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.
