NY State Senate Bill 2023-S4547

Current Bill Status - In Senate Committee Budget And Revenue 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
May 23, 2023	reported and committed to finance
Feb 10, 2023	referred to budget and revenue

Votes

- May 23, 2023 - Budget And Revenue Committee Vote
  S4547
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: May 23, 2023
      
      aye (7)
      
      Addabbo Jr.
      
      Comrie
      
      Gounardes
      
      Krueger
      
      Murray
      
      Parker
      
      Weber

co-Sponsors

View additional co-sponsors

2023-S4547 (ACTIVE) - Details

See Assembly Version of this Bill:: A4954
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1115 & 1210, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8219, A10286
2021-2022: S3277, A7316

2023-S4547 (ACTIVE) - Summary

Establishes sales tax exemptions for residential and commercial energy storage systems equipment.

2023-S4547 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4547

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a sales tax
exemption for energy storage

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation would exempt, from state sales and use taxes, retail
sale and installation of energy storage equipment, for both residential
and commercial uses. The legislation would also provide local govern-
ments with the authority to exempt energy storage from local sales and
use taxes.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 1115 of the tax law by adding subdivisions
(11) and (mm) so that residential energy storage systems equipment and
the service of installing such systems are exempt from state sales and
use taxes.

Sections 2 and 3: Amends section 1210 of the tax law so that local
governments have the option to apply such exemptions locally.

 
JUSTIFICATION:

New York State tax law provides sales and use tax exemptions for a
number of activities, products, and services. Notably, the sale and
installation of residential and commercial solar energy equipment and
commercial fuel cells are exempt from the state sales and use tax and
certain localities have followed suit. The energy storage has attempted
to rely on existing sections of the state tax law to seek a similar
exemption from state sales and use taxes. For example,

Section 1115(a)(12) of the tax law provides an exemption for machinery
and equipment for use and consumption directly and predominantly in the
production of electricity by generating. Section 1105-B of the tax law
also exempts parts, tools, and supplies used in the production of elec-
tricity for sale by generating. Receipts from the services of install-
ing, repairing, maintaining, or servicing such machinery, equipment,
parts, tools, and supplies are exempt from the tax imposed on these
services under section 1105(c) (3).

However, according to an advisory opinion (1) issued by the Department
of Tax and Finance in relation to a specific project, the energy storage
equipment must first be considered a generation facility, and section
1115(a) (12) of the tax law requires that the machinery and equipment be
used directly and predominantly in the production of electricity for
sale by generating. This interpretation is problematic for energy stor-
age which is typically used to inject energy into the energy grid less
than 50 percent of the time. Moreover, energy storage is not considered
generation under. Public Service Law, and thus attempting to define it
as generation for the purposes of tax law could create a more complex
and troublesome legal situation in relation to the treatment of storage
for other purposes. In 2019, New York State codified the most aggressive
climate goals in the nation, requiring New York to achieve 100 percent
carbon-free energy by 2040 (The Climate Leadership and Community
Protection Act). In addition to greenhouse gas reduction goals, the
CLCPA requires the state to have three gigawatts of energy storage
installed by 2030. Energy storage is a key enabling technology to
achieve the 'state's renewable energy and climate goals, providing
increased grid flexibility, enabling the wide scale deployment of renew-
able energy, promoting efficient use of grid resources, and enhancing
grid resiliency. The state Public Service Commission recognized the
critical role for storage in its Energy Storage Order adopting the
state's roadmap for storage and authorizing the state Energy Research
and Development Authority (NYSERDA) to implement new incentive programs
for energy storage. While these efforts have jumpstarted energy storage
projects across the state, the cost of deploying and siting energy stor-
age remains high. This legislation will help reduce the cost of deploy-
ing energy storage projects by providing an exemption from state taxes
for the sale and installation of energy storage equipment, both residen-
tial and commercial, and providing municipalities the option to grant
such exemptions for local sales tax. The legislation will give energy
storage technology similar tax exemptions to solar energy and fuels
cells, creating a fair and level playing field for clean energy technol-
ogies while stimulating the state's economy and creating new green
collar jobs.

 
PRIOR LEGISLATIVE HISTORY:

2021/22: S3277A - REPORTED AND COMMITTED TO FINANCE

2019/20: S8219 - REFERRED TO BUDGET AND REVENUE

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Undetermined.

 
EFFECTIVE DATE:
Immediately.

2023-S4547 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4547
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to  establishing  a  sales  tax
   exemption for energy storage
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1115 of the tax law is amended by  adding  two  new
 subdivisions (ll) and (mm) to read as follows:
   (LL)  THE  FOLLOWING  SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
 RECEIPTS FROM THE RETAIL SALE OF, AND CONSIDERATION GIVEN OR  CONTRACTED
 TO  BE  GIVEN FOR, OR FOR THE USE OF, RESIDENTIAL ENERGY STORAGE SYSTEMS
 EQUIPMENT AND THE SERVICE OF INSTALLING SUCH SYSTEMS. FOR  THE  PURPOSES
 OF  THIS  SUBDIVISION,  "RESIDENTIAL  ENERGY  STORAGE SYSTEMS EQUIPMENT"
 SHALL MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS  INSTALLED  IN  A
 RESIDENCE  THAT  STORES  ELECTRICITY  FOR USE AT A LATER TIME TO PROVIDE
 HEATING, COOLING, HOT WATER AND/OR ELECTRICITY.
   (2) RECEIPTS FROM THE  SALE  OF  ELECTRICITY  BY  A  PERSON  PRIMARILY
 ENGAGED  IN THE SALE OF ENERGY STORAGE SYSTEM EQUIPMENT AND/OR ELECTRIC-
 ITY GENERATED BY SUCH EQUIPMENT PURSUANT TO A  WRITTEN  AGREEMENT  UNDER
 WHICH SUCH ELECTRICITY IS GENERATED BY RESIDENTIAL ENERGY SYSTEM STORAGE
 EQUIPMENT  THAT  IS:   (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF
 SUCH ELECTRICITY; (B) INSTALLED ON RESIDENTIAL PROPERTY OF THE PURCHASER
 OF SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER
 OR ELECTRICITY.
   (MM) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER  THIS  ARTICLE:  (1)
 RECEIPTS  FROM THE RETAIL SALE OF, AND CONSIDERATION GIVEN OR CONTRACTED
 TO BE GIVEN FOR, OR FOR THE USE OF, COMMERCIAL  ENERGY  STORAGE  SYSTEMS
 EQUIPMENT  AND THE COSTS OF INSTALLING SUCH SYSTEMS. FOR THE PURPOSES OF
 THIS SUBDIVISION, "COMMERCIAL ENERGY STORAGE  SYSTEMS  EQUIPMENT"  SHALL
 MEAN  AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON NON-RE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06308-01-3
 S. 4547                             2

 
 SIDENTIAL PREMISES THAT STORES ELECTRICITY FOR USE AT A  LATER  TIME  TO
 PROVIDE HEATING, COOLING, HOT WATER AND/OR ELECTRICITY.
   (2)  RECEIPTS  FROM  THE  SALE  OF  ELECTRICITY  BY A PERSON PRIMARILY
 ENGAGED IN THE SALE OF ENERGY STORAGE SYSTEM EQUIPMENT AND/OR  ELECTRIC-
 ITY  GENERATED  BY  SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER
 WHICH THE ELECTRICITY IS GENERATED BY COMMERCIAL ENERGY SYSTEM EQUIPMENT
 THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER  OF  SUCH  ELEC-
 TRICITY;  (B) INSTALLED ON THE NON-RESIDENTIAL PREMISES OF THE PURCHASER
 OF SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER
 OR ELECTRICITY TO SUCH PREMISES.
   § 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
 amended by section 5 of part J of chapter 59 of the  laws  of  2021,  is
 amended to read as follows:
   (1) Either, all of the taxes described in article twenty-eight of this
 chapter,  at  the same uniform rate, as to which taxes all provisions of
 the local laws, ordinances or resolutions imposing such taxes  shall  be
 identical,  except as to rate and except as otherwise provided, with the
 corresponding provisions in such  article  twenty-eight,  including  the
 definition  and  exemption  provisions  of  such  article, so far as the
 provisions of such article twenty-eight can be made  applicable  to  the
 taxes  imposed  by  such  city  or  county and with such limitations and
 special provisions as are set forth in this article. The  taxes  author-
 ized  under  this  subdivision  may  not  be imposed by a city or county
 unless the local law, ordinance or resolution imposes such taxes  so  as
 to  include  all  portions  and all types of receipts, charges or rents,
 subject to state tax under  sections  eleven  hundred  five  and  eleven
 hundred  ten  of  this  chapter, except as otherwise provided.  Notwith-
 standing the foregoing, a tax imposed by a  city  or  county  authorized
 under  this subdivision shall not include the tax imposed on charges for
 admission to race tracks and simulcast facilities under subdivision  (f)
 of section eleven hundred five of this chapter. (i) Any local law, ordi-
 nance  or  resolution enacted by any city of less than one million or by
 any county or school district, imposing the  taxes  authorized  by  this
 subdivision,  shall, notwithstanding any provision of law to the contra-
 ry, exclude from the operation of such local taxes all sales of tangible
 personal property for use or consumption directly and  predominantly  in
 the  production of tangible personal property, gas, electricity, refrig-
 eration or steam, for sale, by  manufacturing,  processing,  generating,
 assembly,  refining,  mining  or  extracting;  and all sales of tangible
 personal property for use or consumption  predominantly  either  in  the
 production  of  tangible personal property, for sale, by farming or in a
 commercial horse boarding operation, or in both; and all sales  of  fuel
 sold  for use in commercial aircraft and general aviation aircraft; and,
 unless such city, county or school district elects otherwise, shall omit
 the provision for credit or refund contained in clause six  of  subdivi-
 sion  (a)  or subdivision (d) of section eleven hundred nineteen of this
 chapter. (ii) Any local law, ordinance  or  resolution  enacted  by  any
 city,  county  or school district, imposing the taxes authorized by this
 subdivision, shall omit the residential solar energy  systems  equipment
 and  electricity exemption provided for in subdivision (ee), the commer-
 cial solar energy systems equipment and electricity  exemption  provided
 for in subdivision (ii), the commercial fuel cell electricity generating
 systems  equipment and electricity generated by such equipment exemption
 provided for in subdivision (kk), THE RESIDENTIAL ENERGY STORAGE SYSTEMS
 EQUIPMENT AND ELECTRICITY EXEMPTION PROVIDED FOR  IN  SUBDIVISION  (LL),
 THE   COMMERCIAL   ENERGY  STORAGE  SYSTEMS  EQUIPMENT  AND  ELECTRICITY
 S. 4547                             3
 
 EXEMPTION PROVIDED FOR IN SUBDIVISION (MM) and the clothing and footwear
 exemption provided for in paragraph thirty of subdivision (a) of section
 eleven hundred fifteen of this chapter,  unless  such  city,  county  or
 school  district  elects  otherwise  as to such residential solar energy
 systems equipment and electricity exemption, such commercial solar ener-
 gy systems equipment and electricity  exemption,  commercial  fuel  cell
 electricity  generating  systems  equipment and electricity generated by
 such equipment exemption or such clothing and footwear exemption.
   § 3. Subdivision (d) of section 1210 of the tax  law,  as  amended  by
 section  4  of  part WW of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (d) A local law, ordinance or resolution imposing any tax pursuant  to
 this  section,  increasing or decreasing the rate of such tax, repealing
 or suspending such tax, exempting from such tax the energy  sources  and
 services  described in paragraph three of subdivision (a) or of subdivi-
 sion (b) of this section or changing the rate of  tax  imposed  on  such
 energy  sources  and  services  or  providing  for  the credit or refund
 described in clause six of subdivision (a)  of  section  eleven  hundred
 nineteen  of  this  chapter,  or electing or repealing the exemption for
 residential solar equipment  and  electricity  in  subdivision  (ee)  of
 section  eleven  hundred  fifteen  of this article, or the exemption for
 commercial solar  equipment  and  electricity  in  subdivision  (ii)  of
 section eleven hundred fifteen of this article, or electing or repealing
 the  exemption  for  commercial fuel cell electricity generating systems
 equipment and electricity generated by  such  equipment  in  subdivision
 (kk) of section eleven hundred fifteen of this article, OR THE EXEMPTION
 FOR  RESIDENTIAL  ENERGY STORAGE EQUIPMENT OR ELECTRICITY IN SUBDIVISION
 (LL) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, OR THE EXEMPTION
 FOR COMMERCIAL ENERGY STORAGE EQUIPMENT AND ELECTRICITY  IN  SUBDIVISION
 (MM)  OF  SECTION  ELEVEN  HUNDRED  FIFTEEN OF THIS ARTICLE must go into
 effect only on one of the following  dates:  March  first,  June  first,
 September first or December first; provided, that a local law, ordinance
 or  resolution providing for the exemption described in paragraph thirty
 of subdivision (a) of section eleven hundred fifteen of this chapter  or
 repealing  any  such  exemption  or a local law, ordinance or resolution
 providing for a refund or credit described in subdivision (d) of section
 eleven hundred nineteen of this chapter or repealing such  provision  so
 provided  must  go  into  effect only on March first. No such local law,
 ordinance or resolution shall be effective unless a  certified  copy  of
 such  law,  ordinance or resolution is mailed by registered or certified
 mail to the commissioner at the commissioner's office in Albany at least
 ninety days prior to the date it is to become  effective.  However,  the
 commissioner  may  waive  and  reduce  such  ninety-day  minimum  notice
 requirement to a mailing of such certified copy by registered or  certi-
 fied  mail  within  a  period of not less than thirty days prior to such
 effective date if the commissioner deems such action  to  be  consistent
 with  the  commissioner's  duties  under section twelve hundred fifty of
 this  article  and  the  commissioner  acts  by  resolution.  Where  the
 restriction  provided for in section twelve hundred twenty-three of this
 article as to the effective date of a tax  and  the  notice  requirement
 provided  for  therein  are  applicable  and  have  not been waived, the
 restriction and notice requirement in  section  twelve  hundred  twenty-
 three of this article shall also apply.
   § 4. This act shall take effect immediately.

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Senate Bill S4547

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

May 23, 2023 - Budget And Revenue Committee Vote

Budget And Revenue Committee Vote: May 23, 2023

co-Sponsors

2023-S4547 (ACTIVE) - Details

2023-S4547 (ACTIVE) - Summary

2023-S4547 (ACTIVE) - Sponsor Memo

2023-S4547 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4547

Share this bill

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2023-S4547 (ACTIVE) - Details

2023-S4547 (ACTIVE) - Summary

2023-S4547 (ACTIVE) - Sponsor Memo

2023-S4547 (ACTIVE) - Bill Text download pdf

Comments