S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    313
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. PAULIN, STERN, TAYLOR, COLTON, ALVAREZ, BARRETT,
   ROSENTHAL, SIMONE, RAGA, GANDOLFO, DURSO, JACOBSON,  RAJKUMAR,  ANDER-
   SON, LUNSFORD, BICHOTTE HERMELYN, SHIMSKY, RA, WOERNER, SLATER, SIMON,
   OTIS,  LEVENBERG,  HEVESI, CLARK, SEAWRIGHT, SHRESTHA, BURDICK, STECK,
   BLUMENCRANZ, FORREST -- read once and referred  to  the  Committee  on
   Ways and Means
 
 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 a new
 subdivision (mm) to read as follows:
   (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-
 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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00319-01-5
 A. 313                              2
              

 
   § 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 COMMERCIAL ENERGY STORAGE  SYSTEMS
 EQUIPMENT AND ELECTRICITY 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   energy  systems  equipment  and  electricity
 exemption, commercial fuel cell electricity generating systems equipment
 and electricity generated by such equipment exemption,  SUCH  COMMERCIAL
 ENERGY  STORAGE  SYSTEMS  EQUIPMENT  AND  ELECTRICITY EXEMPTION, or such
 clothing and footwear exemption.
 A. 313                              3
 
   § 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 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.