Grants eligibility for the tax abatement for industrial and commercial construction work in cities having a population of one million or more, to certain electric generating facilities the operation of which commenced in 2012.
STATE OF NEW YORK
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3875--A
2021-2022 Regular Sessions
IN ASSEMBLY
January 28, 2021
___________
Introduced by M. of A. CUSICK, WALKER -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to applications
by certain electric generating facilities for tax abatements for
industrial and commercial construction work on properties in a city of
one million or more persons
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings. The legislature hereby finds that the
2 2011 amendment to the industrial and commercial abatement program was
3 successful in preventing a large increase in capacity rates for elec-
4 tricity that would have cost ratepayers in the city of New York hundreds
5 of millions of dollars had the law not been changed. However, in the
6 haste to adopt that law, a new peaking power plant fell through the
7 cracks and has been paying property taxes since it began operations in
8 2012, even though the 2011 statute clearly intended that industrial and
9 commercial abatement program benefits be provided to peaking power
10 plants as a right. This act would correct that defect in the statute and
11 enable the facility to receive industrial and commercial abatement
12 program benefits prospectively.
13 § 2. Subdivision 17 of section 489-aaaaaa of the real property tax
14 law, as amended by chapter 28 of the laws of 2011, is amended to read as
15 follows:
16 17. "Utility property" means property and equipment as described in
17 paragraphs (c), (d), (e), (f) and (i) of subdivision twelve of section
18 one hundred two of this chapter that is used in the ordinary course of
19 business by its owner or any other entity or property as described in
20 paragraphs (a) and (b) of subdivision twelve of section one hundred two
21 of this chapter that is owned by any entity that uses in the ordinary
22 course of business property and equipment as described in paragraphs
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06832-02-1
A. 3875--A 2
1 (c), (d), (e), (f) and (i) of subdivision twelve of section one hundred
2 two of this chapter, without regard to the classification of such prop-
3 erty and equipment for real property tax purposes pursuant to section
4 eighteen hundred two of this chapter, except that any such property and
5 equipment used solely to serve the building to which they are attached
6 shall not be deemed utility property. Notwithstanding any provision of
7 this title to the contrary, peaking units shall not be considered utili-
8 ty property. For purposes of this title, "peaking unit" shall mean a
9 generating or storage unit that: (a) is determined by the New York inde-
10 pendent system operator or a federal or New York state energy regulatory
11 commission to constitute a peaking unit as set forth in section 5.14.1.2
12 of the New York independent system operator's market administration and
13 control area services tariff, as such term existed as of April first,
14 two thousand eleven; or (b) has an annual average operation, during the
15 calendar year preceding the taxable status date, of less than eighteen
16 hours following each start of the unit; for purposes of calculating the
17 annual average, operations during any period covered by any major emer-
18 gency declaration issued by the New York independent system operator,
19 northeast power coordinating council, or other similar entity shall be
20 excluded; or (c) any generating or storage unit that can supply ten-mi-
21 nute non-spinning and/or ten-minute spinning reserve as defined by the
22 New York independent system operator; or (d) notwithstanding the
23 requirements and provisions of this title, any peaking unit that was
24 planned, approved and under construction between the effective date of
25 this title and the effective date of chapter twenty-eight of the laws of
26 two thousand eleven, and upon going into service exclusively provides
27 electricity to Zone J, shall be deemed eligible for the benefits of this
28 title; provided, however, that the benefit period for a peaking unit
29 shall be as set forth in paragraph (b-1) of subdivision three of section
30 four hundred eighty-nine-bbbbbb of this title; and provided, further,
31 that such benefits shall commence upon the effective date of this para-
32 graph. A "peaking unit" under this title shall include all real property
33 used in connection with the generation of electricity, and any facili-
34 ties used to interconnect the peaking unit with the electric trans-
35 mission or distribution system, but shall not include any facilities
36 that are part of the electric transmission or distribution system; it
37 may be comprised of a single turbine and generator or multiple turbines
38 and generators located at the same site. Notwithstanding any provision
39 of this title to the contrary, a peaking unit shall be considered indus-
40 trial property, provided however that the benefit period for a peaking
41 unit shall be as set forth in paragraph (b-1) of subdivision three of
42 section four hundred eighty-nine-bbbbbb of this title.
43 § 3. This act shall take effect April 1, 2022.