BILL NUMBER:  S7110          REVISED MEMO 06/02/2016

 TITLE OF BILL :  An act to amend the real property tax law, in
relation to extending the expiration of the solar electric generating
system tax abatement

 PURPOSE :

This bill would amend subdivision one of section 499-bbbb of the Real
Property Tax Law (RPTL) by adding a new paragraph (c) and would amend
subdivision one of section 499-cccc of the RPTL.

 SUMMARY OF PROVISIONS :

If the solar electric generating system is placed in service on or
after January 1, 2017 and before January 1, 2019, the amount of the
tax abatement would be 5 percent of eligible solar electric generating
system expenditures in each year of the four-year compliance period.
However, the benefit in each tax year would be limited to the lesser
of the amount of taxes payable or $62,500.  "Eligible solar electric
generating system expenditures" include reasonable expenditures for
materials, 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 solar electric generating system.

              

 JUSTIFICATION :

This legislation would extend and strengthen an existing incentive
program to encourage the installation of solar electric generating
systems, in connection with class one, class two and class four
properties in the City.

This program is aligned with the longstanding commitment of New York
State and the City of New York to reduce pollution and providing
cleaner, more reliable power for every New Yorker. These goals will be
achieved through efforts to improve energy efficiency and clean our
energy supply. In the near term, the City will still rely on
conventional energy sources, such as natural gas. Solar power in New
York City has historically cost more per kilowatt of installed
capacity than in other parts of the State of New York, primarily
because of more stringent requirements of the NYC Department of
Buildings and increased complexity in the building sites. Data from
the New York State Energy Research and Development Authority indicates
that solar energy projects in New York City cost approximately 259,5
more than the state average. Continuation of the property tax
abatement is necessary to offset a portion of the extra costs
associated with NYC solar energy installation, thus further
stimulating clean energy investment and job creation throughout New
York City.

 LEGISLATIVE HISTORY :

Chapter 396 of the Laws of 2014.

 FISCAL IMPLICATIONS :

$4.6 million to the City of New York.

 EFFECTIVE DATE :
This act shall take effect immediately.