S T A T E O F N E W Y O R K
________________________________________________________________________
2616
2023-2024 Regular Sessions
I N A S S E M B L Y
January 26, 2023
___________
Introduced by M. of A. PAULIN, DICKENS, SIMON -- read once and referred
to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to exempting from
taxation combined heat and power generating equipment
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraphs (k) and (l) of subdivision 1, subdivisions 2, 3,
4 and 5 and paragraph (a) of subdivision 8 of section 487 of the real
property tax law, paragraph (l) of subdivision 1 as added by chapter 336
of the laws of 2017, paragraph (k) of subdivision 1 and subdivisions 2,
3, 4 and paragraph (a) of subdivision 8 as amended by chapter 325 of the
laws of 2018, and subdivision 5 as amended by section 1 of part X of
chapter 59 of the laws of 2021, are amended to read as follows:
(k) "[Micro-combined] COMBINED heat and power generating equipment"
means an integrated, cogenerating building heating and electrical power
generation system, [owned, leased or operated by] SERVING a residential
OR COMMERCIAL customer, located at such customer's premises, operating
on any fuel and of any applicable engine, fuel cell, fuel-flexible line-
ar generator or other technology with a rated capacity of at least one
kilowatt and not more than [ten kilowatts] FIFTEEN MEGAWATTS electric
and any thermal output that has a design total fuel use efficiency in
the production of heat and electricity of not less than [eighty] SIXTY
percent, and annually produces at least two thousand kilowatt hours of
useful energy in the form of electricity that may work in combination
with supplemental or parallel conventional heating systems, that is
manufactured, installed and operated in accordance with applicable
government and industry standards, that is connected to the electric
system and operated in conjunction with an electric corporation's trans-
mission and distribution facilities. It does not include pipes,
controls, insulation or other equipment which are part of the normal
heating, cooling, or insulation system of a building. It does not
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05196-01-3
A. 2616 2
include insulated glazing or insulation to the extent that such materi-
als exceed the energy efficiency standards established by law.
(l) "[Micro-combined] COMBINED heat and power generating equipment
system" means an arrangement or combination of equipment designed to
produce electrical energy and heat for a residential OR COMMERCIAL
customer on such customer's premises.
2. Real property which includes a solar or wind energy system, farm
waste energy system, micro-hydroelectric energy system, fuel cell elec-
tric generating system, [micro-combined] COMBINED heat and power gener-
ating equipment system, electric energy storage equipment and electric
energy storage system, or fuel-flexible linear generator electric gener-
ating system approved in accordance with the provisions of this section
shall be exempt from taxation to the extent of any increase in the value
thereof by reason of the inclusion of such solar or wind energy system,
farm waste energy system, micro-hydroelectric energy system, fuel cell
electric generating system, [micro-combined] COMBINED heat and power
generating equipment system, electric energy storage equipment and elec-
tric energy storage system, or fuel-flexible linear generator electronic
generating system for a period of fifteen years. When a solar or wind
energy system or components thereof, farm waste energy system, micro-hy-
droelectric energy system, fuel cell electric generating system,
[micro-combined] COMBINED heat and power generating equipment system,
electric energy storage equipment and electric energy storage system, or
fuel-flexible linear generator electronic generating system also serve
as part of the building structure, the increase in value which shall be
exempt from taxation shall be equal to the assessed value attributable
to such system or components multiplied by the ratio of the incremental
cost of such system or components to the total cost of such system or
components. The exemption provided by this section is inapplicable to
any structure that satisfies the requirements for exemption under
section four hundred eighty-three-e of this title.
3. The president of the authority shall provide definitions and guide-
lines for the eligibility for exemption of the solar and wind energy
equipment and systems, farm waste energy equipment and systems, micro-
hydroelectric equipment and systems, fuel cell electric generating
equipment and systems, [micro-combined] COMBINED heat and power generat-
ing equipment and systems, electric energy storage equipment and elec-
tric energy storage system, and fuel-flexible linear generator electric
generating equipment and systems described in paragraphs (a), (b), (e),
(f), (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p) of subdivision
one of this section.
4. No solar or wind energy system, farm waste energy system, micro-hy-
droelectric energy system, fuel cell electric generating system,
[micro-combined] COMBINED heat and power generating equipment system,
electric energy storage equipment and electric energy storage system, or
fuel-flexible linear generator electric generating system shall be enti-
tled to any exemption from taxation under this section unless such
system meets the guidelines set by the president of the authority and
all other applicable provisions of law.
5. The exemption granted pursuant to this section shall only be appli-
cable to (a) solar or wind energy systems or farm waste energy systems
which are (i) existing or constructed prior to July first, nineteen
hundred eighty-eight or (ii) constructed subsequent to January first,
nineteen hundred ninety-one and prior to January first, two thousand
thirty, and (b) micro-hydroelectric energy systems, fuel cell electric
generating systems, [micro-combined] COMBINED heat and power generating
A. 2616 3
equipment systems, electric energy storage equipment or electric energy
storage system, or fuel-flexible linear generator electric generating
system which are constructed subsequent to January first, two thousand
eighteen and prior to January first, two thousand thirty.
(a) Notwithstanding the provisions of subdivision two of this section,
a county, city, town or village may by local law or a school district,
other than a school district to which article fifty-two of the education
law applies, may by resolution provide either (i) that no exemption
under this section shall be applicable within its jurisdiction with
respect to any solar or wind energy system or farm waste energy system
which began construction subsequent to January first, nineteen hundred
ninety-one or the effective date of such local law, ordinance or resol-
ution, whichever is later, and/or (ii) that no exemption under this
section shall be applicable within its jurisdiction with respect to any
micro-hydroelectric energy system, fuel cell electric generating system,
[micro-combined] COMBINED heat and power generating equipment system,
electric energy storage equipment or electric energy storage system, or
fuel-flexible linear generator electric generating system constructed
subsequent to January first, two thousand eighteen or the effective date
of such local law, ordinance or resolution, whichever is later. A copy
of any such local law or resolution shall be filed with the commissioner
and with the president of the authority.
§ 2. This act shall take effect January 1, 2024.