NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3165
SPONSOR: Carroll TITLE OF BILL:
An act to amend the real property tax law, in relation to extending the
expiration of the solar electric generating system tax abatement
PURPOSE:
To extend the solar electric generating system tax abatement.
SUMMARY OF PROVISIONS:
If the solar electric generating system is placed in service on or after
January 1, 2014 and before January 1, 2027, the amount of the tax abate-
ment would be 5 percent of eligible solar electric generating system
expenditures in each year of the four-year compliance period. However,
the benefit in each tax year would be limited to the lesser of the
amount of taxes payable or $62,500. "Eligible solar electric generating
system expenditures" include reasonable expenditures for materials,
labor costs properly allocable to on-site preparation, assembly and
original installation, architectural and engineering services, and
designs and plans directly related to the construction or installation
of the solar electric generating system.
JUSTIFICATION:
This legislation would extend and strengthen an existing incentive
program to encourage the installation of solar electric generating
systems, in connection with class one, class two and class four proper-
ties in the City. This program is aligned with the longstanding commit-
ment of New York State and the City of New York to reduce greenhouse gas
emission reduction and providing cleaner, more reliable power for every
New Yorker. These goals will be achieved through efforts to improve
energy efficiency and clean our energy supply. In the near term, the
City will still rely on conventional energy sources, such as natural
gas. Solar power in New York City has historically cost more per kilo-
watt of installed capacity than in other parts of the State of New York,
primarily because of more stringent requirements of the NYC Department
of Buildings and increased complexity in the building sites. Data from
the New York State Energy Research and Development Authority indicates
that solar energy projects in New York City cost approximately 25% more
than the state average. Continuation of the property tax abatement is
necessary to offset a portion of the extra costs associated with NYC
solar energy installation, thus further stimulating clean energy invest-
ment and job creation throughout New York City.
LEGISLATIVE HISTORY:
Chapter 396 of the Laws of 2014.
Chapter 393 of the Laws of 2016.
Chapter 327 of the Laws of 2018. A.8925/S.7598 of 2019-20.
FISCAL IMPLICATIONS:
TED
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
3165
2023-2024 Regular Sessions
IN ASSEMBLY
February 2, 2023
___________
Introduced by M. of A. CARROLL -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to extending the
expiration of the solar electric generating system tax abatement
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (d) of subdivision 1 of section 499-bbbb of the
2 real property tax law, as amended by section 1 of item B of subpart H of
3 part XXX of chapter 58 of the laws of 2020, is amended to read as
4 follows:
5 (d) if the solar electric generating system is placed in service on or
6 after January first, two thousand fourteen, and before January first,
7 two thousand [twenty-four] twenty-seven, for each year of the compliance
8 period such tax abatement shall be the lesser of (i) five percent of
9 eligible solar electric generating system expenditures, (ii) the amount
10 of taxes payable in such tax year, or (iii) sixty-two thousand five
11 hundred dollars; or
12 § 2. Subdivision 1 of section 499-cccc of the real property tax law,
13 as amended by section 2 of item B of subpart H of part XXX of chapter 58
14 of the laws of 2020, is amended to read as follows:
15 1. To obtain a tax abatement pursuant to this title, an applicant must
16 file an application for tax abatement, which may be filed on or after
17 January first, two thousand nine, and on or before March fifteenth, two
18 thousand [twenty-four] twenty-seven.
19 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06813-01-3
