Bill Text: NY A07316 | 2021-2022 | General Assembly | Introduced


Bill Title: Establishes sales tax exemptions for residential and commercial energy storage systems equipment.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A07316 Detail]

Download: New_York-2021-A07316-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7316

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                       May 5, 2021
                                       ___________

        Introduced by M. of A. CUSICK -- read once and referred to the Committee
          on Ways and Means

        AN  ACT  to  amend  the tax law, in relation to establishing a sales tax
          exemption for energy storage

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

     1    Section  1.  Section  1115 of the tax law is amended by adding two new
     2  subdivisions (ll) and (mm) to read as follows:
     3    (ll) The following shall be exempt from tax under  this  article:  (1)
     4  Receipts  from the retail sale of, and consideration given or contracted
     5  to be given for, or for the use of, residential energy  storage  systems
     6  equipment  and  the service of installing such systems. For the purposes
     7  of this subdivision,  "residential  energy  storage  systems  equipment"
     8  shall  mean  an  arrangement or combination of components installed in a
     9  residence that stores electricity for use at a  later  time  to  provide
    10  heating, cooling, hot water and/or electricity.
    11    (2)  Receipts  from  the  sale  of  electricity  by a person primarily
    12  engaged in the sale of energy storage system equipment and/or  electric-
    13  ity  generated  by  such equipment pursuant to a written agreement under
    14  which such electricity is generated by residential energy system storage
    15  equipment that is:  (A) owned by a person other than  the  purchaser  of
    16  such electricity; (B) installed on residential property of the purchaser
    17  of such electricity; and (C) used to provide heating, cooling, hot water
    18  or electricity.
    19    (mm)  The  following  shall be exempt from tax under this article: (1)
    20  Receipts from the retail sale of, and consideration given or  contracted
    21  to  be  given  for, or for the use of, commercial energy storage systems
    22  equipment and the costs of installing such systems. For the purposes  of
    23  this  subdivision,  "commercial  energy storage systems equipment" shall
    24  mean an arrangement or combination of components installed upon  non-re-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07300-03-1

        A. 7316                             2

     1  sidential  premises  that  stores electricity for use at a later time to
     2  provide heating, cooling, hot water and/or electricity.
     3    (2)  Receipts  from  the  sale  of  electricity  by a person primarily
     4  engaged in the sale of energy storage system equipment and/or  electric-
     5  ity  generated  by  such equipment pursuant to a written agreement under
     6  which the electricity is generated by commercial energy system equipment
     7  that is: (A) owned by a person other than the purchaser  of  such  elec-
     8  tricity;  (B) installed on the non-residential premises of the purchaser
     9  of such electricity; and (C) used to provide heating, cooling, hot water
    10  or electricity to such premises.
    11    § 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
    12  amended by section 2 of part  WW  and  subparagraph  (i)  as  separately
    13  amended  by  section  5  of part Z of chapter 60 of the laws of 2016, is
    14  amended to read as follows:
    15    (1) Either, all of the taxes described in article twenty-eight of this
    16  chapter, at the same uniform rate, as to which taxes all  provisions  of
    17  the  local  laws, ordinances or resolutions imposing such taxes shall be
    18  identical, except as to rate and except as otherwise provided, with  the
    19  corresponding  provisions  in  such  article twenty-eight, including the
    20  definition and exemption provisions of  such  article,  so  far  as  the
    21  provisions  of  such  article twenty-eight can be made applicable to the
    22  taxes imposed by such city or  county  and  with  such  limitations  and
    23  special  provisions  as are set forth in this article. The taxes author-
    24  ized under this subdivision may not be  imposed  by  a  city  or  county
    25  unless  the  local law, ordinance or resolution imposes such taxes so as
    26  to include all portions and all types of  receipts,  charges  or  rents,
    27  subject  to  state  tax  under  sections  eleven hundred five and eleven
    28  hundred ten of this chapter, except as  otherwise  provided.    (i)  Any
    29  local  law, ordinance or resolution enacted by any city of less than one
    30  million or by any county or school district, imposing the taxes  author-
    31  ized by this subdivision, shall, notwithstanding any provision of law to
    32  the  contrary,  exclude from the operation of such local taxes all sales
    33  of tangible personal  property  for  use  or  consumption  directly  and
    34  predominantly  in  the  production  of  tangible personal property, gas,
    35  electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
    36  essing,  generating,  assembly,  refining, mining or extracting; and all
    37  sales of tangible personal property for use or consumption predominantly
    38  either in the production of tangible personal  property,  for  sale,  by
    39  farming or in a commercial horse boarding operation, or in both; and all
    40  sales  of  fuel sold for use in commercial aircraft and general aviation
    41  aircraft; and, unless such city, county or school district elects other-
    42  wise, shall omit the provision for credit or refund contained in  clause
    43  six  of  subdivision  (a)  or  subdivision (d) of section eleven hundred
    44  nineteen of this chapter.  (ii) Any local law, ordinance  or  resolution
    45  enacted  by  any  city,  county  or  school district, imposing the taxes
    46  authorized by this subdivision, shall omit the residential solar  energy
    47  systems  equipment and electricity exemption provided for in subdivision
    48  (ee), the commercial solar  energy  systems  equipment  and  electricity
    49  exemption  provided  for  in  subdivision (ii), the commercial fuel cell
    50  electricity generating systems equipment and  electricity  generated  by
    51  such  equipment exemption provided for in subdivision (kk), the residen-
    52  tial energy storage systems equipment and electricity exemption provided
    53  for in subdivision (ll), the commercial energy storage systems equipment
    54  and electricity exemption provided  for  in  subdivision  (mm)  and  the
    55  clothing  and  footwear  exemption  provided  for in paragraph thirty of
    56  subdivision (a) of section  eleven  hundred  fifteen  of  this  chapter,

        A. 7316                             3

     1  unless  such city, county or school district elects otherwise as to such
     2  residential solar energy systems equipment  and  electricity  exemption,
     3  such   commercial   solar   energy  systems  equipment  and  electricity
     4  exemption, commercial fuel cell electricity generating systems equipment
     5  and  electricity  generated by such equipment exemption or such clothing
     6  and footwear exemption.
     7    § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
     8  amended by section 5 of part J of chapter 59 of the  laws  of  2021,  is
     9  amended to read as follows:
    10    (1) Either, all of the taxes described in article twenty-eight of this
    11  chapter,  at  the same uniform rate, as to which taxes all provisions of
    12  the local laws, ordinances or resolutions imposing such taxes  shall  be
    13  identical,  except as to rate and except as otherwise provided, with the
    14  corresponding provisions in such  article  twenty-eight,  including  the
    15  definition  and  exemption  provisions  of  such  article, so far as the
    16  provisions of such article twenty-eight can be made  applicable  to  the
    17  taxes  imposed  by  such  city  or  county and with such limitations and
    18  special provisions as are set forth in this article. The  taxes  author-
    19  ized  under  this  subdivision  may  not  be imposed by a city or county
    20  unless the local law, ordinance or resolution imposes such taxes  so  as
    21  to  include  all  portions  and all types of receipts, charges or rents,
    22  subject to state tax under  sections  eleven  hundred  five  and  eleven
    23  hundred  ten  of  this  chapter, except as otherwise provided.  Notwith-
    24  standing the foregoing, a tax imposed by a  city  or  county  authorized
    25  under  this subdivision shall not include the tax imposed on charges for
    26  admission to race tracks and simulcast facilities under subdivision  (f)
    27  of section eleven hundred five of this chapter. (i) Any local law, ordi-
    28  nance  or  resolution enacted by any city of less than one million or by
    29  any county or school district, imposing the  taxes  authorized  by  this
    30  subdivision,  shall, notwithstanding any provision of law to the contra-
    31  ry, exclude from the operation of such local taxes all sales of tangible
    32  personal property for use or consumption directly and  predominantly  in
    33  the  production of tangible personal property, gas, electricity, refrig-
    34  eration or steam, for sale, by  manufacturing,  processing,  generating,
    35  assembly,  refining,  mining  or  extracting;  and all sales of tangible
    36  personal property for use or consumption  predominantly  either  in  the
    37  production  of  tangible personal property, for sale, by farming or in a
    38  commercial horse boarding operation, or in both; and all sales  of  fuel
    39  sold  for use in commercial aircraft and general aviation aircraft; and,
    40  unless such city, county or school district elects otherwise, shall omit
    41  the provision for credit or refund contained in clause six  of  subdivi-
    42  sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
    43  chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
    44  city,  county  or school district, imposing the taxes authorized by this
    45  subdivision, shall omit the residential solar energy  systems  equipment
    46  and  electricity exemption provided for in subdivision (ee), the commer-
    47  cial solar energy systems equipment and electricity  exemption  provided
    48  for in subdivision (ii), the commercial fuel cell electricity generating
    49  systems  equipment and electricity generated by such equipment exemption
    50  provided for in subdivision (kk), the residential energy storage systems
    51  equipment and electricity exemption provided for  in  subdivision  (ll),
    52  the   commercial   energy  storage  systems  equipment  and  electricity
    53  exemption provided for in subdivision (mm) and the clothing and footwear
    54  exemption provided for in paragraph thirty of subdivision (a) of section
    55  eleven hundred fifteen of this chapter,  unless  such  city,  county  or
    56  school  district  elects  otherwise  as to such residential solar energy

        A. 7316                             4

     1  systems equipment and electricity exemption, such commercial solar ener-
     2  gy systems equipment and electricity  exemption,  commercial  fuel  cell
     3  electricity  generating  systems  equipment and electricity generated by
     4  such equipment exemption or such clothing and footwear exemption.
     5    §  4.  Subdivision  (d)  of section 1210 of the tax law, as amended by
     6  section 4 of part WW of chapter 60 of the laws of 2016,  is  amended  to
     7  read as follows:
     8    (d)  A local law, ordinance or resolution imposing any tax pursuant to
     9  this section, increasing or decreasing the rate of such  tax,  repealing
    10  or  suspending  such tax, exempting from such tax the energy sources and
    11  services described in paragraph three of subdivision (a) or of  subdivi-
    12  sion  (b)  of  this  section or changing the rate of tax imposed on such
    13  energy sources and services  or  providing  for  the  credit  or  refund
    14  described  in  clause  six  of subdivision (a) of section eleven hundred
    15  nineteen of this chapter, or electing or  repealing  the  exemption  for
    16  residential  solar  equipment  and  electricity  in  subdivision (ee) of
    17  section eleven hundred fifteen of this article,  or  the  exemption  for
    18  commercial  solar  equipment  and  electricity  in  subdivision  (ii) of
    19  section eleven hundred fifteen of this article, or electing or repealing
    20  the exemption for commercial fuel cell  electricity  generating  systems
    21  equipment  and  electricity  generated  by such equipment in subdivision
    22  (kk) of section eleven hundred fifteen of this article, or the exemption
    23  for residential energy storage equipment or electricity  in  subdivision
    24  (ll) of section eleven hundred fifteen of this article, or the exemption
    25  for  commercial  energy storage equipment and electricity in subdivision
    26  (mm) of section eleven hundred fifteen of  this  article  must  go  into
    27  effect  only  on  one  of  the following dates: March first, June first,
    28  September first or December first; provided, that a local law, ordinance
    29  or resolution providing for the exemption described in paragraph  thirty
    30  of  subdivision (a) of section eleven hundred fifteen of this chapter or
    31  repealing any such exemption or a local  law,  ordinance  or  resolution
    32  providing for a refund or credit described in subdivision (d) of section
    33  eleven  hundred  nineteen of this chapter or repealing such provision so
    34  provided must go into effect only on March first.  No  such  local  law,
    35  ordinance  or  resolution  shall be effective unless a certified copy of
    36  such law, ordinance or resolution is mailed by registered  or  certified
    37  mail to the commissioner at the commissioner's office in Albany at least
    38  ninety  days  prior  to the date it is to become effective. However, the
    39  commissioner  may  waive  and  reduce  such  ninety-day  minimum  notice
    40  requirement  to a mailing of such certified copy by registered or certi-
    41  fied mail within a period of not less than thirty  days  prior  to  such
    42  effective  date  if  the commissioner deems such action to be consistent
    43  with the commissioner's duties under section  twelve  hundred  fifty  of
    44  this  article  and  the  commissioner  acts  by  resolution.  Where  the
    45  restriction provided for in section twelve hundred twenty-three of  this
    46  article  as  to  the  effective date of a tax and the notice requirement
    47  provided for therein are  applicable  and  have  not  been  waived,  the
    48  restriction  and  notice  requirement  in section twelve hundred twenty-
    49  three of this article shall also apply.
    50    § 5. This act shall take effect immediately; provided,  however,  that
    51  section  three of this act shall take effect on the same date and in the
    52  same manner as part J of chapter 59 of the laws of 2021 takes effect.
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