STATE OF NEW YORK
________________________________________________________________________
8906--A
IN ASSEMBLY
January 5, 2018
___________
Introduced by M. of A. PAULIN, DICKENS, D'URSO, JAFFEE, LIFTON, ORTIZ,
SEPULVEDA, SIMON, CASTORINA, CROUCH -- read once and referred to the
Committee on Real Property Taxation -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the real property tax law, in relation to exempting from
taxation combined heat and power generating equipment
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs (k) and (l) of subdivision 1, subdivisions 2, 3,
2 4 and 5 and paragraph (a) of subdivision 8 of section 487 of the real
3 property tax law, paragraphs (k) and (l) of subdivision 1 as added and
4 subdivisions 2, 3, 4 and 5 and paragraph (a) of subdivision 8 as amended
5 by chapter 336 of the laws of 2017, are amended to read as follows:
6 (k) "[Micro-combined] Combined heat and power generating equipment"
7 means an integrated, cogenerating building heating and electrical power
8 generation system, [owned, leased or operated by] serving a residential
9 or commercial customer, located at such customer's premises, operating
10 on any fuel and of any applicable engine, fuel cell or other technology
11 with a rated capacity of at least one kilowatt and not more than [ten
12 kilowatts] fifteen megawatts electric and any thermal output that has a
13 design total fuel use efficiency in the production of heat and electric-
14 ity of not less than [eighty] sixty percent, and annually produces at
15 least two thousand kilowatt hours of useful energy in the form of elec-
16 tricity that may work in combination with supplemental or parallel
17 conventional heating systems, that is manufactured, installed and oper-
18 ated in accordance with applicable government and industry standards,
19 that is connected to the electric system and operated in conjunction
20 with an electric corporation's transmission and distribution facilities.
21 It does not include pipes, controls, insulation or other equipment which
22 are part of the normal heating, cooling, or insulation system of a
23 building. It does not include insulated glazing or insulation to the
24 extent that such materials exceed the energy efficiency standards estab-
25 lished by law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13958-02-8
A. 8906--A 2
1 (l) "[Micro-combined] Combined heat and power generating equipment
2 system" means an arrangement or combination of equipment designed to
3 produce electrical energy and heat for a residential or commercial
4 customer on such customer's premises.
5 2. Real property which includes a solar or wind energy system, farm
6 waste energy system, micro-hydroelectric energy system, fuel cell elec-
7 tric generating system, [micro-combined] combined heat and power gener-
8 ating equipment system, or electric energy storage equipment and elec-
9 tric energy storage system approved in accordance with the provisions of
10 this section shall be exempt from taxation to the extent of any increase
11 in the value thereof by reason of the inclusion of such solar or wind
12 energy system, farm waste energy system, micro-hydroelectric energy
13 system, fuel cell electric generating system, [micro-combined] combined
14 heat and power generating equipment system, or electric energy storage
15 equipment and electric energy storage system for a period of fifteen
16 years. When a solar or wind energy system or components thereof, farm
17 waste energy system, micro-hydroelectric energy system, fuel cell elec-
18 tric generating system, [micro-combined] combined heat and power gener-
19 ating equipment system, or electric energy storage equipment and elec-
20 tric energy storage system also serve as part of the building structure,
21 the increase in value which shall be exempt from taxation shall be equal
22 to the assessed value attributable to such system or components multi-
23 plied by the ratio of the incremental cost of such system or components
24 to the total cost of such system or components. The exemption provided
25 by this section is inapplicable to any structure that satisfies the
26 requirements for exemption under section four hundred eighty-three-e of
27 this title.
28 3. The president of the authority shall provide definitions and guide-
29 lines for the eligibility for exemption of the solar and wind energy
30 equipment and systems, farm waste energy equipment and systems, micro-
31 hydroelectric equipment and systems, fuel cell electric generating
32 equipment and systems, [micro-combined] combined heat and power generat-
33 ing equipment and systems and electric energy storage equipment and
34 electric energy storage system described in paragraphs (a), (b), (e),
35 (f), (g), (h), (i), (j), (k), (l), (m) and (n) of subdivision one of
36 this section.
37 4. No solar or wind energy system, farm waste energy system, micro-hy-
38 droelectric energy system, fuel cell electric generating system,
39 [micro-combined] combined heat and power generating equipment system, or
40 electric energy storage equipment and electric energy storage system
41 shall be entitled to any exemption from taxation under this section
42 unless such system meets the guidelines set by the president of the
43 authority and all other applicable provisions of law.
44 5. The exemption granted pursuant to this section shall only be appli-
45 cable to (a) solar or wind energy systems or farm waste energy systems
46 which are (i) existing or constructed prior to July first, nineteen
47 hundred eighty-eight or (ii) constructed subsequent to January first,
48 nineteen hundred ninety-one and prior to January first, two thousand
49 twenty-five, and (b) micro-hydroelectric energy systems, fuel cell elec-
50 tric generating systems, [micro-combined] combined heat and power gener-
51 ating equipment systems, or electric energy storage equipment or elec-
52 tric energy storage system which are constructed subsequent to January
53 first, two thousand eighteen and prior to January first, two thousand
54 twenty-five.
55 (a) Notwithstanding the provisions of subdivision two of this section,
56 a county, city, town or village may by local law or a school district,
A. 8906--A 3
1 other than a school district to which article fifty-two of the education
2 law applies, may by resolution provide either (i) that no exemption
3 under this section shall be applicable within its jurisdiction with
4 respect to any solar or wind energy system or farm waste energy system
5 which began construction subsequent to January first, nineteen hundred
6 ninety-one or the effective date of such local law, ordinance or resol-
7 ution, whichever is later, and/or (ii) that no exemption under this
8 section shall be applicable within its jurisdiction with respect to any
9 micro-hydroelectric energy system, fuel cell electric generating system,
10 [micro-combined] combined heat and power generating equipment system, or
11 electric energy storage equipment or electric energy storage system
12 constructed subsequent to January first, two thousand eighteen or the
13 effective date of such local law, ordinance or resolution, whichever is
14 later. A copy of any such local law or resolution shall be filed with
15 the commissioner and with the president of the authority.
16 § 2. This act shall take effect January 1, 2019.