NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8332
SPONSOR: Lasher TITLE OF BILL:
An act to amend the real property tax law, in relation to the assessment
of solar or wind energy systems
PURPOSE OR GENERAL IDEA OF BILL:
THIS LEGISLATION WOULD CODIFY AN APPRAISAL METHOD FOR NEW YORK'S WIND
AND SOLAR PROJECTS.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 575-b of the real property tax law to add new
subsections (d) and (e).
Subsection (d) describes that expenses associated with the decommission-
ing of solar and wind energy systems and community solar subscriber
management costs associated with solar energy systems shall be included
as expenses.
Subsection (e) describes that federal investment and production tax
credits granted by the Internal Revenue Code and environmental values,
including but not limited to renewable energy credits, shall be deemed
intangible assets and not included as revenue streams.
Section 2 amends section 575-b of the real property tax law to add new
subdivision 5.
Subdivision 5 states that any assessing unit establishing valuations on
the basis of the model published by the department of tax and finance in
2025, including an assessing unit that has stipulated to rely on such
model to settle a proceeding to review an assessment of real property
pursuant to article seven of chapter 59, shall not be subject to imposi-
tion of costipursuant to section seven hundred twenty-two of this chap-
ter.
Section 3 states that this act shall take effect immediately,
JUSTIFICATION:
The urgent transition to clean energy and meeting ambitious renewable
energy goals are crucial steps in combating climate change, the scale
and severity of which is widely known, and deeply felt, here in New York
State. lncentivizing and encouraging the expansion of wind and solar
projects is an important part of the solution, yet the financial viabil-
ity of these projects is tenuous based on the unreliable appraisal model
currently employed in New York.
The predictable and stable taxation for renewable energy projects is
necessary to ensure the financial viability of wind and solar develop-
ments. The Albany County Supreme Court's recent decision, in Airey, et
al. it Stale of New link, has created great uncertainty over how to
value and assess renewable energy projects in New York State. This has
resulted in increased risk and exposure to both renewable energy devel-
opers and local taxing jurisdictions. This uncertainty disincentivizes
investments in the solar and wind sector, delaying critically needed
projects that will help New York transition to renewable energy sources.
The implementation of a reliable appraisal model will fill in the
current gaps and further New York's progress towards its affordability
and clean energy goals.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
