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.