Bill Text: NY A09651 | 2017-2018 | General Assembly | Amended
Bill Title: Authorizes a tax exemption for certain energy systems; includes fuel-flexible linear generator among other energy systems which are exempt from taxation.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2018-11-05 - signed chap.325 [A09651 Detail]
Download: New_York-2017-A09651-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9651--B IN ASSEMBLY January 30, 2018 ___________ Introduced by M. of A. CUSICK, SIMOTAS -- read once and referred to the Committee on Real Property Taxation -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law, in relation to authorizing an exemption from taxation for certain energy systems The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (k) of subdivision 1 of section 487 of the real 2 property tax law, as added by chapter 336 of the laws of 2017, is 3 amended to read as follows: 4 (k) "Micro-combined heat and power generating equipment" means an 5 integrated, cogenerating building heating and electrical power gener- 6 ation system, owned, leased or operated by a residential customer, 7 located at such customer's premises, operating on any fuel and of any 8 applicable engine, fuel cell, fuel-flexible linear generator or other 9 technology with a rated capacity of at least one kilowatt and not more 10 than ten kilowatts electric and any thermal output that has a design 11 total fuel use efficiency in the production of heat and electricity of 12 not less than eighty percent, and annually produces at least two thou- 13 sand kilowatt hours of useful energy in the form of electricity that may 14 work in combination with supplemental or parallel conventional heating 15 systems, that is manufactured, installed and operated in accordance with 16 applicable government and industry standards, that is connected to the 17 electric system and operated in conjunction with an electric corpo- 18 ration's transmission and distribution facilities. It does not include 19 pipes, controls, insulation or other equipment which are part of the 20 normal heating, cooling, or insulation system of a building. It does not 21 include insulated glazing or insulation to the extent that such materi- 22 als exceed the energy efficiency standards established by law. 23 § 2. Subdivision 1 of section 487 of the real property tax law is 24 amended by adding two new paragraphs (o) and (p) to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14242-06-8A. 9651--B 2 1 (o) "Fuel-flexible linear generator electric generating equipment" or 2 "fuel-flexible linear generator" means an integrated system consisting 3 of oscillators, cylinders, electricity conversion equipment and associ- 4 ated balance of plant components that directly convert the linear motion 5 of the oscillators into electricity and which has a combined rated 6 capacity of not more than two thousand kilowatts. 7 (p) "Fuel-flexible linear generator electric generating system" means 8 an arrangement or combination of fuel-flexible linear generator electric 9 generating equipment designed to produce electrical energy from linear 10 motion created by the reaction of gaseous or liquid fuels, including but 11 not limited to biogas and natural gas. 12 § 3. Subdivisions 2, 3, 4, 5, and 8 of section 487 of the real proper- 13 ty tax law, subdivisions 2, 3, 4 and 5 and paragraph (a) of subdivision 14 8 as amended by chapter 336 of the laws of 2017, and subdivision 8 as 15 amended by chapter 344 of the laws of 2014, are amended to read as 16 follows: 17 2. Real property which includes a solar or wind energy system, farm 18 waste energy system, micro-hydroelectric energy system, fuel cell elec- 19 tric generating system, micro-combined heat and power generating equip- 20 ment system, [or] electric energy storage equipment and electric energy 21 storage system, or fuel-flexible linear generator electric generating 22 system approved in accordance with the provisions of this section shall 23 be exempt from taxation to the extent of any increase in the value ther- 24 eof by reason of the inclusion of such solar or wind energy system, farm 25 waste energy system, micro-hydroelectric energy system, fuel cell elec- 26 tric generating system, micro-combined heat and power generating equip- 27 ment system, [or] electric energy storage equipment and electric energy 28 storage system, or fuel-flexible linear generator electronic generating 29 system for a period of fifteen years. When a solar or wind energy system 30 or components thereof, farm waste energy system, micro-hydroelectric 31 energy system, fuel cell electric generating system, micro-combined heat 32 and power generating equipment system, [or] electric energy storage 33 equipment and electric energy storage system, or fuel-flexible linear 34 generator electronic generating system also serve as part of the build- 35 ing structure, the increase in value which shall be exempt from taxation 36 shall be equal to the assessed value attributable to such system or 37 components multiplied by the ratio of the incremental cost of such 38 system or components to the total cost of such system or components. The 39 exemption provided by this section is inapplicable to any structure that 40 satisfies the requirements for exemption under section four hundred 41 eighty-three-e of this title. 42 3. The president of the authority shall provide definitions and guide- 43 lines for the eligibility for exemption of the solar and wind energy 44 equipment and systems, farm waste energy equipment and systems, micro- 45 hydroelectric equipment and systems, fuel cell electric generating 46 equipment and systems, micro-combined heat and power generating equip- 47 ment and systems [and], electric energy storage equipment and electric 48 energy storage system, and fuel-flexible linear generator electric 49 generating equipment and systems described in paragraphs (a), (b), (e), 50 (f), (g), (h), (i), (j), (k), (l), (m) [and], (n), (o) and (p) of subdi- 51 vision one of this section. 52 4. No solar or wind energy system, farm waste energy system, micro-hy- 53 droelectric energy system, fuel cell electric generating system, micro- 54 combined heat and power generating equipment system, [or] electric ener- 55 gy storage equipment and electric energy storage system, or 56 fuel-flexible linear generator electric generating system shall be enti-A. 9651--B 3 1 tled to any exemption from taxation under this section unless such 2 system meets the guidelines set by the president of the authority and 3 all other applicable provisions of law. 4 5. The exemption granted pursuant to this section shall only be appli- 5 cable to (a) solar or wind energy systems or farm waste energy systems 6 which are (i) existing or constructed prior to July first, nineteen 7 hundred eighty-eight or (ii) constructed subsequent to January first, 8 nineteen hundred ninety-one and prior to January first, two thousand 9 twenty-five, and (b) micro-hydroelectric energy systems, fuel cell elec- 10 tric generating systems, micro-combined heat and power generating equip- 11 ment systems, [or] electric energy storage equipment or electric energy 12 storage system, or fuel-flexible linear generator electric generating 13 system which are constructed subsequent to January first, two thousand 14 eighteen and prior to January first, two thousand twenty-five. 15 8. (a) Notwithstanding the provisions of subdivision two of this 16 section, a county, city, town or village may by local law or a school 17 district, other than a school district to which article fifty-two of the 18 education law applies, may by resolution provide either (i) that no 19 exemption under this section shall be applicable within its jurisdiction 20 with respect to any solar or wind energy system or farm waste energy 21 system which began construction subsequent to January first, nineteen 22 hundred ninety-one or the effective date of such local law, ordinance or 23 resolution, whichever is later, and/or (ii) that no exemption under this 24 section shall be applicable within its jurisdiction with respect to any 25 micro-hydroelectric energy system, fuel cell electric generating system, 26 micro-combined heat and power generating equipment system, [or] electric 27 energy storage equipment or electric energy storage system, or fuel- 28 flexible linear generator electric generating system constructed subse- 29 quent to January first, two thousand eighteen or the effective date of 30 such local law, ordinance or resolution, whichever is later. A copy of 31 any such local law or resolution shall be filed with the commissioner 32 and with the president of the authority. 33 (b) Construction of a solar or wind energy system or a farm waste 34 energy system shall be deemed to have begun upon the full execution of a 35 contract or interconnection agreement with a utility; provided however, 36 that if such contract or interconnection agreement requires a deposit to 37 be made, then construction shall be deemed to have begun when the 38 contract or interconnection agreement is fully executed and the deposit 39 is made. The owner or developer of such a system shall provide written 40 notification to the appropriate local jurisdiction or jurisdictions upon 41 execution of the contract or the interconnection agreement. 42 § 4. This act shall take effect March 1, 2019.
