NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8588A
SPONSOR: Rivera TITLE OF BILL:
An act to amend the tax law, in relation to geothermal energy systems
tax credits
PURPOSE OR GENERAL IDEA OF BILL:
This bill doubles the existing geothermal tax credit, and makes it
refundable in certain situations.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends paragraphs 1 and 9 of subsection (g4) of section 606 of
the tax law, to double the geothermal tax credit and make it refundable
in certain situations.
Section 2 sets the effective date.
JUSTIFICATION:
As New York transitions to clean energy and zero-emission sources,
geothermal energy systems provide a unique opportunity to both heat and
cool homes, without toxic emissions. In 2022 the state enacted up to a
$5,000.non-refundable tax credit for homeowners installing a geothermal
energy system in their residence. While these credits have proven to be
popular, the credit amount does not cover the entire cost of installa-
tion, and the overall cost of geothermal systems has increased during
that time.
This bill will double the geothermal tax credit, from $5,000 to $10,000,
in order to better address the cost of installation. Further, in recog-
nition that many low to moderate income households have a low or no tax
burden, this bill makes this credit refundable for low and moderate
income households, or for households located in a disadvantaged communi-
ty. Taking this action will further spur the installation of geothermal
systems, helping to advance New York's transition to clean sources of
energy.
PRIOR LEGISLATIVE HISTORY:
New legislation.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TBD
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8588--A
IN ASSEMBLY
January 12, 2024
___________
Introduced by M. of A. RIVERA, SIMON, LUNSFORD, STERN, BURKE, KELLES,
GUNTHER, SHIMSKY, ARDILA, WALLACE, HEVESI, WEPRIN, BICHOTTE HERMELYN,
McDONALD, SEAWRIGHT, CONRAD, COLTON, PAULIN, DINOWITZ, SHRESTHA,
ZEBROWSKI, SIMONE, TAPIA, GALLAGHER, FAHY -- Multi-Sponsored by -- M.
of A. LEVENBERG -- read once and referred to the Committee on Ways
and Means -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the tax law, in relation to geothermal energy systems
tax credits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs 1 and 9 of subsection (g-4) of section 606 of
2 the tax law, as added by section 1 of part FF of chapter 59 of the laws
3 of 2022, are amended to read as follows:
4 (1) General. An individual taxpayer shall be allowed a credit against
5 the tax imposed by this article equal to twenty-five percent of quali-
6 fied geothermal energy system expenditures, except as provided in
7 subparagraph (D) of paragraph two of this subsection, not to exceed five
8 thousand dollars for qualified geothermal energy systems placed in
9 service before June thirtieth, two thousand twenty-four, and ten thou-
10 sand dollars for qualified geothermal energy equipment placed in service
11 on or after July first, two thousand twenty-four.
12 (9) Carryover of credit and refundability. If the amount of the cred-
13 it, and carryovers of such credit, allowable under this subsection for
14 any taxable year shall exceed the taxpayer's tax for such year, such
15 excess amount may be carried over to the five taxable years next follow-
16 ing the taxable year with respect to which the credit is allowed and may
17 be deducted from the taxpayer's tax for such year or years. For taxable
18 years beginning on or after January first, two thousand twenty-five, if
19 the amount of the credit allowable under this subsection shall exceed
20 the taxpayer's tax liability for such year, and the taxpayer meets the
21 definition of low-to-moderate income, as defined in subdivision (c) of
22 section nine hundred seventy-c of the general municipal law, or resides
23 in a disadvantaged community, as defined in subdivision five of section
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13762-05-4
A. 8588--A 2
1 75-0101 of the environmental conservation law, the excess shall be
2 treated as an overpayment of tax to be credited or refunded. Any refund
3 paid pursuant to this paragraph shall be deemed to be a refund of an
4 overpayment of tax as provided in section six hundred eighty-six of this
5 article, provided, however, that no interest shall be paid thereon.
6 § 2. This act shall take effect immediately.
