Provides that residential buildings shall be deemed eligible buildings for the green building tax credit

BILL NUMBER:S1168

Title of bill

An act to amend the tax law, in relation to providing a green building credit to all residential buildings

Purpose

This amendment would allow residential buildings to be eligible for the Green Building Tax Credit.

Summary of provisions

Section 1 provides that residential buildings are eligible for the Green Building Tax Credit

Section 2 provides the effective date.

Existing law

This is an amendment to Section 19 of the Tax Law, as added by section 2 of part II of chapter 63 of the laws of 2000. This bill expands upon the existing Green building tax credit, which is currently limited only to businesses.

Justification

The buildings in which we live, work, and play protect us from Nature's extremes, yet they also affect our health and environment in countless ways. The design, construction, operation, maintenance, and removal of buildings takes enormous amounts of energy, water, and materials, and generates large quantities of waste, air and water pollution, as well as creating storm water runoff and heat islands. Buildings also develop their own indoor environments, which present an array of health challenges. Where and how they are built affects wildlife habitat and corridors and the hydrologic cycle, while influencing the overall quality of human life.

As the environmental impact of buildings becomes more apparent, a new field called green building is gaining momentum. Green or sustainable building is the practice. of creating healthier and more resource-efficient models of construction, renovation, operation, maintenance, and demolition. Research and experience increasingly demonstrate that when buildings are designed and operated with their life cycle impacts in mind, they can provide great environmental, economic, and social benefits.

Elements of green building include: * Energy Efficiency and Renewable Energy * Water Stewardship * Environmentally Preferable Building Materials and Specifications * Waste Reduction * Indoor Environment * Smart Growth and Sustainable Development

Currently, New York State offers tax credits for the construction or renovation of "green buildings", ranging from 5% to 0% of the cost of construction or renovation, with additional incentives for the use of photovoltaic installations (solar panels) and fuel cells. Green buildings are designed for passive solar heating and cooling, and require smaller mechanical systems. The design of these buildings provides abundant natural light, and produces and stores their own

renewable energy. They use non-toxic materials, paints, and finishes, which greatly enhance indoor air quality. Construction methods are resource efficient, and materials are chosen to be low in embodied energy, found regionally and contain recycled materials. Construction waste is treated as a resource and completely recycled. Green buildings are sited and designed to blend with neighboring buildings; they use native landscapes that minimize water use and are designed to filter and retain storm water.

This bill expands upon the existing Green building tax credit which is currently limited only to businesses. By allowing residential homeowners to take advantage of the green building tax credit, this bill will promote the construction of Green buildings in the State and assist New Yorkers to build healthier and more energy efficient homes.

Legislative history

2013-2014: S.1624 - Referred to Investigations and Government Operations; 2011-12: S.1043/A.1313 - Referred to Investigations & Government Operations S.2546 (2009-2010) - Referred to Investigations & Government Operations S.2000 (2007-2008) - Referred to Investigations & Government Operations

Fiscal implications

It is expected that the cost of this credit will be $25 million, the same amount as the existing Green building credit contained in section 19 of the tax law for commercial buildings.

Effective date

This act shall take effect immediately.