Bill Text: NY A08887 | 2021-2022 | General Assembly | Introduced


Bill Title: Provides a tax abatement for facility-integrated carbon-to-value equipment in a city with a population of one million or more.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2022-01-19 - referred to real property taxation [A08887 Detail]

Download: New_York-2021-A08887-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8887

                   IN ASSEMBLY

                                    January 19, 2022
                                       ___________

        Introduced  by M. of A. CARROLL -- read once and referred to the Commit-
          tee on Real Property Taxation

        AN ACT to amend the real property tax law, in relation  to  providing  a
          tax abatement for facility-integrated carbon-to-value equipment

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

     1    Section 1. Article 4 of the real property tax law is amended by adding
     2  a new title 5-A to read as follows:
     3                                  TITLE 5-A
     4      CARBON-TO-VALUE TAX ABATEMENT FOR CERTAIN PROPERTIES IN A CITY OF
     5                         ONE MILLION OR MORE PERSONS
     6  Section 499-aaaaa. Definitions.
     7          499-bbbbb. Tax abatement terms and amounts.
     8          499-ccccc. Tax abatement application guidelines and rules.
     9          499-ddddd. Tax abatement continuing requirements.
    10          499-eeeee. Tax abatement revocation rules.
    11          499-fffff. Tax abatement enforcement and administration.
    12          499-ggggg. Tax lien and interest rules.
    13    § 499-aaaaa. Definitions. When used in this title:
    14    1. "Anthropogenic carbon dioxide emissions" shall refer to the release
    15  of heat-trapping carbon dioxide  pollution  into  the  atmosphere  as  a
    16  result of human activities.
    17    2.  "Application  for  tax  abatement" shall mean an application for a
    18  facility-integrated carbon-to-value equipment tax abatement pursuant  to
    19  section four hundred ninety-nine-ccccc of this title.
    20    3.  "Carbon  dioxide  beneficial  use"  shall refer to a practice that
    21  involves the utilization of carbon dioxide in a process to manufacture a
    22  product or operate equipment that: (a) results in  a  net  reduction  in
    23  operational  and/or  embodied  carbon dioxide at a facility or property;
    24  and (b) is verified by a life cycle assessment in compliance with Inter-
    25  national Standard ISO 14040.
    26    4. "Carbon dioxide capture" shall refer to the  process  of  capturing
    27  carbon  dioxide  at  emissions  point  sources located at facilities and
    28  buildings.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14297-01-2

        A. 8887                             2

     1    5. "Carbon dioxide removal" shall refer to  the  process  of  removing
     2  carbon dioxide from the atmosphere.
     3    6.  "Carbon  dioxide storage" shall refer to the process of chemically
     4  and/or physically sequestering carbon dioxide emissions from post-indus-
     5  trial or atmospheric sources in materials, products or geological forma-
     6  tions for periods of time equal or greater to one hundred years.
     7    7. "Compliance period" shall mean the tax year in which a  tax  abate-
     8  ment  commences  and  the  three  tax  years immediately thereafter. For
     9  eligible carbon-to-value applications  placed  in  service  at  eligible
    10  buildings  for  which  annual  property  tax  liability for the eligible
    11  building is less than one hundred thousand dollars, and for  which  five
    12  percent  of  the eligible carbon-to-value equipment expenditures exceeds
    13  one hundred thousand dollars, the compliance period shall be extended to
    14  a maximum of eight tax years to allow eligible building owners to  avail
    15  a  tax  abatement  equal  to  the  lesser  of twenty percent of eligible
    16  carbon-to-value  equipment  expenditures,  or  eight  hundred   thousand
    17  dollars.
    18    8.  "Designated agency" shall mean one or more agencies or departments
    19  of a city having a population of one million or more  persons  that  are
    20  designated  by  the mayor of such city to exercise the functions, powers
    21  and duties of a designated agency  pursuant  to  this  title,  including
    22  certification  of  eligible  carbon-to-value equipment, applications and
    23  buildings.
    24    9. "Eligible carbon-to-value application" shall mean  the  application
    25  of  carbon-to-value equipment at facilities for the purposes of mitigat-
    26  ing carbon dioxide emissions that are: (a) generated as a result of  the
    27  operation of that facility; and/or (b) the manufacture of materials that
    28  are  prepared or produced at that facility, by technologies that remove,
    29  capture and/or beneficially use  carbon  dioxide,  resulting  in  a  net
    30  reduction of carbon dioxide emissions.
    31    10.  "Eligible  building"  shall mean class four real property located
    32  within a city having a population of one million or more persons. Desig-
    33  nated agencies shall be empowered  to  exclude  property  tax  abatement
    34  eligibility  of  certain  building  types on the basis of carbon dioxide
    35  emissions reduction and/or environmental justice considerations  if  the
    36  latter  are  determined  to contradict the intent of existing local laws
    37  that have been established to reduce the  carbon  dioxide  emissions  of
    38  such  buildings.    No  building  shall be eligible for the property tax
    39  abatement, under this provision, if the designated agencies empowered to
    40  administer such abatement, deem that such  building  has  not  exhausted
    41  other viable methods to reduce the building's carbon emissions in align-
    42  ment  with rules, objectives and programs established pursuant of exist-
    43  ing local laws. No building shall be eligible  for  more  than  one  tax
    44  abatement pursuant to this title.
    45    11.  "Eligible  carbon-to-value  equipment  expenditures"  shall  mean
    46  reasonable expenditures for materials, labor costs properly allocable to
    47  on-site preparation, assembly and original  installation,  architectural
    48  and  engineering services, and designs and plans directly related to the
    49  construction or installation of a carbon-to-value equipment installed in
    50  connection with an eligible building. Such eligible  expenditures  shall
    51  not  include  interest  or  other  finance  charges, or any expenditures
    52  incurred using a federal, state or local grant.
    53    12. "Environmental justice areas" shall mean low-income communities or
    54  minority communities located in a city of one million  or  more  persons
    55  that  have  been  designated  and defined pursuant to local law based on
    56  United States census data.

        A. 8887                             3

     1    13. "Facility-integrated carbon-to-value equipment" refers to technol-
     2  ogies placed in service at buildings within a city  of  one  million  or
     3  more  persons  that  remove carbon dioxide from the ambient air, capture
     4  carbon dioxide from emissions point sources  located  at  the  property,
     5  and/or  utilize carbon dioxide in the production of goods and materials.
     6  Qualified carbon-to-value equipment must perform functions  that  result
     7  either  in verifiable carbon dioxide removal and storage or constitute a
     8  verifiable carbon dioxide beneficial use  that  results  in  reduced  or
     9  avoided carbon dioxide emissions.
    10    § 499-bbbbb. Tax abatement terms and amounts. 1. If the facility-inte-
    11  grated  carbon-to-value equipment is placed in service on or after Janu-
    12  ary first, two thousand twenty-two, and not after December thirty-first,
    13  two thousand twenty-seven, for each year of the compliance  period  such
    14  tax  abatement  shall  be  the  lesser  of: (a) five percent of eligible
    15  facility-integrated  carbon-to-value  equipment  expenditures;  (b)  the
    16  amount  of  taxes  payable in such tax year; or (c) one hundred thousand
    17  dollars.
    18    2. For facility-integrated  carbon-to-value  equipment  that  captures
    19  carbon dioxide from boiler systems that combust fossil-based hydrocarbon
    20  fuels  eligibility for the property tax abatement shall be restricted to
    21  properties that meet the following conditions:
    22    (a) Boiler systems that are located at the  property  were  placed  in
    23  service  between  January first, two thousand fourteen and April twenty-
    24  second, two thousand nineteen.
    25    (b) The carbon dioxide  captured  at  the  property  by  the  proposed
    26  carbon-to-value application shall:
    27    (i) be utilized subsequent to capture within the physical jurisdiction
    28  of the city with a population or one million or more people; and
    29    (ii)  result in the storage of carbon dioxide in materials for periods
    30  of no less than one hundred years in duration.
    31    (c) The carbon-to-value application at the property shall  demonstrate
    32  net  carbon dioxide reductions as verified by a life cycle assessment in
    33  compliance with International Standard ISO 14040.
    34    (d) The equipment shall not be located  at  buildings  located  within
    35  designated  environmental  justice  areas  as  defined  by a city of one
    36  million or more persons pursuant to local law.
    37    § 499-ccccc. Tax abatement application guidelines and rules.    1.  To
    38  obtain a tax abatement pursuant to this title, an applicant must file an
    39  application  for  tax  abatement, which may be filed on or after January
    40  first, two thousand twenty-three, and on or before March fifteenth,  two
    41  thousand twenty-eight.
    42    2. Such an application shall contain the following:
    43    (a)  The  name  and  address  of the applicant and the location of the
    44  facility-integrated carbon-to-value equipment.
    45    (b) The type of facility-integrated carbon-to-value equipment.
    46    (c) A description of the specific utilization or utilizations  of  the
    47  carbon  dioxide  that  will be removed or captured by the facility-inte-
    48  grated carbon-to-value equipment.
    49    (d) Proof that the applicant  received  all  required  certifications,
    50  permits   and  other  approvals  to  construct  the  facility-integrated
    51  carbon-to-value equipment.
    52    (e) Certifications in a form prescribed by a designated  agency,  from
    53  an  architect, engineer or other certified or licensed professional whom
    54  a designated agency designates by rule, that: (i) a  facility-integrated
    55  carbon-to-value  equipment has been placed in service in connection with
    56  an eligible building in accordance with this title, the rules promulgat-

        A. 8887                             4

     1  ed hereunder, and local construction and fire codes; and (ii) if  deemed
     2  applicable by a designated agency, the facility-integrated carbon-to-va-
     3  lue  equipment has been placed on the roof of a building or other struc-
     4  ture,  that  a  structural analysis has been performed establishing that
     5  such building or structure can sustain the load of  such  facility-inte-
     6  grated  carbon-to-value  equipment.  All certifications required by this
     7  title or the rules promulgated hereunder shall set  forth  the  specific
     8  findings upon which the certification is based, and shall include infor-
     9  mation  sufficient  to  identify  the  eligible building, the certifying
    10  engineer, architect or other professional, and such other information as
    11  may be prescribed by a designated agency.
    12    (f) If deemed applicable, an agreement to permit a  designated  agency
    13  or  its  designee  to  inspect  the  facility-integrated carbon-to-value
    14  equipment and any  related  structures  and  equipment  upon  reasonable
    15  notice.
    16    (g)  Any  other information or certifications required by a designated
    17  agency pursuant to this title and the rules promulgated hereunder.
    18    § 499-ddddd. Tax abatement continuing requirements. The tax  abatement
    19  shall be conditioned upon:
    20    1.  continuing compliance during the compliance period with all appli-
    21  cable  provisions  of  law,  including  without  limitation  the   local
    22  construction   and   fire  codes,  maintaining  the  facility-integrated
    23  carbon-to-value equipment in such a manner that it continuously  consti-
    24  tutes a facility-integrated carbon-to-value equipment within the meaning
    25  of  this  title  and  the  rules promulgated hereunder, and permitting a
    26  designated agency or its designee  to  inspect  the  facility-integrated
    27  carbon-to-value  equipment and any related structures and equipment upon
    28  reasonable notice; and
    29    2. property taxes, water and sewer charges, payments in lieu of  taxes
    30  or  other  municipal  charges  with  respect to an eligible building not
    31  having been due and owing during the compliance period for a  period  of
    32  six months or more.
    33    §  499-eeeee.  Tax  abatement  revocation  rules. 1. The department of
    34  taxation and finance shall revoke, in whole or in part, any  tax  abate-
    35  ment  granted  pursuant  to  this title whenever a designated agency has
    36  determined and notified the department of taxation and finance that:
    37    (a) an applicant has failed to comply with a requirement of this title
    38  or any rule promulgated hereunder at  any  time  during  the  compliance
    39  period including, but not limited to, any of the continuing requirements
    40  set  forth  in subdivision one of section four hundred ninety-nine-ddddd
    41  of this title;
    42    (b) an eligible building has not been in compliance at any time during
    43  the compliance period with a requirement  of  this  title  or  any  rule
    44  promulgated hereunder;
    45    (c)  the facility-integrated carbon-to-value equipment for which a tax
    46  abatement was granted has at  any  time  during  the  compliance  period
    47  failed to meet any requirement for a facility-integrated carbon-to-value
    48  equipment pursuant to this title or any rule promulgated hereunder;
    49    (d) facility-integrated carbon-to-value equipment has become a fire or
    50  safety hazard at any time during the compliance period; or
    51    (e)  an application, certification, report or other document submitted
    52  by the applicant contains a false or misleading statement as to a  mate-
    53  rial fact or omits to state any material fact necessary in order to make
    54  the statement therein not false or misleading.
    55    2.  The  department of taxation and finance may revoke, in whole or in
    56  part, any tax abatement granted pursuant to this title whenever  it  has

        A. 8887                             5

     1  determined  that  an  applicant has failed to comply with the continuing
     2  requirements set forth in section four hundred ninety-nine-ddddd of this
     3  title.
     4    3.  Where  it has been determined by a designated agency, after notice
     5  and an opportunity to be heard, that any of the provisions  of  subdivi-
     6  sion  one  of  this section have not been complied with, such designated
     7  agency shall notify the department of taxation and finance no later than
     8  the ninetieth day after the last day of the compliance period.
     9    4. An applicant shall pay, with interest, such part of any tax  abate-
    10  ment  received pursuant to this title that represents the period of non-
    11  compliance as determined by the designated agency or the  department  of
    12  taxation  and  finance. In addition, a designated agency may declare any
    13  applicant ineligible for future tax abatement pursuant to this title  if
    14  any  application,  certification,  report or other document submitted by
    15  the applicant contains a false or misleading statement as to a  material
    16  fact  or omits to state any material fact necessary in order to make the
    17  statement therein not false or misleading.
    18    § 499-fffff. Tax abatement enforcement and  administration.  1.    The
    19  department  of taxation and finance shall have, in addition to any other
    20  functions, powers and duties that have been or may be conferred on it by
    21  law, the following functions, powers  and  duties  to  be  exercised  in
    22  accordance with this title:
    23    (a) to apply a tax abatement;
    24    (b) to revoke all or part of any such tax abatement;
    25    (c)  to  make  and  promulgate rules to carry out the purposes of this
    26  title; and
    27    (d) any other function, power or  duty  necessarily  implied  by  this
    28  title.
    29    2. A designated agency shall have, in addition to any other functions,
    30  powers  and  duties that have been or may be conferred on it by law, the
    31  following functions, powers and duties to  be  exercised  in  accordance
    32  with this title:
    33    (a)  to  receive, review, approve and deny applications for tax abate-
    34  ment;
    35    (b) to inspect facility-integrated carbon-to-value equipment  and  any
    36  related structures and equipment;
    37    (c)  to  establish  permit  or certification requirements to determine
    38  when the facility-integrated carbon-to-value equipment has  been  placed
    39  in  service,  such  as  certification by an architect, engineer or other
    40  certified or licensed professional whom a designated  agency  designates
    41  by rule;
    42    (d) to establish guidance and procedures for determining or certifying
    43  eligible facility-integrated carbon-to-value equipment expenditures;
    44    (e)  to prescribe forms and make and promulgate rules to carry out the
    45  purposes of this title;
    46    (f) to make the determinations provided for in this title and to noti-
    47  fy the department of taxation and finance of such determinations; and
    48    (g) any other function, power or  duty  necessarily  implied  by  this
    49  title.
    50    3.  If a designated agency determines that an architect or engineer or
    51  other certified or licensed professional whom a designated agency desig-
    52  nates by rule, in making any certification under this title or any  rule
    53  promulgated  hereunder,  engaged  in  professional misconduct, then such
    54  agency shall so inform the education  department  or  other  appropriate
    55  certifying or licensing authority.

        A. 8887                             6

     1    4.  A  designated  agency  may  provide  for reasonable administrative
     2  charges or fees necessary to defray expenses of  administering  the  tax
     3  abatement program established by this title.
     4    5.  A  designated  agency  and  the department of taxation and finance
     5  shall establish procedures that are necessary or  appropriate  for:  (a)
     6  the  timely  notification to the department of taxation and finance by a
     7  designated agency of an approval of an application for tax abatement  or
     8  of  any noncompliance pursuant to section four hundred ninety-nine-eeeee
     9  of this title; and (b) any other interagency coordination to  facilitate
    10  the purposes of this title.
    11    §  499-ggggg.  Tax  lien and interest rules. All taxes, with interest,
    12  required to be paid retroactively pursuant to this title  shall  consti-
    13  tute  a tax lien as of the date it is determined such taxes and interest
    14  are owed. All interest shall be calculated from the date the taxes would
    15  have been due but for the tax abatement granted pursuant to  this  title
    16  at  the  applicable rate or rates of interest imposed generally for non-
    17  payment of real property tax with respect to the eligible  building  for
    18  the period in question.
    19    § 2. This act shall take effect immediately.
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