S T A T E   O F   N E W   Y O R K
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                                  6855

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              April 6, 2015
                               ___________

Introduced by M. of A. CRESPO -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to amend the public service law and the tax law, in relation to
  the personal income tax credit for solar and wind energy systems

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

  Section  1.  The public service law is amended by adding a new section
73 to read as follows:
  S 73. COORDINATION WITH CERTAIN PROVISIONS OF THE TAX LAW. THE DEPART-
MENT MAY REQUEST FROM THE DEPARTMENT OF TAXATION AND FINANCE  A  SUMMARY
OF  TAX CREDITS GRANTED IN A CALENDAR YEAR PURSUANT TO THE PROVISIONS OF
SUBSECTIONS (G-1) AND (G-3) OF SECTION SIX HUNDRED SIX OF THE  TAX  LAW.
SUCH SUMMARY SHALL INCLUDE THE TOTAL NUMBER OF RESIDENCES THAT HAVE BEEN
GRANTED  A  SOLAR ENERGY SYSTEM EQUIPMENT CREDIT OR A WIND ENERGY SYSTEM
EQUIPMENT CREDIT, A DESCRIPTION OF THE IMPROVEMENTS TO WHICH THE  CREDIT
RELATES,  AND  AN INDICATION OF THE COMBINED RATED CAPACITY OF EACH SUCH
IMPROVEMENT IN TERMS OF KILOWATTS.
  S 2. Paragraph 1 of subsection (g-1) of section 606 of the tax law, as
amended by chapter 375 of the laws  of  2012,  is  amended  to  read  as
follows:
  (1)  General. An individual taxpayer shall be allowed a credit against
the tax imposed by this article equal to twenty-five percent  of  quali-
fied  solar  energy system equipment expenditures, except as provided in
subparagraph (D) of paragraph two of this subsection. This credit  shall
not  exceed (A) three thousand seven hundred fifty dollars for qualified
solar energy equipment placed in service  before  September  first,  two
thousand  six,  and (B) five thousand dollars for qualified solar energy
equipment placed in service on or after September  first,  two  thousand
six,  BUT  PRIOR  TO JANUARY FIRST, TWO THOUSAND SEVENTEEN, AND (C) FIVE
THOUSAND DOLLARS FOR QUALIFIED SOLAR ENERGY EQUIPMENT THAT  IS  A  SOLAR
THERMAL  ENERGY  SYSTEM PLACED IN SERVICE ON OR AFTER JANUARY FIRST, TWO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05769-01-5
              

A. 6855                             2

THOUSAND SEVENTEEN, AND (D) FIVE THOUSAND DOLLARS  FOR  QUALIFIED  SOLAR
ENERGY  EQUIPMENT  THAT  IS  A  SOLAR  ELECTRIC  ENERGY SYSTEM PLACED IN
SERVICE ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN.
  S  3.  Subparagraph  (A) of paragraph 2 of subsection (g-1) of section
606 of the tax law, as amended by chapter 375 of the laws  of  2012,  is
amended to read as follows:
  (A)  The  term  "qualified solar energy system equipment expenditures"
means expenditures for:
  (i) the purchase of solar energy system  equipment,  A  SOLAR  THERMAL
ENERGY  SYSTEM,  OR A SOLAR ELECTRIC ENERGY SYSTEM which is installed in
connection with residential property which is (I) located in this  state
and  (II)  which is used by the taxpayer as ANY OF his or her [principal
residence] RESIDENCES at the time the solar energy system  equipment,  A
SOLAR THERMAL ENERGY SYSTEM, OR A SOLAR ELECTRIC ENERGY SYSTEM is placed
in service;
  (ii) the lease of solar energy system equipment, A SOLAR THERMAL ENER-
GY  SYSTEM,  OR A SOLAR ELECTRIC ENERGY SYSTEM 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 residential
property which is (I) located in this state and (II) which  is  used  by
the  taxpayer  as  ANY OF his or her [principal residence] RESIDENCES at
the time the solar energy  system  equipment,  A  SOLAR  THERMAL  ENERGY
SYSTEM, OR A SOLAR ELECTRIC ENERGY SYSTEM is placed in service; or
  (iii)  the  purchase  of power under a written agreement that spans at
least ten years whereunder the power purchased  is  generated  by  solar
energy system equipment, A SOLAR THERMAL ENERGY SYSTEM, OR A SOLAR ELEC-
TRIC  ENERGY  SYSTEM  owned by a person other than the taxpayer which is
installed in connection with residential property which is  (I)  located
in  this  state  and (II) which is used by the taxpayer as ANY OF his or
her [principal residence] RESIDENCES at the time the solar energy system
equipment, A SOLAR THERMAL ENERGY SYSTEM, OR  A  SOLAR  ELECTRIC  ENERGY
SYSTEM is placed in service.
  S 4. Paragraph 3 of subsection (g-1) of section 606 of the tax law, as
amended  by  chapter  128  of  the  laws  of 2007, is amended to read as
follows:
  (3) Solar energy system equipment. (A) The term "solar  energy  system
equipment"  shall  mean  an  arrangement  or  combination  of components
utilizing solar radiation, which, when installed in a residence, produc-
es energy designed to provide heating, cooling, hot water or electricity
for use in such residence. Such  arrangement  or  components  shall  not
include  equipment  connected to solar energy system equipment that is a
component of part or parts of a non-solar energy system  or  which  uses
any  sort  of  recreational  facility  or equipment as a storage medium.
[Solar energy system equipment that generates electricity for use  in  a
residence]
  (B)  THE  TERM  "SOLAR  THERMAL ENERGY SYSTEM" SHALL MEAN SOLAR ENERGY
EQUIPMENT THAT IS AN ARRANGEMENT OR COMBINATION OF COMPONENTS  UTILIZING
SOLAR  RADIATION,  WHICH, WHEN INSTALLED IN A RESIDENCE, PRODUCES ENERGY
DESIGNED TO PROVIDE HEATING, COOLING OR HOT WATER FOR USE IN SUCH  RESI-
DENCE.
  (C)  THE  TERM  "SOLAR ELECTRIC ENERGY SYSTEM" SHALL MEAN SOLAR ENERGY
EQUIPMENT THAT IS AN ARRANGEMENT OR COMBINATION OF COMPONENTS  UTILIZING
SOLAR  RADIATION,  WHICH, WHEN INSTALLED IN A RESIDENCE, PRODUCES ENERGY
DESIGNED TO PROVIDE ELECTRICITY FOR USE IN SUCH RESIDENCE. SUCH  SYSTEMS
must conform to applicable requirements set forth in section sixty-six-j
of  the  public  service  law. Provided, however, where A solar ELECTRIC

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energy system [equipment] is purchased and installed  by  a  condominium
management   association  or  a  cooperative  housing  corporation,  for
purposes of this subsection only,  the  term  "ten  kilowatts"  in  such
section sixty-six-j shall be read as "fifty kilowatts."
  S 5. Paragraph 4 of subsection (g-1) of section 606 of the tax law, as
amended  by  chapter  378  of  the  laws  of 2005, is amended to read as
follows:
  (4)  Multiple  taxpayers.  Where  solar  energy  system  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 solar energy system equipment contributed by
each taxpayer.
  S 6. Paragraph 5 of subsection (g-1) of section 606 of the tax law, as
added by chapter 128 of the laws of 2007, is amended to read as follows:
  (5) Proportionate  share.  Where  solar  energy  system  equipment  is
purchased  and  installed  by  a condominium management association or a
cooperative housing corporation, a taxpayer  who  is  a  member  of  the
condominium management association or who is a tenant-stockholder in the
cooperative  housing  corporation may for the purpose of this subsection
claim a proportionate share of the total expense as the expenditure  for
the  purposes of the credit attributable to his [principal] OR HER resi-
dence.
  S 7. Section 606 of the tax law is amended by adding a new  subsection
(g-3) to read as follows:
  (G-3)  WIND ENERGY SYSTEM EQUIPMENT CREDIT. (1) GENERAL. AN INDIVIDUAL
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE EQUAL TO TWENTY-FIVE PERCENT OF QUALIFIED WIND ENERGY SYSTEM  EQUIP-
MENT  EXPENDITURES.  THIS  CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS
FOR QUALIFIED WIND ENERGY EQUIPMENT.
  (2) QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES. (A) THE  TERM
"QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES" MEANS EXPENDITURES
FOR  THE  PURCHASE OF WIND ENERGY SYSTEM EQUIPMENT WHICH IS INSTALLED IN
CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED IN THIS  STATE
AND  (II)  WHICH IS USED BY THE TAXPAYER AS ANY OF HIS OR HER RESIDENCES
AT THE TIME THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE.
  (B) SUCH QUALIFIED EXPENDITURES SHALL INCLUDE EXPENDITURES FOR MATERI-
ALS, LABOR COSTS PROPERLY ALLOCABLE TO ON-SITE PREPARATION, ASSEMBLY AND
ORIGINAL  INSTALLATION,  ARCHITECTURAL  AND  ENGINEERING  SERVICES,  AND
DESIGNS  AND  PLANS DIRECTLY RELATED TO THE CONSTRUCTION OR INSTALLATION
OF THE WIND ENERGY SYSTEM EQUIPMENT.
  (C) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE  INTEREST  OR  OTHER
FINANCE CHARGES.
  (3)  WIND ENERGY SYSTEM EQUIPMENT. THE TERM "WIND ENERGY SYSTEM EQUIP-
MENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION OF  COMPONENTS  UTILIZING
WIND,  WHICH, WHEN INSTALLED IN A RESIDENCE, PRODUCES ENERGY DESIGNED TO
PROVIDE ELECTRICITY FOR USE  IN  SUCH  RESIDENCE.  SUCH  ARRANGEMENT  OR
COMPONENTS  SHALL  NOT INCLUDE EQUIPMENT CONNECTED TO WIND ENERGY SYSTEM
EQUIPMENT THAT IS A COMPONENT OF PART OR  PARTS  OF  A  NON-WIND  ENERGY
SYSTEM OR WHICH USES ANY SORT OF RECREATIONAL FACILITY OR EQUIPMENT AS A
STORAGE  MEDIUM. WIND ENERGY SYSTEM EQUIPMENT THAT GENERATES ELECTRICITY
FOR USE IN A RESIDENCE MUST CONFORM TO APPLICABLE REQUIREMENTS SET FORTH
IN SECTION SIXTY-SIX-L OF THE PUBLIC  SERVICE  LAW.  PROVIDED,  HOWEVER,
WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS  PURCHASED AND INSTALLED BY A
CONDOMINIUM MANAGEMENT ASSOCIATION OR A COOPERATIVE HOUSING CORPORATION,

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FOR PURPOSES OF THIS SUBSECTION ONLY, THE TERM  "TWENTY-FIVE  KILOWATTS"
IN SUCH SECTION SIXTY-SIX-L SHALL BE READ AS "FIFTY KILOWATTS."
  (4)   MULTIPLE  TAXPAYERS.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
PURCHASED AND INSTALLED IN A 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  WIND ENERGY SYSTEM EQUIPMENT CONTRIBUTED BY EACH
TAXPAYER.
  (5)  PROPORTIONATE  SHARE.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
PURCHASED  AND  INSTALLED  BY  A CONDOMINIUM MANAGEMENT ASSOCIATION OR A
COOPERATIVE HOUSING CORPORATION, A TAXPAYER  WHO  IS  A  MEMBER  OF  THE
CONDOMINIUM MANAGEMENT ASSOCIATION OR WHO IS A TENANT-STOCKHOLDER IN THE
COOPERATIVE  HOUSING  CORPORATION MAY FOR THE PURPOSE OF THIS SUBSECTION
CLAIM A PROPORTIONATE SHARE OF THE TOTAL EXPENSE AS THE EXPENDITURE  FOR
THE PURPOSES OF THE CREDIT ATTRIBUTABLE TO HIS OR HER RESIDENCE.
  (6)  GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE
INCURRED IN PURCHASING AND INSTALLING WIND ENERGY SYSTEM 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.
  (7) WHEN CREDIT ALLOWED. THE CREDIT PROVIDED FOR  IN  THIS  SUBSECTION
SHALL  BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO
THOUSAND SEVENTEEN, IN WHICH THE WIND ENERGY SYSTEM EQUIPMENT IS  PLACED
IN SERVICE.
  (8)  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 8. This act shall take effect January 1, 2018  and  shall  apply  to
taxable years beginning on and after such date.