Provides for direct-pay tax abatement credits for solar electric generating systems and electric energy storage systems in connection with eligible buildings; provides such eligible properties shall include: 501(c)(3) corporations, associations, organizations or trusts and income-restricted affordable housing properties.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8355
SPONSOR: Carroll TITLE OF BILL:
An act to amend the real property tax law, in relation to providing for
a direct-pay tax abatement credit for solar electric generating systems
and electric energy storage systems in connection with eligible build-
ings
PURPOSE:
To provide for a tax credit for the installation of solar electric
generating systems and electric storage for New York City non-profit
owned and/or income restricted affordable housing properties.
SUMMARY OF PROVISIONS:
Section 1 provides that properties that are owned by 501(c)(3) organiza-
tions, housing developments incorporated under article two, four, five,
or eleven of the private housing finance law, and properties that are
income restricted affordable housing properties shall be eligible for a
direct-pay credit equivalent to the tax abatement for solar electric
generating systems and electric energy storage equipment available to
other properties in New York City. The terms of such abatements are the
lesser of thirty percent of expenditures or $250,000 taken in equal
increments annually over a four-year period. The direct-pay credit for
eligible properties will be distributed through a check issued by the
New York City Department of Finance.
Section 2 provides that the provisions of the real property tax law
pertaining to the administration of the solar and electric storage
systems abatement also pertain to the direct-pay credit including that
properties are eligible for the benefit prior to January 1, 2036.
Section 3 sets the effective date as "effective immediately."
JUSTIFICATION:
In June 2023 the legislature passed and in September 2023 the Governor
signed into law bill A6113B, which extended and strengthened the exist-
ing incentive programs to encourage the installation of solar electric
generating systems and energy storage systems, in connection with class
one, class two and class four properties in New York City. The program
while enabled by the State is administered and paid for by the City.
This bill would allow not-for-profit owned properties such as houses of
worship and various affordable housing properties in New York City that
already pay no or reduced property taxes to benefit from a direct-pay
credit structured in accordance with the property-tax abatement avail-
able to other properties. This legislation is consistent with the
commitments of New York State in the Climate Leadership and Community
Protection Act (CLCPA) and the City of New York through Local Law 97 to
reduce greenhouse gas emission reduction and to provide cleaner, more
reliable power for every New Yorker. By enabling properties that provide
affordable housing including low-income housing to be eligible for the
same benefit as other properties this legislation will also help meet
environmental justice and equity goals.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
TED
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8355
2023-2024 Regular Sessions
IN ASSEMBLY
December 13, 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 providing for
a direct-pay tax abatement credit for solar electric generating
systems and electric energy storage systems in connection with eligi-
ble buildings
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 499-bbbb of the real property tax law is amended by
2 adding a new subdivision 5 to read as follows:
3 5. Notwithstanding any limitations or restrictions established within
4 this section or any local law or resolution, any eligible building that
5 is owned by a corporation, association, organization or trust described
6 in section 501(c)(3) of the United States internal revenue code, incor-
7 porated under article two, four, five, or eleven of the private housing
8 finance law, or is an income-restricted affordable housing property,
9 including but not limited to properties with regulatory agreements with
10 the New York city department of housing preservation and development,
11 New York city housing development corporation, New York state department
12 of housing and community renewal, or the United States department of
13 housing and urban development, shall be eligible for a direct-pay credit
14 equal to the monetary value of the abatement as calculated in paragraph
15 (f) of subdivision one of this section. Such direct-pay credit shall be
16 issued to the eligible building owner by the department of finance in
17 the form of a check irrespective of the amount of taxes payable in such
18 tax year.
19 § 2. The section heading and subdivisions 1, 4, 5 and 6 of section
20 499-cccc of the real property tax law, the section heading and subdivi-
21 sions 4, 5 and 6 as added by chapter 473 of the laws of 2008, subdivi-
22 sion 1 as amended by chapter 485 of the laws of 2023, are amended to
23 read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13650-01-3
A. 8355 2
1 Application for tax abatement or direct-pay credit. 1. To obtain a tax
2 abatement or direct-pay credit pursuant to this title, an applicant must
3 file an application for tax abatement, which may be filed on or after
4 January first, two thousand nine, and on or before January first, two
5 thousand thirty-six.
6 4. An application for tax abatement or direct-pay credit shall be in
7 any format prescribed by a designated agency, including electronic form.
8 5. An application for tax abatement or direct-pay credit shall be
9 approved by a designated agency upon determining that the applicant has
10 submitted proof acceptable to such agency that the requirements for
11 obtaining a tax abatement or direct-pay credit pursuant to this title
12 and the rules promulgated hereunder have been met. The burden of proof
13 shall be on the applicant to show by clear and convincing evidence that
14 the requirements for granting a tax abatement or direct-pay credit have
15 been satisfied.
16 6. Upon notification from a designated agency that an application for
17 tax abatement or direct-pay credit has been approved, the department of
18 finance shall apply the tax abatement or direct-pay credit, provided
19 there are no outstanding real estate taxes, water and sewer charges,
20 payments in lieu of taxes or other municipal charges with respect to the
21 eligible building.
22 § 3. This act shall take effect immediately.
