NY State Senate Bill 2013-S2448B

Senate Bill S2448B

2013-2014 Legislative Session

Exempts the sale and installation of fuel cell electric generating systems equipment from sales and compensating use taxes

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 10, 2014	reported and committed to finance
Jan 08, 2014	referred to energy and telecommunications
Dec 18, 2013	print number 2448b
Dec 18, 2013	amend (t) and recommit to finance
Apr 18, 2013	print number 2448a
Apr 18, 2013	amend and recommit to finance
Apr 16, 2013	reported and committed to finance
Jan 17, 2013	referred to energy and telecommunications

Votes

- Feb 10, 2014 - Energy And Telecommunications Committee Vote
  S2448B
  
  10
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Feb 10, 2014
      
      aye (10)
      
      Carlucci
      
      Dilan
      
      Griffo
      
      Kennedy
      
      Maziarz
      
      O'Mara
      
      Parker
      
      Peralta
      
      Ritchie
      
      Robach
  Apr 16, 2013 - Energy And Telecommunications Committee Vote
  S2448B
  
  9
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Apr 16, 2013
      
      aye (9)
      
      Carlucci
      
      Dilan
      
      Fuschillo
      
      Kennedy
      
      Maziarz
      
      O'Mara
      
      Parker
      
      Ritchie
      
      Robach
      
      aye wr (2)
      
      Adams
      
      Griffo

Bill Amendments

Original

B (Active)

2013-S2448 - Details

See Assembly Version of this Bill:: A6644
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1210, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S3677, A6017

2013-S2448 - Summary

Exempts the sale and installation of fuel cell electric generating systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.

2013-S2448 - Sponsor Memo

                                BILL NUMBER:S2448

TITLE OF BILL:
An act
to amend the tax law, in relation to exempting the sale and installation
of commercial fuel cell electric generating equipment from state sales
and compensating use tax and granting municipalities the option to grant
such exemption

PURPOSE: To provide a tax exemption for the retail
sale of and service
of installing commercial fuel cell electric generating equipment.

SUMMARY OF PROVISIONS: Adds a new subdivision (ii) of
section 1115 of
the tax law to allow the retail sale of commercial fuel cell electric
generating systems equipment and of the service of installing such
systems imposed by section 1105 and 1111 of this article. In
addition, the term "fuel cell electricity generating system
equipment" is defined. Amends paragraph 1 of subdivision (a) of
section 1210 of the tax law to include the exemption of commercial
fuel cell electric generating equipment. Adds a new subdivision (q)
of section 1210 of the tax law to allow any city with a population of
one million or more, acting through its local legislative body, to
have the authority to provide the same exemptions for commercial fuel
cell electric generating equipment from state sales and compensating

use taxes described in subdivision (ii) of section 1115 of this
chapter. Such local legislative body shall provide such exemption by
enacting a resolution.

EXISTING LAW: These systems are not currently exempt
from sales tax.

JUSTIFICATION: Fuel cell electric generating
technology have many
advantages. Fuel cells commonly provide power to host facilities
during power outages, enhancing storm response, and allowing critical
facilities to remain operational in such events. The fuel flexibility
of this technology unlocks a large portfolio of locally available
fuels and the existing fuel infrastructure, which has the potential
to increase the reliability of the power system and to keep more
energy dollars in New York State. Fuel cells commonly provide power
to host facilities during power outages, enhancing storm response,
and allowing critical facilities to remain operational in such
events. Fuel cells are exceptionally efficient, they can stretch
available supplies of fuel, reduce energy costs and help reduce our
dependence on foreign oil. The scalability and resiliency of fuel
cells makes them suitable for a wide range of heat and power needs in
electronics, homes, offices, and factories. In addition, this
technology has a low impact on their surroundings, with near-silent
operation and low emissions, making them suitable in locations where
combustion systems may not be appropriate. Also, fuel cells can be
used in conjunction with solar panels or wind farms to
produce electricity when renewable energy is unavailable. The high
capacity factors, fuel and efficiency, associated with this
technology make it equal or superior to renewable technologies in the


displacement of conventional fossil generation, leading to lower air
emissions, including carbon.

For these reasons, such technologies should be treated equally to
renewable technologies determining the eligibility of a tax exemption
for the retail sale of commercial fuel cell electric generating
technologies. Qualified fuel cell electric generating expenditures
would include the material and installation costs to produce energy
designed to provide heating, cooling, hot water, or electricity for
commercial use.

FISCAL IMPLICATIONS: None.

LEGISLATIVE HISTORY: New bill.

EFFECTIVE DATE: This act shall take effect
immediately, provided that
section one of this act shall take effect on the first of January
next succeeding the date on which this act shall have become a law.

2013-S2448 - Bill Text download pdf

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

                                  2448

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to  amend  the  tax  law, in relation to exempting the sale and
  installation of commercial fuel  cell  electric  generating  equipment
  from  state sales and compensating use tax and granting municipalities
  the option to grant such exemption

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

  Section  1.  Section  1115  of  the tax law is amended by adding a new
subdivision (ii) to read as follows:
  (II) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL  FUEL  CELL  ELECTRIC
GENERATING  SYSTEMS  EQUIPMENT  AND  OF  THE  SERVICE OF INSTALLING SUCH
SYSTEMS SHALL BE EXEMPT FROM TAXES IMPOSED  BY  SECTION  ELEVEN  HUNDRED
FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR THE PURPOSES OF THIS
SUBDIVISION,  "FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT" SHALL
MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON  NON-RE-
SIDENTIAL  PREMISES THAT UTILIZE A SOLID OXIDE, MOLTEN CARBONATE, PROTON
EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL  CELL  THAT  IS  MANUFACTURED,
INSTALLED  AND  OPERATED  IN  ACCORDANCE  WITH APPLICABLE GOVERNMENT AND
INDUSTRY STANDARDS. SUCH ARRANGEMENT OR  COMPONENTS  SHALL  NOT  INCLUDE
EQUIPMENT THAT IS PART OF A NON-FUEL CELL ENERGY SYSTEM.
  S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended  by  chapter  406  of  the  laws  of 2012, is amended to read as
follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all  provisions  of
the  local  laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with  the
corresponding  provisions  in  such  article twenty-eight, including the
definition and exemption provisions of  such  article,  so  far  as  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07074-01-3

S. 2448                             2

provisions  of  such  article twenty-eight can be made applicable to the
taxes imposed by such city or  county  and  with  such  limitations  and
special  provisions  as are set forth in this article. The taxes author-
ized  under  this  subdivision  may  not  be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes  so  as
to  include  all  portions  and all types of receipts, charges or rents,
subject to state tax under  sections  eleven  hundred  five  and  eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
city,  county  or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy  systems  equipment
exemption  provided for in subdivision (ee), the commercial solar energy
systems equipment  exemption  provided  for  in  subdivision  (hh),  THE
COMMERCIAL FUEL CELL ELECTRIC GENERATING EQUIPMENT EXEMPTION PROVIDED IN
SUBDIVISION  (II),  and the clothing and footwear exemption provided for
in paragraph thirty of subdivision (a) of section eleven hundred fifteen
of this chapter, unless such city,  county  or  school  district  elects
otherwise  as  to either such residential solar energy systems equipment
exemption, such commercial solar  energy  systems  equipment  exemption,
SUCH  COMMERCIAL FUEL CELL ELECTRIC GENERATING EXEMPTION, or such cloth-
ing and footwear exemption.
  S 3. Section 1210 of the tax law is amended by adding a  new  subdivi-
sion (q) to read as follows:
  (Q)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY  AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
THE  COMMERCIAL  FUEL  CELL ELECTRIC GENERATING EQUIPMENT EXEMPTION FROM
STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (II)  OF
SECTION  ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION
IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS  SUBDIVISION;  WHEREUPON,
UPON  COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS
SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED  TO  BE  AN
AMENDMENT  TO  SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION ELEVEN
HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF  THEY
HAD  BEEN  DULY  ENACTED  BY  THE  STATE LEGISLATURE AND APPROVED BY THE
GOVERNOR.
  (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER  TITLE  OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:

S. 2448                             3

  SECTION  ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN OR
CONTRACTED TO BE GIVEN FOR, OR FOR THE USE  OF,  PROPERTY  AND  SERVICES
EXEMPT  FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO SUBDIVI-
SION (II) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES
AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
  SECTION  TWO. THIS RESOLUTION SHALL TAKE EFFECT JANUARY 1, (INSERT THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2013) AND SHALL APPLY TO SALES MADE,
SERVICES RENDERED AND USES OCCURRING ON OR AFTER THAT DATE IN ACCORDANCE
WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106,  1216  AND
1217 OF THE NEW YORK TAX LAW.
  S 4. This act shall take effect immediately, provided that section one
of  this  act  shall take effect on the first of January next succeeding
the date on which this act shall have become a law.

2013-S2448A - Details

See Assembly Version of this Bill:: A6644
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1210, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S3677, A6017

2013-S2448A - Summary

2013-S2448A - Sponsor Memo

                                BILL NUMBER:S2448A

TITLE  OF BILL:  An act to amend the tax law, in relation to exempting
the sale and installation of commercial fuel cell electric  generating
equipment  from  state  sales  and  compensating  use tax and granting
municipalities the option to grant such exemption

PURPOSE: To provide a tax exemption for the retail sale of and service
of installing commercial fuel cell electric generating equipment.

SUMMARY OF PROVISIONS: Adds a new subdivision (jj) of section 1115  of
the  tax law to allow the retail sale of commercial fuel cell electric
generating systems equipment and of the  service  of  installing  such
systems imposed by section 1105 and 1111 of this article, In addition,
the  term  "fuel  cell  electricity  generating  system  equipment" is
defined. Amends paragraph 1 of subdivision (a) of section 1210 of  the
tax  law  to  include  the  exemption of commercial fuel cell electric
generating equipment Adds a new subdivision (q) of section 1210 of the
tax law to allow any city with a population of one  million  or  more,
acting  through  its  local legislative body, to have the authority to
provide  the  same  exemptions  for  commercial  fuel  cell   electric
generating  equipment  from  state  sales  and  compensating use taxes
described in subdivision (ii) of section 1115 of  this  chapter.  Such
local  legislative  body  shall  provide  such exemption by enacting a
resolution.

EXISTING LAW: These systems are not currently exempt from sales tax.

JUSTIFICATION: Fuel cell  electric  generating  technology  have  many
advantages.  Fuel  cells  commonly  provide  power  to host facilities
during power outages, enhancing storm response, and allowing  critical
facilities  to remain operational in such events, The fuel flexibility
of this technology unlocks a  large  portfolio  of  locally  available
fuels and the existing fuel infrastructure, which has the potential to
increase  the  reliability of the power system and to keep more energy
dollars in New York State. Fuel cells commonly provide power  to  host
facilities   during  power  outages,  enhancing  storm  response,  and
allowing critical facilities to remain  operational  in  such  events.
Fuel  cells  are  exceptionally  efficient, they can stretch available
supplies of fuel, reduce energy costs and help reduce  our  dependence
on  foreign  oil.  The  scalability and resiliency of fuel cells makes
them suitable for a wide range of heat and power needs in electronics,
homes, offices, and factories. In addition, this technology has a  low
impact  on  their  surroundings,  with  near-silent  operation and low
emissions, making them suitable in locations where combustion  systems
may  not  be  appropriate. Also, fuel cells can be used in conjunction
with solar panels or wind farms to produce electricity when  renewable
energy is unavailable. The high capacity factors, fuel and efficiency,
associated with this technology make it equal or superior to renewable
technologies  in  the  displacement of conventional fossil generation,
leading to lower air emissions, including carbon.

For these reasons, such technologies  should  be  treated  equally  to
renewable  technologies determining the eligibility of a tax exemption
for the retail  sale  of  commercial  fuel  cell  electric  generating
technologies.  Qualified  fuel  cell  electric generating expenditures
would include the material and installation costs  to  produce  energy


designed  to  provide  heating, cooling, hot water, or electricity for
commercial use.

FISCAL IMPLICATIONS: None.

LEGISLATIVE HISTORY: New bill.

EFFECTIVE  DATE: This act shall take effect immediately, provided that
section one of this act shall take effect on the first of January next
succeeding the date on which this act shall have become a law.

2013-S2448A - Bill Text download pdf

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

                                 2448--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations -- 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  exempting  the  sale  and
  installation  of  commercial  fuel  cell electric generating equipment
  from state sales and compensating use tax and granting  municipalities
  the option to grant such exemption

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

  Section 1. Section 1115 of the tax law is  amended  by  adding  a  new
subdivision (jj) to read as follows:
  (JJ)  RECEIPTS  FROM  THE RETAIL SALE OF COMMERCIAL FUEL CELL ELECTRIC
GENERATING SYSTEMS EQUIPMENT AND  OF  THE  SERVICE  OF  INSTALLING  SUCH
SYSTEMS  SHALL  BE  EXEMPT  FROM TAXES IMPOSED BY SECTION ELEVEN HUNDRED
FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR THE PURPOSES OF THIS
SUBDIVISION, "FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT"  SHALL
MEAN  AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON NON-RE-
SIDENTIAL PREMISES THAT UTILIZE A SOLID OXIDE, MOLTEN CARBONATE,  PROTON
EXCHANGE  MEMBRANE  OR  PHOSPHORIC  ACID FUEL CELL THAT IS MANUFACTURED,
INSTALLED AND OPERATED IN  ACCORDANCE  WITH  APPLICABLE  GOVERNMENT  AND
INDUSTRY  STANDARDS.  SUCH  ARRANGEMENT  OR COMPONENTS SHALL NOT INCLUDE
EQUIPMENT THAT IS PART OF A NON-FUEL CELL ENERGY SYSTEM.
  S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by chapter 13 of the  laws  of  2013,  is  amended  to  read  as
follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter,  at  the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes  shall  be
identical,  except as to rate and except as otherwise provided, with the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07074-03-3

S. 2448--A                          2

corresponding provisions in such  article  twenty-eight,  including  the
definition  and  exemption  provisions  of  such  article, so far as the
provisions of such article twenty-eight can be made  applicable  to  the
taxes  imposed  by  such  city  or  county and with such limitations and
special provisions as are set forth in this article. The  taxes  author-
ized  under  this  subdivision  may  not  be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes  so  as
to  include  all  portions  and all types of receipts, charges or rents,
subject to state tax under  sections  eleven  hundred  five  and  eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
city,  county  or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy  systems  equipment
exemption  provided for in subdivision (ee), the commercial solar energy
systems equipment  exemption  provided  for  in  subdivision  (ii),  THE
COMMERCIAL  FUEL  CELL  ELECTRIC GENERATING EQUIPMENT EXEMPTION PROVIDED
FOR IN  SUBDIVISION  (JJ),  and  the  clothing  and  footwear  exemption
provided  for  in  paragraph thirty of subdivision (a) of section eleven
hundred fifteen of this chapter, unless  such  city,  county  or  school
district  elects  otherwise  as  to either such residential solar energy
systems equipment exemption, such commercial solar energy systems equip-
ment exemption, SUCH COMMERCIAL FUEL CELL ELECTRIC GENERATING EXEMPTION,
or such clothing and footwear exemption.
  S 3. Section 1210 of the tax law is amended by adding a  new  subdivi-
sion (q) to read as follows:
  (Q)  NOTWITHSTANDING  ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN  WHICH  THE
TAXES  IMPOSED  BY  SECTION  ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN
EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY  AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
THE  COMMERCIAL  FUEL  CELL ELECTRIC GENERATING EQUIPMENT EXEMPTION FROM
STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (JJ)  OF
SECTION  ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION
IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS  SUBDIVISION;  WHEREUPON,
UPON  COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS
SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL  BE  DEEMED  TO  BE  AN
AMENDMENT  TO  SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION ELEVEN
HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF  THEY
HAD  BEEN  DULY  ENACTED  BY  THE  STATE LEGISLATURE AND APPROVED BY THE
GOVERNOR.

S. 2448--A                          3

  (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER  TITLE  OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION  ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN OR
CONTRACTED TO BE GIVEN FOR, OR FOR THE USE  OF,  PROPERTY  AND  SERVICES
EXEMPT  FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO SUBDIVI-
SION (JJ) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES
AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
  SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT JANUARY 1, (INSERT  THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2013) AND SHALL APPLY TO SALES MADE,
SERVICES RENDERED AND USES OCCURRING ON OR AFTER THAT DATE IN ACCORDANCE
WITH  THE  APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216 AND
1217 OF THE NEW YORK TAX LAW.
  S 4. This act shall take effect immediately, provided that section one
of this act shall take effect on the first of  January  next  succeeding
the date on which this act shall have become a law.

2013-S2448B (ACTIVE) - Details

See Assembly Version of this Bill:: A6644
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1210, Tax L
Versions Introduced in 2015-2016 Legislative Session:: S3677, A6017

2013-S2448B (ACTIVE) - Summary

2013-S2448B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2448B

TITLE OF BILL:  An act to amend the tax law, in relation to exempting
the sale or lease and installation of commercial fuel cell electric
generating equipment or the sale of electricity generated by such
equipment from state sales and compensating use tax and granting
municipalities the option to grant such exemption

PURPOSE:

To provide a tax exemption for the retail sale of and service of
installing commercial fuel cell electric generating equipment.

SUMMARY OF PROVISIONS:

Adds a new subdivision (jj) of section 1115 of the tax law to exempt
the retail sale or lease of commercial fuel cell electric generating
systems equipment and of the service of installing such systems or the
sale of electricity generated by such systems from the sales tax
imposed by section 1105 and 1111 of this article. In addition, the
term "fuel cell electricity generating system equipment" is defined.
Amends paragraph 1 of subdivision (a) of section 1210 of the tax law
to include the exemption of commercial fuel cell electric generating
equipment Adds a new subdivision (q) of section 1210 of the tax law to
allow any city with a population of one million or more, acting
through its local legislative body, to have the authority to provide

the same exemptions for commercial fuel cell electric generating
equipment from state sales and compensating use taxes described in
subdivision (ii) of section 1115 of this chapter. Such local
legislative body shall provide such exemption by enacting a
resolution.

EXISTING LAW:

These systems are not currently exempt from sales tax.

JUSTIFICATION:

Fuel cell electric generating technology has many advantages. Fuel
cells commonly provide power to host facilities during power outages,
enhancing storm response, and allowing critical facilities to remain
operational in such events, The fuel flexibility of this technology
unlocks a large portfolio of locally available fuels and the' existing
fuel infrastructure, which has the potential to increase the
reliability of the power system and to keep more energy dollars in New
York State. Fuel cells commonly provide power to host facilities
during power outages, enhancing storm response, and allowing critical
facilities to remain operational in such events. Fuel cells are
exceptionally efficient, they can stretch available supplies of fuel,
reduce energy costs and help reduce our dependence on foreign oil. The
scalability and resiliency of fuel cells makes them suitable for a
wide range of heat and power needs in electronics, homes, offices, and
factories. In addition, this technology has a low impact on their
surroundings, with near-silent operation and low emissions, making
them suitable in locations where combustion systems may not be
appropriate. Also, fuel cells may be used in conjunction with solar
panels or wind farms to produce electricity when renewable energy is


unavailable. The high capacity factors, fuel and efficiency,
associated with this technology make it equal or superior to renewable
technologies in the displacement of conventional fossil generation,
leading to lower air emissions, including carbon.  For these reasons,
such technologies should be treated equally to renewable technologies
determining the eligibility of a tax exemption for the retail sale of
commercial fuel cell electric generating technologies. Qualified fuel
cell electric generating expenditures would include the material and
installation costs to produce energy designed to provide heating,
cooling, hot water, or electricity for commercial use.

FISCAL IMPLICATIONS:

None.

LEGISLATIVE HISTORY:

New bill.

EFFECTIVE DATE:

This act shall take effect immediately, provided that section one of
this act shall take effect on the first of January next succeeding the
date on which this act shall have become a law.

2013-S2448B (ACTIVE) - Bill Text download pdf

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

                                 2448--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations -- 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  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to amend the tax law, in relation to exempting the sale or lease
  and installation of commercial fuel cell electric generating equipment
  or the sale of electricity generated  by  such  equipment  from  state
  sales  and compensating use tax and granting municipalities the option
  to grant such exemption

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

  Section  1.Section  1115  of  the  tax  law is amended by adding a new
subdivision (jj) to read as follows:
  (JJ) (1) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL FUEL  CELL  ELEC-
TRIC  GENERATING SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH
SYSTEMS SHALL BE EXEMPT FROM TAXES IMPOSED BY  SECTIONS  ELEVEN  HUNDRED
FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  (2)  RECEIPTS  FROM  THE  LEASE  OF  FUEL  CELL ELECTRICITY GENERATING
SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS UNDER  A
WRITTEN  AGREEMENT  THAT  SPANS  AT LEAST TEN YEARS WHERE SUCH EQUIPMENT
OWNED BY A PERSON OTHER THAN THE TAXPAYER  IS  INSTALLED  IN  CONNECTION
WITH  A  COMMERCIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II)
WHICH IS USED BY THE TAXPAYER AT HIS OR HER COMMERCIAL PREMISES  AT  THE
TIME  THE FUEL CELL ELECTRICITY GENERATING SYSTEM IS PLACED INTO SERVICE
SHALL BE EXEMPT FROM TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED  FIVE  AND
ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  (3)  RECEIPTS  FROM  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT
SPANS AT LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED IN GENERATED  BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07074-04-3

S. 2448--B                          2

FUEL  CELL  ELECTRICITY  GENERATING  SYSTEMS EQUIPMENT OWNED BY A PERSON
OTHER THAN THE TAXPAYER WHICH IS INSTALLED IN CONNECTION WITH COMMERCIAL
PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) USED BY THE TAXPAY-
ER  FOR  COMMERCIAL  PURPOSES  SHALL BE EXEMPT FROM THE TAXES IMPOSED BY
SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE.
  (4) FOR THE PURPOSES  OF  THIS  SUBDIVISION,  "FUEL  CELL  ELECTRICITY
GENERATING  SYSTEMS  EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION
OF COMPONENTS INSTALLED UPON NON-RESIDENTIAL  PREMISES  THAT  UTILIZE  A
SOLID  OXIDE,  MOLTEN  CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC
ACID FUEL CELL THAT IS MANUFACTURED, INSTALLED AND OPERATED  IN  ACCORD-
ANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS. SUCH ARRANGEMENT
OR  COMPONENTS  SHALL  NOT  INCLUDE EQUIPMENT THAT IS PART OF A NON-FUEL
CELL ENERGY SYSTEM.
  S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by chapter 13 of the  laws  of  2013,  is  amended  to  read  as
follows:
  (1) Either, all of the taxes described in article twenty-eight of this
chapter,  at  the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes  shall  be
identical,  except as to rate and except as otherwise provided, with the
corresponding provisions in such  article  twenty-eight,  including  the
definition  and  exemption  provisions  of  such  article, so far as the
provisions of such article twenty-eight can be made  applicable  to  the
taxes  imposed  by  such  city  or  county and with such limitations and
special provisions as are set forth in this article. The  taxes  author-
ized  under  this  subdivision  may  not  be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes  so  as
to  include  all  portions  and all types of receipts, charges or rents,
subject to state tax under  sections  eleven  hundred  five  and  eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law,  ordinance  or  resolution  enacted  by  any  city of less than one
million or by any county or school district, imposing the taxes  author-
ized by this subdivision, shall, notwithstanding any provision of law to
the  contrary,  exclude from the operation of such local taxes all sales
of tangible personal  property  for  use  or  consumption  directly  and
predominantly  in  the  production  of  tangible personal property, gas,
electricity, refrigeration or steam, for sale, by  manufacturing,  proc-
essing,  generating,  assembly,  refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal  property,  for  sale,  by
farming  or  in  a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six  of  subdivi-
sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
city,  county  or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy  systems  equipment
exemption  provided for in subdivision (ee), the commercial solar energy
systems equipment  exemption  provided  for  in  subdivision  (ii),  THE
COMMERCIAL  FUEL  CELL  ELECTRIC GENERATING EQUIPMENT EXEMPTION PROVIDED
FOR IN  SUBDIVISION  (JJ),  and  the  clothing  and  footwear  exemption
provided  for  in  paragraph thirty of subdivision (a) of section eleven
hundred fifteen of this chapter, unless  such  city,  county  or  school
district  elects  otherwise  as  to either such residential solar energy
systems equipment exemption, such commercial solar energy systems equip-

S. 2448--B                          3

ment exemption, SUCH COMMERCIAL FUEL CELL ELECTRIC GENERATING EXEMPTION,
or such clothing and footwear exemption.
  S  3.  Section 1210 of the tax law is amended by adding a new subdivi-
sion (q) to read as follows:
  (Q) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL  LAW,  ORDI-
NANCE OR RESOLUTION TO THE CONTRARY:
  (1)  ANY  CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE
TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF  THIS  CHAPTER  ARE  IN
EFFECT,  ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED
AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS
THE COMMERCIAL FUEL CELL ELECTRIC GENERATING  EQUIPMENT  EXEMPTION  FROM
STATE  SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (JJ) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A  RESOLUTION
IN  THE  FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION; WHEREUPON,
UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF  THIS
SECTION,  SUCH  ENACTMENT  OF  SUCH  RESOLUTION SHALL BE DEEMED TO BE AN
AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH  SECTION  ELEVEN
HUNDRED  SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF THEY
HAD BEEN DULY ENACTED BY THE  STATE  LEGISLATURE  AND  APPROVED  BY  THE
GOVERNOR.
  (2)  FORM  OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF
LOCAL LEGISLATIVE BODY) AS FOLLOWS:
  SECTION ONE.  RECEIPTS  FROM  SALES  OF  AND  CONSIDERATION  GIVEN  OR
CONTRACTED  TO  BE  GIVEN  FOR, OR FOR THE USE OF, PROPERTY AND SERVICES
EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO  SUBDIVI-
SION (JJ) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES
AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION.
  SECTION  TWO. THIS RESOLUTION SHALL TAKE EFFECT JANUARY 1, (INSERT THE
YEAR, BUT NOT EARLIER THAN THE YEAR 2014) AND SHALL APPLY TO SALES MADE,
SERVICES RENDERED AND USES OCCURRING ON OR AFTER THAT DATE IN ACCORDANCE
WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106,  1216  AND
1217 OF THE NEW YORK TAX LAW.
  S 4. This act shall take effect immediately, provided that section one
of  this  act  shall take effect on the first of January next succeeding
the date on which this act shall have become a law.

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