Bill Text: NY A07493 | 2021-2022 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 34-1)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A07493 Detail]

Download: New_York-2021-A07493-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7493

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      May 11, 2021
                                       ___________

        Introduced  by  M.  of  A. J. D. RIVERA -- 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)  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 twenty-one.
    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
    24    (iii) the purchase of power under a written agreement  that  spans  at
    25  least  ten years whereunder the power purchased is generated by geother-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06935-01-1
        A. 7493                             2

     1  mal energy system equipment owned by a person other  than  the  taxpayer
     2  which  is installed in connection with residential property which is (I)
     3  located in this state and (II) used by the taxpayer as his or her  prin-
     4  cipal  residence  at  the time the geothermal energy system equipment is
     5  placed in service.
     6    (B) Such qualified expenditures shall include expenditures for materi-
     7  als, labor costs properly allocable to on-site preparation, assembly and
     8  original  installation,  architectural  and  engineering  services,  and
     9  designs  and  plans directly related to the construction or installation
    10  of the geothermal energy system equipment.
    11    (C) Such qualified expenditures for the purchase of geothermal  energy
    12  system equipment shall not include interest or other finance charges.
    13    (D)  Such  qualified  expenditures  for the lease of geothermal energy
    14  system equipment or the purchase of power under an  agreement  described
    15  in  clause  (ii)  or  (iii)  of subparagraph (A) of this paragraph shall
    16  include an amount equal to all payments made  during  the  taxable  year
    17  under  such  agreement.  Provided,  however,  such credits shall only be
    18  allowed for fourteen years after the first taxable year  in  which  such
    19  credit  is  allowed.  Provided further, however, the twenty-five percent
    20  limitation in paragraph one of this subsection shall only apply  to  the
    21  total  aggregate amount of all payments to be made pursuant to an agree-
    22  ment referenced in clause (ii) or (iii)  of  subparagraph  (A)  of  this
    23  paragraph,  and  shall  not  apply  to individual payments made during a
    24  taxable year under such agreement except to the extent  such  limitation
    25  on an aggregate basis has been reached.
    26    (3)  Geothermal  energy  system equipment. The term "geothermal energy
    27  system equipment" shall mean a system whose original use begins with the
    28  taxpayer; which meets the eligibility criteria, if  any,  prescribed  by
    29  the  department; and which is a ground coupled solar thermal system that
    30  utilizes the solar thermal energy stored in the ground or in  bodies  of
    31  water  to produce heat, and which is commonly known as or referred to as
    32  a ground source heat pump system.
    33    (4) Multiple taxpayers. Where geothermal energy  system  equipment  is
    34  purchased  and  installed in a principal residence shared by two or more
    35  taxpayers, the amount of the credit allowable under this subsection  for
    36  each  such taxpayer shall be prorated according to the percentage of the
    37  total expenditure for such geothermal energy system  equipment  contrib-
    38  uted by each taxpayer.
    39    (5)  Proportionate  share. Where geothermal energy system equipment is
    40  purchased and installed by a condominium  management  association  or  a
    41  cooperative  housing  corporation,  a  taxpayer  who  is a member of the
    42  condominium management association or who is a tenant-stockholder in the
    43  cooperative housing corporation may for the purpose of  this  subsection
    44  claim  a proportionate share of the total expense as the expenditure for
    45  the purposes of the credit attributable to his principal residence.
    46    (6) Grants. For purposes of determining the amount of the  expenditure
    47  incurred  in  purchasing  and installing geothermal energy system equip-
    48  ment, the amount of any federal, state or local grant  received  by  the
    49  taxpayer,  which  was  used for the purchase and/or installation of such
    50  equipment and which was not included in the federal gross income of  the
    51  taxpayer, shall not be included in the amount of such expenditures.
    52    (7)  When  credit  allowed.  The  credit  provided for herein shall be
    53  allowed with respect to the taxable year, commencing after two  thousand
    54  twenty-two, in which the geothermal energy system equipment is placed in
    55  service.
        A. 7493                             3

     1    (8)  Carryover  of credit. If the amount of the credit, and carryovers
     2  of such credit, allowable under this subsection  for  any  taxable  year
     3  shall exceed the taxpayer's tax for such year, such excess amount may be
     4  carried  over  to the five taxable years next following the taxable year
     5  with respect to which the credit is allowed and may be deducted from the
     6  taxpayer's tax for such year or years.
     7    § 2. This act shall take effect immediately and shall apply to taxable
     8  years commencing on and after January 1, 2022.