S T A T E   O F   N E W   Y O R K
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                                  3167

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 12, 2009
                               ___________

Introduced  by  Sens.  GRIFFO,  LARKIN,  LIBOUS, MORAHAN, SALAND -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Investigations and Government Operations

AN  ACT  to  amend  the tax law, in relation to enacting the residential
  clean heat and power efficiency act of 2009

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act shall be known and cited as the "residential clean
heat and power efficiency act of 2009".
  S  2.  Legislative  intent.  The legislature hereby finds it is in the
public interest, in order to further residential energy  efficiency,  to
encourage  residents  to achieve significantly improved energy use effi-
ciency and reduced pollutant emissions in meeting their needs  for  both
heat and electric power through the use of cogeneration technology.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(g-3) to read as follows:
  (G-3) RESIDENTIAL MICRO-COMBINED HEAT AND POWER  GENERATING  EQUIPMENT
CREDIT.  (1)  GENERAL.  AN INDIVIDUAL TAXPAYER SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO TWENTY PERCENT OF QUAL-
IFIED RESIDENTIAL MICRO-COMBINED HEAT  AND  POWER  GENERATING  EQUIPMENT
EXPENDITURES.  THIS  CREDIT SHALL NOT EXCEED THREE THOUSAND FIVE HUNDRED
DOLLARS PER UNIT WITH RESPECT TO ANY TAXABLE YEAR. THE  CREDIT  PROVIDED
FOR  HEREIN  SHALL  BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR IN WHICH
THE EQUIPMENT IS PLACED IN SERVICE.
  (2) QUALIFIED RESIDENTIAL MICRO-COMBINED  HEAT  AND  POWER  GENERATING
EQUIPMENT  EXPENDITURES.  (A)  QUALIFIED RESIDENTIAL MICRO-COMBINED HEAT
AND POWER GENERATING EQUIPMENT EXPENDITURES ARE THE COSTS,  INCURRED  ON
OR  AFTER JULY FIRST, TWO THOUSAND NINE, ASSOCIATED WITH THE PURCHASE OF
ON-SITE ELECTRICITY  GENERATION  SYSTEMS,  PROVIDING  A  RATED  BASELOAD
CAPACITY OF NO MORE THAN TEN KILOWATTS OF ELECTRICITY, WHICH ARE LOCATED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03651-01-9

              

S. 3167                             2

IN  THIS STATE AT THE TIME THE QUALIFIED RESIDENTIAL MICRO-COMBINED HEAT
AND POWER GENERATING EQUIPMENT IS PLACED IN SERVICE.
  (B)  QUALIFIED  RESIDENTIAL  MICRO-COMBINED  HEAT AND POWER GENERATING
EQUIPMENT EXPENDITURES SHALL ALSO INCLUDE COSTS, INCURRED  ON  OR  AFTER
JULY FIRST, TWO THOUSAND NINE, FOR MATERIALS, LABOR FOR ON-SITE PREPARA-
TION,  ASSEMBLY AND ORIGINAL INSTALLATION, ENGINEERING SERVICES, DESIGNS
AND PLANS DIRECTLY RELATED TO CONSTRUCTION OR INSTALLATION  AND  UTILITY
COMPLIANCE COSTS.
  (C)  THE  TERM  "QUALIFIED  RESIDENTIAL  MICRO-COMBINED HEAT AND POWER
GENERATING EQUIPMENT" SHALL MEAN AN INTEGRATED, COGENERATING RESIDENTIAL
BUILDING HEATING AND ELECTRICAL POWER GENERATION  SYSTEM,  OPERATING  ON
ANY  FUEL  AND OF ANY APPLICABLE ENGINE, FUEL CELL, OR OTHER TECHNOLOGY,
WITH A RATED CAPACITY OF NOT MORE THAN TEN KILOWATTS  ELECTRIC  AND  ANY
THERMAL  OUTPUT THAT AT FULL LOAD HAS A DESIGN TOTAL FUEL USE EFFICIENCY
OF NOT LESS THAN EIGHTY PERCENT AND THAT HAS A MAXIMUM RATIO  OF  USEFUL
HEAT  ENERGY OUTPUT TO ELECTRIC OUTPUT OF TEN, THAT MAY WORK IN COMBINA-
TION WITH SUPPLEMENTAL OR PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS
MANUFACTURED, INSTALLED, AND  OPERATED  IN  ACCORDANCE  WITH  APPLICABLE
GOVERNMENT  AND  INDUSTRY  STANDARDS,  THAT IS CONNECTED TO THE ELECTRIC
SYSTEM AND OPERATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANS-
MISSION AND DISTRIBUTION FACILITIES.
  (D) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE  INTEREST  OR  OTHER
FINANCE CHARGES.
  (3)  MULTIPLE  TAXPAYERS.  WHERE  RESIDENTIAL  MICRO-COMBINED HEAT AND
POWER GENERATING EQUIPMENT IS PURCHASED AND  INSTALLED  IN  A  PRINCIPAL
RESIDENCE  SHARED  BY  TWO  OR  MORE TAXPAYERS, THE AMOUNT OF THE CREDIT
ALLOWABLE UNDER THIS SUBSECTION FOR EACH SUCH TAXPAYER SHALL BE PRORATED
ACCORDING TO THE PERCENTAGE OF THE TOTAL EXPENDITURE FOR  SUCH  RESIDEN-
TIAL  MICRO-COMBINED  HEAT AND POWER GENERATING EQUIPMENT CONTRIBUTED BY
EACH TAXPAYER.
  (4) GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE  EXPENDITURE
INCURRED  IN  PURCHASING  AND INSTALLING RESIDENTIAL MICRO-COMBINED HEAT
AND POWER GENERATING EQUIPMENT, THE AMOUNT  OF  ANY  FEDERAL,  STATE  OR
LOCAL  GRANT  RECEIVED  BY THE TAXPAYER, WHICH WAS USED FOR THE PURCHASE
AND/OR INSTALLATION OF SUCH EQUIPMENT AND WHICH WAS NOT INCLUDED IN  THE
FEDERAL  GROSS  INCOME  OF  THE TAXPAYER, SHALL   NOT BE INCLUDED IN THE
AMOUNT OF SUCH EXPENDITURES.
  (5) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT,  AND  CARRYOVERS
OF  SUCH  CREDIT,  ALLOWABLE  UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
CARRIED OVER TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE  TAXABLE  YEAR
WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  4.  Section 1115 of the tax law is amended by adding a new subdivi-
sion (gg) to read as follows:
  (GG) RECEIPTS FROM THE RETAIL SALE OF RESIDENTIAL MICRO-COMBINED  HEAT
AND  POWER  GENERATING  EQUIPMENT  AND OF THE SERVICE OF INSTALLING SUCH
SYSTEMS SHALL BE EXEMPT FROM TAXES IMPOSED  BY  THIS  ARTICLE.  FOR  THE
PURPOSES OF THIS SUBDIVISION, "RESIDENTIAL MICRO-COMBINED HEAT AND POWER
GENERATING  EQUIPMENT"  MEANS  AN  INTEGRATED,  COGENERATING RESIDENTIAL
BUILDING HEATING AND  ELECTRICAL  POWER  GENERATING  GENERATION  SYSTEM,
OPERATING  ON ANY FUEL AND OF ANY APPLICABLE ENGINE, FUEL CELL, OR OTHER
TECHNOLOGY, WITH A RATED CAPACITY OF NOT MORE THAN TEN  KILOWATTS  ELEC-
TRIC  AND  ANY  THERMAL OUTPUT THAT AT FULL LOAD HAS A DESIGN TOTAL FUEL
USE EFFICIENCY OF NOT LESS THAN EIGHTY PERCENT AND THAT  HAS  A  MAXIMUM
RATIO  OF  USEFUL  HEAT  ENERGY OUTPUT TO ELECTRIC ENERGY OUTPUT OF TEN,

S. 3167                             3

THAT MAY WORK IN COMBINATION WITH SUPPLEMENTAL OR PARALLEL  CONVENTIONAL
HEATING  SYSTEMS,  THAT  IS  MANUFACTURED,  INSTALLED,  AND  OPERATED IN
ACCORDANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY  STANDARDS,  THAT  IS
CONNECTED  TO  THE  ELECTRIC  SYSTEM AND OPERATED IN CONJUNCTION WITH AN
ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES.
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2009; and provided further  that
section four of this act shall take effect on the first day of the sales
tax quarterly period, as described in subdivision (b) of section 1136 of
the  tax law, next commencing at least 90 days after this act shall have
become a law and shall apply in accordance with the  applicable  transi-
tional provisions of sections 1106 and 1217 of the tax law.