What's happening
This bill creates a tax credit for small businesses in New York that purchase or upgrade to ENERGY STAR certified equipment or appliances.
Why it matters
Direct financial incentive for energy efficiency. By offering a tax credit of 50% (up to $5,000) for ENERGY STAR certified upgrades, the bill makes it more affordable for small businesses to invest in energy-saving equipment, which can lower their ongoing utility costs.
Targeted support for truly small, local businesses. The credit is limited to companies with no more than 75 employees, that are independently owned and not dominant in their field, ensuring that assistance is focused on smaller enterprises rather than large corporations.
Potential for broader environmental impact. Encouraging adoption of energy-efficient products reduces overall energy consumption and greenhouse gas emissions at the community level, contributing to New York’s climate and sustainability goals.
Caps and limitations ensure fiscal responsibility. The bill limits the total statewide cost of the program to $1 million annually and allows unused credits to be carried forward for up to three years, balancing support for small businesses with protection for the state budget.
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Who cares
Headline styles
Small Business Energy Upgrade Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7882
IN SENATE
March 6, 2018
Introduced by Sen. PERALTA -- 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 a small business tax credit for the purchase of ENERGY STAR compliant energy efficiency improvements; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Small business energy efficiency tax credit. (a) A qualified taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for the purchase or upgrade of current equipment and/or appliances with ENERGY STAR certified products.
(b) Qualified taxpayer. A qualified taxpayer shall mean a business which has a significant presence in the state, is independently owned and operated, not dominant in its field, and employs, based on its industry, a number of employees not to exceed seventy-five.
(c) Amount of credit. The amount of the credit shall be fifty percent of the total costs of the efficiency upgrades, not to exceed five thousand dollars.
(d) Carryover. The credit under this subdivision for any taxable year shall not reduce the tax due for such year to less than the amount in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of the credit allowable under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of the credit not deductible in such taxable year may be carried over to the following three years and may be deducted from the taxpayer's tax for such year or years.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14906-02-8
S. 7882 2
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows:
(xliv) Small business energy Amount of credit under efficiency tax credit under subdivision fifty-three subsection (ccc) of section two hundred ten-B
§ 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Small business energy efficiency tax credit. (1) A qualified taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for the purchase or upgrade of current equipment and/or appliances with ENERGY STAR certified products.
(2) Qualified taxpayer. A qualified taxpayer shall mean a business which has a significant presence in the state, is independently owned and operated, not dominant in its field, and employs, based on its industry, a number of employees not to exceed seventy-five.
(3) Amount of credit. The amount of the credit shall be fifty percent of the total costs of the efficiency upgrades, not to exceed five thousand dollars.
(4) Carryover. If the amount of credit allowable under this subsection for any taxable year exceeds the taxpayer's tax for such year, any amount of credit not deductible in such taxable year may be carried over to the following three years and may be deducted from the taxpayer's tax for such year or years.
§ 4. Notwithstanding any other provision of the tax law to the contrary, the aggregate of tax expenditures and taxes forgone pursuant to this act shall not exceed $1,000,000.
§ 5. This act shall take effect immediately and shall apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law and shall remain in effect for five years after it shall have become a law, when upon such date the provisions of this act shall expire and be deemed repealed.
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 a small business tax credit for the purchase of ENERGY STAR compliant energy efficiency improvements; and providing for the repeal of such provisions upon expiration thereof
Purpose
To amend the tax law, in relation to a small business tax credit for the purchase of ENERGY STAR compliant energy efficiency improvements; and providing for the repeal of such provisions upon expiration thereof
Summary of provisions
Section 1 amends section 210-B of the tax law to add a new subdivision 53, which establishes the small business energy efficiency tax credit, and provisions relating to the credit reimbursement amount, definitions of a 'small business' and qualified taxpayer, and carryover of such tax credit.
Section 2 amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv), which establishes the small business energy efficiency tax credit and the amount of credit.
Section 3 amends section 606 of the tax law to add a new subsection (ccc), which sets definitions of 'small business', 'qualified taxpayer', amount of credit, and credit carryover.
Section 4 provides that the aggregate of tax expenditures pursuant to this act shall not exceed $1 million.
Section 5 sets forth the effective date.
Justification
Small businesses are the driving economic force in New York State, employing just over half of New York's private sector workforce, accord- ing to the New York Small Business Development Center. This legislation enables small businesses to receive a tax credit should they choose to purchase ENERGY STAR compliant equipment or infrastructure. Incentiviz- ing these investments will have positive environmental impacts and work towards New York's goal of transitioning to a clean, renewable driven economy, while providing small businesses an economic incentive to implement technology, which, ultimately, will drive down operating, and infrastructure costs in the long-term future. The creation of the small business energy efficiency tax credit will stimulate economic growth where it is needed most - New York's small businesses and main streets - and further New York State's commitment to investing in a green, renewa- ble economy.
Legislative history
New Bill
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.