement for geothermal wells. 1. Definitions. When used 4 in this section, the following terms shall have the following meanings: 5 (a) "Architect" shall mean a person licensed and registered to prac- 6 tice the profession of architecture under the education law. 7 (b) "Compliance period" shall mean the tax year in which a tax abate- 8 ment commences and the three tax years immediately thereafter. 9 (c) "Eligible geothermal well system expenditures" shall mean reason- 10 able expenditures for materials, labor costs properly allocable to 11 on-site preparation, assembly and original installation, architectural 12 and engineering services, and designs and plans directly related to the 13 construction or installation of a geothermal well system installed in a 14 building. Such eligible expenditures shall not include interest or other 15 finance charges, or any expenditures incurred using a federal, state or 16 local grant. 17 (d) "Engineer" shall mean a person licensed and registered to practice 18 the profession of engineering under the education law. 19 (e) "Geothermal well system" shall mean a system which uses the 20 earth's natural temperature under the ground to heat and/or cool a 21 building. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05512-01-1A. 1608 2 1 2. Real property tax abatement. An eligible building shall receive an 2 abatement of real property taxes as provided in this section and the 3 rules promulgated hereunder. 4 (a) The amount of such tax abatement shall be if a geothermal well is 5 placed in service on or after January first, two thousand twenty-three, 6 and before January first, two thousand twenty-five, for each year of the 7 compliance period such tax abatement shall be the lesser of (i) ten 8 percent of eligible geothermal well expenditures, (ii) the amount of 9 taxes payable in such tax year, or (iii) sixty-two thousand five hundred 10 dollars. 11 (b) Such tax abatement shall commence on July first following the 12 approval of an application for tax abatement by the department, and may 13 not be carried over to any subsequent tax year. 14 (c) With respect to any building held in the condominium form of 15 ownership that receives a tax abatement pursuant to this section, such 16 tax abatement benefits shall be apportioned among all of the condominium 17 tax lots within such eligible building. 18 (d) If, as a result of application to the department or a court order 19 or action by the department, the billable assessed value for any fiscal 20 year in which the tax abatement is taken is reduced after the assessment 21 roll becomes final, the department shall recalculate the abatement so 22 that the abatement granted shall not exceed the annual tax liability as 23 so reduced. The amount equal to the difference between the abatement 24 originally granted and the abatement as so recalculated shall be 25 deducted from any refund otherwise payable or remission otherwise due as 26 a result of such reduction in billable assessed value. 27 (e) The tax abatement shall be conditioned upon: 28 (i) continuing compliance during the compliance period with all appli- 29 cable provisions of law, including without limitation the local 30 construction and fire codes, maintaining the geothermal well system in 31 such a manner that it continuously constitutes a geothermal well system, 32 and permitting for inspections of the geothermal well system and any 33 related structures and equipment upon reasonable notice; and 34 (ii) real estate taxes, water and sewer charges, payments in lieu of 35 taxes or other municipal charges with respect to the property the geoth- 36 ermal well system is located on or is servicing not having been due and 37 owing during the compliance period for a period of six months or more. 38 3. Application for tax abatement. (a) To obtain a tax abatement pursu- 39 ant to this section, an applicant shall file an application for tax 40 abatement on or after January first, two thousand twenty-three, and on 41 or before March fifteenth, two thousand twenty-five for eligible geoth- 42 ermal well expenditures. 43 (b) Such application shall be filed no later than March fifteenth 44 before the first tax year, beginning July first, for which the tax 45 abatement is sought. 46 (c) Such application shall contain the following: 47 (i) The name and address of the applicant and the location of the 48 geothermal well system. 49 (ii) Proof that the applicant received all required certifications, 50 permits and other approvals to construct the geothermal well system. 51 (iii) Certifications in a form prescribed by the department, from an 52 architect, engineer or other certified or licensed professional, that 53 the geothermal well system has been placed in service in accordance with 54 this section, the rules promulgated hereunder, and local construction 55 and fire codes. All certifications required by this section or the 56 rules promulgated hereunder shall set forth the specific findings uponA. 1608 3 1 which the certification is based, and shall include information suffi- 2 cient to identify the location of the geothermal well, the certifying 3 engineer, architect or other professional, and such other information as 4 may be prescribed by the department. 5 (iv) An agreement to permit for inspections of the geothermal well 6 system and any related structures and equipment upon reasonable notice. 7 (v) Any other information or certifications required by the department 8 pursuant to this section and the rules promulgated hereunder. 9 (d) An application for tax abatement shall be in any format prescribed 10 by the department, including electronic form. 11 (e) An application for tax abatement shall be approved by the depart- 12 ment upon determining that the applicant has submitted proof that the 13 requirements for obtaining a tax abatement pursuant to this section and 14 the rules promulgated hereunder have been met. The burden of proof shall 15 be on the applicant to show by clear and convincing evidence that the 16 requirements for granting a tax abatement have been satisfied. 17 (f) Upon approval of an application for tax abatement, the tax abate- 18 ment shall be applied, provided there are no outstanding real estate 19 taxes, water and sewer charges, payments in lieu of taxes or other 20 municipal charges with respect to the property the geothermal well 21 system is located on or is servicing. 22 4. Revocation of tax abatement. (a) The department shall revoke, in 23 whole or in part, any tax abatement granted pursuant to this section 24 whenever the department has determined that: 25 (i) an applicant has failed to comply with a requirement of this 26 section or any rule promulgated hereunder at any time during the compli- 27 ance period, including without limitation any of the continuing require- 28 ments set forth in subdivision two of this section; 29 (ii) the property the geothermal well system is located on or is 30 servicing has not been in compliance at any time during the compliance 31 period with a requirement of this section or any rule promulgated here- 32 under; 33 (iii) the geothermal well system for which a tax abatement was granted 34 has at any time during the compliance period failed to meet any require- 35 ment for a geothermal well system pursuant to this section or any rule 36 promulgated hereunder; 37 (iv) the geothermal well system has become a fire or safety hazard at 38 any time during the compliance period; or 39 (v) an application, certification, report or other document submitted 40 by the applicant contains a false or misleading statement as to a mate- 41 rial fact or omits to state any material fact necessary in order to make 42 the statement therein not false or misleading. 43 (b) The department may revoke, in whole or in part, any tax abatement 44 granted pursuant to this section whenever it has determined that an 45 applicant has failed to comply with the continuing requirement set forth 46 in subparagraph (ii) of paragraph (e) of subdivision two of this 47 section. 48 (c) An applicant shall pay, with interest, such part of any tax abate- 49 ment received pursuant to this section that represents the period of 50 non-compliance as determined by the department. In addition, the depart- 51 ment may declare any applicant ineligible for future tax abatement 52 pursuant to this section if any application, certification, report or 53 other document submitted by the applicant contains a false or misleading 54 statement as to a material fact or omits to state any material fact 55 necessary in order to make the statement therein not false or mislead- 56 ing.A. 1608 4 1 (d) All taxes, with interest, required to be paid retroactively pursu- 2 ant to this subdivision shall constitute a tax lien as of the date it is 3 determined such taxes and interest are owed. All interest shall be 4 calculated from the date the taxes would have been due but for the tax 5 abatement granted pursuant to this section at the applicable rate or 6 rates of interest imposed generally for non-payment of real property tax 7 with respect to such taxed property for the period in question. 8 § 2. This act shall take effect immediately.
