Extends until January 1, 2019, the deadline to apply for the solar electric generating system real property tax abatement

Title of bill

An act to amend the real property tax law, in relation to extending the expiration of the solar electric generating system tax abatement

Purpose

This bill would amend subdivision one of section 499-bbbb of the Real Property Tax Law (RPTL) by adding a new paragraph (c) and would amend subdivision one of section 499-cccc of the RPTL.

Summary of provisions

If the solar electric generating system is placed in service on or after January 1, 2017 and before January 1, 2019, the amount of the tax abatement would be 5 percent of eligible solar electric generating system expenditures in each year of the four-year compliance period. However, the benefit in each tax year would be limited to the lesser of the amount of taxes payable or $62,500. "Eligible solar electric generating system expenditures" include reasonable expenditures for materials, labor costs properly allocable to on-site preparation, assembly and original installation, architectural and engineering services, and designs and plans directly related to the construction or installation of the solar electric generating system.

Justification

This legislation would extend and strengthen an existing incentive program to encourage the installation of solar electric generating systems, in connection with class one, class two and class four properties in the City.

This program is aligned with the longstanding commitment of New York State and the City of New York to reduce pollution and providing cleaner, more reliable power for every New Yorker. These goals will be achieved through efforts to improve energy efficiency and clean our energy supply. In the near term, the City will still rely on conventional energy sources, such as natural gas. Solar power in New York City has historically cost more per kilowatt of installed capacity than in other parts of the State of New York, primarily because of more stringent requirements of the NYC Department of Buildings and increased complexity in the building sites. Data from the New York State Energy Research and Development Authority indicates that solar energy projects in New York City cost approximately 259,5 more than the state average. Continuation of the property tax abatement is necessary to offset a portion of the extra costs associated with NYC solar energy installation, thus further stimulating clean energy investment and job creation throughout New York City.

Legislative history

Chapter 396 of the Laws of 2014.

Fiscal implications

$4.6 million to the City of New York.

Effective date

This act shall take effect immediately.