A05522 Summary:

BILL NO    A05522B

SAME AS    SAME AS S03203-B

SPONSOR    Englebright (MS)

COSPNSR    Boyland, Cook, Jaffee, Colton, Reilly, Maisel, Castro, Gunther,
           McEneny, Lavine, Rivera P, Rosenthal, Cahill, Schimel

MLTSPNSR   Boyle, Castelli, Clark, Glick, Latimer, Malliotakis, Titone

Amd SS1115 & 1210, Tax L

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.
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A05522 Memo:

BILL NUMBER:A5522B

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
installation of commercial solar energy systems equipment from sales
and compensating 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 energy 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 municipalities 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 businesses. 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 environment.

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.
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A05522 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                        5522--B

                              2011-2012 Regular Sessions

                                 I N  A S S E M B L Y

                                   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    S 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    S  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    S 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.
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