Bill Text: NY S03596 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Increases the amount of residential solar tax credits.

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Introduced) 2024-03-26 - REPORTED AND COMMITTED TO FINANCE [S03596 Detail]

Download: New_York-2023-S03596-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         3596--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 1, 2023
                                       ___________

        Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Budget  and  Revenue  --
          reported  favorably from said committee and committed to the Committee
          on Finance -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee

        AN ACT to amend the tax law, in relation to residential solar tax  cred-
          its

          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 percent of qualified solar energy system equip-
     9  ment  expenditures,  except as provided in subparagraph (D) of paragraph
    10  two of this subsection. This credit  shall  not  exceed  three  thousand
    11  seven  hundred fifty dollars for qualified solar energy equipment placed
    12  in service before September first, two thousand six, [and] five thousand
    13  dollars for qualified solar energy equipment placed  in  service  on  or
    14  after  September  first,  two thousand six and before January first, two
    15  thousand twenty-four, and ten thousand dollars for qualified solar ener-
    16  gy equipment placed in service on or after January first,  two  thousand
    17  twenty-four.
    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.
                                                                   LBD07582-04-3

        S. 3596--A                          2

     1  state and (II) which is used by the taxpayer as  his  or  her  principal
     2  residence  at  the  time  the solar energy system equipment is placed in
     3  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 principal residence at the time the  solar
     9  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 principal residence at the time the solar energy system equipment is
    16  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 percent
    31  limitation in paragraph one of this subsection shall only apply  to  the
    32  total  aggregate amount of all payments to be made pursuant to an agree-
    33  ment referenced in clauses (ii) or (iii) of  subparagraph  (A)  of  this
    34  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. 3596--A                          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-four,  if
    30  the  amount  of  the credit allowable under this subsection shall exceed
    31  the taxpayer's tax liability for such year, and the taxpayer  meets  the
    32  definition  of  low-to-moderate  income  or  resides  in a disadvantaged
    33  community, the excess shall be treated as an overpayment of  tax  to  be
    34  credited  or  refunded  in accordance with the provisions of section six
    35  hundred eighty-six of this article, provided, however, that no  interest
    36  shall be paid thereon.
    37    § 2. This act shall take effect immediately.
feedback