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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2177
                              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
       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)  CREDIT  FOR  GEOTHERMAL ENERGY SYSTEMS. (1) A TAXPAYER SHALL BE
    4  ALLOWED A CREDIT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,
    5  TWO  THOUSAND  SIXTEEN  AGAINST  THE TAX IMPOSED BY THIS ARTICLE FOR THE
    6  PURCHASE AND INSTALLATION OF A GEOTHERMAL ENERGY SYSTEM BY A TAXPAYER IN
    7  HIS OR HER PRINCIPAL RESIDENCE, IF SUCH RESIDENCE IS LOCATED WITHIN  THE
    8  STATE.  THE  AMOUNT OF THE CREDIT SHALL BE FIFTY PERCENT OF THE EXPENDI-
    9  TURE INCURRED IN PURCHASING AND INSTALLING ANY SUCH SYSTEM  OR  COMBINA-
   10  TION  THEREOF,  BUT  NOT  TO  EXCEED THE MAXIMUM CREDIT OF FIVE THOUSAND
   11  DOLLARS.
   12    (2) A GEOTHERMAL ENERGY SYSTEM IS A SYSTEM WHOSE ORIGINAL  USE  BEGINS
   13  WITH  THE  TAXPAYER;  WHICH  MEETS  THE  ELIGIBILITY  CRITERIA,  IF ANY,
   14  PRESCRIBED BY THE DEPARTMENT; AND WHICH IS A GROUND COUPLED SOLAR  THER-
   15  MAL  SYSTEM  THAT UTILIZES THE SOLAR THERMAL ENERGY STORED IN THE GROUND
   16  OR IN BODIES OF WATER TO PRODUCE HEAT, AND WHICH IS COMMONLY KNOWN AS OR
   17  REFERRED TO AS A GROUND SOURCE HEAT PUMP SYSTEM.
   18    (3) WHERE A GEOTHERMAL ENERGY SYSTEM IS PURCHASED AND INSTALLED  BY  A
   19  CONDOMINIUM MANAGEMENT ASSOCIATION OR A COOPERATIVE HOUSING CORPORATION,
   20  A  TAXPAYER WHO IS A MEMBER OF THE CONDOMINIUM MANAGEMENT ASSOCIATION OR
   21  WHO IS A TENANT-STOCKHOLDER IN THE COOPERATIVE HOUSING  CORPORATION  MAY
   22  FOR  THE  PURPOSE  OF THIS SUBSECTION CLAIM A PROPORTIONATE SHARE OF THE
   23  TOTAL EXPENSE AS THE EXPENDITURE FOR THE PURPOSES OF THE CREDIT  ATTRIB-
   24  UTABLE TO HIS OR HER PRINCIPAL RESIDENCE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04961-01-5
       A. 2177                             2
    1    (4)  WHERE  A GEOTHERMAL ENERGY SYSTEM IS PURCHASED AND INSTALLED IN A
    2  PRINCIPAL RESIDENCE SHARED BY TWO OR MORE TAXPAYERS THE  AMOUNT  OF  THE
    3  CREDIT  ALLOWABLE  UNDER THIS SUBSECTION FOR EACH SUCH TAXPAYER SHALL BE
    4  PRORATED ACCORDING TO THE PERCENTAGE OF THE TOTAL EXPENDITURE  FOR  SUCH
    5  SYSTEM CONTRIBUTED BY EACH TAXPAYER.
    6    (5)  TO  THE  EXTENT  THAT  A FEDERAL INCOME TAX CREDIT SHALL APPLY TO
    7  EXPENDITURES ELIGIBLE FOR A CREDIT UNDER  THIS  SUBSECTION,  THE  CREDIT
    8  PROVIDED IN THIS SUBSECTION SHALL BE REDUCED SO THAT THE COMBINED CREDIT
    9  SHALL  NOT  EXCEED  SEVENTY-FIVE  PERCENT  OF SUCH EXPENDITURES OR SEVEN
   10  THOUSAND FIVE HUNDRED DOLLARS, WHICHEVER IS LESS.
   11    (6) IF THE AMOUNT OF CREDIT  ALLOWABLE  UNDER  THIS  SUBSECTION  SHALL
   12  EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
   13  TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM  THE  TAXPAYER'S
   14  TAX FOR SUCH YEAR OR YEARS.
   15    (7)  IF  ALL  OR  ANY  PART  OF  THE  CREDIT  PROVIDED  FOR UNDER THIS
   16  SUBSECTION WAS ALLOWED OR CARRIED OVER FROM  A  PRIOR  TAXABLE  YEAR  OR
   17  YEARS, A TAXPAYER SHALL REDUCE THE ALLOWABLE CREDIT FOR ADDITIONAL QUAL-
   18  IFYING EXPENDITURES IN A SUBSEQUENT TAX YEAR BY THE AMOUNT OF THE CREDIT
   19  PREVIOUSLY  ALLOWED  OR  CARRIED  OVER;  PROVIDED  HOWEVER THAT A CREDIT
   20  PREVIOUSLY ALLOWED OR CARRIED OVER FROM A PRIOR TAXABLE  YEAR  OR  YEARS
   21  SHALL  NOT BE TAKEN INTO ACCOUNT IN DETERMINING THE ALLOWABLE CREDIT FOR
   22  THE PURCHASE AND INSTALLATION OF A GEOTHERMAL ENERGY SYSTEM IN A  SUBSE-
   23  QUENT PRINCIPAL RESIDENCE.
   24    (8)  FOR  THE PURPOSE OF DETERMINING THE AMOUNT OF THE ACTUAL EXPENDI-
   25  TURE INCURRED IN PURCHASING AND INSTALLING A GEOTHERMAL  ENERGY  SYSTEM,
   26  THE  AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAY-
   27  ER, WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION OF  SUCH  SYSTEM
   28  AND  WHICH  WAS  NOT INCLUDED IN THE GROSS INCOME OF THE TAXPAYER, SHALL
   29  NOT BE TAKEN INTO ACCOUNT.
   30    (9) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IF A CREDIT IS ALLOWED
   31  UNDER THIS SUBSECTION FOR A RENEWABLE ENERGY SYSTEM WITH RESPECT TO  ANY
   32  PROPERTY, THE INCREASE IN THE BASIS OF SUCH PROPERTY WHICH WOULD BUT FOR
   33  THIS  SUBSECTION  RESULT  FROM  SUCH EXPENDITURE SHALL BE REDUCED BY THE
   34  AMOUNT OF THE CREDIT ALLOWED. WHEN THE SALE OR OTHER DISPOSITION OF SUCH
   35  PROPERTY RESULTS IN THE NONRECOGNITION OF GAIN UNDER SECTION  ONE  THOU-
   36  SAND THIRTY-FOUR OF THE INTERNAL REVENUE CODE, A LIKE REDUCTION SHALL BE
   37  MADE  TO  THE  BASIS  OF THE NEW RESIDENCE, IF SUCH RESIDENCE IS LOCATED
   38  WITHIN THE STATE.
   39    S 2. This act shall take effect immediately and shall apply to taxable
   40  years commencing on and after January 1, 2016.