BILL NUMBER: S8049

SPONSOR: LANZA
 
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-cc6c of the RPTL.

 
SUMMARY OF PROVISIONS:

If the solar electric generating system is placed in service on or after
January 1, 2019 and before January 1, 2021, the amount of the tax abate-
ment 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 proper-
ties in the City.

This program is aligned with the longstanding commitment of New York
State and the City of New York to reduce greenhouse gas emission
reduction and providing cleaner, more reliable power for every New York-
er. These goals will be achieved through efforts to improve energy effi-
ciency 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, prima-
rily 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 25% more than
the state average. Continuation of the property tax abatement is neces-
sary 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.
Chapter 393 of the Laws of 2016.

 
FISCAL IMPLICATIONS:

Undetermined.
 
EFFECTIVE DATE:
This act shall take effect immediately.