Bill Text: NY S01385 | 2025-2026 | General Assembly | Introduced

---

Bill Title: Increases solar energy tax credits; implements a solar STAR credit; amends provisions relating to the role of municipalities in siting of major renewable energy facilities.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-09 - REFERRED TO BUDGET AND REVENUE [S01385 Detail]

Download: New_York-2025-S01385-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          1385

                               2025-2026 Regular Sessions

                    IN SENATE

                                     January 9, 2025
                                       ___________

        Introduced  by  Sen.  CANZONERI-FITZPATRICK  --  read  twice and ordered
          printed, and when printed to be committed to the Committee  on  Budget
          and Revenue

        AN  ACT  to  amend  the  tax law, in relation to the solar energy system
          equipment credit; to amend the real property tax law, in relation to a
          solar STAR credit; and to amend the public service law, in relation to
          siting major renewable energy facilities

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

     1    Section  1. Subsection (g-1) of section 606 of the tax law, as amended
     2  by chapter 378 of the laws of 2005, paragraphs 1 and  2  as  amended  by
     3  chapter  375 of the laws of 2012, paragraph 3 as amended, paragraph 5 as
     4  added, and paragraphs 6, 7 and 8 as renumbered by  chapter  128  of  the
     5  laws of 2007, is amended to read as follows:
     6    (g-1) Solar energy system equipment credit. (1) General. An individual
     7  taxpayer shall be allowed a credit against the tax imposed by this arti-
     8  cle  equal  to  [twenty-five]  forty  percent  of qualified solar energy
     9  system equipment expenditures, except as provided in subparagraph (D) of
    10  paragraph two of this subsection. This credit  shall  not  exceed  three
    11  thousand  seven  hundred fifty dollars for qualified solar energy equip-
    12  ment placed in service before September first, two thousand  six,  [and]
    13  five  thousand  dollars  for  qualified solar energy equipment placed in
    14  service on or after September first, two thousand six and before January
    15  first, two thousand twenty-six, and ten thousand dollars  for  qualified
    16  solar  energy equipment placed in service on or after January first, two
    17  thousand twenty-six.
    18    (2) Qualified solar energy system equipment expenditures. (A) The term
    19  "qualified solar energy system equipment  expenditures"  means  expendi-
    20  tures for:
    21    (i)  the  purchase of solar energy system equipment which is installed
    22  in connection with residential property which is  (I)  located  in  this

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01366-01-5
        S. 1385                             2

     1  state and (II) which is used by the taxpayer as [his or her] their prin-
     2  cipal  residence at the time the solar energy system equipment is placed
     3  in service;
     4    (ii) the lease of solar energy system equipment under a written agree-
     5  ment  that  spans  at  least  ten  years where such equipment owned by a
     6  person other than the taxpayer is installed in connection with  residen-
     7  tial  property which is (I) located in this state and (II) which is used
     8  by the taxpayer as [his or her] their principal residence  at  the  time
     9  the solar energy system equipment is placed in service; or
    10    (iii)  the  purchase  of power under a written agreement that spans at
    11  least ten years whereunder the power purchased  is  generated  by  solar
    12  energy  system equipment owned by a person other than the taxpayer which
    13  is installed in  connection  with  residential  property  which  is  (I)
    14  located  in this state and (II) which is used by the taxpayer as [his or
    15  her] their principal residence at  the  time  the  solar  energy  system
    16  equipment is placed in service.
    17    (B) Such qualified expenditures shall include expenditures for materi-
    18  als, labor costs properly allocable to on-site preparation, assembly and
    19  original  installation,  architectural  and  engineering  services,  and
    20  designs and plans directly related to the construction  or  installation
    21  of the solar energy system equipment.
    22    (C)  Such  qualified  expenditures  for  the  purchase of solar energy
    23  system equipment shall not include interest or other finance charges.
    24    (D) Such qualified expenditures for the lease of solar  energy  system
    25  equipment  or  the  purchase  of  power  under an agreement described in
    26  clauses (ii) or (iii)  of  subparagraph  (A)  of  this  paragraph  shall
    27  include  an  amount  equal  to all payments made during the taxable year
    28  under such agreement. Provided, however,  such  credits  shall  only  be
    29  allowed  for  fourteen  years after the first taxable year in which such
    30  credit is allowed. Provided further, however,  the  [twenty-five]  forty
    31  percent  limitation in paragraph one of this subsection shall only apply
    32  to the total aggregate amount of all payments to be made pursuant to  an
    33  agreement  referenced  in  clauses  (ii) or (iii) of subparagraph (A) of
    34  this paragraph, and shall not apply to individual payments made during a
    35  taxable year under such agreement except to the extent  such  limitation
    36  on an aggregate basis has been reached.
    37    (3)  Solar  energy  system  equipment.  The  term "solar energy system
    38  equipment" shall  mean  an  arrangement  or  combination  of  components
    39  utilizing solar radiation, which, when installed in a residence, produc-
    40  es  and may store energy designed to provide heating, cooling, hot water
    41  or electricity for use in such residence. Such arrangement or components
    42  may include electric energy storage equipment but shall not include  any
    43  other  equipment  connected  to  solar energy system equipment that is a
    44  component of part or parts of a non-solar energy system  or  which  uses
    45  any  sort  of  recreational  facility  or equipment as a storage medium.
    46  Solar energy system equipment that generates and stores electricity  for
    47  use  in a residence must conform to applicable requirements set forth in
    48  section sixty-six-j of the public service law. Provided, however,  where
    49  solar  energy system equipment is purchased and installed by a condomin-
    50  ium management association or a  cooperative  housing  corporation,  for
    51  purposes  of  this  subsection  only,  the  term "ten kilowatts" in such
    52  section sixty-six-j shall be read as "[fifty] ten" kilowatts  multiplied
    53  by  the number of owner-occupied units in the cooperative or condominium
    54  management association.
    55    (4)  Multiple  taxpayers.  Where  solar  energy  system  equipment  is
    56  purchased  and  installed in a principal residence shared by two or more
        S. 1385                             3

     1  taxpayers, the amount of the credit allowable under this subsection  for
     2  each  such taxpayer shall be prorated according to the percentage of the
     3  total expenditure for such solar energy system equipment contributed  by
     4  each taxpayer.
     5    (5)  Proportionate  share.  Where  solar  energy  system  equipment is
     6  purchased and installed by a condominium  management  association  or  a
     7  cooperative  housing  corporation,  a  taxpayer  who  is a member of the
     8  condominium management association or who is a tenant-stockholder in the
     9  cooperative housing corporation may for the purpose of  this  subsection
    10  claim  a proportionate share of the total expense as the expenditure for
    11  the purposes of the credit attributable to [his] their  principal  resi-
    12  dence.
    13    (6)  Grants. For purposes of determining the amount of the expenditure
    14  incurred in purchasing and installing solar energy system equipment, the
    15  amount of any federal, state or local grant received  by  the  taxpayer,
    16  which  was  used  for the purchase and/or installation of such equipment
    17  and which was not included in the federal gross income of the  taxpayer,
    18  shall not be included in the amount of such expenditures.
    19    (7)  When  credit  allowed.  The  credit  provided for herein shall be
    20  allowed with respect to the  taxable  year,  commencing  after  nineteen
    21  hundred  ninety-seven,  in  which  the  solar energy system equipment is
    22  placed in service.
    23    (8) Carryover of credit and refundability.  If the amount of the cred-
    24  it, and carryovers of such credit, allowable under this  subsection  for
    25  any  taxable  year  shall  exceed the taxpayer's tax for such year, such
    26  excess amount may be carried over to the five taxable years next follow-
    27  ing the taxable year with respect to which the credit is allowed and may
    28  be deducted from the taxpayer's tax for such year or years. For  taxable
    29  years  beginning  on or after January first, two thousand twenty-six, if
    30  the amount of the credit allowable under this  subsection  shall  exceed
    31  the  taxpayer's tax liability for such year, the excess shall be treated
    32  as an overpayment of tax to be credited or refunded in  accordance  with
    33  the  provisions  of  section  six  hundred  eighty-six  of this article,
    34  provided, however, that no interest shall be paid thereon.
    35    § 2. The real property tax law is amended  by  adding  a  new  section
    36  425-b to read as follows:
    37    §  425-b.  Solar  STAR  credit. 1. For the purposes of this section, a
    38  midscale solar energy project shall mean a solar powered project with at
    39  least one megawatt but no more than five megawatts of alternating  name-
    40  plate capacity.
    41    2.  Homeowners in municipalities that agree to host at least two mids-
    42  cale solar energy projects, not including any project that  has  already
    43  begun substantial construction, shall be eligible for a solar STAR cred-
    44  it  for  all  homeowners  living  in such municipality. Homeowners shall
    45  apply for and receive a solar STAR credit in the same manner  and at the
    46  same time as the existing STAR credit under section four  hundred  twen-
    47  ty-five  of this article and section six hundred six of the tax law. The
    48  value of the credit shall be equal to twenty-five percent of  the  total
    49  basic star credit available to qualified homeowners. This credit will be
    50  applied only after the conclusion of construction and interconnection of
    51  the second midscale solar project as defined. Such credit will be avail-
    52  able to eligible homeowners for a period of ten years.
    53    §  3. Subdivision 1 of section 140 of the public service law, as added
    54  by section 11 of part O of chapter 58 of the laws of 2024, is amended to
    55  read as follows:
        S. 1385                             4

     1    1. No person shall commence the preparation of a site  for,  or  begin
     2  the  construction of, a major renewable energy facility in the state, or
     3  increase the capacity of an existing major  renewable  energy  facility,
     4  without  having  first obtained a major renewable energy facility siting
     5  permit  pursuant  to  this  article and any permit required by a munici-
     6  pality in which the major renewable energy facility will be located. Any
     7  major renewable energy facility subject to this article with respect  to
     8  which  a  siting  permit  is issued shall not thereafter be built, main-
     9  tained, or operated except in conformity with such major renewable ener-
    10  gy facility siting permit and  any  terms,  limitations,  or  conditions
    11  contained  therein,  provided  that  nothing  in  this subdivision shall
    12  exempt such facility from compliance with federal laws and regulations.
    13    § 4. Subdivision 1 of section 141 of the public service law, as  added
    14  by section 11 of part O of chapter 58 of the laws of 2024, is amended to
    15  read as follows:
    16    1.  Except  as  provided  in paragraph (b) of subdivision five of this
    17  section, no person shall commence the preparation  of  a  site  for,  or
    18  begin the construction of, a major electric transmission facility in the
    19  state  without  having  first  obtained a siting permit pursuant to this
    20  article and any permit required by a municipality  in  which  the  major
    21  electric transmission facility will be located. Any major electric tran-
    22  smission facility subject to this article with respect to which a siting
    23  permit  is issued shall not thereafter be built, maintained, or operated
    24  except in conformity with such siting [permit] permits  and  any  terms,
    25  limitations,  or  conditions contained therein, provided that nothing in
    26  this subdivision shall exempt such facility from compliance with federal
    27  laws and regulations.
    28    § 5. Subdivision 5 of section 142 of the public service law, as  added
    29  by section 11 of part O of chapter 58 of the laws of 2024, is amended to
    30  read as follows:
    31    5.  Following the expiration of the public comment period set forth in
    32  this section, and following  the  conclusion  of  a  hearing  undertaken
    33  pursuant to subdivision four of this section, ORES shall, in the case of
    34  a  public comment period, issue a written summary of public comments and
    35  an assessment of comments received, and in the case of  an  adjudicatory
    36  hearing,  the  executive  director  or  any person to whom the executive
    37  director has delegated such authority shall issue a final written  hear-
    38  ing  report.  A  final  siting permit may only be issued if ORES makes a
    39  finding that the proposed project, together with any applicable  uniform
    40  and site-specific standards and conditions, would comply with applicable
    41  laws  and  regulations.  [In  making a final siting permit determination
    42  with respect to a major renewable energy facility, ORES may elect not to
    43  apply, in whole or in part, any local law or ordinance that would other-
    44  wise be applicable if it  makes  a  finding  that,  as  applied  to  the
    45  proposed  facility,  it  is unreasonably burdensome in view of the CLCPA
    46  targets, and the environmental benefits.]
    47    §6. Subdivision 2 of section 144 of the public service law,  as  added
    48  by section 11 of part O of chapter 58 of the laws of 2024, is amended to
    49  read as follows:
    50    2.  Notwithstanding  any  other  provision  of law, [including without
    51  limitation article eight of the environmental conservation law and arti-
    52  cle VII of this chapter, no other state agency, department or authority,
    53  or] any municipality [or political subdivision  or  any  agency  thereof
    54  may,  except as expressly authorized under this article or the rules and
    55  regulations promulgated under this article,] may require  any  approval,
    56  consent,  permit,  certificate,  contract, agreement, or other condition
        S. 1385                             5

     1  for the development, design, construction, operation, or decommissioning
     2  of a major renewable energy facility or a  major  electric  transmission
     3  facility  with  respect  to which an application for a siting permit has
     4  been  filed[, provided in the case of a municipality, political subdivi-
     5  sion or an agency thereof, such entity has received notice of the filing
     6  of the application therefor. Notwithstanding the foregoing, the  depart-
     7  ment  of  environmental  conservation shall be the permitting agency for
     8  permits issued pursuant to federally  delegated  or  federally  approved
     9  programs].
    10    § 7. Subdivisions 2 and 3 of section 146 of the public service law, as
    11  added  by  section  11  of part O of chapter 58 of the laws of 2024, are
    12  amended to read as follows:
    13    2. A judicial proceeding shall be brought in the third  department  of
    14  the  appellate  division  of the supreme court of the state of New York.
    15  Such proceeding shall be initiated by the filing of a petition  in  such
    16  court within ninety days after the issuance of a final decision by ORES,
    17  or  a  permitting  authority of a municipality, political subdivision or
    18  agency thereof, together with proof of service of a demand on ORES or  a
    19  permitting  authority, to file with said court a copy of a written tran-
    20  script of the record of the proceeding  and  a  copy  of  ORES's,  or  a
    21  permitting  authority's,  decision  and opinion. ORES's, or a permitting
    22  authority's, copy of said transcript, decision  and  opinion,  shall  be
    23  available at all reasonable times to all parties for examination without
    24  cost.  Upon  receipt  of  such petition and demand ORES, or a permitting
    25  authority, shall forthwith deliver to the court a copy of the record and
    26  a copy of ORES's, or a permitting  authority's,  decision  and  opinion.
    27  Thereupon, the court shall have jurisdiction of the proceeding and shall
    28  have  the power to grant such relief as it deems just and proper, and to
    29  make and enter an order enforcing, modifying and enforcing as  so  modi-
    30  fied,  remanding  for  further  specific evidence or findings or setting
    31  aside in whole or in part such decision. The appeal shall  be  heard  on
    32  the  record, without requirement of reproduction, and upon briefs to the
    33  court. The findings of fact on which such decision  is  based  shall  be
    34  conclusive if supported by substantial evidence on the record considered
    35  as  a whole and matters of judicial notice set forth in the opinion. The
    36  jurisdiction of the appellate division of the  supreme  court  shall  be
    37  exclusive  and  its judgment and order shall be final, subject to review
    38  by the court of appeals in the same manner and form and  with  the  same
    39  effect  as  provided  for  appeals  in  a  special  proceeding. All such
    40  proceedings shall be heard and determined by the appellate  division  of
    41  the supreme court and by the court of appeals as expeditiously as possi-
    42  ble and with lawful precedence over all other matters.
    43    3.  The  grounds for and scope of review of the court shall be limited
    44  to whether the decision and opinion of ORES, or a permitting  authority,
    45  are:
    46    (a)  In  conformity with the constitution, laws and regulations of the
    47  state and the United States;
    48    (b) Supported by substantial evidence in the  record  and  matters  of
    49  judicial notice properly considered and applied in the opinion;
    50    (c)  Within  the  statutory  jurisdiction  or  authority of ORES, or a
    51  permitting authority, and the department;
    52    (d) Made in accordance with procedures set forth in  this  section  or
    53  established by rule or regulation pursuant to this article;
    54    (e) Arbitrary, capricious or an abuse of discretion; or
        S. 1385                             6

     1    (f) Made pursuant to a process that afforded meaningful involvement of
     2  citizens  affected  by  the facility or project regardless of age, race,
     3  color, national origin and income.
     4    §  8.  This  act shall take effect immediately; provided, however that
     5  the amendments to article 8 of the public service law made  by  sections
     6  three,  four,  five,  six  and seven of this act shall be subject to the
     7  expiration and repeal of such article and shall  expire  and  be  deemed
     8  repealed therewith.