Exempts the sale and installation of commercial solar energy systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5522B
SPONSOR: Englebright (MS) TITLE OF BILL: An act to amend the tax law, in relation to exempting
the sale and installation of commercial solar energy systems equipment
from state sales and compensating use taxes and granting municipalities
the option to grant such exemption
PURPOSE OR GENERAL IDEA OF TEE BILL: Exempts the sale and installa-
tion of commercial solar energy systems equipment from sales and compen-
sating use taxes.
SUMMARY OF PROVISIONS: Receipts from the retail sale of commercial
solar energy systems equipment and the service of installing such
systems, shall be exempt from taxes imposed by sections eleven hundred
five and eleven hundred eleven of this article. For the purposes of this
subdivision, commercial solar energy systems equipment shall mean an
arrangement or combination of components installed upon nonresidential
premises that utilize solar radiation to produce energy designed to
provide heating, cooling, hot water/or electricity. Such arrangement or
components shall not include equipment that is part of a non-solar ener-
gy system.
JUSTIFICATION: If we are to achieve the goal of 45% of New York
State's electricity needs through clean renewable energy and improved
energy efficiency by 2015, then we must provide incentives to encourage
businesses to install solar energy systems just as we have done with
homeowners. Currently, businesses must pay state and local taxes that
can add thousands of dollars onto an installation that is already very
costly. Eliminating all state sales taxes and providing local munici-
palities an option to eliminate their portion as well, will encourage
more commercial solar installations. Coupled with the state's new net-
metering legislation for commercial consumers, a commercial sales tax
exemption will provide a more realistic investment climate for busi-
nesses. Because of their size, the installation of commercial solar
energy systems will significantly advance New York State's obligation to
meet its Renewable Portfolio Standard of renewable energy sources by
2015. A commercial solar sales tax exemption will help to stimulate and
rebuild our economy, create green collar jobs and reduce our dependence
on foreign oil while fighting global warming and protecting our environ-
ment.
LEGISLATIVE HISTORY:
04/27/09 REFERRED TO ENERGY AND TELECOMMUNICATIONS
01/06/10 REFERRED TO ENERGY AND TELECOMMUNICATIONS
03/15/10 AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
03/15/10 PRINT NUMBER 5074A
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately, provided that
section one of this act shall take effect on the first of January next
succeeding the date on which this act shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
5522--B
2011-2012 Regular Sessions
IN ASSEMBLY
February 23, 2011
___________
Introduced by M. of A. ENGLEBRIGHT, BOYLAND, COOK, JAFFEE, COLTON, REIL-
LY, MAISEL, CASTRO, GUNTHER, McENENY, LAVINE -- Multi-Sponsored by --
M. of A. BOYLE, CASTELLI, GLICK, LATIMER, SCHIMEL, TITONE -- read
once and referred to the Committee on Ways and Means -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- 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 commit-
tee
AN ACT to amend the tax law, in relation to exempting the sale and
installation of commercial solar energy systems equipment from state
sales and compensating use taxes and granting municipalities the
option to grant such exemption
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1115 of the tax law is amended by adding a new
2 subdivision (hh) to read as follows:
3 (hh) Receipts from the retail sale of commercial solar energy systems
4 equipment and of the service of installing such systems shall be exempt
5 from taxes imposed by sections eleven hundred five and eleven hundred
6 eleven of this article. For the purposes of this subdivision, "commer-
7 cial solar energy systems equipment" shall mean an arrangement or combi-
8 nation of components installed upon non-residential premises that
9 utilize solar radiation to produce energy designed to provide heating,
10 cooling, hot water and/or electricity. Such arrangement or components
11 shall not include equipment that is part of a non-solar energy system.
12 § 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
13 amended by section 3 of part GG of chapter 57 of the laws of 2010, is
14 amended to read as follows:
15 (1) Either, all of the taxes described in article twenty-eight of this
16 chapter, at the same uniform rate, as to which taxes all provisions of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08775-05-2
A. 5522--B 2
1 the local laws, ordinances or resolutions imposing such taxes shall be
2 identical, except as to rate and except as otherwise provided, with the
3 corresponding provisions in such article twenty-eight, including the
4 definition and exemption provisions of such article, so far as the
5 provisions of such article twenty-eight can be made applicable to the
6 taxes imposed by such city or county and with such limitations and
7 special provisions as are set forth in this article. The taxes author-
8 ized under this subdivision may not be imposed by a city or county
9 unless the local law, ordinance or resolution imposes such taxes so as
10 to include all portions and all types of receipts, charges or rents,
11 subject to state tax under sections eleven hundred five and eleven
12 hundred ten of this chapter, except as otherwise provided. (i) Any local
13 law, ordinance or resolution enacted by any city of less than one
14 million or by any county or school district, imposing the taxes author-
15 ized by this subdivision, shall, notwithstanding any provision of law to
16 the contrary, exclude from the operation of such local taxes all sales
17 of tangible personal property for use or consumption directly and
18 predominantly in the production of tangible personal property, gas,
19 electricity, refrigeration or steam, for sale, by manufacturing, proc-
20 essing, generating, assembly, refining, mining or extracting; and all
21 sales of tangible personal property for use or consumption predominantly
22 either in the production of tangible personal property, for sale, by
23 farming or in a commercial horse boarding operation, or in both; and,
24 unless such city, county or school district elects otherwise, shall omit
25 the provision for credit or refund contained in clause six of subdivi-
26 sion (a) or subdivision (d) of section eleven hundred nineteen of this
27 chapter. (ii) Any local law, ordinance or resolution enacted by any
28 city, county or school district, imposing the taxes authorized by this
29 subdivision, shall omit the residential solar energy systems equipment
30 exemption provided for in subdivision (ee), the commercial solar energy
31 systems equipment exemption provided for in subdivision (hh) and the
32 clothing and footwear exemption provided for in paragraph thirty of
33 subdivision (a) of section eleven hundred fifteen of this chapter,
34 unless such city, county or school district elects otherwise as to
35 either such residential solar energy systems equipment exemption, such
36 commercial solar energy systems equipment exemption or such clothing and
37 footwear exemption.
38 § 3. Section 1210 of the tax law is amended by adding a new subdivi-
39 sion (p) to read as follows:
40 (p) Notwithstanding any other provision of state or local law, ordi-
41 nance or resolution to the contrary:
42 (1) Any city having a population of one million or more in which the
43 taxes imposed by section eleven hundred seven of this chapter are in
44 effect, acting through its local legislative body, is hereby authorized
45 and empowered to elect to provide the same exemptions from such taxes as
46 the commercial solar energy systems equipment exemption from state sales
47 and compensating use taxes described in subdivision (hh) of section
48 eleven hundred fifteen of this chapter by enacting a resolution in the
49 form set forth in paragraph two of this subdivision; whereupon, upon
50 compliance with the provisions of subdivisions (d) and (e) of this
51 section, such enactment of such resolution shall be deemed to be an
52 amendment to such section eleven hundred seven and such section eleven
53 hundred seven shall be deemed to incorporate such exemptions as if they
54 had been duly enacted by the state legislature and approved by the
55 governor.
A. 5522--B 3
1 (2) Form of Resolution: Be it enacted by the (insert proper title of
2 local legislative body) as follows:
3 Section one. Receipts from sales of and consideration given or
4 contracted to be given for, or for the use of, property and services
5 exempt from state sales and compensating use taxes pursuant to subdivi-
6 sion (hh) of section 1115 of the tax law shall also be exempt from sales
7 and compensating use taxes imposed in this jurisdiction.
8 Section two. This resolution shall take effect January 1, (insert the
9 year, but not earlier than the year 2012) and shall apply to sales made,
10 services rendered and uses occurring on and after that date in accord-
11 ance with the applicable transitional provisions in sections 1106, 1216
12 and 1217 of the New York tax law.
13 § 4. This act shall take effect immediately, provided that section one
14 of this act shall take effect on the first of January next succeeding
15 the date on which this act shall have become a law.
