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A00701 Summary:

BILL NOA00701
 
SAME ASNo Same As
 
SPONSORCarroll
 
COSPNSRDinowitz, Colton, Epstein, Simon, Hyndman
 
MLTSPNSRDavila
 
Amd Art 4 Title 4-C Title Head, §§499-aaaa - 499-ffff, RPT L
 
Provides a tax abatement for geothermal well systems in cities of one million or more.
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A00701 Actions:

BILL NOA00701
 
01/11/2023referred to real property taxation
01/03/2024referred to real property taxation
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A00701 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A701
 
SPONSOR: Carroll
  TITLE OF BILL: An act to amend the real property tax law, in relation to providing a tax abatement for geothermal well systems in cities of one million or more   PURPOSE OR GENERAL IDEA OF BILL: To amend the real property tax law to add a tax abatement for geothermal well systems equipment for certain properties in a city of one million or more persons. This will allow for the expenditures related to running more energy efficient systems to be more affordable in the effort to increase the use of these systems across New York City.   SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill is amends the title heading of title 4-C of article 4 of the real property tax law to add a tax abatement for geoth- ermal well systems equipment for certain properties in a city of one million or more persons. Section two subdivisions two and eight of section 499-aaaa of chapter 412 of the laws of 2008, are amended to include geothermal well systems equipment and its expenditures to be eligible for a tax abatement. Eligible geothermal well systems equipment includes reasonable expendi- tures for materials, labor costs properly allocable to on-site prepara- tion, assembly and original installation, architectural and engineering services, and designs and plans directly related to the construction or installation of the geothermal well systems equipment. Section two adds subdivision twelve to section 499-aaaa of chapter 412 of the laws of 2008, to define geothermal well system equipment as a system "which uses the earth's natural temperature under the ground to heat and/or cool a building." Section 3 adds paragraph (f) to section 499-bbbb of the real property tax law to state that on or after January 1, 2025 and before January 1, 2027, the amount of the tax abatement would be 10 percent of eligible geothermal well systems equipment expenditures in each year of the compliance period. However, the benefit in each tax year would be limit- ed to the lesser of the amount of taxes payable or $62,500. Section four amends subdivision one of section 499-cccc of the real property tax law to require that applicants file the application for the geothermal well systems equipment tax abatement no later than March 15, 2027 in order to receive the tax abatement. Section four subdivision 3 paragraphs a,b,c and d of section 499-cccc of the real property tax law are amended to add geothermal well syStems equipment as eligible to apply for the tax abatement. Section five amends subdivision 1 of section 499-ddd of the real proper- ty tax law of chapter 412 of the laws of 2018 to add geothermal well systems equipment. Section six amends paragraph c and d of subdivision 1 of section 499-eeee of the real property tax law of chapter 412 of the laws of 2018, to add geothermal well systems equipment. Section seven paragraphs b, c and d of subdivision 2 of section 499-ffff of the real property tax law, as amended by chapter 412 of the laws of 2018, are amended to include geothermal well systems equipment. Section eight sets the effective date.   JUSTIFICATION: Geothermal well systems provide a high degree of energy savings over traditional heating and cooling solutions for residential and business structures. As New York enters a critical new phase in our efforts to eliminate carbon from our energy economy it becomes increasingly neces- sary to foster new solutions to achieve our net-zero goals. Widespread implementation of geothermal systems will help dramatically reduce elec- tric, gas, and oil consumption. These systems will lower the bar home- owners and businesses face in meeting the energy requirements of a fully carbon-free energy grid. Additionally these systems are highly resil- ient, will provide additional local jobs, improve air quality and other environmental factors, and create local jobs and economic activity. The long term economic benefits for New York as a leader in the field will extend with the technical expertise acquired in-state, as the implemen- tation of the technology inevitably becomes widespread. The most significant impact opportunities for geothermal well deployment are within the greater New York City metropolitan area (NYISO Zone J), based on the current and future heating and cooling demands and chal- lenges that characterize this unique jurisdiction. During the early phase of local geothermal market development, a temporary property tax abatement to defray upfront costs for adopters would help catalyze site installations in New York City, drive down unit and installation costs through economies of scale and learning curve advances, and accelerate the realization of the direct and indirect public benefits that result from such deployment.   PRIOR LEGISLATIVE HISTORY: A.8558 of 2019-20, A.1433 of 2021-22   FISCAL IMPLICATIONS: TBD   EFFECTIVE DATE: This act shall take effect immediately
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A00701 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           701
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 11, 2023
                                       ___________
 
        Introduced  by M. of A. CARROLL, DINOWITZ, COLTON, EPSTEIN, SIMON, HYND-
          MAN -- Multi-Sponsored by -- M. of A. DAVILA -- read once and referred
          to the Committee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in relation  to  providing  a
          tax  abatement for geothermal well systems in cities of one million or
          more

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  title  heading of title 4-C of article 4 of the real
     2  property tax law, as amended by chapter 412 of  the  laws  of  2018,  is
     3  amended to read as follows:
     4                SOLAR ELECTRIC GENERATING SYSTEM, GEOTHERMAL
     5              WELL SYSTEM AND ELECTRIC ENERGY STORAGE EQUIPMENT
     6    TAX ABATEMENT FOR CERTAIN PROPERTIES IN A CITY OF ONE MILLION OR MORE
     7                                   PERSONS
     8    § 2. Subdivisions 2 and 8 of section 499-aaaa of the real property tax
     9  law,  as  amended  by chapter 412 of the laws of 2018, are amended and a
    10  new subdivision 12 is added to read as follows:
    11    2. "Application for tax abatement" shall mean  an  application  for  a
    12  solar  electric  generating  system,  geothermal well system or electric
    13  energy storage equipment tax abatement pursuant to section four  hundred
    14  ninety-nine-cccc of this title.
    15    8. "Eligible solar electric generating system expenditures", "eligible
    16  geothermal well system expenditures" and "eligible electric energy stor-
    17  age equipment expenditures" shall mean reasonable expenditures for mate-
    18  rials,  labor  costs properly allocable to on-site preparation, assembly
    19  and original installation, architectural and engineering  services,  and
    20  designs  and  plans directly related to the construction or installation
    21  of a solar electric generating system, geothermal well system  or  elec-
    22  tric  energy  storage equipment installed in connection with an eligible
    23  building. Such eligible expenditures shall not include interest or other

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01048-01-3

        A. 701                              2
 
     1  finance charges, or any expenditures incurred using a federal, state  or
     2  local grant.
     3    12.  "Geothermal  well  system"  means a system which uses the earth's
     4  natural temperature under the ground to heat and/or cool a building.
     5    § 3. Paragraph (e) of subdivision 1 of section 499-bbbb  of  the  real
     6  property tax law, as amended by section 1 of item B of subpart H of part
     7  XXX  of  chapter  58 of the laws of 2020, is amended and a new paragraph
     8  (f) is added to read as follows:
     9    (e) if electric energy storage equipment is placed in  service  on  or
    10  after  January  first,  two thousand nineteen, and before January first,
    11  two thousand twenty-four, for each year of the  compliance  period  such
    12  tax  abatement  shall be the lesser of (i) ten percent of eligible elec-
    13  tric energy storage equipment expenditures, (ii)  the  amount  of  taxes
    14  payable  in  such  tax  year,  or  (iii) sixty-two thousand five hundred
    15  dollars[.]; or
    16    (f) if a geothermal well system is placed in service on or after Janu-
    17  ary first, two thousand twenty-five, and before January first, two thou-
    18  sand twenty-seven, for each year  of  the  compliance  period  such  tax
    19  abatement  shall be the lesser of (i) ten percent of eligible geothermal
    20  well system expenditures, (ii) the amount of taxes payable in  such  tax
    21  year, or (iii) sixty-two thousand five hundred dollars.
    22    § 4. Subdivisions 1 and 3 of section 499-cccc of the real property tax
    23  law,  subdivision  1  as  amended by section 2 of item B of subpart H of
    24  part XXX of chapter 58 of the laws of 2020 and subdivision 3 as  amended
    25  by chapter 412 of the laws of 2018, are amended to read as follows:
    26    1. To obtain a tax abatement pursuant to this title, an applicant must
    27  file  an  application  for tax abatement, which may be filed on or after
    28  January first, two thousand nine, and on or before March fifteenth,  two
    29  thousand  twenty-four  for  eligible  solar  electric  generating system
    30  expenditures and eligible electric energy storage expenditures and on or
    31  after January first, two thousand twenty-five, and on  or  before  March
    32  fifteenth, two thousand twenty-seven for eligible geothermal well system
    33  expenditures.
    34    3. Such application shall contain the following:
    35    (a)  The  name  and  address  of the applicant and the location of the
    36  solar electric generating system, geothermal well system or the electric
    37  energy storage equipment.
    38    (b) Proof that the applicant  received  all  required  certifications,
    39  permits  and  other approvals to construct the solar electric generating
    40  system, geothermal well system or the electric energy storage equipment.
    41    (c) Certifications in a form prescribed by a designated  agency,  from
    42  an  architect, engineer or other certified or licensed professional whom
    43  a designated agency designates by rule, that (i) a solar electric gener-
    44  ating system, geothermal well system or electric energy  storage  equip-
    45  ment  has been placed in service in connection with an eligible building
    46  in accordance with this title,  the  rules  promulgated  hereunder,  and
    47  local construction and fire codes, and (ii) if the solar electric gener-
    48  ating  system,  geothermal well system or electric energy storage equip-
    49  ment has been placed on the roof of a building or other structure,  that
    50  a structural analysis has been performed establishing that such building
    51  or  structure  can  sustain  the  load of such solar electric generating
    52  system, geothermal well system or electric energy storage equipment. All
    53  certifications required by this title or the rules promulgated hereunder
    54  shall set forth the specific findings upon which  the  certification  is
    55  based, and shall include information sufficient to identify the eligible

        A. 701                              3
 
     1  building,  the certifying engineer, architect or other professional, and
     2  such other information as may be prescribed by a designated agency.
     3    (d)  An  agreement  to  permit  a designated agency or its designee to
     4  inspect the solar electric generating system, geothermal well system  or
     5  electric  energy storage equipment and any related structures and equip-
     6  ment upon reasonable notice.
     7    (e) Any other information or certifications required by  a  designated
     8  agency pursuant to this title and the rules promulgated hereunder.
     9    §  5.  Subdivision 1 of section 499-dddd of the real property tax law,
    10  as amended by chapter 412 of the laws of 2018, is  amended  to  read  as
    11  follows:
    12    1.  continuing compliance during the compliance period with all appli-
    13  cable  provisions  of  law,  including  without  limitation  the   local
    14  construction  and  fire codes, maintaining the solar electric generating
    15  system or electric energy storage equipment in such  a  manner  that  it
    16  continuously  constitutes a solar electric generating system, geothermal
    17  well system or electric energy storage equipment within the  meaning  of
    18  this  title and the rules promulgated hereunder, and permitting a desig-
    19  nated agency or its designee to inspect the  solar  electric  generating
    20  system,  geothermal well system or electric energy storage equipment and
    21  any related structures and equipment upon reasonable notice; and
    22    § 6. Paragraphs (c) and (d) of subdivision 1 of  section  499-eeee  of
    23  the  real  property  tax  law,  as amended by chapter 412 of the laws of
    24  2018, are amended to read as follows:
    25    (c) the solar electric generating system, geothermal  well  system  or
    26  electric  energy storage equipment for which a tax abatement was granted
    27  has at any time during the compliance period failed to meet any require-
    28  ment for a solar electric generating system, geothermal well  system  or
    29  electric  energy  storage  equipment  pursuant to this title or any rule
    30  promulgated hereunder;
    31    (d) the solar electric generating system, geothermal  well  system  or
    32  electric  energy storage equipment has become a fire or safety hazard at
    33  any time during the compliance period; or
    34    § 7. Paragraphs (b), (c) and (d) of subdivision 2 of section  499-ffff
    35  of  the  real property tax law, as amended by chapter 412 of the laws of
    36  2018, are amended to read as follows:
    37    (b) to inspect solar  electric  generating  systems,  geothermal  well
    38  systems  or electric energy storage equipment and any related structures
    39  and equipment;
    40    (c) to establish permit or  certification  requirements  to  determine
    41  when  the  solar  electric  generating system, geothermal well system or
    42  electric energy storage equipment has been placed in  service,  such  as
    43  certification  by  an architect, engineer or other certified or licensed
    44  professional whom a designated agency designates by rule;
    45    (d) to establish guidance and procedures for determining or certifying
    46  eligible solar electric generating system,  geothermal  well  system  or
    47  electric energy storage equipment expenditures;
    48    § 8. This act shall take effect immediately.
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