STATE OF NEW YORK
        ________________________________________________________________________

                                          10286

                   IN ASSEMBLY

                                      April 8, 2020
                                       ___________

        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 service of installing such systems. For  the  purposes
    23  of this subdivision, "commercial energy storage systems equipment" shall
    24  mean  an arrangement or combination of components installed upon non-re-
    25  sidential premises that stores electricity for use at a  later  time  to
    26  provide heating, cooling, hot water and/or electricity. Such arrangement
    27  or  components  shall  not include equipment that is part of a non-solar
    28  energy system.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15984-01-0

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

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     1  such  commercial  solar  energy  systems   equipment   and   electricity
     2  exemption, commercial fuel cell electricity generating systems equipment
     3  and  electricity  generated by such equipment exemption or such clothing
     4  and footwear exemption.
     5    §  3.  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 section (mm)
    26  of section eleven hundred fifteen of this article must  go  into  effect
    27  only  on  one of the following dates: March first, June first, September
    28  first or December first; provided, that a local law, ordinance or resol-
    29  ution providing for the  exemption  described  in  paragraph  thirty  of
    30  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    § 4. This act shall take effect immediately.