S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5290
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2019
                                ___________
 
 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:
   § 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.
   § 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 TWENTY-ONE, 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.
              

                                                            LBD08881-01-9

 A. 5290                             2
 
 THOUSAND TWENTY-ONE, 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 TWENTY-ONE.
   §  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.
   § 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

 A. 5290                             3
 
 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."
   § 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.
   § 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.
   § 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,

 A. 5290                             4
 
 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 TWENTY-ONE, 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.
   §  8.  This  act  shall take effect January 1, 2022 and shall apply to
 taxable years beginning on and after such date.