S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9688
 
                             I N  S E N A T E
 
                               May 21, 2024
                                ___________
 
 Introduced by Sen. FERNANDEZ -- read twice and ordered printed, and when
   printed  to be committed to the Committee on Housing, Construction and
   Community Development
 
 AN ACT to amend the real property tax law, in relation to  providing  an
   exemption from taxation for capital improvements to residential build-
   ings to reduce carbon emissions

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 421-q to read as follows:
   §  421-Q. EXEMPTION FROM TAXATION FOR CAPITAL IMPROVEMENTS TO RESIDEN-
 TIAL BUILDINGS TO REDUCE CARBON EMISSIONS. 1. FOR THE PURPOSES  OF  THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "ELIGIBLE  REAL  PROPERTY"  MEANS  ANY OWNER-OCCUPIED BUILDING OR
 STRUCTURE DESIGNED AND OCCUPIED EXCLUSIVELY FOR RESIDENTIAL PURPOSES  BY
 NOT MORE THAN TWO FAMILIES.
   (B)  "ELIGIBLE  IMPROVEMENTS"  SHALL  BE LIMITED TO CATEGORIES OF WORK
 THAT RESULT IN A REDUCTION OF GREENHOUSE GAS EMISSIONS FOR  THE   BUILD-
 ING,  PROVIDED  FURTHER  THAT  SUCH WORK SHALL BE IN CONFORMITY WITH ALL
 APPLICABLE STATE AND LOCAL LAWS.  ELIGIBLE IMPROVEMENTS  SHALL  INCLUDE,
 BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING TYPES OF IMPROVEMENTS:
   (I)  REPLACEMENT, REPAIR OR INSTALLATION OF NEW SYSTEMS FOR HEATING OR
 COOLING, INCLUDING DOMESTIC HOT WATER;
   (II) INSTALLATION OF SOLAR, ENERGY STORAGE,  OR  OTHER  MECHANISMS  TO
 OFFSET USE OF ENERGY FROM THE ELECTRICAL GRID;
   (III)  REPLACEMENT  OR  INSTALLATION  OF  INSULATION  IN WALLS, ROOFS,
 FLOORING, WINDOWS, EAVES, AND AROUND PIPES;
   (IV) REPLACEMENT OR INSTALLATION OF THERMOSTATS TO CONTROL TEMPERATURE
 AND BUILDING MANAGEMENT SYSTEMS;
   (V) INSTALLATION OF ENERGY EFFICIENT APPLIANCES, FIXTURES,  OR  LIGHT-
 ING; AND
   (VI)  REPAIR,  REPLACEMENT  OR  MODIFICATION OF THE ELECTRICAL SYSTEM,
 AND/OR WIRING ASSOCIATED THEREWITH.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15548-01-4
              

 S. 9688                             2
 
   (C) "EXEMPTION BASE" MEANS THE AMOUNT OF INCREASED ASSESSED  VALUE  ON
 ELIGIBLE REAL PROPERTY RESULTING FROM ELIGIBLE IMPROVEMENTS.
   2.  ELIGIBLE  REAL  PROPERTY  RECONSTRUCTED,  ALTERED OR IMPROVED AS A
 RESULT OF ELIGIBLE IMPROVEMENTS SUBSEQUENT TO THE EFFECTIVE DATE OF THIS
 SECTION SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM  LEVIES  TO
 THE  EXTENT PROVIDED IN THIS SECTION, PROVIDED THAT AFTER A PUBLIC HEAR-
 ING, THE GOVERNING BOARD OF THE APPLICABLE COUNTY, CITY, TOWN OR VILLAGE
 ADOPTS A LOCAL LAW AND A SCHOOL DISTRICT, OTHER THAN A  SCHOOL  DISTRICT
 SUBJECT  TO  ARTICLE FIFTY-TWO OF THE EDUCATION LAW, ADOPTS A RESOLUTION
 TO GRANT THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION.  A  COPY  OF
 SUCH  LOCAL  LAW  OR RESOLUTION SHALL BE FILED WITH THE COMMISSIONER AND
 THE ASSESSOR OF SUCH  COUNTY,  CITY, TOWN OR VILLAGE  WHO  PREPARES  THE
 ASSESSMENT  ROLL  ON WHICH THE TAXES OF SUCH COUNTY, CITY, TOWN, VILLAGE
 OR SCHOOL DISTRICT ARE LEVIED.
   3. ELIGIBLE REAL PROPERTY SUBJECT TO ELIGIBLE  IMPROVEMENTS  SHALL  BE
 EXEMPT  FROM  TAXATION  FOR  A PERIOD OF TWENTY YEARS. FOR THE FIRST TEN
 YEARS AFTER THE ELIGIBLE IMPROVEMENTS HAVE BEEN COMPLETED,  ONE  HUNDRED
 PERCENT  OF  THE  EXEMPTION  BASE  SHALL  BE  EXEMPT FROM TAXATION. SUCH
 EXEMPTION SHALL DECREASE BY  TEN PERCENT ANNUALLY  OVER  THE  SUBSEQUENT
 TEN YEARS.
   4.  THE EXEMPTION ESTABLISHED IN THIS SECTION  SHALL  BE  GRANTED ONLY
 UPON APPLICATION BY THE OWNER OF SUCH BUILDING ON A FORM  PRESCRIBED  BY
 THE  COMMISSIONER.  THE  APPLICATION SHALL BE FILED WITH THE ASSESSOR OF
 THE CITY, TOWN, VILLAGE OR  COUNTY  HAVING THE   POWER   TO  ASSESS  THE
 APPLICABLE  ELIGIBLE  REAL PROPERTY FOR TAXATION ON OR BEFORE THE APPRO-
 PRIATE TAXABLE STATUS DATE OF SUCH CITY, TOWN, VILLAGE OR COUNTY.
   5. IF SATISFIED  THAT  THE  APPLICANT  IS  ENTITLED  TO  AN  EXEMPTION
 PURSUANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND
 SUCH  ELIGIBLE REAL PROPERTY  SHALL  THEREAFTER BE EXEMPT FROM  TAXATION
 AND  SPECIAL  AD  VALOREM LEVIES AS HEREIN PROVIDED COMMENCING WITH  THE
 ASSESSMENT  ROLL PREPARED  ON  THE   BASIS   OF   THE   TAXABLE   STATUS
 DATE REFERRED TO IN SUBDIVISION FOUR OF THIS SECTION. THE ASSESSED VALUE
 OF  ANY   EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED BY
 THE ASSESSOR ON THE ASSESSMENT   ROLL   WITH   THE   ELIGIBLE  PROPERTY,
 WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
   6.  IN  THE  EVENT  THAT ELIGIBLE REAL PROPERTY GRANTED  AN  EXEMPTION
 PURSUANT  TO THIS  SECTION  CEASES  TO  BE USED PRIMARILY  FOR  RESIDEN-
 TIAL PURPOSES OR TITLE THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS OR
 DISTRIBUTEES    OF  THE  OWNER,  THE  EXEMPTION GRANTED PURSUANT TO THIS
 SECTION SHALL CEASE.
   7. (A)  A  COUNTY,  CITY, TOWN OR VILLAGE MAY, BY ITS  LOCAL  LAW,  OR
 SCHOOL DISTRICT, BY ITS RESOLUTION MAY:
   (I)  REDUCE THE PER CENTUM OF EXEMPTION OTHERWISE ALLOWED  PURSUANT TO
 THIS SECTION; OR
   (II)    LIMIT  OR  EXPAND ELIGIBLE IMPROVEMENTS ELIGIBLE FOR EXEMPTION
 PURSUANT TO THIS SECTION.
   (B)  NO  SUCH  LOCAL  LAW  OR  RESOLUTION  SHALL  REDUCE  OR REPEAL AN
 EXEMPTION GRANTED PURSUANT TO THIS SECTION UNTIL THE EXPIRATION  OF  THE
 PERIOD FOR WHICH SUCH EXEMPTION WAS GRANTED.
   § 2. This act shall take effect immediately and shall apply to assess-
 ment  rolls based on taxable status dates  occurring  on  or  after such
 effective date.