Exempts payments in lieu of taxes received or receivable with regards to renewable energy projects from local governments' tax cap calculations; defines term.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9149
SPONSOR: Walsh TITLE OF BILL:
An act to amend the general municipal law, in relation to exempting
payments in lieu of taxes received or receivable with regards to renewa-
ble energy projects from local governments' tax cap calculations
PURPOSE OR GENERAL IDEA OF HILL:
To exempts payments in lieu of taxes received or receivable with regards
to renewable energy projects from local governments' tax cap calcu-
lations
SUMMARY OF PROVISIONS:
Section 1 amends Subdivision 3 of section 3-c of the General Municipal
Law to exempt payments in lieu of taxes for renewable energy projects
from local governments' tax cap calculations
Section 2 provides that this act shall take effect immediately
JUSTIFICATION:
New York State has set an aggressive climate mandate for emission
reduction through the Climate Leadership and Community Protection Act of
2019. A difficulty presented is that in some cases municipalities who
wish to keep up with these clean energy goals are doing so at the
expense of their own financial needs. Like many other projects, when a
renewable energy project is constructed a municipality negotiates a
Payment in Lieu of Taxes (PILOT) agreement with the applicant. Current-
ly, these PILOT agreements must be included in Tax Cap calculations for
a municipality which reduces the amount of money available to them when
factoring annual allowances, creating a complex issue
PRIOR LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
This act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
9149
2025-2026 Regular Sessions
IN ASSEMBLY
October 17, 2025
___________
Introduced by M. of A. WALSH -- read once and referred to the Committee
on Local Governments
AN ACT to amend the general municipal law, in relation to exempting
payments in lieu of taxes received or receivable with regards to
renewable energy projects from local governments' tax cap calculations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 3-c of the general municipal law
2 is amended by adding a new paragraph (c-1) to read as follows:
3 (c-1) Notwithstanding subparagraphs (iii) and (vi) of paragraph (c) of
4 this subdivision, in calculating the tax levy limit applicable to the
5 coming fiscal year under paragraph (c) of this subdivision, local
6 governments shall exclude any payments in lieu of taxes received or
7 receivable with regards to a renewable energy project. For the purposes
8 of this paragraph, the term "renewable energy project" shall mean a
9 project for generating, distributing, or consuming renewable energy, as
10 defined by section sixty-six-p of the public service law.
11 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13796-02-5
