STATE OF NEW YORK
________________________________________________________________________
4547
2023-2024 Regular Sessions
IN SENATE
February 10, 2023
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to establishing a sales tax
exemption for energy storage
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 two new
2 subdivisions (ll) and (mm) to read as follows:
3 (ll) The following shall be exempt from tax under this article: (1)
4 Receipts from the retail sale of, and consideration given or contracted
5 to be given for, or for the use of, residential energy storage systems
6 equipment and the service of installing such systems. For the purposes
7 of this subdivision, "residential energy storage systems equipment"
8 shall mean an arrangement or combination of components installed in a
9 residence that stores electricity for use at a later time to provide
10 heating, cooling, hot water and/or electricity.
11 (2) Receipts from the sale of electricity by a person primarily
12 engaged in the sale of energy storage system equipment and/or electric-
13 ity generated by such equipment pursuant to a written agreement under
14 which such electricity is generated by residential energy system storage
15 equipment that is: (A) owned by a person other than the purchaser of
16 such electricity; (B) installed on residential property of the purchaser
17 of such electricity; and (C) used to provide heating, cooling, hot water
18 or electricity.
19 (mm) The following shall be exempt from tax under this article: (1)
20 Receipts from the retail sale of, and consideration given or contracted
21 to be given for, or for the use of, commercial energy storage systems
22 equipment and the costs of installing such systems. For the purposes of
23 this subdivision, "commercial energy storage systems equipment" shall
24 mean an arrangement or combination of components installed upon non-re-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06308-01-3
S. 4547 2
1 sidential premises that stores electricity for use at a later time to
2 provide heating, cooling, hot water and/or electricity.
3 (2) Receipts from the sale of electricity by a person primarily
4 engaged in the sale of energy storage system equipment and/or electric-
5 ity generated by such equipment pursuant to a written agreement under
6 which the electricity is generated by commercial energy system equipment
7 that is: (A) owned by a person other than the purchaser of such elec-
8 tricity; (B) installed on the non-residential premises of the purchaser
9 of such electricity; and (C) used to provide heating, cooling, hot water
10 or electricity to such premises.
11 § 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
12 amended by section 5 of part J of chapter 59 of the laws of 2021, is
13 amended to read as follows:
14 (1) Either, all of the taxes described in article twenty-eight of this
15 chapter, at the same uniform rate, as to which taxes all provisions of
16 the local laws, ordinances or resolutions imposing such taxes shall be
17 identical, except as to rate and except as otherwise provided, with the
18 corresponding provisions in such article twenty-eight, including the
19 definition and exemption provisions of such article, so far as the
20 provisions of such article twenty-eight can be made applicable to the
21 taxes imposed by such city or county and with such limitations and
22 special provisions as are set forth in this article. The taxes author-
23 ized under this subdivision may not be imposed by a city or county
24 unless the local law, ordinance or resolution imposes such taxes so as
25 to include all portions and all types of receipts, charges or rents,
26 subject to state tax under sections eleven hundred five and eleven
27 hundred ten of this chapter, except as otherwise provided. Notwith-
28 standing the foregoing, a tax imposed by a city or county authorized
29 under this subdivision shall not include the tax imposed on charges for
30 admission to race tracks and simulcast facilities under subdivision (f)
31 of section eleven hundred five of this chapter. (i) Any local law, ordi-
32 nance or resolution enacted by any city of less than one million or by
33 any county or school district, imposing the taxes authorized by this
34 subdivision, shall, notwithstanding any provision of law to the contra-
35 ry, exclude from the operation of such local taxes all sales of tangible
36 personal property for use or consumption directly and predominantly in
37 the production of tangible personal property, gas, electricity, refrig-
38 eration or steam, for sale, by manufacturing, processing, generating,
39 assembly, refining, mining or extracting; and all sales of tangible
40 personal property for use or consumption predominantly either in the
41 production of tangible personal property, for sale, by farming or in a
42 commercial horse boarding operation, or in both; and all sales of fuel
43 sold for use in commercial aircraft and general aviation aircraft; and,
44 unless such city, county or school district elects otherwise, shall omit
45 the provision for credit or refund contained in clause six of subdivi-
46 sion (a) or subdivision (d) of section eleven hundred nineteen of this
47 chapter. (ii) Any local law, ordinance or resolution enacted by any
48 city, county or school district, imposing the taxes authorized by this
49 subdivision, shall omit the residential solar energy systems equipment
50 and electricity exemption provided for in subdivision (ee), the commer-
51 cial solar energy systems equipment and electricity exemption provided
52 for in subdivision (ii), the commercial fuel cell electricity generating
53 systems equipment and electricity generated by such equipment exemption
54 provided for in subdivision (kk), the residential energy storage systems
55 equipment and electricity exemption provided for in subdivision (ll),
56 the commercial energy storage systems equipment and electricity
S. 4547 3
1 exemption provided for in subdivision (mm) and the clothing and footwear
2 exemption provided for in paragraph thirty of subdivision (a) of section
3 eleven hundred fifteen of this chapter, unless such city, county or
4 school district elects otherwise as to such residential solar energy
5 systems equipment and electricity exemption, such commercial solar ener-
6 gy systems equipment and electricity exemption, commercial fuel cell
7 electricity generating systems equipment and electricity generated by
8 such equipment exemption or such clothing and footwear exemption.
9 § 3. Subdivision (d) of section 1210 of the tax law, as amended by
10 section 4 of part WW of chapter 60 of the laws of 2016, is amended to
11 read as follows:
12 (d) A local law, ordinance or resolution imposing any tax pursuant to
13 this section, increasing or decreasing the rate of such tax, repealing
14 or suspending such tax, exempting from such tax the energy sources and
15 services described in paragraph three of subdivision (a) or of subdivi-
16 sion (b) of this section or changing the rate of tax imposed on such
17 energy sources and services or providing for the credit or refund
18 described in clause six of subdivision (a) of section eleven hundred
19 nineteen of this chapter, or electing or repealing the exemption for
20 residential solar equipment and electricity in subdivision (ee) of
21 section eleven hundred fifteen of this article, or the exemption for
22 commercial solar equipment and electricity in subdivision (ii) of
23 section eleven hundred fifteen of this article, or electing or repealing
24 the exemption for commercial fuel cell electricity generating systems
25 equipment and electricity generated by such equipment in subdivision
26 (kk) of section eleven hundred fifteen of this article, or the exemption
27 for residential energy storage equipment or electricity in subdivision
28 (ll) of section eleven hundred fifteen of this article, or the exemption
29 for commercial energy storage equipment and electricity in subdivision
30 (mm) of section eleven hundred fifteen of this article must go into
31 effect only on one of the following dates: March first, June first,
32 September first or December first; provided, that a local law, ordinance
33 or resolution providing for the exemption described in paragraph thirty
34 of subdivision (a) of section eleven hundred fifteen of this chapter or
35 repealing any such exemption or a local law, ordinance or resolution
36 providing for a refund or credit described in subdivision (d) of section
37 eleven hundred nineteen of this chapter or repealing such provision so
38 provided must go into effect only on March first. No such local law,
39 ordinance or resolution shall be effective unless a certified copy of
40 such law, ordinance or resolution is mailed by registered or certified
41 mail to the commissioner at the commissioner's office in Albany at least
42 ninety days prior to the date it is to become effective. However, the
43 commissioner may waive and reduce such ninety-day minimum notice
44 requirement to a mailing of such certified copy by registered or certi-
45 fied mail within a period of not less than thirty days prior to such
46 effective date if the commissioner deems such action to be consistent
47 with the commissioner's duties under section twelve hundred fifty of
48 this article and the commissioner acts by resolution. Where the
49 restriction provided for in section twelve hundred twenty-three of this
50 article as to the effective date of a tax and the notice requirement
51 provided for therein are applicable and have not been waived, the
52 restriction and notice requirement in section twelve hundred twenty-
53 three of this article shall also apply.
54 § 4. This act shall take effect immediately.
