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S02905 Summary:

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S02905 Committee Votes:

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S02905 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2905
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                    January 30, 2015
                                       ___________
 
        Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
 
        AN ACT to amend the tax law, in relation to establishing  a  credit  for
          geothermal energy systems
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
     2  subsection (g-3) to read as follows:
     3    (g-3)  Geothermal  energy systems credit.   (1) General. An individual
     4  taxpayer shall be allowed a credit against the tax imposed by this arti-
     5  cle equal to twenty-five percent of qualified geothermal  energy  system
     6  expenditures, except as provided in subparagraph (D) of paragraph two of
     7  this  subsection. This credit shall not exceed five thousand dollars for
     8  a qualified geothermal energy system  placed  in  service  on  or  after
     9  September first, two thousand fifteen.
    10    (2)  Qualified  geothermal  energy  systems expenditures. (A) The term
    11  "qualified geothermal energy  system  expenditures"  means  expenditures
    12  for:
    13    (i)  the  purchase  of  geothermal  energy  system  equipment which is
    14  installed in connection with residential property which is  (I)  located
    15  in this state and (II) which is used by the taxpayer as his or her prin-
    16  cipal  residence  at  the time the geothermal energy system equipment is
    17  placed in service;
    18    (ii) the lease of geothermal energy system equipment under  a  written
    19  agreement  that spans at least ten years where such equipment owned by a
    20  person other than the taxpayer is installed in connection with  residen-
    21  tial  property which is (I) located in this state and (II) which is used
    22  by the taxpayer as his or her principal residence at the time the geoth-
    23  ermal energy system equipment is placed in service; or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04961-05-5
        S. 2905                             2
 
     1    (iii) the purchase of power under a written agreement  that  spans  at
     2  least  ten years whereunder the power purchased is generated by geother-
     3  mal energy system equipment owned by a person other  than  the  taxpayer
     4  which  is installed in connection with residential property which is (I)
     5  located  in this state and (II) used by the taxpayer as his or her prin-
     6  cipal residence at the time the geothermal energy  system  equipment  is
     7  placed in service.
     8    (B) Such qualified expenditures shall include expenditures for materi-
     9  als, labor costs properly allocable to on-site preparation, assembly and
    10  original  installation,  architectural  and  engineering  services,  and
    11  designs and plans directly related to the construction  or  installation
    12  of the geothermal energy system equipment.
    13    (C)  Such qualified expenditures for the purchase of geothermal energy
    14  system equipment shall not include interest or other finance charges.
    15    (D) Such qualified expenditures for the  lease  of  geothermal  energy
    16  system  equipment  or the purchase of power under an agreement described
    17  in clause (ii) or (iii) of subparagraph  (A)  of  this  paragraph  shall
    18  include  an  amount  equal  to all payments made during the taxable year
    19  under such agreement. Provided, however,  such  credits  shall  only  be
    20  allowed  for  fourteen  years after the first taxable year in which such
    21  credit is allowed. Provided further, however,  the  twenty-five  percent
    22  limitation  in  paragraph one of this subsection shall only apply to the
    23  total aggregate amount of all payments to be made pursuant to an  agree-
    24  ment  referenced  in  clause  (ii)  or (iii) of subparagraph (A) of this
    25  paragraph, and shall not apply to  individual  payments  made  during  a
    26  taxable  year  under such agreement except to the extent such limitation
    27  on an aggregate basis has been reached.
    28    (3) Geothermal energy system equipment. The  term  "geothermal  energy
    29  system equipment" shall mean a system whose original use begins with the
    30  taxpayer;  which  meets  the eligibility criteria, if any, prescribed by
    31  the department; and which is a ground coupled solar thermal system  that
    32  utilizes  the  solar thermal energy stored in the ground or in bodies of
    33  water to produce heat, and which is commonly known as or referred to  as
    34  a ground source heat pump system.
    35    (4)  Multiple  taxpayers.  Where geothermal energy system equipment is
    36  purchased and installed in a principal residence shared by two  or  more
    37  taxpayers,  the amount of the credit allowable under this subsection for
    38  each such taxpayer shall be prorated according to the percentage of  the
    39  total  expenditure  for such geothermal energy system equipment contrib-
    40  uted by each taxpayer.
    41    (5) Proportionate share. Where geothermal energy system  equipment  is
    42  purchased  and  installed  by  a condominium management association or a
    43  cooperative housing corporation, a taxpayer  who  is  a  member  of  the
    44  condominium management association or who is a tenant-stockholder in the
    45  cooperative  housing  corporation may for the purpose of this subsection
    46  claim a proportionate share of the total expense as the expenditure  for
    47  the purposes of the credit attributable to his principal residence.
    48    (6)  Grants. For purposes of determining the amount of the expenditure
    49  incurred in purchasing and installing geothermal  energy  system  equip-
    50  ment,  the  amount  of any federal, state or local grant received by the
    51  taxpayer, which was used for the purchase and/or  installation  of  such
    52  equipment  and which was not included in the federal gross income of the
    53  taxpayer, shall not be included in the amount of such expenditures.
    54    (7) When credit allowed. The  credit  provided  for  herein  shall  be
    55  allowed  with respect to the taxable year, commencing after two thousand
        S. 2905                             3
 
     1  fifteen, in which the geothermal energy system equipment  is  placed  in
     2  service.
     3    (8)  Carryover  of credit. If the amount of the credit, and carryovers
     4  of such credit, allowable under this subsection  for  any  taxable  year
     5  shall exceed the taxpayer's tax for such year, such excess amount may be
     6  carried  over  to the five taxable years next following the taxable year
     7  with respect to which the credit is allowed and may be deducted from the
     8  taxpayer's tax for such year or years.
     9    § 2. This act shall take effect immediately and shall apply to taxable
    10  years commencing on and after January 1, 2015.