S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                        149--A

                              2011-2012 Regular Sessions

                                   I N  S E N A T E

                                      (PREFILED)

                                    January 5, 2011
                                      ___________

       Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
         printed to be committed to the Committee on Investigations and Govern-
         ment  Operations  --  committee  discharged,  bill  amended,   ordered
         reprinted as amended and recommitted to said committee

       AN  ACT  to  amend  the tax law, in relation to tax credits provided for
         solar energy system equipment

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  Paragraph 2 of subsection (g-1) of section 606 of the tax
    2  law, as amended by chapter 378 of the laws of 2005 and subparagraph  (B)
    3  as  amended  by  chapter  251 of the laws of 2006, is amended to read as
    4  follows:
    5    (2) Qualified solar energy system equipment expenditures. (A) The term
    6  "qualified solar energy system equipment  expenditures"  means  expendi-
    7  tures for:
    8    (I)  the  purchase of solar energy system equipment which is installed
    9  in connection with residential property which is [(i)]  (I)  located  in
   10  this  state  and [(ii)] (II) which is used by the taxpayer as his or her
   11  principal residence at the time the solar  energy  system  equipment  is
   12  placed in service;
   13    (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
   14  MENT  THAT  SPANS  AT  LEAST  TEN  YEARS WHERE SUCH EQUIPMENT OWNED BY A
   15  PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH  RESIDEN-
   16  TIAL  PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED
   17  BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE  SOLAR
   18  ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
   19    (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
   20  LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED  IS  GENERATED  BY  SOLAR
   21  ENERGY  SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER WHICH
   22  IS INSTALLED IN  CONNECTION  WITH  RESIDENTIAL  PROPERTY  WHICH  IS  (I)

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00702-02-1

       S. 149--A                           2

    1  LOCATED  IN  THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR
    2  HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR ENERGY SYSTEM EQUIPMENT IS
    3  PLACED IN SERVICE.
    4    (B) Such qualified expenditures shall include expenditures for materi-
    5  als, labor costs properly allocable to on-site preparation, assembly and
    6  original  installation,  architectural  and  engineering  services,  and
    7  designs and plans directly related to the construction  or  installation
    8  of the solar energy system equipment.
    9    (C)  Such  qualified  expenditures  FOR  THE  PURCHASE OF SOLAR ENERGY
   10  SYSTEM EQUIPMENT shall not include interest or other finance charges.
   11    (D) SUCH QUALIFIED EXPENDITURES FOR THE LEASE OF SOLAR  ENERGY  SYSTEM
   12  EQUIPMENT  OR  THE  PURCHASE  OF  POWER  UNDER AN AGREEMENT DESCRIBED IN
   13  CLAUSES (II) OR (III)  OF  SUBPARAGRAPH  (A)  OF  THIS  PARAGRAPH  SHALL
   14  INCLUDE  AN  AMOUNT  EQUAL  TO ALL PAYMENTS MADE DURING THE TAXABLE YEAR
   15  UNDER SUCH AGREEMENT. PROVIDED, HOWEVER,  SUCH  CREDITS  SHALL  ONLY  BE
   16  ALLOWED  FOR  FOURTEEN  YEARS AFTER THE FIRST TAXABLE YEAR IN WHICH SUCH
   17  CREDIT IS ALLOWED.
   18    S 2. This act shall take effect immediately.