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A05541 Summary:

BILL NOA05541A
 
SAME ASSAME AS S05119-A
 
SPONSORPaulin
 
COSPNSRFahy, Hunter, Titone, Sepulveda, Ortiz, Jenne, Schimminger, Galef, Stirpe, Rosenthal L
 
MLTSPNSREnglebright, Hooper, Magee, Rozic
 
Amd 606, Tax L
 
Relates to wind energy system equipment credit.
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A05541 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5541--A
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 10, 2017
                                       ___________
 
        Introduced  by  M. of A. PAULIN, FAHY, HUNTER, TITONE, SEPULVEDA, ORTIZ,
          JENNE, SCHIMMINGER, GALEF, STIRPE, L. ROSENTHAL -- Multi-Sponsored  by
          --  M.  of  A.  ENGLEBRIGHT,  HOOPER,  MAGEE,  ROZIC  -- read once and
          referred to the Committee on Ways and  Means  --  recommitted  to  the
          Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee
 
        AN ACT to amend the tax law, in relation to wind energy system equipment
          credit; and providing for the repeal of certain provisions therefor
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  606  of  the  tax law is amended by adding a new
     2  subsection (g-3) to read as follows:
     3    (g-3) Wind energy system equipment credit. (1) General.  An individual
     4  taxpayer shall be allowed a credit against the tax imposed by this arti-
     5  cle equal to twenty-five percent of qualified wind energy system  equip-
     6  ment  expenditures,  except as provided in subparagraph (D) of paragraph
     7  two of this subsection.  This credit shall not exceed  fifteen  thousand
     8  dollars  for  a residential installation or one hundred thousand dollars
     9  for a farm or commercial installation.
    10    (2) Qualified wind energy system equipment expenditures. (A) The  term
    11  "qualified wind energy system equipment expenditures" means expenditures
    12  for:
    13    (i) the purchase of wind energy system equipment which is installed in
    14  connection  with  residential, agricultural or commercial property which
    15  is (I) located in this state and (II) which, if residential, is used  by
    16  the  taxpayer as his or her principal residence or farm operation at the
    17  time the wind energy system equipment is placed in service;
    18    (ii) the lease of wind energy system equipment under a written  agree-
    19  ment  that  spans  at  least  ten  years where such equipment owned by a
    20  person other than the taxpayer is installed in connection with  residen-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09628-03-8

        A. 5541--A                          2
 
     1  tial,  agricultural  or commercial property which is (I) located in this
     2  state and (II) which, if residential, is used by the taxpayer as his  or
     3  her  principal  residence  or farm operation at the time the wind energy
     4  system equipment is placed in service; or
     5    (iii)  the  purchase  of power under a written agreement that spans at
     6  least ten years where under the power purchased  is  generated  by  wind
     7  energy  system equipment owned by a person other than the taxpayer which
     8  is installed in connection with residential, agricultural or  commercial
     9  property  which  is  (I) located in this state and (II) which is used by
    10  the taxpayer as his or her principal residence or farm operation at  the
    11  time the wind energy system equipment is placed in service.
    12    (B) Such qualified expenditures shall include expenditures for materi-
    13  als, labor costs properly allocable to on-site preparation, assembly and
    14  original  installation,  architectural  and  engineering  services,  and
    15  designs, plans and permitting directly related to  the  construction  or
    16  installation of the wind energy system equipment.
    17    (C) Such qualified expenditures for the purchase of wind energy system
    18  equipment shall not include interest or other finance charges.
    19    (D)  Such  qualified  expenditures for the lease of wind energy system
    20  equipment or the purchase of  power  under  an  agreement  described  in
    21  clauses  (ii)  or  (iii)  of subparagraph (A) of this paragraph shall be
    22  based on the appraised value of the wind energy  system  or  systems  as
    23  determined by a qualified third party appraiser.
    24    (3)  Wind energy system equipment. The term "wind energy system equip-
    25  ment" shall mean one or more wind turbines with a combined rated capaci-
    26  ty of not more than one hundred kilowatts for  a  New  York  residential
    27  customer  generator  or  nine hundred kilowatts for a farm or commercial
    28  customer generator, that is  manufactured,  installed  and  operated  in
    29  accordance  with  applicable  government and industry standards, that is
    30  connected to the electric system and operated in parallel with an  elec-
    31  tric corporation's transmission and distribution facilities, and that is
    32  operated  in  compliance with any standards and requirements established
    33  by this section.
    34    (A) Wind turbines installed after June thirtieth, two  thousand  nine-
    35  teen  must be certified to AWEA 9.1-2009 or, if their rotor area exceeds
    36  200m2, to IEC 61400-11, IEC 61400-12, and IEC 61400-1 by  an  accredited
    37  certification  body. Wind turbines that are listed on the New York state
    38  energy research and development authority approved turbine list  or  the
    39  CESA  ITAC unified list of wind turbines at the time of installation are
    40  exempt from these requirements.
    41    (B) Wind turbines must carry, as a minimum, a five  year  warranty  on
    42  the equipment and installation.
    43    (C)  Wind turbines must be installed on towers of at least eighty feet
    44  in height.
    45    (4)  Multiple  taxpayers.  Where  wind  energy  system  equipment   is
    46  purchased  and  installed in a principal residence shared by two or more
    47  taxpayers, the amount of the credit allowable under this subsection  for
    48  each  such taxpayer shall be prorated according to the percentage of the
    49  total expenditure for such wind energy system equipment  contributed  by
    50  each taxpayer.
    51    (5)  Proportionate  share.  Where  wind  energy  system  equipment  is
    52  purchased and installed by a condominium  management  association  or  a
    53  cooperative  housing  corporation,  a  taxpayer  who  is a member of the
    54  condominium management association or who is a tenant-stockholder in the
    55  cooperative housing corporation may for the purpose of  this  subsection

        A. 5541--A                          3
 
     1  claim  a proportionate share of the total expense as the expenditure for
     2  the purposes of the credit attributable to his principal residence.
     3    (6)  Grants. For purposes of determining the amount of the expenditure
     4  incurred in purchasing and installing wind energy system equipment,  the
     5  amount  of  any  federal, state or local grant received by the taxpayer,
     6  which was used for the purchase and/or installation  of  such  equipment
     7  and  which was not included in the federal gross income of the taxpayer,
     8  shall not be included in the amount of such expenditures.
     9    (7) When credit allowed. The  credit  provided  for  herein  shall  be
    10  allowed  with respect to the taxable year, commencing after two thousand
    11  eighteen, in which  the  wind  energy  system  equipment  is  placed  in
    12  service.
    13    (8)  Carryover  of credit. If the amount of the credit, and carryovers
    14  of such credit, allowable under this subsection  for  any  taxable  year
    15  shall exceed the taxpayer's tax for such year, such excess amount may be
    16  carried  over  to the five taxable years next following the taxable year
    17  with respect to which the credit is allowed and may be deducted from the
    18  taxpayer's tax for such year or years.
    19    (9) Credit to be claimed by the owner.  The  credits  allowable  under
    20  this  subsection  shall be claimed by the person or entity that owns the
    21  wind energy system equipment.
    22    § 2. This act shall take effect immediately, and shall apply to  taxa-
    23  ble years beginning on or after January 1, 2019; provided, however, this
    24  act shall expire and be deemed repealed January 1, 2029.
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