Bill Text: NY S00254 | 2019-2020 | General Assembly | Amended
Bill Title: Establishes a tax credit for the purchase and installation of geothermal energy systems.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-15 - PRINT NUMBER 254A [S00254 Detail]
Download: New_York-2019-S00254-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 254--A 2019-2020 Regular Sessions IN SENATE (Prefiled) January 9, 2019 ___________ Introduced by Sens. KENNEDY, METZGER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investi- gations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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. 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- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05723-02-0S. 254--A 2 1 tial property which is (I) located in this state and (II) which is used 2 by the taxpayer as his or her principal residence at the time the geoth- 3 ermal energy system equipment is placed in service; or 4 (iii) the purchase of power under a written agreement that spans at 5 least ten years whereunder the power purchased is generated by geother- 6 mal energy system equipment owned by a person other than the taxpayer 7 which is installed in connection with residential property which is (I) 8 located in this state and (II) used by the taxpayer as his or her prin- 9 cipal residence at the time the geothermal energy system equipment is 10 placed in service. 11 (B) Such qualified expenditures shall include expenditures for materi- 12 als, labor costs properly allocable to on-site preparation, assembly and 13 original installation, architectural and engineering services, and 14 designs and plans directly related to the construction or installation 15 of the geothermal energy system equipment. 16 (C) Such qualified expenditures for the purchase of geothermal energy 17 system equipment shall not include interest or other finance charges. 18 (D) Such qualified expenditures for the lease of geothermal energy 19 system equipment or the purchase of power under an agreement described 20 in clause (ii) or (iii) of subparagraph (A) of this paragraph shall 21 include an amount equal to all payments made during the taxable year 22 under such agreement. Provided, however, such credits shall only be 23 allowed for fourteen years after the first taxable year in which such 24 credit is allowed. Provided further, however, the twenty-five percent 25 limitation in paragraph one of this subsection shall only apply to the 26 total aggregate amount of all payments to be made pursuant to an agree- 27 ment referenced in clause (ii) or (iii) of subparagraph (A) of this 28 paragraph, and shall not apply to individual payments made during a 29 taxable year under such agreement except to the extent such limitation 30 on an aggregate basis has been reached. 31 (3) Geothermal energy system equipment. The term "geothermal energy 32 system equipment" shall mean a system whose original use begins with the 33 taxpayer; which meets the eligibility criteria, if any, prescribed by 34 the department; and which is a ground coupled solar thermal system that 35 utilizes the solar thermal energy stored in the ground or in bodies of 36 water to produce heat, and which is commonly known as or referred to as 37 a ground source heat pump system. 38 (4) Multiple taxpayers. Where geothermal energy system equipment is 39 purchased and installed in a principal residence shared by two or more 40 taxpayers, the amount of the credit allowable under this subsection for 41 each such taxpayer shall be prorated according to the percentage of the 42 total expenditure for such geothermal energy system equipment contrib- 43 uted by each taxpayer. 44 (5) Proportionate share. Where geothermal energy system equipment is 45 purchased and installed by a condominium management association or a 46 cooperative housing corporation, a taxpayer who is a member of the 47 condominium management association or who is a tenant-stockholder in the 48 cooperative housing corporation may for the purpose of this subsection 49 claim a proportionate share of the total expense as the expenditure for 50 the purposes of the credit attributable to his principal residence. 51 (6) Grants. For purposes of determining the amount of the expenditure 52 incurred in purchasing and installing geothermal energy system equip- 53 ment, the amount of any federal, state or local grant received by the 54 taxpayer, which was used for the purchase and/or installation of such 55 equipment and which was not included in the federal gross income of the 56 taxpayer, shall not be included in the amount of such expenditures.S. 254--A 3 1 (7) When credit allowed. The credit provided for herein shall be 2 allowed with respect to the taxable year, commencing after two thousand 3 twenty-one, in which the geothermal energy system equipment is placed in 4 service. 5 (8) Carryover of credit. If the amount of the credit, and carryovers 6 of such credit, allowable under this subsection for any taxable year 7 shall exceed the taxpayer's tax for such year, such excess amount may be 8 carried over to the five taxable years next following the taxable year 9 with respect to which the credit is allowed and may be deducted from the 10 taxpayer's tax for such year or years. 11 § 2. This act shall take effect immediately and shall apply to taxable 12 years commencing on and after January 1, 2021.