STATE OF NEW YORK
________________________________________________________________________
5004
2023-2024 Regular Sessions
IN SENATE
February 21, 2023
___________
Introduced by Sens. SANDERS, ADDABBO, CLEARE, COONEY, GIANARIS, HARCK-
HAM, HOYLMAN-SIGAL, KAVANAGH, KRUEGER, MAY, SALAZAR -- 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 providing an exemption for
geothermal heat pump systems equipment
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 1115 of the tax law is amended
2 by adding a new paragraph 47 to read as follows:
3 (47) Receipts from the retail sale of residential geothermal heat pump
4 systems equipment and of the service of installing such systems shall be
5 exempt from tax under this article. For purposes of this paragraph,
6 "residential geothermal heat pump system equipment" shall mean an
7 arrangement or combination of components installed in and around a resi-
8 dential building that uses the ground or ground water as a thermal ener-
9 gy source or as a thermal energy sink designed to provide and distribute
10 heating, and/or cooling, and/or hot water, also commonly referred to as
11 ground source heat pump systems. Such arrangement or components shall
12 not include any sort of recreational facility or equipment used as a
13 storage medium.
14 § 2. Section 1115 of the tax law is amended by adding a new subdivi-
15 sion (ll) to read as follows:
16 (ll) Receipts from the retail sale of commercial geothermal heat pump
17 systems equipment and of the service of installing such systems shall be
18 exempt from taxes imposed by sections eleven hundred five and eleven
19 hundred ten of this article. For purposes of this subdivision, "commer-
20 cial geothermal heat pump system equipment" shall mean an arrangement or
21 combination of components installed in and around a commercial building
22 that uses the ground or ground water as a thermal energy source or as a
23 thermal energy sink designed to provide and distribute heating, and/or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02393-01-3
S. 5004 2
1 cooling, and/or hot water, also commonly referred to as ground source
2 heat pump systems. Such arrangement or components shall not include any
3 sort of recreational facility or equipment used as a storage medium.
4 § 3. Subparagraph (xiv) of paragraph 4 of subdivision (a) of section
5 1210 of the tax law, as added by section 2 of part WW of chapter 60 of
6 the laws of 2016, is amended and a new subparagraph (xvi) is added to
7 paragraph 4 to read as follows:
8 [(xiv)] (xv) shall omit, unless such city elects otherwise, the
9 exemption for commercial fuel cell electricity generating systems equip-
10 ment and electricity generated by such equipment provided in subdivision
11 (kk) of section eleven hundred fifteen of this chapter[.]; and (xvi)
12 shall omit unless such city elects otherwise, the residential geothermal
13 heat pump systems equipment and installation exemption provided for in
14 paragraph forty-seven of subdivision (a) of section eleven hundred
15 fifteen of this chapter; and shall omit unless such city elects other-
16 wise, the commercial geothermal heat pump systems equipment and instal-
17 lation exemption provided for in subdivision (ll) of section eleven
18 hundred fifteen of this chapter.
19 § 4. Subparagraph (ii) of paragraph 1 of subdivision (a) of section
20 1210 of the tax law, as amended by section 5 of part J of chapter 59 of
21 the laws of 2021, is amended to read as follows:
22 (ii) Any local law, ordinance or resolution enacted by any city, coun-
23 ty or school district, imposing the taxes authorized by this subdivi-
24 sion, shall omit the residential solar energy systems equipment and
25 electricity exemption provided for in subdivision (ee), the commercial
26 solar energy systems equipment and electricity exemption provided for in
27 subdivision (ii), the commercial fuel cell electricity generating
28 systems equipment and electricity generated by such equipment exemption
29 provided for in subdivision (kk), the residential geothermal heat pump
30 systems equipment and installation exemption provided for in paragraph
31 forty-seven of subdivision (a), the commercial geothermal heat pump
32 systems equipment and installation exemption provided for in subdivision
33 (ll) and the clothing and footwear exemption provided for in paragraph
34 thirty of subdivision (a) of section eleven hundred fifteen of this
35 chapter, unless such city, county or school district elects otherwise as
36 to such residential solar energy systems equipment and electricity
37 exemption, such commercial solar energy systems equipment and electric-
38 ity exemption, commercial fuel cell electricity generating systems
39 equipment and electricity generated by such equipment exemption or such
40 clothing and footwear exemption, such residential geothermal heat pump
41 systems equipment and installation exemption, such commercial geothermal
42 heat pump systems equipment and installation exemption or such clothing
43 and footwear exemption.
44 § 5. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as
45 amended by section 6 of part J of chapter 59 of the laws of 2021, is
46 amended to read as follows:
47 (1) Or, one or more of the taxes described in subdivisions (b), (d),
48 (e) and (f) of section eleven hundred five of this chapter, at the same
49 uniform rate, including the transitional provisions in section eleven
50 hundred six of this chapter covering such taxes, but not the taxes
51 described in subdivisions (a) and (c) of section eleven hundred five of
52 this chapter. Provided, further, that where the tax described in subdi-
53 vision (b) of section eleven hundred five of this chapter is imposed,
54 the compensating use taxes described in [clauses] paragraphs (E), (G)
55 and (H) of subdivision (a) of section eleven hundred ten of this chapter
56 shall also be imposed. Provided, further, that where the taxes described
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1 in subdivision (b) of section eleven hundred five of this chapter are
2 imposed, such taxes shall omit: (A) the provision for refund or credit
3 contained in subdivision (d) of section eleven hundred nineteen of this
4 chapter with respect to such taxes described in such subdivision (b) of
5 section eleven hundred five unless such city or county elects to provide
6 such provision or, if so elected, to repeal such provision; (B) the
7 exemption provided in paragraph two of subdivision (ee) of section elev-
8 en hundred fifteen of this chapter unless such county or city elects
9 otherwise; (C) the exemption provided in paragraph two of subdivision
10 (ii) of section eleven hundred fifteen of this chapter, unless such
11 county or city elects otherwise; [and] (D) the exemption provided in
12 paragraph two of subdivision (kk) of section eleven hundred fifteen of
13 this chapter, unless such county or city elects otherwise; and provided
14 further that where the tax described in subdivision (f) of such section
15 eleven hundred five is imposed, such tax shall not apply to charges for
16 admission to race tracks and simulcast facilities; (E) the exemption
17 provided in paragraph forty-seven of subdivision (a) of section eleven
18 hundred fifteen of this chapter, unless such county or city elects
19 otherwise; and (F) the exemption provided in subdivision (ll) of section
20 eleven hundred fifteen of this chapter, unless such county or city
21 elects otherwise.
22 § 6. Subdivision (d) of section 1210 of the tax law, as amended by
23 section 4 of part WW of chapter 60 of the laws of 2016, is amended to
24 read as follows:
25 (d) A local law, ordinance or resolution imposing any tax pursuant to
26 this section, increasing or decreasing the rate of such tax, repealing
27 or suspending such tax, exempting from such tax the energy sources and
28 services described in paragraph three of subdivision (a) or of subdivi-
29 sion (b) of this section or changing the rate of tax imposed on such
30 energy sources and services or providing for the credit or refund
31 described in clause six of subdivision (a) of section eleven hundred
32 nineteen of this chapter, or electing or repealing the exemption for
33 residential solar equipment and electricity in subdivision (ee) of
34 section eleven hundred fifteen of this [article] chapter, or the
35 exemption for commercial solar equipment and electricity in subdivision
36 (ii) of section eleven hundred fifteen of this [article] chapter, or
37 electing or repealing the exemption for commercial fuel cell electricity
38 generating systems equipment and electricity generated by such equipment
39 in subdivision (kk) of section eleven hundred fifteen of this [article]
40 chapter, or electing or repealing the exemption for residential geother-
41 mal heat pump systems equipment and installation in paragraph forty-sev-
42 en of subdivision (a) of section eleven hundred fifteen of this chapter
43 or electing or repealing the exemption for commercial geothermal heat
44 pump systems equipment and installation in subdivision (ll) of section
45 eleven hundred fifteen of this chapter must go into effect only on one
46 of the following dates: March first, June first, September first or
47 December first; provided, that a local law, ordinance or resolution
48 providing for the exemption described in paragraph thirty of subdivision
49 (a) of section eleven hundred fifteen of this chapter or repealing any
50 such exemption or a local law, ordinance or resolution providing for a
51 refund or credit described in subdivision (d) of section eleven hundred
52 nineteen of this chapter or repealing such provision so provided must go
53 into effect only on March first. No such local law, ordinance or resol-
54 ution shall be effective unless a certified copy of such law, ordinance
55 or resolution is mailed by registered or certified mail to the commis-
56 sioner at the commissioner's office in Albany at least ninety days prior
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1 to the date it is to become effective. However, the commissioner may
2 waive and reduce such ninety-day minimum notice requirement to a mailing
3 of such certified copy by registered or certified mail within a period
4 of not less than thirty days prior to such effective date if the commis-
5 sioner deems such action to be consistent with the commissioner's duties
6 under section twelve hundred fifty of this article and the commissioner
7 acts by resolution. Where the restriction provided for in section twelve
8 hundred twenty-three of this article as to the effective date of a tax
9 and the notice requirement provided for therein are applicable and have
10 not been waived, the restriction and notice requirement in section
11 twelve hundred twenty-three of this article shall also apply.
12 § 7. Subdivision (a) of section 1212 of the tax law, as amended by
13 section 5 of part WW of chapter 60 of the laws of 2016, is amended to
14 read as follows:
15 (a) Any school district which is coterminous with, partly within or
16 wholly within a city having a population of less than one hundred twen-
17 ty-five thousand, is hereby authorized and empowered, by majority vote
18 of the whole number of its school authorities, to impose for school
19 district purposes, within the territorial limits of such school district
20 and without discrimination between residents and nonresidents thereof,
21 the taxes described in subdivision (b) of section eleven hundred five
22 (but excluding the tax on prepaid telephone calling services) and the
23 taxes described in [clauses] paragraphs (E) and (H) of subdivision (a)
24 of section eleven hundred ten, including the transitional provisions in
25 subdivision (b) of section eleven hundred six of this chapter, so far as
26 such provisions can be made applicable to the taxes imposed by such
27 school district and with such limitations and special provisions as are
28 set forth in this article, such taxes to be imposed at the rate of one-
29 half, one, one and one-half, two, two and one-half or three percent
30 which rate shall be uniform for all portions and all types of receipts
31 and uses subject to such taxes. In respect to such taxes, all provisions
32 of the resolution imposing them, except as to rate and except as other-
33 wise provided herein, shall be identical with the corresponding
34 provisions in [such] article twenty-eight of this chapter, including the
35 applicable definition and exemption provisions of such article, so far
36 as the provisions of such article twenty-eight of this chapter can be
37 made applicable to the taxes imposed by such school district and with
38 such limitations and special provisions as are set forth in this arti-
39 cle. The taxes described in subdivision (b) of section eleven hundred
40 five (but excluding the tax on prepaid telephone calling service) and
41 [clauses] paragraphs (E) and (H) of subdivision (a) of section eleven
42 hundred ten, including the transitional provision in subdivision (b) of
43 such section eleven hundred six of this chapter, may not be imposed by
44 such school district unless the resolution imposes such taxes so as to
45 include all portions and all types of receipts and uses subject to tax
46 under such subdivision (but excluding the tax on prepaid telephone call-
47 ing service) and [clauses] paragraphs. Provided, however, that, where a
48 school district imposes such taxes, such taxes shall omit the provision
49 for refund or credit contained in subdivision (d) of section eleven
50 hundred nineteen of this chapter with respect to such taxes described in
51 such subdivision (b) of section eleven hundred five unless such school
52 district elects to provide such provision or, if so elected, to repeal
53 such provision, and shall omit the exemptions provided in paragraph two
54 of subdivision (ee) and paragraph two of subdivision (ii) of section
55 eleven hundred fifteen of this chapter unless such school district
56 elects otherwise, and shall omit the exemption provided in paragraph two
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1 of subdivision (kk) of section eleven hundred fifteen of this chapter
2 unless such school district elects otherwise, and shall omit the
3 exemption provided in paragraph forty-seven of subdivision (a) of
4 section eleven hundred fifteen of this chapter unless such school
5 district elects otherwise, and shall omit the exemption provided in
6 subdivision (ll) of section eleven hundred fifteen of this chapter
7 unless such school district elects otherwise.
8 § 8. Section 1224 of the tax law is amended by adding two new subdivi-
9 sions (c-3) and (c-4) to read as follows:
10 (c-3) Notwithstanding any other provision of law: (1) Where a county
11 containing one or more cities with a population of less than one million
12 has elected the exemption for residential geothermal heat pump systems
13 equipment and installation provided in paragraph forty-seven of subdivi-
14 sion (a) of section eleven hundred fifteen of this chapter, a city with-
15 in such county shall have the prior right to impose tax on such exempt
16 equipment and/or installation to the extent of one half of the maximum
17 rates authorized under subdivision (a) of section twelve hundred ten of
18 this article;
19 (2) Where a city of less than one million has elected the exemption
20 for residential geothermal heat pump systems equipment and installation
21 provided in paragraph forty-seven of subdivision (a) of section eleven
22 hundred fifteen of this chapter, the county in which such city is
23 located shall have the prior right to impose tax on such exempt equip-
24 ment and/or installation to the extent of one half of the maximum rates
25 authorized under subdivision (a) of section twelve hundred ten of this
26 article.
27 (c-4) Notwithstanding any other provision of law: (1) Where a county
28 containing one or more cities with a population of less than one million
29 has elected the exemption for commercial geothermal heat pump systems
30 equipment and installation provided in subdivision (ll) of section elev-
31 en hundred fifteen of this chapter, a city within such county shall have
32 the prior right to impose tax on such exempt equipment and/or installa-
33 tion to the extent of one half of the maximum rates authorized under
34 subdivision (a) of section twelve hundred ten of this article;
35 (2) Where a city of less than one million has elected the exemption
36 for commercial geothermal heat pump systems equipment and installation
37 provided in subdivision (ll) of section eleven hundred fifteen of this
38 chapter, the county in which such city is located shall have the prior
39 right to impose tax on such exempt equipment and/or installation to the
40 extent of one half of the maximum rates authorized under subdivision (a)
41 of section twelve hundred ten of this article.
42 § 9. This act shall take effect on the first day of a sales tax quar-
43 terly period, as described in subdivision (b) of section 1136 of the tax
44 law, beginning at least ninety days after the date this act shall have
45 become a law and shall apply to sales made on or after such date.
