NY State Senate Bill 2025-S4272

Senate Bill S4272

2025-2026 Legislative Session

Provides for direct-pay tax abatement credits for solar electric generating systems and electric energy storage systems in connection with eligible buildings

download bill text pdf

Current Bill Status - In Senate Committee Cities 1 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
Feb 03, 2025	referred to cities 1

2025-S4272 (ACTIVE) - Details

Current Committee:: Senate Cities 1
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§499-bbbb & 499-cccc, RPT L

2025-S4272 (ACTIVE) - Summary

Provides for direct-pay tax abatement credits for solar electric generating systems and electric energy storage systems in connection with eligible buildings; provides such eligible properties shall include: 501(c)(3) corporations, associations, organizations or trusts and income-restricted affordable housing properties.

2025-S4272 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4272

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to providing for
a direct-pay tax abatement credit for solar electric generating systems
and electric energy storage systems in connection with eligible build-
ings

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide for a tax credit for the installation of solar electric
generating systems and electric storage for New York City non-profit
owned and/or income restricted affordable housing properties.

 
SUMMARY OF PROVISIONS:

Section 1 provides that properties that are owned by 501(c)(3) organiza-
tions, housing developments incorporated under article two, four, five,
or eleven of the private housing finance law, and properties that are
income restricted affordable housing properties shall be eligible for a

direct-pay credit equivalent to the tax abatement for solar electric
generating systems and electric energy storage equipment available to
other properties in New York City. The terms of such abatements are the
lesser of thirty percent of expenditures or $250,000 taken in equal
increments annually over a four-year period. The direct-pay credit for
eligible properties will be distributed through a check issued by the
New York City Department of Finance.

Section 2 provides that the provisions of the real property tax law
pertaining to the administration of the solar and electric storage
systems abatement also pertain to the direct-pay credit including that
properties are eligible for the benefit prior to January 1, 2036.

Section 3 sets the effective date as "effective immediately."

 
JUSTIFICATION:

In June 2023 the legislature passed and in September 2023 the Governor
signed into law bill A6113B, which extended and strengthened the exist-
ing incentive programs to encourage the installation of solar electric
generating systems and energy storage systems, in connection with class
one, class two and class four properties in New York City.  The program
while enabled by the State is administered and paid for by the City.
This bill would allow not-for-profit owned properties such as houses of
worship and various affordable housing properties in New York City that
already pay no or reduced property taxes to benefit from a direct-pay
credit structured in accordance with the property-tax abatement avail-
able to other properties. This legislation is consistent with the
commitments of New York State in the Climate Leadership and Community
Protection Act (CLCPA) and the City of New York through Local Law 97 to
reduce greenhouse gas emission reduction and to provide cleaner, more
reliable power for every New Yorker. By enabling properties that provide
affordable housing including low-income housing to be eligible for the
same benefit as other properties this legislation will also help meet
environmental justice and equity goals.

 
PRIOR LEGISLATIVE HISTORY:
2024: A8355 (Carroll) - referred to real property taxation

2023: A8355 (Carroll) - referred to real property taxation

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4272 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4272
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 1
 
 AN ACT to amend the real property tax law, in relation to providing  for
   a  direct-pay  tax  abatement  credit  for  solar  electric generating
   systems and electric energy storage systems in connection with  eligi-
   ble buildings
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 499-bbbb of the real property tax law is amended by
 adding a new subdivision 5 to read as follows:
   5. NOTWITHSTANDING ANY LIMITATIONS OR RESTRICTIONS ESTABLISHED  WITHIN
 THIS  SECTION OR ANY LOCAL LAW OR RESOLUTION, ANY ELIGIBLE BUILDING THAT
 IS OWNED BY A CORPORATION, ASSOCIATION, ORGANIZATION OR TRUST  DESCRIBED
 IN  SECTION 501(C)(3) OF THE UNITED STATES INTERNAL REVENUE CODE, INCOR-
 PORATED UNDER ARTICLE TWO, FOUR, FIVE, OR ELEVEN OF THE PRIVATE  HOUSING
 FINANCE  LAW,  OR  IS  AN INCOME-RESTRICTED AFFORDABLE HOUSING PROPERTY,
 INCLUDING BUT NOT LIMITED TO PROPERTIES WITH REGULATORY AGREEMENTS  WITH
 THE  NEW  YORK  CITY DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT,
 NEW YORK CITY HOUSING DEVELOPMENT CORPORATION, NEW YORK STATE DEPARTMENT
 OF HOUSING AND COMMUNITY RENEWAL, OR THE  UNITED  STATES  DEPARTMENT  OF
 HOUSING AND URBAN DEVELOPMENT, SHALL BE ELIGIBLE FOR A DIRECT-PAY CREDIT
 EQUAL  TO THE MONETARY VALUE OF THE ABATEMENT AS CALCULATED IN PARAGRAPH
 (F) OF SUBDIVISION ONE OF THIS SECTION. SUCH DIRECT-PAY CREDIT SHALL  BE
 ISSUED  TO  THE  ELIGIBLE BUILDING OWNER BY THE DEPARTMENT OF FINANCE IN
 THE FORM OF A CHECK IRRESPECTIVE OF THE AMOUNT OF TAXES PAYABLE IN  SUCH
 TAX YEAR.
   §  2.  The  section  heading and subdivisions 1, 4, 5 and 6 of section
 499-cccc of the real property tax law, the section heading and  subdivi-
 sions  4,  5 and 6 as added by chapter 473 of the laws of 2008, subdivi-
 sion 1 as amended by chapter 485 of the laws of  2023,  are  amended  to
 read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07664-01-5

 S. 4272                             2
 
   Application for tax abatement OR DIRECT-PAY CREDIT. 1. To obtain a tax
 abatement OR DIRECT-PAY CREDIT pursuant to this title, an applicant must
 file  an  application  for tax abatement, which may be filed on or after
 January first, two thousand nine, and on or before  January  first,  two
 thousand thirty-six.
   4.  An  application for tax abatement OR DIRECT-PAY CREDIT shall be in
 any format prescribed by a designated agency, including electronic form.
   5. An application for tax abatement  OR  DIRECT-PAY  CREDIT  shall  be
 approved  by a designated agency upon determining that the applicant has
 submitted proof acceptable to such  agency  that  the  requirements  for
 obtaining  a  tax  abatement OR DIRECT-PAY CREDIT pursuant to this title
 and the rules promulgated hereunder have been met. The burden  of  proof
 shall  be on the applicant to show by clear and convincing evidence that
 the requirements for granting a tax abatement OR DIRECT-PAY CREDIT  have
 been satisfied.
   6.  Upon notification from a designated agency that an application for
 tax abatement OR DIRECT-PAY CREDIT has been approved, the department  of
 finance  shall  apply  the  tax abatement OR DIRECT-PAY CREDIT, provided
 there are no outstanding real estate taxes,  water  and  sewer  charges,
 payments in lieu of taxes or other municipal charges with respect to the
 eligible building.
   § 3. This act shall take effect immediately.

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