What's happening
This bill expands and updates property tax exemptions for combined heat and power generating equipment, including larger systems and commercial customers.
Why it matters
Expands eligibility for property tax exemptions. to include both residential and commercial customers who install combined heat and power (CHP) systems, making clean energy incentives available to a broader range of building owners.
Increases the allowable system size. for CHP equipment from a maximum of ten kilowatts to fifteen megawatts, allowing much larger installations to benefit from tax exemptions—potentially encouraging larger-scale projects in multifamily, commercial, or industrial settings.
Lowers the required efficiency threshold. for eligible CHP systems from 80% to 60%, making it easier for more types of equipment to qualify for the tax break and potentially speeding up adoption of CHP technology.
Extends the property tax exemption period and window for new installations. , supporting long-term investments in energy efficiency and on-site power generation, which can reduce both energy costs and greenhouse gas emissions in New York.
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Who cares
Headline styles
Exempt Energy Systems from Taxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to real property taxation
- Delivered to assembly
- Passed senateVote 62–0
- Amended by restoring to previous print 6762a
- Advanced to third reading
- 2nd report cal.
- 1st report cal.940
- Print number 6762b
- Amend and recommit to local government
- Print number 6762a
- Amend (t) and recommit to local government
- Referred to local government
Show 7 earlier actions
- Returned to senate
- Died in assembly
- Referred to real property taxation
- Delivered to assembly
- Passed senateVote 63–0
- Ordered to third reading cal.2107
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Tax on Power Equipment
In Assembly Committee · Real Property Taxation · Sponsor Amy Paulin
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6762--A
2017-2018 Regular Sessions
IN SENATE
June 16, 2017
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Local Government 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 real property tax law, in relation to exempting from taxation combined heat and power generating equipment
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraphs (k) and (l) of subdivision 1, subdivisions 2, 3, 4 and 5 and paragraph (a) of subdivision 8 of section 487 of the real property tax law, paragraphs (k) and (l) of subdivision 1 as added and subdivisions 2, 3, 4 and 5 and paragraph (a) of subdivision 8 as amended by chapter 336 of the laws of 2017, are amended to read as follows:
(k) "[Micro-combined] Combined heat and power generating equipment" means an integrated, cogenerating building heating and electrical power generation system, [owned, leased or operated by] serving a residential or commercial customer, located at such customer's premises, operating on any fuel and of any applicable engine, fuel cell or other technology with a rated capacity of at least one kilowatt and not more than [ten kilowatts] fifteen megawatts electric and any thermal output that has a design total fuel use efficiency in the production of heat and electricity of not less than [eighty] sixty percent, and annually produces at least two thousand kilowatt hours of useful energy in the form of electricity that may work in combination with supplemental or parallel conventional heating systems, that is manufactured, installed and operated in accordance with applicable government and industry standards, that is connected to the electric system and operated in conjunction with an electric corporation's transmission and distribution facilities. It does not include pipes, controls, insulation or other equipment which are part of the normal heating, cooling, or insulation system of a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01687-06-8
S. 6762--A 2
building. It does not include insulated glazing or insulation to the extent that such materials exceed the energy efficiency standards established by law.
(l) "[Micro-combined] Combined heat and power generating equipment system" means an arrangement or combination of equipment designed to produce electrical energy and heat for a residential or commercial customer on such customer's premises.
2. Real property which includes a solar or wind energy system, farm waste energy system, micro-hydroelectric energy system, fuel cell electric generating system, [micro-combined] combined heat and power generating equipment system, or electric energy storage equipment and electric energy storage system approved in accordance with the provisions of this section shall be exempt from taxation to the extent of any increase in the value thereof by reason of the inclusion of such solar or wind energy system, farm waste energy system, micro-hydroelectric energy system, fuel cell electric generating system, [micro-combined] combined heat and power generating equipment system, or electric energy storage equipment and electric energy storage system for a period of fifteen years. When a solar or wind energy system or components thereof, farm waste energy system, micro-hydroelectric energy system, fuel cell electric generating system, [micro-combined] combined heat and power generating equipment system, or electric energy storage equipment and electric energy storage system also serve as part of the building structure, the increase in value which shall be exempt from taxation shall be equal to the assessed value attributable to such system or components multiplied by the ratio of the incremental cost of such system or components to the total cost of such system or components. The exemption provided by this section is inapplicable to any structure that satisfies the requirements for exemption under section four hundred eighty-three-e of this title.
3. The president of the authority shall provide definitions and guidelines for the eligibility for exemption of the solar and wind energy equipment and systems, farm waste energy equipment and systems, microhydroelectric equipment and systems, fuel cell electric generating equipment and systems, [micro-combined] combined heat and power generating equipment and systems and electric energy storage equipment and electric energy storage system described in paragraphs (a), (b), (e), (f), (g), (h), (i), (j), (k), (l), (m) and (n) of subdivision one of this section.
4. No solar or wind energy system, farm waste energy system, micro-hydroelectric energy system, fuel cell electric generating system, [micro-combined] combined heat and power generating equipment system, or electric energy storage equipment and electric energy storage system shall be entitled to any exemption from taxation under this section unless such system meets the guidelines set by the president of the authority and all other applicable provisions of law.
5. The exemption granted pursuant to this section shall only be applicable to (a) solar or wind energy systems or farm waste energy systems which are (i) existing or constructed prior to July first, nineteen hundred eighty-eight or (ii) constructed subsequent to January first, nineteen hundred ninety-one and prior to January first, two thousand twenty-five, and (b) micro-hydroelectric energy systems, fuel cell electric generating systems, [micro-combined] combined heat and power generating equipment systems, or electric energy storage equipment or electric energy storage system which are constructed subsequent to January
S. 6762--A 3
first, two thousand eighteen and prior to January first, two thousand twenty-five.
(a) Notwithstanding the provisions of subdivision two of this section, a county, city, town or village may by local law or a school district, other than a school district to which article fifty-two of the education law applies, may by resolution provide either (i) that no exemption under this section shall be applicable within its jurisdiction with respect to any solar or wind energy system or farm waste energy system which began construction subsequent to January first, nineteen hundred ninety-one or the effective date of such local law, ordinance or resolution, whichever is later, and/or (ii) that no exemption under this section shall be applicable within its jurisdiction with respect to any micro-hydroelectric energy system, fuel cell electric generating system, [micro-combined] combined heat and power generating equipment system, or electric energy storage equipment or electric energy storage system constructed subsequent to January first, two thousand eighteen or the effective date of such local law, ordinance or resolution, whichever is later. A copy of any such local law or resolution shall be filed with the commissioner and with the president of the authority.
§ 2. This act shall take effect January 1, 2019.
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 exempting from taxation combined heat and power generating equipment
Purpose
The bill would encourage the installation of combined heat and power generating equipment systems, by extending to those systems eligibility for certain real property tax exemptions available under existing law to solar, wind, farm waste, fuel cell, micro-hydroelectric, storage, and residential combined heat and power energy systems.
Summary of provisions
Section 1 of the bill would amend subdivisions 1, 2, 3, 4, and 5 of section 487 of the real property tax law ("RPTL") by extending to larger sized combined heat and power generating equipment systems certain exemptions from real property taxation that are available under currant law to solar, wind, farm waste, fuel cells, micro-hydroelectric, resi- dential combined heat and power energy systems, and energy storage systems.
Section 2 of the bill provides the effective date.
Justification
Combined heat and power (CHP) systems of ten kilowatts or less were added to the list of electric generating equipment that is eligible for a property tax exemption under section 483 in 2017. However, CHP systems, which are often the only renewable energy systems viable for large buildings or complexes in New York City, are much larger than the current limit- and can be up to 15 megawatts. This legislation would increase the allowable size to 15 megawatts to accommodate these systems.
In addition, the legislation makes other technical changes to reflect the way that larger CHP systems operate. Specifically, it changes the fuel use efficiency standard required to sixty percent, which is consistent with NYSERDA guidelines for CHP performance. It also changes the requirement that the system be "owned, leased, or operated by a residential customer" to "serving a residential or commercial customer" to account for contractual models that are common for CHP systems serv- ing large condos, co-ops, or commercial buildings.
The inclusion of larger CHP systems will encourage the installation of those systems in areas or on properties where solar, wind and other technologies are not feasible or are less appropriate.
Legislative history
Passed Senate in 2017 - New bill in Assembly.
Fiscal implications
None.
Effective date
January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.