Relates to emerging technology industrial classifications for clean environment and energy technologies

BILL NUMBER:S3371

Title of bill

An act to amend the public authorities law, in relation to emerging technology industrial classifications for clean environment and energy technologies

Purpose or general idea of bill

The intent of this legislation is to add clean environmental and energy technologies to the list of emerging industrial classifications in New York State.

Summary of specific provisions

A new subparagraph seven is added to section 3102-e of the Public Authorities Law to read as follows:

(7) clean environment and energy technologies that involve new and innovative pollution reduction methods, renewable resource energy generation or storage, and energy efficiency measures such as smart grid, automated or computerized energy control systems designed to deliver electric generation to the end use customer in an integrated manner using the latest advances in digital and informational technology to improve electric system efficiency.

Justification

The intent of this legislation is to add clean environmental and energy technologies to the list of emerging industrial classifications in New York. State. This classification will allow entrepreneurs and business involved in cutting edge clean environmental and energy technologies to be certified as a "Qualified Emerging Technology Company" which would make them eligible for additional capital tax credits and investment opportunities.

Currently, for a company to be certified as by the NYS Commissioner of Tax and Finance for tax breaks as emerging technology company (QETC), the industry must: (i) be as defined under section 3102-e of the public authorities law (PAL); (ii) be located in New York State; and, (iii) have total annual product sales of $10 million or less.

The current emerging technologies under section 3102-e(1)(b) of the PAL those technologies related to: advanced materials and processing; engineering, production, and defense; electronic and photonic devices and components; information and communication technologies; biotechnologies; and, remanufactuting.

In New York State, significant investment is already being made by businesses and utilities, as well as the New York State Energy and Research Development Authority (NYSERDA), the. Empire State Development Corporation (ESDC), the Public Service Commission (PSC), the Division of Housing and Community Renewal (DHCR) and the New York State Foundation for Science, Technology and Innovation (NYSTAR). In addition to State funding, there has also been increased funding

available from the federal sources. This growth is expected to create new business opportunities and integrate clean environmental and energy technologies, practices and services across all sectors.

While significant investment is being made in New York, the State faces the threat of falling behind in the race to develop the clean environmental and energy technologies to other states such as California, Connecticut, Maine, Maryland, Massachusetts, New Jersey as well as several other states being to actively pursue supporting these technologies. If New York State fails to aggressively promote these technologies, it would mean a significant loss of revenue, but also a significant job loss from a sector that is actively working to train and develop a skilled workforce capable of supporting these industries.

Prior legislative history

2010: S.8356 - Died in Rules

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately.