BILL NUMBER: S3229

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to providing a
tax abatement for electric energy storage equipment

 
PURPOSE OR GENERAL IDEA OF BILL:

To amend the real property tax law to add a tax abatement for electric
energy systems storage equipment for certain properties in a city of one
million or more persons. This will allow for the expenditures related to
running more energy efficient systems to be more affordable in the
effort to increase the use of these systems across New York City.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill is amended to add a tax abatement for electric
energy storage equipment for certain properties in a city of one million
or more persons to state that on or after January 1, 2021 and before
              

January 1, 2023, the amount of the tax abatement would be 10 percent of
eligible electric energy storage equipment expenditures in each year of
the compliance period. However, the benefit in each tax year would be
limited to the lesser of the amount of taxes payable or $62,500.

Section two amends subdivision one of section 499-cccc of the real prop-
erty tax law to require that applicants file the application for the
electric energy storage equipment tax abatement no later than March
15th, 2023 in order to receive the tax abatement.

Section two sets forth the effective date.

 
JUSTIFICATION:

The arrival of safe and reliable onsite energy storage technologies
marks a critical new phase in New York State's efforts to bring clean
renewable energy resources to scale in the coming decades. The mass
integration of distributed energy storage resources is also a fundamen-
tal precondition for achieving a more efficient, resilient and cost-ef-
fective electricity grid for the benefit of ratepayers, public health,
the environment and New York's overall economic competitiveness.
Further, a stable local energy storage industry has the potential to
create local jobs and economic activity, while offering diverse catego-
ries of property owners' additional savings and resiliency benefits.

The most significant impact opportunities for energy storage deployment
are within the greater New York City metropolitan area (NYISO Zone 3),
based on the current and future generation, transmission and distrib-
ution demands and challenges that characterize this unique jurisdiction.
During the early phase of local energy storage market development, a
temporary property tax abatement to defray upfront costs for adopters
would help catalyze energy storage deployment in New York City, drive
down unit and installation costs through economies of scale and learning
curve advances, and accelerate the realization of the direct and indi-
rect public benefits that result from such deployment.

 
PRIOR LEGISLATIVE HISTORY:

2019/20 57595 - REFERRED TO CITIES

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.