S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7493
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 11, 2021
                                ___________
 
 Introduced  by  M.  of  A. J. D. RIVERA -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to establishing  a  credit  for
   geothermal energy systems
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (g-3) to read as follows:
   (G-3)  GEOTHERMAL  ENERGY SYSTEMS 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 GEOTHERMAL  ENERGY  SYSTEM
 EXPENDITURES, EXCEPT AS PROVIDED IN SUBPARAGRAPH (D) OF PARAGRAPH TWO OF
 THIS  SUBSECTION. THIS CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR
 A QUALIFIED GEOTHERMAL ENERGY SYSTEM  PLACED  IN  SERVICE  ON  OR  AFTER
 SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE.
   (2)  QUALIFIED  GEOTHERMAL  ENERGY  SYSTEMS EXPENDITURES. (A) THE TERM
 "QUALIFIED GEOTHERMAL ENERGY  SYSTEM  EXPENDITURES"  MEANS  EXPENDITURES
 FOR:
   (I)  THE  PURCHASE  OF  GEOTHERMAL  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 HIS OR HER PRIN-
 CIPAL  RESIDENCE  AT  THE TIME THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS
 PLACED IN SERVICE;
   (II) THE LEASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT 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  RESIDEN-
 TIAL  PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED
 BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE GEOTH-
 ERMAL ENERGY SYSTEM EQUIPMENT 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 GEOTHER-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06935-01-1

 A. 7493                             2
 
 MAL ENERGY SYSTEM EQUIPMENT 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) USED BY THE TAXPAYER AS HIS OR HER  PRIN-
 CIPAL  RESIDENCE  AT  THE TIME THE GEOTHERMAL 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 GEOTHERMAL ENERGY SYSTEM EQUIPMENT.
   (C) SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF GEOTHERMAL  ENERGY
 SYSTEM EQUIPMENT SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES.
   (D)  SUCH  QUALIFIED  EXPENDITURES  FOR THE LEASE OF GEOTHERMAL ENERGY
 SYSTEM EQUIPMENT OR THE PURCHASE OF POWER UNDER AN  AGREEMENT  DESCRIBED
 IN  CLAUSE  (II)  OR  (III)  OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL
 INCLUDE AN AMOUNT EQUAL TO ALL PAYMENTS MADE  DURING  THE  TAXABLE  YEAR
 UNDER  SUCH  AGREEMENT.  PROVIDED,  HOWEVER,  SUCH CREDITS SHALL ONLY BE
 ALLOWED FOR FOURTEEN YEARS AFTER THE FIRST TAXABLE YEAR  IN  WHICH  SUCH
 CREDIT  IS  ALLOWED.  PROVIDED FURTHER, HOWEVER, THE TWENTY-FIVE PERCENT
 LIMITATION IN PARAGRAPH ONE OF THIS SUBSECTION SHALL ONLY APPLY  TO  THE
 TOTAL  AGGREGATE AMOUNT OF ALL PAYMENTS TO BE MADE PURSUANT TO AN AGREE-
 MENT REFERENCED IN CLAUSE (II) OR (III)  OF  SUBPARAGRAPH  (A)  OF  THIS
 PARAGRAPH,  AND  SHALL  NOT  APPLY  TO INDIVIDUAL PAYMENTS MADE DURING A
 TAXABLE YEAR UNDER SUCH AGREEMENT EXCEPT TO THE EXTENT  SUCH  LIMITATION
 ON AN AGGREGATE BASIS HAS BEEN REACHED.
   (3)  GEOTHERMAL  ENERGY  SYSTEM EQUIPMENT. THE TERM "GEOTHERMAL ENERGY
 SYSTEM EQUIPMENT" SHALL MEAN A SYSTEM WHOSE ORIGINAL USE BEGINS WITH THE
 TAXPAYER; WHICH MEETS THE ELIGIBILITY CRITERIA, IF  ANY,  PRESCRIBED  BY
 THE  DEPARTMENT; AND WHICH IS A GROUND COUPLED SOLAR THERMAL SYSTEM THAT
 UTILIZES THE SOLAR THERMAL ENERGY STORED IN THE GROUND OR IN  BODIES  OF
 WATER  TO PRODUCE HEAT, AND WHICH IS COMMONLY KNOWN AS OR REFERRED TO AS
 A GROUND SOURCE HEAT PUMP SYSTEM.
   (4) MULTIPLE TAXPAYERS. WHERE GEOTHERMAL 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 GEOTHERMAL ENERGY SYSTEM  EQUIPMENT  CONTRIB-
 UTED BY EACH TAXPAYER.
   (5)  PROPORTIONATE  SHARE. WHERE GEOTHERMAL 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 RESIDENCE.
   (6) GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE  EXPENDITURE
 INCURRED  IN  PURCHASING  AND INSTALLING GEOTHERMAL ENERGY SYSTEM EQUIP-
 MENT, 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 HEREIN SHALL BE
 ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO  THOUSAND
 TWENTY-TWO, IN WHICH THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN
 SERVICE.

 A. 7493                             3
 
   (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.
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2022.