What's happening
This bill creates a personal income tax credit for New Yorkers who purchase and install voltage regulation technology equipment.
Why it matters
Incentivizes Energy Efficiency Upgrades. By offering a substantial 25% tax credit (up to $5,000), the bill encourages homeowners to invest in advanced voltage regulation technology, which can lower energy use and enhance the reliability of home electrical systems.
Targets High-Performance Technology. To qualify, equipment must dynamically raise or lower voltage, improve grid efficiency, and be at least 99% efficient across most of its operating range—ensuring only the most effective and modern solutions are incentivized.
Broadens Access and Fairness. The credit can be split among multiple owners of a shared residence based on their individual contributions, and it excludes costs covered by untaxed government grants—helping to avoid double-dipping and expanding access to co-owners.
Flexible Tax Benefit. If the tax credit is larger than a taxpayer’s liability in a given year, the unused portion can be carried forward for up to five years, making it more accessible to a range of income levels and smoothing out the financial benefit over time.
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Who cares
Personal income taxpayers buying voltage regulation equipment
The bill would offer a credit of 25% of qualifying expenditures, capped at $5,000, with unused credit carried forward for up to five taxable years.
Taxpayers sharing a principal residence
Each taxpayer’s credit would be prorated according to their share of the total equipment expenditure.
Voltage regulation equipment manufacturers and installers
The credit would cover qualifying equipment purchases as well as materials, installation labor, engineering, design and utility compliance costs.
Taxpayers receiving government grants
Federal, state or local grants used for purchase or installation would reduce eligible expenditures if those grants were excluded from federal gross income.
Headline styles
Tax Credit for Energy Equipment
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2825
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to establishing a personal income tax credit for voltage regulation technology equipment
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (g-3) to read as follows:
(g-3) Voltage regulation technology equipment credit. (1) General. A taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty-five percent of qualified voltage regulation technology expenditures. This credit shall not exceed five thousand dollars for qualified voltage regulation technology equipment.
(2) Qualified voltage regulation technology equipment expenditures. (A) Voltage regulation technology equipment expenditures are the costs associated with the purchase of on-site voltage regulation technologies which reduce energy consumption, improve grid efficiency, raise or lower voltage dynamically and are ninety-nine percent or more efficient across a minimum of ninety percent of the load curve.
(B) Qualified voltage regulation technology equipment expenditures shall include expenditures for materials, labor costs properly allocable to on-site preparation, assembly and installation, engineering services, designs and plans directly related to the construction or installation and utility compliance costs.
(C) Such qualified expenditures shall not include interest or other finance charges.
(3) Multiple taxpayers. Where voltage regulation technology equipment is purchased and installed in a principal residence shared by two or more taxpayers, the amount of the credit allowable under this subsection for each such taxpayer shall be prorated according to the percentage of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05895-01-7
S. 2825 2
the total expenditure for such voltage regulation technology equipment contributed by each taxpayer.
(4) Grants. For purposes of determining the amount of the expenditure incurred in purchasing and installing voltage regulation technology equipment, the amount of any federal, state or local grant received by the taxpayer, which was used for the purchase and/or installation of such equipment and which was not included in the federal gross income of the taxpayer, shall not be included in the amount of such expenditures.
(5) When credit allowed. The credit for voltage regulation technology equipment provided for in this subsection shall be allowed with respect to the taxable year in which such equipment is placed in service.
(6) Carryover of credit. If the amount of the credit, and carryovers of such credit, allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, such excess amount may be carried over to the five taxable years next following the taxable year with respect to which the credit is allowed and may be deducted from the taxpayer's tax for such year or years.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing a personal income tax credit for voltage regulation technology equipment
Purpose
To encourage and establish incentives for the purchase and use of voltage regulation technologies.
Summary of provisions
Section 606 of the tax law is amended by adding a new subsection (g3) voltage regulation technology equipment credit. This subsection provides a tax credit equal to twenty-five percent of qualified voltage regulation technology expenditures, not to exceed five thousand dollars. Qualified voltage regulation technology equipment expenditures shall include expenditures for materials, labor costs properly allocable to on-site preparation, assembly and installation, engineering services, designs and plans directly related to the construction. The credit will be applied to the taxable year in which such equipment is placed in service.
Justification
The State of New York provides incentives to encourage the use of wind, solar and other renewable energies. Similar incentives for voltage regulation technologies could improve efficiency of the electrical grid and save consumers money. Currently it is theorized that up to (70%) of homes and businesses receive more voltage than they need, which results in wasted energy. This wastage is due to "line loss" through the transmission system, because utilities have to insure that the last customer on the line still receives the necessary amount of energy.
According to the U.S. Department of Energy, approximately (67%) of the energy in the form of electricity is wasted between the point where it is generated and enters the electrical grid, and the point where a consumer uses the electricity.
However, recent technological advances have made it possible to dynamically manage voltage at the point of consumption, substantially lowering energy consumption and improving power quality.
The amortization period to consumers for a residential owner could be 3-5 years without the tax credit. With the credit it could be 2-3 years, depending upon whether one lived in higher or lower energy cost section of New York.
Legislative history
2015-16: S.560 - Referred to Investigations & Gov't Operations 2013-14: S.1638 - Referred to Investigations & Gov't Operations 2011-12: S.1055/A.5610 - Referred to Investigations & Gov't Operations 2009-10: S.4294/A.4275 - Referred to investigations & Gov't Operations
Fiscal implications
The cost for the installation for residential homes is anticipated to be around $800. The cost for commercial business are anticipated to range from approximately $800 to $15,000, depending upon the size of the business. It is anticipated that residential owners will recoup the cost of the equipment within 3-5 years without tax credit. With such a credit, the return on investment for residence and business
customers is erected to be shorter, Higher energy cost areas in New York will experience quicker returns on investments.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.