NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10620
SPONSOR: Rules (Farrell) TITLE OF BILL: An act to amend the real property tax law, in relation
to a solar electric generating system tax abatement for certain proper-
ties in a city of one million or more persons
PURPOSE OR GENERAL IDEA OF BILL: This bill would amend subdivision one
of section 499-bbb of the Real Property Tax Law (RPTL) by adding a new
paragraph (c) and would amend subdivision one of section 499-ccc of the
RPTL.
SUMMARY OF PROVISIONS: If the solar electric generating system is
placed in service on or after January 1, 2013 and before January 1,
2015, the amount of the tax abatement would be 2.5% 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 limit-
ed 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 engi-
neering services, and designs and plans directly related to the
construction or installation of the solar electric generating system.
JUSTIFICATION: The City of New York strongly supports this legis-
lation, which would extend an existing incentive program to encourage
the installation of solar electric generating systems, in connection
with class one, class two and class four properties in the City.
This program is aligned with the Mayor's long-term sustainability plan,
PlaNYC, first issued in April 2007, which set a 30% greenhouse gas emis-
sion reduction target for 2030 and committed to 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 ener-
gy sources, such as natural gas.
New York City's tall buildings lead to high installation costs, while
extensive interconnection requirements and inspections delay implementa-
tion. For these reasons, installation costs for solar electric generat-
ing systems in the City are approximately 30% higher than in New Jersey
and 50% higher than in Long Island.
Continuation of the property tax abatement will offset some of the high
cost associated with solar energy installation and enable customers to
choose solar energy at their home or business, and will stimulate
further clean energy investment and job creation throughout New York
City.
PRIOR LEGISLATIVE HISTORY: New bill
FISCAL IMPLICATIONS: None to the State
EFFECTIVE DATE: This act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
10620
IN ASSEMBLY
June 8, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Farrell) --
read once and referred to the Committee on Ways and Means
AN ACT to amend the real property tax law, in relation to a solar elec-
tric generating system tax abatement for certain properties in a city
of one million or more persons
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 499-bbbb of the real property tax
2 law, as added by chapter 473 of the laws of 2008, is amended to read as
3 follows:
4 1. The amount of such tax abatement shall be as follows:
5 (a) if the solar electric generating system is placed in service on or
6 after the effective date of this title and before January first, two
7 thousand eleven, for each year of the compliance period such tax abate-
8 ment shall be the lesser of (i) eight and three-fourths 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 (b) if the solar electric generating system is placed in service on or
13 after January first, two thousand eleven, and before January first, two
14 thousand thirteen, for each year of the compliance period such tax
15 abatement shall be the lesser of (i) five percent of eligible solar
16 electric generating system expenditures, (ii) the amount of taxes paya-
17 ble in such tax year, or (iii) sixty-two thousand five hundred dollars;
18 or
19 (c) if the solar electric generating system is placed in service on or
20 after January first, two thousand thirteen, and before January first,
21 two thousand fifteen, for each year of the compliance period such tax
22 abatement shall be the lesser of (i) two and five-tenths percent of
23 eligible solar electric generating system expenditures, (ii) the amount
24 of taxes payable in such tax year, or (iii) sixty-two thousand five
25 hundred dollars.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16199-01-2
A. 10620 2
1 § 2. Subdivision 1 of section 499-cccc of the real property tax law,
2 as added by chapter 473 of the laws of 2008, is amended to read as
3 follows:
4 1. To obtain a tax abatement pursuant to this title, an applicant must
5 file an application for tax abatement, which may be filed on or after
6 January first, two thousand nine, and on or before March fifteenth, two
7 thousand [thirteen] fifteen.
8 § 3. This act shall take effect immediately.
