NY State Senate Bill 2025-S1527

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 10, 2025	referred to budget and revenue

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2025-S1527 (ACTIVE) - Details

See Assembly Version of this Bill:: A313
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
2023-2024: S4547, A4954

2025-S1527 (ACTIVE) - Summary

Establishes sales tax exemptions for commercial energy storage systems equipment.

2025-S1527 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1527

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, equip-
ment,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 generation. 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 flexibili-
ty, enabling the wide scale deployment of renewable 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 (NYSER-
DA) 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 storage remains high.
This legislation will help reduce the cost of deploying energy storage
projects by providing an exemption from state taxes for the sale and
installation of energy storage equipment, both residential and commer-
cial, 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 technologies while stimulating
the state's economy and creating new green collar jobs.

 
PRIOR LEGISLATIVE HISTORY:

2023/24: S4547 - REPORTED AND COMMITTED TO FINANCE

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.

2025-S1527 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1527
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2025
                                ___________
 
 Introduced  by  Sens.  PARKER,  ADDABBO,  ASHBY, BAILEY, CLEARE, COONEY,
   FERNANDEZ, GALLIVAN, HARCKHAM, HELMING, HINCHEY, HOYLMAN-SIGAL,  JACK-
   SON,  KAVANAGH,  KRUEGER, LIU, MAY, PALUMBO, RHOADS, ROLISON, S. RYAN,
   SANDERS, SEPULVEDA, SERRANO, SKOUFIS, TEDISCO, WEBB -- 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  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.
   § 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00319-01-5

 S. 1527                             2
 
   (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.
   §  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
 S. 1527                             3
 
 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.

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Senate Bill S1527

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2025-S1527 (ACTIVE) - Details

2025-S1527 (ACTIVE) - Summary

2025-S1527 (ACTIVE) - Sponsor Memo

2025-S1527 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1527

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Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2025-S1527 (ACTIVE) - Details

2025-S1527 (ACTIVE) - Summary

2025-S1527 (ACTIVE) - Sponsor Memo

2025-S1527 (ACTIVE) - Bill Text download pdf

Comments