|SAME AS||SAME AS S00149-B|
|COSPNSR||Rivera P, Abinanti, Lupardo, Lopez P|
|Amd S606, Tax L|
|Relates to tax credits provided for solar energy system equipment; provides credit for the lease of solar energy equipment and the purchase of power generated by solar equipment.|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A34B SPONSOR: Cahill
TITLE OF BILL: An act to amend the tax law, in relation to tax cred- its provided for solar energy system equipment   PURPOSE: The purpose of this legislation is to encourage homeowners to install and utilize solar energy equipment by allowing individuals who lease such equipment or purchase power under a written agreement with a third party to benefit from a solar equipment tax credit.   SUMMARY OF PROVISIONS: Section 1. Allows a taxpayer to qualify for a solar equipment tax credit in cases where the lease of solar equipment under a written agreement spans at least ten years or a power purchase agreement of at least ten years from a third party is in force. Addi- tionally this section includes and clarifies expenditures for the lease of solar energy system equipment.   JUSTIFICATION: As we continue to move toward a greener economy it is very important that residents be encouraged to utilize renewable forms of energy. This should be true whether the taxpayer can afford to purchase and install renewable generation such as solar equipment or if it is more feasible for the individual to lease the equipment or contract with a provider to purchase power. Using the tax code to incen- tivize the installation of solar equipment is the right way to encourage the development of the renewable energy industry. In addition to the obvious benefits to the taxpayer, the use of more photovoltaic generation equipment will also benefit our environment by reducing the negative effects of greenhouse gas emissions as well and increasing our ability to become more energy independent.   LEGISLATIVE HISTORY: S.8025 of 2009-2010; Referred to Investigations & Government Operations.   FISCAL IMPLICATIONS: Given the nature of how the credit will be taken and the fact that the leases and power purchase agreements that are effected all last more than ten years, it is estimated that this provision will have a fiscal impact of less than $1,000,000 annually.   EFFECTIVE DATE: This act shall take effect immediately.
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STATE OF NEW YORK ________________________________________________________________________ 34--B 2011-2012 Regular Sessions IN ASSEMBLY (Prefiled) January 5, 2011 ___________ Introduced by M. of A. CAHILL -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to tax credits provided for solar energy system equipment The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs 1 and 2 of subsection (g-1) of section 606 of 2 the tax law, as amended by chapter 378 of the laws of 2005 and subpara- 3 graph (B) of paragraph 2 as amended by chapter 251 of the laws of 2006, 4 is amended to read as follows: 5 (1) General. An individual taxpayer shall be allowed a credit against 6 the tax imposed by this article equal to twenty-five percent of quali- 7 fied solar energy system equipment expenditures, except as provided in 8 subparagraph (D) of paragraph two of this subsection. This credit shall 9 not exceed three thousand seven hundred fifty dollars for qualified 10 solar energy equipment placed in service before September first, two 11 thousand six, and five thousand dollars for qualified solar energy 12 equipment placed in service on or after September first, two thousand 13 six. 14 (2) Qualified solar energy system equipment expenditures. (A) The term 15 "qualified solar energy system equipment expenditures" means expendi- 16 tures for: 17 (i) the purchase of solar energy system equipment which is installed 18 in connection with residential property which is [ (i)] (I) located in 19 this state and [ (ii)] (II) which is used by the taxpayer as his or her 20 principal residence at the time the solar energy system equipment is 21 placed in service; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00898-04-1A. 34--B 2 1 (ii) the lease of solar energy system equipment under a written agree- 2 ment that spans at least ten years where such equipment owned by a 3 person other than the taxpayer is installed in connection with residen- 4 tial property which is (I) located in this state and (II) which is used 5 by the taxpayer as his or her principal residence at the time the solar 6 energy system equipment is placed in service; or 7 (iii) the purchase of power under a written agreement that spans at 8 least ten years whereunder the power purchased is generated by solar 9 energy system equipment owned by a person other than the taxpayer which 10 is installed in connection with residential property which is (I) 11 located in this state and (II) which is used by the taxpayer as his or 12 her principal residence at the time the solar energy system equipment is 13 placed in service. 14 (B) Such qualified expenditures shall include expenditures for materi- 15 als, labor costs properly allocable to on-site preparation, assembly and 16 original installation, architectural and engineering services, and 17 designs and plans directly related to the construction or installation 18 of the solar energy system equipment. 19 (C) Such qualified expenditures for the purchase of solar energy 20 system equipment shall not include interest or other finance charges. 21 (D) Such qualified expenditures for the lease of solar energy system 22 equipment or the purchase of power under an agreement described in 23 clauses (ii) or (iii) of subparagraph (A) of this paragraph shall 24 include an amount equal to all payments made during the taxable year 25 under such agreement. Provided, however, such credits shall only be 26 allowed for fourteen years after the first taxable year in which such 27 credit is allowed. Provided further, however, the twenty-five percent 28 limitation in paragraph one of this subsection shall only apply to the 29 total aggregate amount of all payments to be made pursuant to an agree- 30 ment referenced in clauses (ii) or (iii) of subparagraph (A) of this 31 paragraph, and shall not apply to individual payments made during a 32 taxable year under such agreement except to the extent such limitation 33 on an aggregate basis has been reached. 34 § 2. This act shall take effect immediately.