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S4387Senate2017-2018 Session

No Tax on Solar Panels

Official title

“Relates to solar energy systems”

Sponsor Joseph A. GriffoSD-47+1 co-sponsorAffects Local Government
Status
In Senate Committee
Local Government
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Local Government

What's happening

This bill exempts solar energy systems on certain properties in New York from property taxation and defines relevant terms.

Why it matters

  1. Encourages adoption of solar energy. by removing property tax barriers for property owners, making solar installations more financially attractive and accessible.

  2. Targets specific property types. (as referenced in several sections of property tax law), suggesting a focus on certain residential, nonprofit, or public properties, which could concentrate benefits in key community spaces.

  3. Clearly defines what qualifies as a “solar energy system” and its components. , reducing ambiguity for both property owners and local tax authorities and ensuring that a broad range of solar technologies are covered.

  4. May influence local government revenues and planning. , as exempting these systems from taxation could reduce property tax income but also potentially stimulate local solar-related jobs and businesses.

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Who cares

Headline styles

No Tax on Solar Panels

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Joseph A. Griffo

Senator · Senate District 47

Chair, Energy And Telecommunications

1 Co-sponsor

History

  1. Referred to local government
  2. Referred to local government

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

4387

2017-2018 Regular Sessions

IN SENATE

February 13, 2017

Introduced by Sens. GRIFFO, LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law, in relation to solar energy systems

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The real property tax law is amended by adding a new section 409 to read as follows:

§ 409. Solar energy systems. 1. A solar energy system located on any real property described in sections four hundred four, four hundred six, four hundred eight, four hundred ten, four hundred ten-a and four hundred ten-b of this title shall be exempt from taxation.

2. For purposes of this section:

(a) "solar energy system" shall mean an arrangement or combination of equipment designed to provide heating, cooling, hot water, or mechanical, chemical or electrical energy by the collection of solar energy and its conversion, storage, protection and distribution.

(b) "equipment" shall mean collectors, controls, energy storage devices, heat pumps and pumps, heat exchangers, and other materials, hardware or equipment that facilitates the process by which solar radiation is: (i) collected, (ii) converted into another form of energy such as thermal, electrical, mechanical or chemical, (iii) stored, (iv) protected from unnecessary dissipation and (v) distributed.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06310-01-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the real property tax law, in relation to solar energy systems

Purpose

To exempt a solar energy system located on any real property owned by the state, a municipality, a school district, or a special district from real property taxation.

Summary of provisions

Section one amends the real property tax law to add a new section 409, which provides that a solar energy system located on any real property owned by the state, a municipality, a school district, or a special district, shall be exempt from taxation.

Section two provides the effective date.

Justification

Real property owned by municipalities and school districts is exempt from taxation. This exemption includes solar energy systems installed on the property that are owned by the municipality or school district. However, a solar energy system located on such real property under an arrangement where the ownership is retained by a third party and the municipality or school purchases the electricity produced is currently subject to taxation.

This has led to instances where a municipality has sought to tax the value of the solar system by the overlapping school district, and vice versa. The amount of taxes charged on a solar system could equal or exceed the savings achieved on the municipality's energy costs from installing the system.

This anomaly in the real property tax law must be remedied to make it viable for municipalities and schools to install solar projects. These types of projects are an important component of reaching New York's ambitious renewable energy goals, and should be encouraged.

Legislative history

2016 - S.7483 - Local Government Committee/A.10153 - Real Property Taxation Committee.

Fiscal implications

None.

Effective date

Immediate.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.