Exempts the sale and installation of fuel cell electric generating systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.
STATE OF NEW YORK
________________________________________________________________________
6017
2015-2016 Regular Sessions
IN ASSEMBLY
March 10, 2015
___________
Introduced by M. of A. SIMOTAS -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to exempting the sale or lease
and installation of commercial fuel cell electric generating equipment
or the sale of electricity generated by such equipment from state
sales and compensating use tax 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 (jj) to read as follows:
3 (jj) (1) Receipts from the retail sale of commercial fuel cell elec-
4 tric generating systems equipment and of the service of installing such
5 systems shall be exempt from taxes imposed by sections eleven hundred
6 five and eleven hundred eleven of this article.
7 (2) Receipts from the lease of fuel cell electricity generating
8 systems equipment and of the service of installing such systems under a
9 written agreement that spans at least ten years where such equipment
10 owned by a person other than the taxpayer is installed in connection
11 with a commercial property which is (i) located in this state and (ii)
12 which is used by the taxpayer at his or her commercial premises at the
13 time the fuel cell electricity generating system is placed into service
14 shall be exempt from taxes imposed by sections eleven hundred five and
15 eleven hundred eleven of this article.
16 (3) Receipts from purchase of power under a written agreement that
17 spans at least ten years whereunder the power purchased in generated by
18 fuel cell electricity generating systems equipment owned by a person
19 other than the taxpayer which is installed in connection with commercial
20 property which is (i) located in this state and (ii) used by the taxpay-
21 er for commercial purposes shall be exempt from the taxes imposed by
22 sections eleven hundred five and eleven hundred eleven of this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08744-01-5
A. 6017 2
1 (4) For the purposes of this subdivision, "fuel cell electricity
2 generating systems equipment" shall mean an arrangement or combination
3 of components installed upon non-residential premises that utilize a
4 solid oxide, molten carbonate, proton exchange membrane or phosphoric
5 acid fuel cell that is manufactured, installed and operated in accord-
6 ance with applicable government and industry standards. Such arrangement
7 or components shall not include equipment that is part of a non-fuel
8 cell energy system.
9 § 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
10 amended by chapter 13 of the laws of 2013, is amended to read as
11 follows:
12 (1) Either, all of the taxes described in article twenty-eight of this
13 chapter, at the same uniform rate, as to which taxes all provisions of
14 the local laws, ordinances or resolutions imposing such taxes shall be
15 identical, except as to rate and except as otherwise provided, with the
16 corresponding provisions in such article twenty-eight, including the
17 definition and exemption provisions of such article, so far as the
18 provisions of such article twenty-eight can be made applicable to the
19 taxes imposed by such city or county and with such limitations and
20 special provisions as are set forth in this article. The taxes author-
21 ized under this subdivision may not be imposed by a city or county
22 unless the local law, ordinance or resolution imposes such taxes so as
23 to include all portions and all types of receipts, charges or rents,
24 subject to state tax under sections eleven hundred five and eleven
25 hundred ten of this chapter, except as otherwise provided. (i) Any local
26 law, ordinance or resolution enacted by any city of less than one
27 million or by any county or school district, imposing the taxes author-
28 ized by this subdivision, shall, notwithstanding any provision of law to
29 the contrary, exclude from the operation of such local taxes all sales
30 of tangible personal property for use or consumption directly and
31 predominantly in the production of tangible personal property, gas,
32 electricity, refrigeration or steam, for sale, by manufacturing, proc-
33 essing, generating, assembly, refining, mining or extracting; and all
34 sales of tangible personal property for use or consumption predominantly
35 either in the production of tangible personal property, for sale, by
36 farming or in a commercial horse boarding operation, or in both; and,
37 unless such city, county or school district elects otherwise, shall omit
38 the provision for credit or refund contained in clause six of subdivi-
39 sion (a) or subdivision (d) of section eleven hundred nineteen of this
40 chapter. (ii) Any local law, ordinance or resolution enacted by any
41 city, county or school district, imposing the taxes authorized by this
42 subdivision, shall omit the residential solar energy systems equipment
43 exemption provided for in subdivision (ee), the commercial solar energy
44 systems equipment exemption provided for in subdivision (ii), the
45 commercial fuel cell electric generating equipment exemption provided
46 for in subdivision (jj), and the clothing and footwear exemption
47 provided for in paragraph thirty of subdivision (a) of section eleven
48 hundred fifteen of this chapter, unless such city, county or school
49 district elects otherwise as to either such residential solar energy
50 systems equipment exemption, such commercial solar energy systems equip-
51 ment exemption, such commercial fuel cell electric generating exemption,
52 or such clothing and footwear exemption.
53 § 3. Section 1210 of the tax law is amended by adding a new subdivi-
54 sion (q) to read as follows:
55 (q) Notwithstanding any other provision of state or local law, ordi-
56 nance or resolution to the contrary:
A. 6017 3
1 (1) Any city having a population of one million or more in which the
2 taxes imposed by section eleven hundred seven of this chapter are in
3 effect, acting through its local legislative body, is hereby authorized
4 and empowered to elect to provide the same exemptions from such taxes as
5 the commercial fuel cell electric generating equipment exemption from
6 state sales and compensating use taxes described in subdivision (jj) of
7 section eleven hundred fifteen of this chapter by enacting a resolution
8 in the form set forth in paragraph two of this subdivision; whereupon,
9 upon compliance with the provisions of subdivisions (d) and (e) of this
10 section, such enactment of such resolution shall be deemed to be an
11 amendment to such section eleven hundred seven and such section eleven
12 hundred seven shall be deemed to incorporate such exemptions as if they
13 had been duly enacted by the state legislature and approved by the
14 governor.
15 (2) Form of Resolution: Be it enacted by the (insert proper title of
16 local legislative body) as follows:
17 Section one. Receipts from sales of and consideration given or
18 contracted to be given for, or for the use of, property and services
19 exempt from state sales and compensating use taxes pursuant to subdivi-
20 sion (jj) of section 1115 of the tax law shall also be exempt from sales
21 and compensating use taxes imposed in this jurisdiction.
22 Section two. This resolution shall take effect January 1, (insert the
23 year, but not earlier than the year 2016) and shall apply to sales made,
24 services rendered and uses occurring on or after that date in accordance
25 with the applicable transitional provisions in sections 1106, 1216 and
26 1217 of the New York tax law.
27 § 4. This act shall take effect immediately, provided that section one
28 of this act shall take effect on the first of January next succeeding
29 the date on which this act shall have become a law.
