What's happening
This bill creates a tax credit for individuals and businesses installing wind energy systems in New York, effective 2019–2029.
Why it matters
Encourages renewable energy adoption by significantly reducing upfront and ongoing costs. for individuals, farms, and businesses installing wind power, making wind energy more financially accessible and attractive.
Targets both ownership and long-term leasing or power purchase agreements. , allowing a wider range of participants—including those who cannot afford full ownership—to benefit from the credit.
Establishes technical and quality standards for eligible wind systems. , requiring certifications, minimum tower heights, and warranties, which helps ensure safety, reliability, and consumer protection.
Limits double-dipping by reducing credit amounts by the value of certain grants. and allows unused credits to be carried forward for up to five years, providing flexibility for taxpayers with lower tax liabilities in a given year.
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Who cares
Headline styles
Give Tax Credit for Wind Power
Plain English, a few words. Used as the page title.
Sponsors
History
- Print number 5119a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5119--A
2017-2018 Regular Sessions
IN SENATE
March 8, 2017
Introduced by Sens. GRIFFO, BOYLE, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to wind energy system equipment credit; and providing for the repeal of certain provisions therefor
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) Wind energy system equipment credit. (1) General. An individual taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty-five percent of qualified wind energy system equipment expenditures, except as provided in subparagraph (D) of paragraph two of this subsection. This credit shall not exceed fifteen thousand dollars for a residential installation or one hundred thousand dollars for a farm or commercial installation.
(2) Qualified wind energy system equipment expenditures. (A) The term "qualified wind energy system equipment expenditures" means expenditures for:
(i) the purchase of wind energy system equipment which is installed in connection with residential, agricultural or commercial property which is (I) located in this state and (II) which, if residential, is used by the taxpayer as his or her principal residence or farm operation at the time the wind energy system equipment is placed in service;
(ii) the lease of wind energy system equipment under a written agreement that spans at least ten years where such equipment owned by a person other than the taxpayer is installed in connection with residential, agricultural or commercial property which is (I) located in this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09628-02-8
S. 5119--A 2
state and (II) which, if residential, is used by the taxpayer as his or her principal residence or farm operation at the time the wind energy system equipment is placed in service; or
(iii) the purchase of power under a written agreement that spans at least ten years where under the power purchased is generated by wind energy system equipment owned by a person other than the taxpayer which is installed in connection with residential, agricultural or commercial property which is (I) located in this state and (II) which is used by the taxpayer as his or her principal residence or farm operation at the time the wind energy system equipment is placed in service.
(B) Such qualified expenditures shall include expenditures for materials, labor costs properly allocable to on-site preparation, assembly and original installation, architectural and engineering services, and designs, plans and permitting directly related to the construction or installation of the wind energy system equipment.
(C) Such qualified expenditures for the purchase of wind energy system equipment shall not include interest or other finance charges.
(D) Such qualified expenditures for the lease of wind energy system equipment or the purchase of power under an agreement described in clauses (ii) or (iii) of subparagraph (A) of this paragraph shall be based on the appraised value of the wind energy system or systems as determined by a qualified third party appraiser.
(3) Wind energy system equipment. The term "wind energy system equipment" shall mean one or more wind turbines with a combined rated capacity of not more than one hundred kilowatts for a New York residential customer generator or nine hundred kilowatts for a farm or commercial customer generator, that is manufactured, installed and operated in accordance with applicable government and industry standards, that is connected to the electric system and operated in parallel with an electric corporation's transmission and distribution facilities, and that is operated in compliance with any standards and requirements established by this section.
(A) Wind turbines installed after June thirtieth, two thousand nineteen must be certified to AWEA 9.1-2009 or, if their rotor area exceeds 200m2, to IEC 61400-11, IEC 61400-12, and IEC 61400-1 by an accredited certification body. Wind turbines that are listed on the New York state energy research and development authority approved turbine list or the CESA ITAC unified list of wind turbines at the time of installation are exempt from these requirements.
(B) Wind turbines must carry, as a minimum, a five year warranty on the equipment and installation.
(C) Wind turbines must be installed on towers of at least eighty feet in height.
(4) Multiple taxpayers. Where wind energy system 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 the total expenditure for such wind energy system equipment contributed by each taxpayer.
(5) Proportionate share. Where wind energy system equipment is purchased and installed by a condominium management association or a cooperative housing corporation, a taxpayer who is a member of the condominium management association or who is a tenant-stockholder in the cooperative housing corporation may for the purpose of this subsection claim a proportionate share of the total expense as the expenditure for the purposes of the credit attributable to his principal residence.
S. 5119--A 3
(6) Grants. For purposes of determining the amount of the expenditure incurred in purchasing and installing wind energy system 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.
(7) When credit allowed. The credit provided for herein shall be allowed with respect to the taxable year, commencing after two thousand eighteen, in which the wind energy system equipment is placed in service.
(8) 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.
(9) Credit to be claimed by the owner. The credits allowable under this subsection shall be claimed by the person or entity that owns the wind energy system equipment.
§ 2. This act shall take effect immediately, and shall apply to taxable years beginning on or after January 1, 2019; provided, however, this act shall expire and be deemed repealed January 1, 2029.
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 wind ener- gy system equipment credit; and providing for the repeal of certain provisions therefor
Purpose
The purpose of this legislation is to encourage homeowners, commercial businesses, and farms to install wind energy equipment by allowing those who lease such equipment or purchase power under a written agreement with a third party to benefit from a solar equipment tax credit.
Summary of provisions
Section one allows a taxpayer to qualify for wind equipment tax credit not to exceed $15,000 for individuals or $100,000 for commercial and farms in cases where the lease of wind equipment under a written agree- ment spans at least ten years or a power purchase agreement of at least ten years from a third party is in force. Additionally this section includes and clarifies expenditures for the lease of wind energy system equipment.
Section two provides the effective date.
Justification
As we continue to move toward a greener economy, it is very important that residents are encouraged to utilize renewable forms of energy. This should be true whether the taxpayer can afford to purchase and install renewable generation such as wind equipment or if it is more feasible for the individual to lease the equipment or contract with a provider to purchase power. Using the tax code to incentivize the installation of solar equipment is the right way to encourage the devel- opment of the renewable energy industry.
Both solar and small wind benefit from access to net energy metering, which allows owners to sell back excess production to the grid. Small wind can be the perfect clean energy solution for farmers, small busi- nesses, and homeowners (with more than 3 acres), especially in Central New York. However, this technology does not enjoy the same tax treatment as solar, as it does not have access to a personal income tax credit or a sales tax exemption. Enacting an income tax credit for small wind at farms, homes, and small businesses would be a step towards parity for the variety of clean energy technologies, and it could encourage some New Yorkers to invest in a technology that will allow them to produce their own electricity -with no pollution or water use -- and thereby reduce their own energy bills. All types of clean distributed generation benefit not only the individual owners, but also the grid as a whole by decreasing demand from centralized power plants (and thus dampening wholesale power costs) and doing so with no pollution.
This legislation is modeled on the popular solar system equipment tax credit (Chapter 375 of 2012).
Legislative history
2016 - A.10691- Ways and Means.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately, and shall apply to taxable years beginning on or after January 1, 2019; and shall expire and be deemed repealed January 1, 2029.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.