Bill Text: NY A03875 | 2021-2022 | General Assembly | Amended


Bill Title: Grants eligibility for the tax abatement for industrial and commercial construction work in cities having a population of one million or more, to certain electric generating facilities the operation of which commenced in 2012.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A03875 Detail]

Download: New_York-2021-A03875-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         3875--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 28, 2021
                                       ___________

        Introduced  by  M. of A. CUSICK, WALKER -- 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 real property tax law, in relation to applications
          by certain electric  generating  facilities  for  tax  abatements  for
          industrial and commercial construction work on properties in a city of
          one million or more persons

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Legislative findings. The legislature hereby finds that the
     2  2011 amendment to the industrial and commercial  abatement  program  was
     3  successful  in  preventing  a large increase in capacity rates for elec-
     4  tricity that would have cost ratepayers in the city of New York hundreds
     5  of millions of dollars had the law not been  changed.  However,  in  the
     6  haste  to  adopt  that  law,  a new peaking power plant fell through the
     7  cracks and has been paying property taxes since it began  operations  in
     8  2012,  even though the 2011 statute clearly intended that industrial and
     9  commercial abatement program  benefits  be  provided  to  peaking  power
    10  plants as a right. This act would correct that defect in the statute and
    11  enable  the  facility  to  receive  industrial  and commercial abatement
    12  program benefits prospectively.
    13    § 2. Subdivision 17 of section 489-aaaaaa of  the  real  property  tax
    14  law, as amended by chapter 28 of the laws of 2011, is amended to read as
    15  follows:
    16    17.  "Utility  property"  means property and equipment as described in
    17  paragraphs (c), (d), (e), (f) and (i) of subdivision twelve  of  section
    18  one  hundred  two of this chapter that is used in the ordinary course of
    19  business by its owner or any other entity or property  as  described  in
    20  paragraphs  (a) and (b) of subdivision twelve of section one hundred two
    21  of this chapter that is owned by any entity that uses  in  the  ordinary
    22  course  of  business  property  and equipment as described in paragraphs

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06832-02-1

        A. 3875--A                          2

     1  (c), (d), (e), (f) and (i) of subdivision twelve of section one  hundred
     2  two  of this chapter, without regard to the classification of such prop-
     3  erty and equipment for real property tax purposes  pursuant  to  section
     4  eighteen  hundred two of this chapter, except that any such property and
     5  equipment used solely to serve the building to which they  are  attached
     6  shall  not  be deemed utility property. Notwithstanding any provision of
     7  this title to the contrary, peaking units shall not be considered utili-
     8  ty property. For purposes of this title, "peaking  unit"  shall  mean  a
     9  generating or storage unit that: (a) is determined by the New York inde-
    10  pendent system operator or a federal or New York state energy regulatory
    11  commission to constitute a peaking unit as set forth in section 5.14.1.2
    12  of  the New York independent system operator's market administration and
    13  control area services tariff, as such term existed as  of  April  first,
    14  two  thousand eleven; or (b) has an annual average operation, during the
    15  calendar year preceding the taxable status date, of less  than  eighteen
    16  hours  following each start of the unit; for purposes of calculating the
    17  annual average, operations during any period covered by any major  emer-
    18  gency  declaration  issued  by the New York independent system operator,
    19  northeast power coordinating council, or other similar entity  shall  be
    20  excluded;  or (c) any generating or storage unit that can supply ten-mi-
    21  nute non-spinning and/or ten-minute spinning reserve as defined  by  the
    22  New  York  independent  system  operator;  or  (d)  notwithstanding  the
    23  requirements and provisions of this title, any  peaking  unit  that  was
    24  planned,  approved  and under construction between the effective date of
    25  this title and the effective date of chapter twenty-eight of the laws of
    26  two thousand eleven, and upon going into  service  exclusively  provides
    27  electricity to Zone J, shall be deemed eligible for the benefits of this
    28  title;  provided,  however,  that  the benefit period for a peaking unit
    29  shall be as set forth in paragraph (b-1) of subdivision three of section
    30  four hundred eighty-nine-bbbbbb of this title;  and  provided,  further,
    31  that  such benefits shall commence upon the effective date of this para-
    32  graph. A "peaking unit" under this title shall include all real property
    33  used in connection with the generation of electricity, and  any  facili-
    34  ties  used  to  interconnect  the  peaking unit with the electric trans-
    35  mission or distribution system, but shall  not  include  any  facilities
    36  that  are  part  of the electric transmission or distribution system; it
    37  may be comprised of a single turbine and generator or multiple  turbines
    38  and  generators  located at the same site. Notwithstanding any provision
    39  of this title to the contrary, a peaking unit shall be considered indus-
    40  trial property, provided however that the benefit period for  a  peaking
    41  unit  shall  be  as set forth in paragraph (b-1) of subdivision three of
    42  section four hundred eighty-nine-bbbbbb of this title.
    43    § 3. This act shall take effect April 1, 2022.
feedback