S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1212
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                    January 9, 2015
                                      ___________
       Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
         printed to be committed to the Committee on Investigations and Govern-
         ment Operations
       AN ACT to amend the tax law, in relation to establishing a corporate and
         a personal income tax credit for wind energy system equipment
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  210-b  of the tax law is amended by adding a new
    2  subdivision 49 to read as follows:
    3    49. WIND ENERGY SYSTEM EQUIPMENT CREDIT.  (A) GENERAL. A TAXPAYER, WHO
    4  OWNS OR OPERATES WIND ENERGY SYSTEM EQUIPMENT, SHALL BE ALLOWED A CREDIT
    5  AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT  OF
    6  QUALIFIED  WIND  ENERGY SYSTEM EQUIPMENT EXPENDITURES. THIS CREDIT SHALL
    7  NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS.
    8    (B) QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES. (I) THE  TERM
    9  "QUALIFIED  WIND  ENERGY  SYSTEM  EQUIPMENT EXPENDITURES" MEANS EXPENDI-
   10  TURES, LIMITED TO THE EXPENDITURE CAP PRESCRIBED IN SUBPARAGRAPH (II) OF
   11  THIS PARAGRAPH, FOR THE PURCHASE OF WIND ENERGY SYSTEM  EQUIPMENT  WHICH
   12  IS  INSTALLED  IN  CONNECTION WITH PROPERTY WHICH IS (A) LOCATED IN THIS
   13  STATE AND (B) WHICH IS USED BY THE TAXPAYER  AS  HIS  OR  HER  PRINCIPAL
   14  PREMISES  AT  THE  TIME  THE  WIND  ENERGY SYSTEM EQUIPMENT IS PLACED IN
   15  SERVICE.
   16    (II) FOR PURPOSES OF SUBPARAGRAPH (I)  OF  THIS  PARAGRAPH,  THE  TERM
   17  "EXPENDITURE  CAP" SHALL MEAN THE PRODUCT OF (A) SIX DOLLARS AND (B) THE
   18  NUMBER OF WATTS INCLUDED IN THE RATED CAPACITY OF THE WIND ENERGY SYSTEM
   19  EQUIPMENT.
   20    (III) SUCH QUALIFIED EXPENDITURES SHALL INCLUDE EXPENDITURES FOR MATE-
   21  RIALS, LABOR COSTS PROPERLY ALLOCABLE TO ON-SITE  PREPARATION,  ASSEMBLY
   22  AND  ORIGINAL  INSTALLATION, ARCHITECTURAL AND ENGINEERING SERVICES, AND
   23  DESIGNS AND PLANS DIRECTLY RELATED TO THE CONSTRUCTION  OR  INSTALLATION
   24  OF THE WIND ENERGY SYSTEM EQUIPMENT.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06530-01-5
       S. 1212                             2
    1    (IV)  SUCH  QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER
    2  FINANCE CHARGES.
    3    (C)  WIND ENERGY SYSTEM EQUIPMENT. THE TERM "WIND ENERGY SYSTEM EQUIP-
    4  MENT" SHALL MEAN EQUIPMENT WHICH, WHEN INSTALLED AT A  TAXPAYER'S  PREM-
    5  ISES, USES WIND ENERGY FOR THE PURPOSE OF GENERATING ELECTRICITY FOR USE
    6  IN SUCH PREMISES.
    7    (D)   MULTIPLE  TAXPAYERS.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
    8  PURCHASED AND INSTALLED IN A PRINCIPAL PREMISES SHARED BY  TWO  OR  MORE
    9  TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
   10  EACH  SUCH TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF THE
   11  TOTAL EXPENDITURE FOR SUCH WIND ENERGY SYSTEM EQUIPMENT  CONTRIBUTED  BY
   12  EACH TAXPAYER.
   13    (E)  WHEN  CREDIT ALLOWED. THE CREDIT FOR WIND ENERGY SYSTEM EQUIPMENT
   14  PROVIDED FOR IN THIS SUBDIVISION SHALL BE ALLOWED WITH  RESPECT  TO  THE
   15  TAXABLE  YEAR,  COMMENCING AFTER TWO THOUSAND FIFTEEN, IN WHICH THE WIND
   16  ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE.
   17    (F) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT,  AND  CARRYOVERS
   18  OF  SUCH  CREDIT,  ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
   19  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
   20  CARRIED OVER TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE  TAXABLE  YEAR
   21  WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
   22  TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   23    S  2.  The  subsection  heading  and paragraphs 1, 2, 3, 4, 5 and 7 of
   24  subsection (g-1) of section 606 of the tax law, the  subsection  heading
   25  and  paragraphs  4  and 7 as amended by chapter 378 of the laws of 2005,
   26  paragraphs 1 and 2 as amended by chapter 375 of the laws of 2012,  para-
   27  graph  3  as amended, paragraph 5 as added and paragraph 7 as renumbered
   28  by chapter 128 of the laws of 2007, are amended to read as follows:
   29    Solar AND WIND energy system equipment credit.  (1) General. [An indi-
   30  vidual] A taxpayer shall be allowed a credit against the tax imposed  by
   31  this  article  equal  to  twenty-five percent of qualified solar OR WIND
   32  energy system equipment expenditures, except as provided in subparagraph
   33  (D) of paragraph two of this subsection. This credit  shall  not  exceed
   34  three  thousand  seven  hundred fifty dollars for qualified solar energy
   35  equipment placed in service before September first,  two  thousand  six,
   36  and five thousand dollars for qualified solar energy equipment placed in
   37  service  on  or after September first, two thousand six, AND SEVEN THOU-
   38  SAND FIVE HUNDRED DOLLARS FOR QUALIFIED WIND ENERGY SYSTEM EQUIPMENT.
   39    (2) Qualified solar OR WIND energy system equipment expenditures.  (A)
   40  The  term "qualified solar OR WIND energy system equipment expenditures"
   41  means expenditures for:
   42    (i) the purchase of solar OR WIND energy  system  equipment  which  is
   43  installed  in  connection with residential property which is (I) located
   44  in this state and (II) which is used by the taxpayer as his or her prin-
   45  cipal [residence] PREMISES at the time the solar OR WIND  energy  system
   46  equipment is placed in service;
   47    (ii)  the lease of solar OR WIND energy system equipment under a writ-
   48  ten agreement that spans at least ten years where such  equipment  owned
   49  by  a  person  other  than  the taxpayer is installed in connection with
   50  residential property which is (I) located in this state and  (II)  which
   51  is  used by the taxpayer as his or her principal [residence] PREMISES at
   52  the time the solar OR WIND energy system equipment is placed in service;
   53  or
   54    (iii) the purchase of power under a written agreement  that  spans  at
   55  least  ten years whereunder the power purchased is generated by solar OR
   56  WIND energy system equipment owned by a person other than  the  taxpayer
       S. 1212                             3
    1  which  is installed in connection with residential property which is (I)
    2  located in this state and (II) which is used by the taxpayer as  his  or
    3  her  principal [residence] PREMISES at the time the solar OR WIND energy
    4  system equipment is placed in service.
    5    (B) Such qualified expenditures shall include expenditures for materi-
    6  als, labor costs properly allocable to on-site preparation, assembly and
    7  original  installation,  architectural  and  engineering  services,  and
    8  designs and plans directly related to the construction  or  installation
    9  of the solar OR WIND energy system equipment.
   10    (C)  Such  qualified  expenditures  for  the purchase of solar OR WIND
   11  energy system equipment shall not  include  interest  or  other  finance
   12  charges.
   13    (D)  Such qualified expenditures for the lease of solar OR WIND energy
   14  system equipment or the purchase of power under an  agreement  described
   15  in  clauses  (ii)  or  (iii) of subparagraph (A) of this paragraph shall
   16  include an amount equal to all payments made  during  the  taxable  year
   17  under  such  agreement.  Provided,  however,  such credits shall only be
   18  allowed for fourteen years after the first taxable year  in  which  such
   19  credit  is  allowed.  Provided further, however, the twenty-five percent
   20  limitation in paragraph one of this subsection shall only apply  to  the
   21  total  aggregate amount of all payments to be made pursuant to an agree-
   22  ment referenced in clauses (ii) or (iii) of  subparagraph  (A)  of  this
   23  paragraph,  and  shall  not  apply  to individual payments made during a
   24  taxable year under such agreement except to the extent  such  limitation
   25  on an aggregate basis has been reached.
   26    (3)  Solar  OR  WIND  energy system equipment. The term "solar OR WIND
   27  energy system equipment" shall mean an  arrangement  or  combination  of
   28  components   utilizing  solar  radiation  OR  WIND  POWER,  which,  when
   29  installed in a residence, produces energy designed to  provide  heating,
   30  cooling,  hot water or electricity for use in such [residence] PREMISES.
   31  Such arrangement or components shall not include equipment connected  to
   32  solar  OR  WIND  energy  system equipment that is a component of part or
   33  parts of a non-solar OR NON-WIND energy system or which uses any sort of
   34  recreational facility or equipment as a storage medium.  Solar  OR  WIND
   35  energy  system  equipment that generates electricity for use in a [resi-
   36  dence] TAXPAYER'S PREMISES must conform to applicable  requirements  set
   37  forth in section sixty-six-j of the public service law. Provided, howev-
   38  er,  where  solar  OR  WIND  energy  system  equipment  is purchased and
   39  installed by a condominium management association or a cooperative hous-
   40  ing corporation, for purposes of this subsection  only,  the  term  "ten
   41  kilowatts"  in  such  section  sixty-six-j shall be read as "fifty kilo-
   42  watts."
   43    (4) Multiple taxpayers. Where solar OR WIND energy system equipment is
   44  purchased and installed in a principal [residence]  PREMISES  shared  by
   45  two  or  more  taxpayers,  the amount of the credit allowable under this
   46  subsection for each such taxpayer shall be  prorated  according  to  the
   47  percentage of the total expenditure for such solar OR WIND energy system
   48  equipment contributed by each taxpayer.
   49    (5)  Proportionate  share. Where solar OR WIND energy system equipment
   50  is purchased and installed by a condominium management association or  a
   51  cooperative  housing  corporation,  a  taxpayer  who  is a member of the
   52  condominium management association or who is a tenant-stockholder in the
   53  cooperative housing corporation may for the purpose of  this  subsection
   54  claim  a proportionate share of the total expense as the expenditure for
   55  the purposes of the credit attributable to his OR  HER  principal  resi-
   56  dence.
       S. 1212                             4
    1    (7)  When credit allowed. The credit FOR SOLAR ENERGY SYSTEM EQUIPMENT
    2  provided for [herein] IN THIS SUBSECTION shall be allowed  with  respect
    3  to  the taxable year, commencing after nineteen hundred ninety-seven, in
    4  which the solar energy system equipment is placed in service.  THE CRED-
    5  IT  FOR  WIND  ENERGY  SYSTEM  EQUIPMENT PROVIDED FOR IN THIS SUBSECTION
    6  SHALL BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER  TWO
    7  THOUSAND FIFTEEN, IN WHICH THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED IN
    8  SERVICE.
    9    S 3. This act shall take effect immediately.