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- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
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Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing a tax credit for alternative energy systems and generating equipment
Purpose
The purpose of this legislation is to encourage the investment in and continued use of alternative energy systems and generating equipment through tax credits which will assist in offsetting the initial costs of constructing and installing solar and wind energy system equipment and fuel cell electric generating equipment.
Summary of provisions
Section 1 - would amend the tax law by adding a new section 24a to establish a tax credit for alternative energy systems and generating equipment.
Read the full memo (755 words)
Subdivision a - would establish a tax credit for qualified expenditures meeting the criteria prescribed by the Department of Tax and Finance in consultation with the Department of Environmental Conservation and the New York State Energy Research and Development Authority (NYSERDA) for taxpayers subject to tax under articles nine-a, twenty-two, thirty-two and thirty-three whose business is not substantially engaged in the commercial generation, distribution, transmission or servicing of energy or energy products.
Subdivision b - would establish definitions for the following terms: "solar and wind energy system equipment," solar electric generating equipment, wind energy system, "fuel cell electric generating equipment," "geothermal resource transfer system," "credit allowance year," "taxable year," and qualified expenditures.
Subdivision c - would allow for tax credits for qualifying energy systems and equipment as follows:
Paragraph 1 - establishes qualified alternative energy systems and generating equipment expenses.
Paragraph 2 - provides for tax credit for eligible solar and wind energy system equipment equal to 50% of the qualified expenses for certain taxpayers.
Paragraph 3 - provides for tax credit for eligible fuel cell electric generating equipment/and or geothermal resource transfer system equipment shall be equal to 45% of the qualified expenses for certain taxpayers.
Paragraph 4 - provides for proration of tax credit when two or more taxpayers share in the accumulation of qualifying expenditures of qualifying alternative systems and generating equipment.
Subdivision d - establishes requirements for tax credit qualification:
Paragraph 1 - provides for realization of credit
Paragraph 2 - credit component certificate from NYSERDA required
Paragraph 3 - provides for NYSERDA issuance of certificate marking approval of qualifying expenses for application for of tax credits
Paragraph 4 - provides for revocation of certificate upon violation of terms of this paragraph or any willful misrepresentation of any terms of this section.
Paragraph 5 - provides for recapture of current and previously received benefits if use of any solar and wind energy system equipment or fuel cell electric generating is discontinued within 5 years, but for certain circumstances.
Sections 2,3,4,5 and 6 - amend the tax law to allow for alternative energy systems and generating equipment credits, as would be established pursuant to section one of this legislation, within Articles nine-a, twenty-two, thirty-two and thirty-three of the tax law.
Section 7 - Effective date
Existing law
A personal income tax credit currently exists for individuals who invest in solar electric technologies for residential use.
Justification
The provision of a tax credit for business corporations would encourage the business community to invest in alternative energy systems. The additional investment in solar energy, wind energy and fuel cell electric generating equipment would enhance-the diversification of New York's energy resources, decrease the use and reliance on non-renewable technologies and help protect our environment with cleaner energy sources. A tax credit to assist businesses in offsetting the cost of developing and installing these self-sufficient and renewable energy systems would provide the additional incentive for these businesses to invest in such equipment thereby decreasing their need for traditional energy sources.
Legislative history
2007-2008: Passed Senate (S.1634-B/A.8350-B) 2005-2006: Passed Senate(S.785-B/A.5277-B) 2004: Investigations & Gov. Operations Committee (S.6317-A/A.10191-A)
Fiscal implications
It is estimated tax revenue would be reduced by $15 million annually.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2009; provided, however, that the IMB tax credit for energy taxes under subsection (t-1) of section 606 of the tax law contained in section three of this act shall expire on the same date as provided in subdivision (a) of section 49 of part Y of chapter 63 of the laws of 2000, and section 9 of part P of chapter 60 of the laws of 2004, as amended by section 10 of part V of a chapter of the laws of 2006, in legislative bill numbers S.6460-C and A.9560-B, as amended, respectively.
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