NY State Senate Bill 2023-S9961

Senate Bill S9961

2023-2024 Legislative Session

Relates to increasing solar energy tax credits, implementing a solar STAR credit, and amends provisions relating to the siting of major renewable energy facilities

download bill text pdf

Current Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 13, 2024	referred to rules

2023-S9961 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L; add §425-b, RPT L; amd §§140, 141, 142, 144 & 146, Pub Serv L

2023-S9961 (ACTIVE) - Summary

Increases solar energy tax credits; implements a solar STAR credit; amends provisions relating to the role of municipalities in siting of major renewable energy facilities.

2023-S9961 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9961

SPONSOR: CANZONERI-FITZPATRICK
 
TITLE OF BILL:

An act to amend the tax law, in relation to the solar energy system
equipment credit; to amend the real property tax law, in relation to a
solar STAR credit; and to amend the public service law, in relation to
siting major renewable energy facilities

 
PURPOSE:

To help New Yorkers seeking to utilize solar energy by increasing the
residential solar energy credit and creating a new solar STAR credit,
while restoring and strengthening local control in potential project
developments.

 
SUMMARY OF PROVISIONS:

Section 1: Increases the solar energy system equipment credit from 25%
of expenditures to 40% of expenditures, and increasing the cap on the
credit from $5,000 to $10,000.

Section 2: Establishes a new Solar STAR credit program for homeowners in
municipalities that opt to host at least two midscale solar energy
projects, and that shall be equal to 25% of the total basic star credit
available to homeowners.

Section 3: Ensures municipalities have appropriate local control with
respect to major renewable energy facilities where such facility will be
located.

Section 4: Ensures municipalities have appropriate local control with
respect to major electric transmission facilities where such facility
will be located.

Section 5: Removes the ability of ORES to override local laws and ordi-
nances.

Section 6: Provides that municipalities may require approval, consent,
permit, certificate, contract, agreement, or other condition for the
development, design, construction, operation, or decommissioning of a
major renewable energy facility or a major electric transmission facili-
ty.

Section 7: Makes conforming changes to the public service law with
respect to judicial review of the siting of renewable energy and elec-
tric transmission facilities to account for municipal permitting author-
ities.

Section 8: Provides the effective date.

 
JUSTIFICATION:

New York State has established ambitious energy and emission reduction
goals, however, in the wake of punishingly high inflation rate s, New
York's outlook for meeting related statutory deadlines do not look prom-
ising. In light of this, the state recently advanced measures, such as

the Renewable Action Through Project Interconnection and Deployment
(RAPID) Act, to aggressively pursue these goals.

However, many local communities have been concerned about the provisions
of the RAPID Act that would allow the Office of Renewable Energy Siting
and Electric Transmission (ORES) to override local laws or ordinances
with respect to siting major renewable energy or electric transmission
facilities.  Rather than eroding local control over major developments
in communities to bolster New York's renewable energy portfolio, this
legislation would offer incentives to residents to help eliminate barri-
ers to choosing renewable energy. In addition to increasing the solar
energy system equipment credit from 25% of expenditures to 40% of
expenditures and doubling the cap on the credit from $5,000 to $ 10,000,
this legislation would further establish a new Solar STAR credit program
for homeowners in municipalities that choose to host at least two mids-
cale solar energy projects. This Solar Star Credit would be equal to 25%
of the total basic star credit available to homeowners. Finally, this
legislation would restore and enhance local control by eliminating
ORES's ability to override local rules , as these decisions belong in
the hands of residents of the communities developers are seeking to
build in.

Done in a thoughtful, responsible manner, a transition to a cleaner
energy grid can be greatly beneficial to New Yorkers by diversifying the
grid and eliminating emissions. This bill would advance New York's
efforts to do so, without top-down mandates on communities and by
instead focusing on providing incentives and relief where all too many
New Yorkers need it most-in their wallets.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however that the
amendments to article 8 of the public service law made by sections
three, four, five, six and seven of this act shall be subject to the
expiration and repeal of such article and shall expire and be deemed
repealed therewith.

2023-S9961 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9961
 
                             I N  S E N A T E
 
                             December 13, 2024
                                ___________
 
 Introduced  by  Sen.  CANZONERI-FITZPATRICK  --  read  twice and ordered
   printed, and when printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law, in relation  to  the  solar  energy  system
   equipment credit; to amend the real property tax law, in relation to a
   solar STAR credit; and to amend the public service law, in relation to
   siting major renewable energy facilities

   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]  FORTY  percent  of  qualified  solar  energy
 system equipment 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  equip-
 ment  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 ENERGY 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:
   (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

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16126-02-4
 S. 9961                             2
 
 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]  FORTY
 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
 agreement  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
 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
 S. 9961                             3
 
 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, 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.  The  real  property  tax law is amended by adding a new section
 425-b to read as follows:
   § 425-B. SOLAR STAR CREDIT. 1. FOR THE PURPOSES  OF  THIS  SECTION,  A
 MIDSCALE SOLAR ENERGY PROJECT SHALL MEAN A SOLAR POWERED PROJECT WITH AT
 LEAST  ONE MEGAWATT BUT NO MORE THAN FIVE MEGAWATTS OF ALTERNATING NAME-
 PLATE CAPACITY.
   2. HOMEOWNERS IN MUNICIPALITIES THAT AGREE TO HOST AT LEAST TWO  MIDS-
 CALE  SOLAR  ENERGY PROJECTS, NOT INCLUDING ANY PROJECT THAT HAS ALREADY
 BEGUN SUBSTANTIAL CONSTRUCTION, SHALL BE ELIGIBLE FOR A SOLAR STAR CRED-
 IT FOR ALL HOMEOWNERS LIVING  IN  SUCH  MUNICIPALITY.  HOMEOWNERS  SHALL
 APPLY FOR AND RECEIVE A SOLAR STAR CREDIT IN THE SAME MANNER  AND AT THE
 SAME  TIME  AS THE EXISTING STAR CREDIT UNDER SECTION FOUR HUNDRED TWEN-
 TY-FIVE OF THIS ARTICLE AND SECTION SIX HUNDRED SIX OF THE TAX LAW.  THE
 VALUE  OF  THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE TOTAL
 BASIC STAR CREDIT AVAILABLE TO QUALIFIED HOMEOWNERS. THIS CREDIT WILL BE
 APPLIED ONLY AFTER THE CONCLUSION OF CONSTRUCTION AND INTERCONNECTION OF
 THE SECOND MIDSCALE SOLAR PROJECT AS DEFINED. SUCH CREDIT WILL BE AVAIL-
 ABLE TO ELIGIBLE HOMEOWNERS FOR A PERIOD OF TEN YEARS.
   § 3. Subdivision 1 of section 140 of the public service law, as  added
 by section 11 of part O of chapter 58 of the laws of 2024, is amended to
 read as follows:
   1.  No  person  shall commence the preparation of a site for, or begin
 the construction of, a major renewable energy facility in the state,  or
 increase  the  capacity  of an existing major renewable energy facility,
 without having first obtained a major renewable energy  facility  siting
 permit  pursuant  to  this  article AND ANY PERMIT REQUIRED BY A MUNICI-
 PALITY IN WHICH THE MAJOR RENEWABLE ENERGY FACILITY WILL BE LOCATED. Any
 major renewable energy facility subject to this article with respect  to
 which  a  siting  permit  is issued shall not thereafter be built, main-
 S. 9961                             4
 
 tained, or operated except in conformity with such major renewable ener-
 gy facility siting permit and  any  terms,  limitations,  or  conditions
 contained  therein,  provided  that  nothing  in  this subdivision shall
 exempt such facility from compliance with federal laws and regulations.
   §  4. Subdivision 1 of section 141 of the public service law, as added
 by section 11 of part O of chapter 58 of the laws of 2024, is amended to
 read as follows:
   1. Except as provided in paragraph (b) of  subdivision  five  of  this
 section,  no  person  shall  commence  the preparation of a site for, or
 begin the construction of, a major electric transmission facility in the
 state without having first obtained a siting  permit  pursuant  to  this
 article  AND  ANY  PERMIT  REQUIRED BY A MUNICIPALITY IN WHICH THE MAJOR
 ELECTRIC TRANSMISSION FACILITY WILL BE LOCATED. Any major electric tran-
 smission facility subject to this article with respect to which a siting
 permit is issued shall not thereafter be built, maintained, or  operated
 except  in  conformity  with such siting [permit] PERMITS and any terms,
 limitations, or conditions contained therein, provided that  nothing  in
 this subdivision shall exempt such facility from compliance with federal
 laws and regulations.
   §  5. Subdivision 5 of section 142 of the public service law, as added
 by section 11 of part O of chapter 58 of the laws of 2024, is amended to
 read as follows:
   5. Following the expiration of the public comment period set forth  in
 this  section,  and  following  the  conclusion  of a hearing undertaken
 pursuant to subdivision four of this section, ORES shall, in the case of
 a public comment period, issue a written summary of public comments  and
 an  assessment  of comments received, and in the case of an adjudicatory
 hearing, the executive director or any  person  to  whom  the  executive
 director  has delegated such authority shall issue a final written hear-
 ing report. A final siting permit may only be issued  if  ORES  makes  a
 finding  that the proposed project, together with any applicable uniform
 and site-specific standards and conditions, would comply with applicable
 laws and regulations. [In making a  final  siting  permit  determination
 with respect to a major renewable energy facility, ORES may elect not to
 apply, in whole or in part, any local law or ordinance that would other-
 wise  be  applicable  if  it  makes  a  finding  that, as applied to the
 proposed facility, it is unreasonably burdensome in view  of  the  CLCPA
 targets, and the environmental benefits.]
   §6.  Subdivision  2 of section 144 of the public service law, as added
 by section 11 of part O of chapter 58 of the laws of 2024, is amended to
 read as follows:
   2. Notwithstanding any other  provision  of  law,  [including  without
 limitation article eight of the environmental conservation law and arti-
 cle VII of this chapter, no other state agency, department or authority,
 or]  any  municipality  [or  political subdivision or any agency thereof
 may, except as expressly authorized under this article or the rules  and
 regulations  promulgated  under this article,] MAY require any approval,
 consent, permit, certificate, contract, agreement,  or  other  condition
 for the development, design, construction, operation, or decommissioning
 of  a  major  renewable energy facility or a major electric transmission
 facility with respect to which an application for a  siting  permit  has
 been  filed[, provided in the case of a municipality, political subdivi-
 sion or an agency thereof, such entity has received notice of the filing
 of the application therefor. Notwithstanding the foregoing, the  depart-
 ment  of  environmental  conservation shall be the permitting agency for
 S. 9961                             5

 permits issued pursuant to federally  delegated  or  federally  approved
 programs].
   § 7. Subdivisions 2 and 3 of section 146 of the public service law, as
 added  by  section  11  of part O of chapter 58 of the laws of 2024, are
 amended to read as follows:
   2. A judicial proceeding shall be brought in the third  department  of
 the  appellate  division  of the supreme court of the state of New York.
 Such proceeding shall be initiated by the filing of a petition  in  such
 court within ninety days after the issuance of a final decision by ORES,
 OR  A  PERMITTING  AUTHORITY OF A MUNICIPALITY, POLITICAL SUBDIVISION OR
 AGENCY THEREOF, together with proof of service of a demand on ORES OR  A
 PERMITTING  AUTHORITY, to file with said court a copy of a written tran-
 script of the record of the proceeding  and  a  copy  of  ORES's,  OR  A
 PERMITTING  AUTHORITY'S,  decision  and opinion. ORES's, OR A PERMITTING
 AUTHORITY'S, copy of said transcript, decision  and  opinion,  shall  be
 available at all reasonable times to all parties for examination without
 cost.  Upon  receipt  of  such petition and demand ORES, OR A PERMITTING
 AUTHORITY, shall forthwith deliver to the court a copy of the record and
 a copy of ORES's, OR A PERMITTING  AUTHORITY'S,  decision  and  opinion.
 Thereupon, the court shall have jurisdiction of the proceeding and shall
 have  the power to grant such relief as it deems just and proper, and to
 make and enter an order enforcing, modifying and enforcing as  so  modi-
 fied,  remanding  for  further  specific evidence or findings or setting
 aside in whole or in part such decision. The appeal shall  be  heard  on
 the  record, without requirement of reproduction, and upon briefs to the
 court. The findings of fact on which such decision  is  based  shall  be
 conclusive if supported by substantial evidence on the record considered
 as  a whole and matters of judicial notice set forth in the opinion. The
 jurisdiction of the appellate division of the  supreme  court  shall  be
 exclusive  and  its judgment and order shall be final, subject to review
 by the court of appeals in the same manner and form and  with  the  same
 effect  as  provided  for  appeals  in  a  special  proceeding. All such
 proceedings shall be heard and determined by the appellate  division  of
 the supreme court and by the court of appeals as expeditiously as possi-
 ble and with lawful precedence over all other matters.
   3.  The  grounds for and scope of review of the court shall be limited
 to whether the decision and opinion of ORES, OR A PERMITTING  AUTHORITY,
 are:
   (a)  In  conformity with the constitution, laws and regulations of the
 state and the United States;
   (b) Supported by substantial evidence in the  record  and  matters  of
 judicial notice properly considered and applied in the opinion;
   (c)  Within  the  statutory  jurisdiction  or  authority of ORES, OR A
 PERMITTING AUTHORITY, and the department;
   (d) Made in accordance with procedures set forth in  this  section  or
 established by rule or regulation pursuant to this article;
   (e) Arbitrary, capricious or an abuse of discretion; or
   (f) Made pursuant to a process that afforded meaningful involvement of
 citizens  affected  by  the facility or project regardless of age, race,
 color, national origin and income.
   § 8. This act shall take effect immediately;  provided,  however  that
 the  amendments  to article 8 of the public service law made by sections
 three, four, five, six and seven of this act shall  be  subject  to  the
 expiration  and  repeal  of  such article and shall expire and be deemed
 repealed therewith.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.