Bill Text: NY S03592 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to establishing a corporate and a personal income tax credit for wind energy system equipment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S03592 Detail]

Download: New_York-2019-S03592-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3592
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 11, 2019
                                       ___________
        Introduced  by  Sen.  PARKER -- 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 establishing a corporate and
          a personal income tax credit for wind energy system equipment
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  210-B  of the tax law is amended by adding a new
     2  subdivision 53 to read as follows:
     3    53. Wind energy system equipment credit.  (a) General. A taxpayer, who
     4  owns or operates wind energy system equipment, shall be allowed a credit
     5  against the tax imposed by this article equal to twenty-five percent  of
     6  qualified  wind  energy system equipment expenditures. This credit shall
     7  not exceed seven thousand five hundred dollars.
     8    (b) Qualified wind energy system equipment expenditures. (i) The  term
     9  "qualified  wind  energy  system  equipment expenditures" means expendi-
    10  tures, limited to the expenditure cap prescribed in subparagraph (ii) of
    11  this paragraph, for the purchase of wind energy system  equipment  which
    12  is  installed  in  connection with property which is (A) located in this
    13  state and (B) which is used by the taxpayer  as  his  or  her  principal
    14  premises  at  the  time  the  wind  energy system equipment is placed in
    15  service.
    16    (ii) For purposes of subparagraph (i)  of  this  paragraph,  the  term
    17  "expenditure  cap" shall mean the product of (A) six dollars and (B) the
    18  number of watts included in the rated capacity of the wind energy system
    19  equipment.
    20    (iii) Such qualified expenditures shall include expenditures for mate-
    21  rials, labor costs properly allocable to on-site  preparation,  assembly
    22  and  original  installation, architectural and engineering services, and
    23  designs and plans directly related to the construction  or  installation
    24  of the wind energy system equipment.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09567-01-9
        S. 3592                             2
     1    (iv)  Such  qualified expenditures shall not include interest or other
     2  finance charges.
     3    (c)  Wind energy system equipment. The term "wind energy system equip-
     4  ment" shall mean equipment which, when installed at a  taxpayer's  prem-
     5  ises, uses wind energy for the purpose of generating electricity for use
     6  in such premises.
     7    (d)   Multiple  taxpayers.  Where  wind  energy  system  equipment  is
     8  purchased and installed in a principal premises shared by  two  or  more
     9  taxpayers, the amount of the credit allowable under this subdivision for
    10  each  such taxpayer shall be prorated according to the percentage of the
    11  total expenditure for such wind energy system equipment  contributed  by
    12  each taxpayer.
    13    (e)  When  credit allowed. The credit for wind energy system equipment
    14  provided for in this subdivision shall be allowed with  respect  to  the
    15  taxable  year, commencing after two thousand nineteen, in which the wind
    16  energy system equipment is placed in service.
    17    (f) Carryover of credit. If the amount of the credit,  and  carryovers
    18  of  such  credit,  allowable under this subdivision for any taxable year
    19  shall exceed the taxpayer's tax for such year, such excess amount may be
    20  carried over to the five taxable years next following the  taxable  year
    21  with respect to which the credit is allowed and may be deducted from the
    22  taxpayer's tax for such year or years.
    23    §  2.  The  subsection  heading  and paragraphs 1, 2, 3, 4, 5 and 7 of
    24  subsection (g-1) of section 606 of the tax law, the  subsection  heading
    25  and  paragraphs  4  and 7 as amended by chapter 378 of the laws of 2005,
    26  paragraphs 1 and 2 as amended by chapter 375 of the laws of 2012,  para-
    27  graph  3  as amended, paragraph 5 as added and paragraph 7 as renumbered
    28  by chapter 128 of the laws of 2007, are amended to read as follows:
    29    Solar and wind energy system equipment credit.  (1) General. [An indi-
    30  vidual] A taxpayer shall be allowed a credit against the tax imposed  by
    31  this  article  equal  to  twenty-five percent of qualified solar or wind
    32  energy system equipment expenditures, except as provided in subparagraph
    33  (D) of paragraph two of this subsection. This credit  shall  not  exceed
    34  three  thousand  seven  hundred fifty dollars for qualified solar energy
    35  equipment placed in service before September first,  two  thousand  six,
    36  and five thousand dollars for qualified solar energy equipment placed in
    37  service  on  or after September first, two thousand six, and seven thou-
    38  sand five hundred dollars for qualified wind energy system equipment.
    39    (2) Qualified solar or wind energy system equipment expenditures.  (A)
    40  The  term "qualified solar or wind energy system equipment expenditures"
    41  means expenditures for:
    42    (i) the purchase of solar or wind energy  system  equipment  which  is
    43  installed  in  connection with residential property which is (I) located
    44  in this state and (II) which is used by the taxpayer as his or her prin-
    45  cipal [residence] premises at the time the solar or wind  energy  system
    46  equipment is placed in service;
    47    (ii)  the lease of solar or wind energy system equipment under a writ-
    48  ten agreement that spans at least ten years where such  equipment  owned
    49  by  a  person  other  than  the taxpayer is installed in connection with
    50  residential property which is (I) located in this state and  (II)  which
    51  is  used by the taxpayer as his or her principal [residence] premises at
    52  the time the solar or wind energy system equipment is placed in service;
    53  or
    54    (iii) the purchase of power under a written agreement  that  spans  at
    55  least  ten years whereunder the power purchased is generated by solar or
    56  wind energy system equipment owned by a person other than  the  taxpayer
        S. 3592                             3
     1  which  is installed in connection with residential property which is (I)
     2  located in this state and (II) which is used by the taxpayer as  his  or
     3  her  principal [residence] premises at the time the solar or wind energy
     4  system equipment is placed in service.
     5    (B) Such qualified expenditures shall include expenditures for materi-
     6  als, labor costs properly allocable to on-site preparation, assembly and
     7  original  installation,  architectural  and  engineering  services,  and
     8  designs and plans directly related to the construction  or  installation
     9  of the solar or wind energy system equipment.
    10    (C)  Such  qualified  expenditures  for  the purchase of solar or wind
    11  energy system equipment shall not  include  interest  or  other  finance
    12  charges.
    13    (D)  Such qualified expenditures for the lease of solar or wind energy
    14  system equipment or the purchase of power under an  agreement  described
    15  in  clauses  (ii)  or  (iii) of subparagraph (A) of this paragraph shall
    16  include an amount equal to all payments made  during  the  taxable  year
    17  under  such  agreement.  Provided,  however,  such credits shall only be
    18  allowed for fourteen years after the first taxable year  in  which  such
    19  credit  is  allowed.  Provided further, however, the twenty-five percent
    20  limitation in paragraph one of this subsection shall only apply  to  the
    21  total  aggregate amount of all payments to be made pursuant to an agree-
    22  ment referenced in clauses (ii) or (iii) of  subparagraph  (A)  of  this
    23  paragraph,  and  shall  not  apply  to individual payments made during a
    24  taxable year under such agreement except to the extent  such  limitation
    25  on an aggregate basis has been reached.
    26    (3)  Solar  or  wind  energy system equipment. The term "solar or wind
    27  energy system equipment" shall mean an  arrangement  or  combination  of
    28  components   utilizing  solar  radiation  or  wind  power,  which,  when
    29  installed in a residence, produces energy designed to  provide  heating,
    30  cooling,  hot water or electricity for use in such [residence] premises.
    31  Such arrangement or components shall not include equipment connected  to
    32  solar  or  wind  energy  system equipment that is a component of part or
    33  parts of a non-solar or non-wind energy system or which uses any sort of
    34  recreational facility or equipment as a storage medium.  Solar  or  wind
    35  energy  system  equipment that generates electricity for use in a [resi-
    36  dence] taxpayer's premises must conform to applicable  requirements  set
    37  forth in section sixty-six-j of the public service law. Provided, howev-
    38  er,  where  solar  or  wind  energy  system  equipment  is purchased and
    39  installed by a condominium management association or a cooperative hous-
    40  ing corporation, for purposes of this subsection  only,  the  term  "ten
    41  kilowatts"  in  such  section  sixty-six-j shall be read as "fifty kilo-
    42  watts."
    43    (4) Multiple taxpayers. Where solar or wind energy system equipment is
    44  purchased and installed in a principal [residence]  premises  shared  by
    45  two  or  more  taxpayers,  the amount of the credit allowable under this
    46  subsection for each such taxpayer shall be  prorated  according  to  the
    47  percentage of the total expenditure for such solar or wind energy system
    48  equipment contributed by each taxpayer.
    49    (5)  Proportionate  share. Where solar or wind energy system equipment
    50  is purchased and installed by a condominium management association or  a
    51  cooperative  housing  corporation,  a  taxpayer  who  is a member of the
    52  condominium management association or who is a tenant-stockholder in the
    53  cooperative housing corporation may for the purpose of  this  subsection
    54  claim  a proportionate share of the total expense as the expenditure for
    55  the purposes of the credit attributable to his or  her  principal  resi-
    56  dence.
        S. 3592                             4
     1    (7)  When credit allowed. The credit for solar energy system equipment
     2  provided for [herein] in this subsection shall be allowed  with  respect
     3  to  the taxable year, commencing after nineteen hundred ninety-seven, in
     4  which the solar energy system equipment is placed in service.  The cred-
     5  it  for  wind  energy  system  equipment provided for in this subsection
     6  shall be allowed with respect to the taxable year, commencing after  two
     7  thousand  nineteen,  in which the wind energy system equipment is placed
     8  in service.
     9    § 3. This act shall take effect immediately.