What's happening
This bill requires tax exemption policies for certain development projects to consider use of resource conservation, energy efficiency, green technologies, and renewable energy measures.
Why it matters
Local development incentives. The change would reach tax exemption policies under New York’s general municipal law and two public authority provisions, covering real property, mortgage recording and sales tax exemptions for project applicants.
Added factor, not a prerequisite. Agencies and authorities would weigh the new considerations alongside jobs, private investment and environmental effects. The bill would not set a minimum energy standard or automatically disqualify projects from tax benefits.
Feasibility matters. The required consideration would focus on using these measures to the fullest extent practicable and economically feasible. The bill would not prescribe exemption amounts or require applicants to install particular technologies.
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Who cares
Development agencies and authorities
They would have to incorporate the added consideration when adopting uniform tax exemption policies.
Project applicants seeking tax exemptions
Their projects’ conservation and energy measures would become an explicit consideration in the policies governing financial assistance.
Municipalities and school districts
The policies would continue to require input from affected taxing jurisdictions while adding a factor to the framework governing local tax exemptions.
Headline styles
Reward Green Building Projects
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Substituted by A1606
- Ordered to third reading cal.1610
- Committee discharged and committed to rules
- Referred to local government
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.
Tie Tax Breaks to Green Projects
Signed by Governor · Sponsor Pamela J. Hunter
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5609
2019-2020 Regular Sessions
IN SENATE
May 8, 2019
Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law and the public authorities law, in relation to including the incorporation of resource conservation, energy efficiency, green technologies, and alternative and renewable energy measures in a project into a uniform tax exemption policy
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 4 of section 874 of the general municipal law, as amended by chapter 357 of the laws of 1993, is amended to read as follows:
(a) The agency shall establish a uniform tax exemption policy, with input from affected tax jurisdictions, which shall be applicable to the provision of financial assistance pursuant to section eight hundred fifty-nine-a of this chapter and shall provide guidelines for the claiming of real property, mortgage recording, and sales tax exemptions. Such guidelines shall include, but not be limited to: period of exemption; percentage of exemption; types of projects for which exemptions can be claimed; procedures for payments in lieu of taxes and instances in which real property appraisals are to be performed as a part of an application for tax exemption; in addition, agencies shall in adopting such policy consider such issues as: the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemptions to be provided; whether affected tax jurisdictions shall be reimbursed by the project occupant if a project does not fulfill the purposes for which an exemption was provided; the impact of a proposed project on existing and proposed businesses and economic development projects in the vicinity; the amount of private sector investment generated or likely to be generated by the proposed project; the demonstrated public support for the proposed project; the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04961-01-9
S. 5609 2
likelihood of accomplishing the proposed project in a timely fashion; the effect of the proposed project upon the environment; the extent to which the project will utilize, to the fullest extent practicable and economically feasible, resource conservation, energy efficiency, green technologies, and alternative and renewable energy measures; the extent to which the proposed project will require the provision of additional services, including, but not limited to additional educational, transportation, police, emergency medical or fire services; and the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts.
§ 2. Subdivision 1 of section 1963-a of the public authorities law, as amended by chapter 357 of the laws of 1993, is amended to read as follows:
1. The authority shall establish a uniform tax exemption policy, with input from affected local taxing jurisdictions, which shall be applicable to provisions of financial assistance pursuant to section nineteen hundred fifty-three-a of this [chapter] title and shall provide guidelines for the claiming of real property, mortgage recording, and sales tax exemptions. Such guidelines shall include, but not be limited to: period of exemption; percentage of exemption; types of projects for which exemptions can be claimed; procedures for payments in lieu of taxes and instances in which real property appraisals are to be performed as a part of an application for tax exemption; in addition, the authority in adopting such policy shall consider such issues as: the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemption to be provided; whether affected tax jurisdictions should be reimbursed by the project occupant if a project does not fulfill the purposes for which an exemption was provided; the impact of a proposed project on existing and proposed businesses and economic development projects in the vicinity; the amount of private sector investment generated or likely to be generated by the proposed project; the demonstrated public support for the proposed project; the likelihood of accomplishing the proposed project in a timely fashion; the effect of the proposed project upon the environment; the extent to which the project will utilize, to the fullest extent practicable and economically feasible, resource conservation, energy efficiency, green technologies, and alternative and renewable energy measures; the extent to which the proposed project will require the provision of additional services, including, but not limited to additional educational, transportation, police, emergency medical or fire services; and the extent to which the proposed project will provide additional sources or revenue for municipalities and school districts.
§ 3. Subdivision 1 of section 2315 of the public authorities law, as amended by chapter 357 of the laws of 1993, is amended to read as follows:
1. The authority shall establish a uniform tax exemption policy, with input from affected local taxing jurisdictions, which shall be applicable to provisions of financial assistance pursuant to section twentythree hundred seven of this [chapter] title and shall provide guidelines for the claiming of real property, mortgage recording, and sales tax exemptions. Such guidelines shall include, but not be limited to: period of exemption; percentage of exemption; types of projects for which exemptions may be claimed; procedures for payments in lieu of taxes and instances in which real property appraisals are to be performed as a part of an application for tax exemption; in addition, the authority in adopting such policy shall consider such issues as: the extent to which
S. 5609 3
a project will create or retain permanent, private sector jobs; the estimated value of any tax exemption to be provided; whether affected tax jurisdictions should be reimbursed by the project occupant if a project does not fulfill the purposes for which an exemption was provided; the impact of a proposed project on existing and proposed businesses and economic development projects in the vicinity; the amount of private sector investment generated or likely to be generated by the proposed project; the demonstrated public support for the proposed project; the likelihood of accomplishing the proposed project in a timely fashion; the effect of the proposed project upon the environment; the extent to which the project will utilize, to the fullest extent practicable and economically feasible, resource conservation, energy efficiency, green technologies, and alternative and renewable energy measures; the extent to which the proposed project will require the provision of additional services, including, but not limited to additional educational, transportation, police, emergency medical or fire services; and the [extend] extent to which the proposed project will provide additional sources of revenue for municipalities and school districts.
§ 4. 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 general municipal law and the public authorities law, in relation to including the incorporation of resource conservation, energy efficiency, green technologies, and alter- native and renewable energy measures in a project into a uniform tax exemption policy
Purpose
To raise the standards of PILOT projects and encourage the use of green technologies and energy saving measures to the fullest extent possible.
Summary of provisions
Amends subdivision 1 of section 1963-a of the public authorities law, paragraph (a) of subdivision 4 of section 874 of the general municipal law, and subdivision 1 of section 2315 of the public authorities law as amended by chapter 357 of the laws of 1993 to include renewable energy consideration in uniform tax exemption policy.
In the requirements for a description of proposed projects for PILOT programs, new language is added to describe how a given project will implement green technologies within what is practicable and economically feasible. Whether or not a project makes use of these technologies is also added into the cost-benefit analysis.
Existing law
Currently there are no green technology considerations in the PILOT program approval process.
Justification
New York State is one of the leading states in pursuing clean energy goals. As the federal government falters in its commitment to combatting global warming, it is important that New York continues to lead in envi- ronmental policy. New York's goal of having fifty percent renewable energy by 2030 is an example that should be followed by every state. In order to ensure that we meet this goal, we must use the resources we have to encourage adoption of green technologies to the farthest extent possible.
PILOT programs, a powerful economic development tool, can be used to incentivize the use of green technologies and energy efficient construction. These programs balance public and private economic needs and the environment should be a part of this consideration. Evaluating projects by green technology use, when feasible, will go a long way in increasing the use of renewable resources.
Legislative history
2018: A.9799-B
Fiscal implications
None.
Local fiscal implications
None.
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.