Provides a tax exemption on certain non-commercial energy star appliances

BILL NUMBER:S4130

Title of bill

An act to amend the tax law, in relation to providing a sales and compensating use tax exemption on non-commercial Energy Star appliances

Purpose

The purpose of this bill is to incentivize the purchase of energy star products to reduce energy consumption and lower consumers' energy bills by allowing two annual tax holiday weekends on these products per year.

Summary of provisions

This legislation amends the following sections of the tax law: subdivision (b) of section 1101 by adding a new paragraph 39, subdivision (a) of section 1115 by,adding a new paragraph 44, clause 9 of subdivision (b) of section 1107 as amended by section 78 of part A of chapter 56 of the laws of 1998, subdivision (0 of section 1109 as added by section 118-a of part A of chapter 389 of the laws of 1997, subparagraph (ii) of paragraph I of subdivision (a) of section 1210 as amended by section 3 of part GG of chapter 57 of the laws of 2010, subdivision (d) of section 1210 as amended by section 37 of part S-1 of chapter 57 of the laws of 2009, and section 1210 is amended by adding a new subdivision (q).

Justification

The widespread use of Energy Star compliant products Promoted by this bill will reduce long-term spending on electricity and heating fuel while simultaneously reducing greenhouse gas emissions and the need for imported oil.

According to the Federal Energy Information Administration, New York State households consumed more than 1.2 quadrillion BTU's of energy in the last year measured. This represents more than 1% of all energy consumed across all economic sectors in the United States as a whole. New York energy consumers also face the 41th highest cost per-unit of electricity, more than 43% above the national average. The increasing cost of energy stands as one of the most daunting challenges to the future of our state economy and to the fiscal well-being of our residents. One solution to this problem is to create incentives for electricity consumers in our state to purchase more efficient, Energy-Star designated appliances to replace their old and inefficient equipment. Although these products are slightly more expensive than non Energy. Star products, Energy Star products last longer and are more efficient over the life of the appliance. By removing sales-tax on these select products for a limited time, this legislation will create an incentive for consumers to purchase the more energy efficient products and will increase awareness of the program and its potential benefits.

Energy Star is a joint program of the U.S. Department of Energy and the Environmental Protection Agency created to provide information to consumers to allow them to make energy-efficient purchasing decisions. The Energy Star designation is given to products that are among the top 25% in terms of efficiency when compared with other products in their category. Estimates have shown. that purchasing Energy Star-reducts can reduce an average consumer's total energy cost by as much as one-third.

Legislative history

A5805 (2011-2012) A.2411 (2009-2010)

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and shall apply to sales made and uses occurring during exemption periods on or after that date in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law.