S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6739
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 2023
                                ___________
 
 Introduced by M. of A. WALKER -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT to amend the tax law, in relation to residential solar tax cred-
   its
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subsection (g-1) of section 606 of the tax law,  as amended
 by  chapter  378  of the laws of 2005,  paragraphs 1 and 2 as amended by
 chapter 375 of the laws of 2012, paragraph 3 as amended, paragraph 5  as
 added,  and  paragraphs  6,  7 and 8 as renumbered by chapter 128 of the
 laws of 2007, is amended to read as follows:
   (g-1) Solar 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 solar energy system equip-
 ment expenditures, except as provided in subparagraph (D)  of  paragraph
 two  of  this  subsection.  This  credit shall not exceed three thousand
 seven hundred fifty dollars for qualified solar energy equipment  placed
 in service before September first, two thousand six, [and] five thousand
 dollars  for  qualified  solar  energy equipment placed in service on or
 after September first, two thousand six AND BEFORE  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-FOUR, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENER-
 GY  EQUIPMENT  PLACED IN SERVICE ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-FOUR.
   (2) Qualified solar energy system equipment expenditures. (A) The term
 "qualified solar energy system equipment  expenditures"  means  expendi-
 tures for:
   (i)  the  purchase of solar 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 principal
 residence at the time the solar energy system  equipment  is  placed  in
 service;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07582-03-3
              

 A. 6739                             2
 
   (ii) the lease of solar energy system equipment under a written agree-
 ment  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 solar
 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 solar
 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) which is used by the taxpayer as  his  or
 her principal residence at the time the solar 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 solar energy system equipment.
   (C)  Such  qualified  expenditures  for  the  purchase of solar energy
 system equipment shall not include interest or other finance charges.
   (D) Such qualified expenditures for the lease of solar  energy  system
 equipment  or  the  purchase  of  power  under an agreement described in
 clauses (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  clauses  (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) Solar energy system  equipment.  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 AND MAY STORE energy designed to provide heating, cooling, hot  water
 or electricity for use in such residence. Such arrangement or components
 MAY  INCLUDE ELECTRIC ENERGY STORAGE EQUIPMENT BUT shall not include ANY
 OTHER 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 AND STORES electricity for
 use in a residence must conform to applicable requirements set forth  in
 section  sixty-six-j of the public service law. Provided, however, where
 solar energy system equipment is purchased and installed by a  condomin-
 ium  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] "TEN kilowatts MULTIPLIED
 BY THE NUMBER OF OWNER-OCCUPIED UNITS IN THE COOPERATIVE OR  CONDOMINIUM
 MANAGEMENT ASSOCIATION."
   (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
 A. 6739                             3

 total  expenditure for such solar energy system equipment contributed by
 each taxpayer.
   (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] THEIR  principal  resi-
 dence.
   (6)  Grants. For purposes of determining the amount of the expenditure
 incurred in purchasing and installing solar 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 herein shall be
 allowed with respect to the  taxable  year,  commencing  after  nineteen
 hundred  ninety-seven,  in  which  the  solar energy system equipment is
 placed in service.
   (8) Carryover of credit AND REFUNDABILITY.  If the amount of the cred-
 it, 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 follow-
 ing 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.  FOR TAXABLE
 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR,  IF
 THE  AMOUNT  OF  THE CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL EXCEED
 THE TAXPAYER'S TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER  MEETS  THE
 DEFINITION  OF  LOW-TO-MODERATE  INCOME  OR  RESIDES  IN A DISADVANTAGED
 COMMUNITY, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
 SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6739--B
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 2023
                                ___________
 
 Introduced by M. of A. WALKER -- read once and referred to the Committee
   on  Ways  and  Means  --  committee  discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee --  recommitted
   to the Committee on Ways and Means in accordance with Assembly Rule 3,
   sec.  2  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to residential solar tax  cred-
   its
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (g-1) of section 606 of the tax law,  as amended
 by chapter 378 of the laws of 2005,  paragraphs 1 and 2  as  amended  by
 chapter  375 of the laws of 2012, paragraph 3 as amended, paragraph 5 as
 added, and paragraphs 6, 7 and 8 as renumbered by  chapter  128  of  the
 laws of 2007, is amended to read as follows:
   (g-1) Solar 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 solar energy system equip-
 ment  expenditures,  except as provided in subparagraph (D) of paragraph
 two of this subsection. This credit  shall  not  exceed  three  thousand
 seven  hundred fifty dollars for qualified solar energy equipment placed
 in service before September first, two thousand six, [and] five thousand
 dollars for qualified solar energy equipment placed  in  service  on  or
 after  September  first,  two thousand six AND BEFORE JANUARY FIRST, TWO
 THOUSAND TWENTY-FIVE, AND TEN THOUSAND DOLLARS FOR QUALIFIED SOLAR ENER-
 GY EQUIPMENT PLACED IN SERVICE ON OR AFTER JANUARY FIRST,  TWO  THOUSAND
 TWENTY-FIVE.
   (2) Qualified solar energy system equipment expenditures. (A) The term
 "qualified  solar  energy  system equipment expenditures" means expendi-
 tures for:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07582-08-3
 A. 6739--B                          2
              

 
   (i) the purchase of solar 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] THEIR prin-
 cipal residence at the time the solar energy system equipment is  placed
 in service;
   (ii) the lease of solar energy system equipment under a written agree-
 ment  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] THEIR principal residence  at  the  time
 the solar 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  solar
 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) which is used by the taxpayer as [his or
 her] THEIR principal residence at  the  time  the  solar  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 solar energy system equipment.
   (C)  Such  qualified  expenditures  for  the  purchase of solar energy
 system equipment shall not include interest or other finance charges.
   (D) Such qualified expenditures for the lease of solar  energy  system
 equipment  or  the  purchase  of  power  under an agreement described in
 clauses (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  clauses  (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) Solar energy system  equipment.  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 AND MAY STORE energy designed to provide heating, cooling, hot  water
 or electricity for use in such residence. Such arrangement or components
 MAY  INCLUDE ELECTRIC ENERGY STORAGE EQUIPMENT BUT shall not include ANY
 OTHER 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 AND STORES electricity for
 use in a residence must conform to applicable requirements set forth  in
 section  sixty-six-j of the public service law. Provided, however, where
 solar energy system equipment is purchased and installed by a  condomin-
 ium  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] "TEN kilowatts MULTIPLIED
 BY THE NUMBER OF OWNER-OCCUPIED UNITS IN THE COOPERATIVE OR  CONDOMINIUM
 MANAGEMENT ASSOCIATION."
 A. 6739--B                          3
 
   (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.
   (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] THEIR principal resi-
 dence.
   (6) Grants. For purposes of determining the amount of the  expenditure
 incurred in purchasing and installing solar 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  herein  shall  be
 allowed  with  respect  to  the  taxable year, commencing after nineteen
 hundred ninety-seven, in which the  solar  energy  system  equipment  is
 placed in service.
   (8) Carryover of credit AND REFUNDABILITY.  If the amount of the cred-
 it,  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 follow-
 ing 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.  FOR TAXABLE
 YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, IF
 THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS  SUBSECTION  SHALL  EXCEED
 THE  TAXPAYER'S  TAX LIABILITY FOR SUCH YEAR, AND THE TAXPAYER MEETS THE
 DEFINITION OF LOW TO MODERATE INCOME, AS DEFINED IN SUBDIVISION  (C)  OF
 SECTION  NINE HUNDRED SEVENTY-C OF THE GENERAL MUNICIPAL LAW, OR RESIDES
 IN A DISADVANTAGED COMMUNITY, AS DEFINED IN SUBDIVISION FIVE OF  SECTION
 75-0101  OF  THE  ENVIRONMENTAL  CONSERVATION  LAW,  THE EXCESS SHALL BE
 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
 CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2. This act shall take effect immediately.