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STATE OF NEW YORK
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3814

2011-2012 Regular Sessions

IN ASSEMBLY

January 27, 2011
___________

Introduced  by  M.  of  A.  ENGLEBRIGHT -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to establishing a corporate and
  a personal income tax credit for wind energy system equipment

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

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 43 to read as follows:
  43. WIND ENERGY SYSTEM EQUIPMENT CREDIT.  (A) GENERAL. A TAXPAYER, WHO
OWNS OR OPERATES WIND ENERGY SYSTEM EQUIPMENT, SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT  OF
QUALIFIED  WIND  ENERGY SYSTEM EQUIPMENT EXPENDITURES. THIS CREDIT SHALL
NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS.
  (B) QUALIFIED WIND ENERGY SYSTEM EQUIPMENT EXPENDITURES. (I) THE  TERM
"QUALIFIED  WIND  ENERGY  SYSTEM  EQUIPMENT EXPENDITURES" MEANS EXPENDI-
TURES, LIMITED TO THE EXPENDITURE CAP PRESCRIBED IN SUBPARAGRAPH (II) OF
THIS PARAGRAPH, FOR THE PURCHASE OF WIND ENERGY SYSTEM  EQUIPMENT  WHICH
IS  INSTALLED  IN  CONNECTION WITH PROPERTY WHICH IS (A) LOCATED IN THIS
STATE AND (B) WHICH IS USED BY THE TAXPAYER  AS  HIS  OR  HER  PRINCIPAL
PREMISES  AT  THE  TIME  THE  WIND  ENERGY SYSTEM EQUIPMENT IS PLACED IN
SERVICE.
  (II) FOR PURPOSES OF SUBPARAGRAPH (I)  OF  THIS  PARAGRAPH,  THE  TERM
"EXPENDITURE  CAP" SHALL MEAN THE PRODUCT OF (A) SIX DOLLARS AND (B) THE
NUMBER OF WATTS INCLUDED IN THE RATED CAPACITY OF THE WIND ENERGY SYSTEM
EQUIPMENT.
  (III) SUCH QUALIFIED EXPENDITURES SHALL INCLUDE EXPENDITURES FOR MATE-
RIALS, LABOR COSTS PROPERLY ALLOCABLE TO ON-SITE  PREPARATION,  ASSEMBLY
AND  ORIGINAL  INSTALLATION, ARCHITECTURAL AND ENGINEERING SERVICES, AND
DESIGNS AND PLANS DIRECTLY RELATED TO THE CONSTRUCTION  OR  INSTALLATION
OF THE WIND ENERGY SYSTEM EQUIPMENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06005-01-1
A. 3814                             2

  (IV)  SUCH  QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER
FINANCE CHARGES.
  (C)  WIND ENERGY SYSTEM EQUIPMENT. THE TERM "WIND ENERGY SYSTEM EQUIP-
MENT" SHALL MEAN EQUIPMENT WHICH, WHEN INSTALLED AT A  TAXPAYER'S  PREM-
ISES, USES WIND ENERGY FOR THE PURPOSE OF GENERATING ELECTRICITY FOR USE
IN SUCH PREMISES.
  (D)   MULTIPLE  TAXPAYERS.  WHERE  WIND  ENERGY  SYSTEM  EQUIPMENT  IS
PURCHASED AND INSTALLED IN A PRINCIPAL PREMISES SHARED BY  TWO  OR  MORE
TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
EACH  SUCH TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF THE
TOTAL EXPENDITURE FOR SUCH WIND ENERGY SYSTEM EQUIPMENT  CONTRIBUTED  BY
EACH TAXPAYER.
  (E)  WHEN  CREDIT ALLOWED. THE CREDIT FOR WIND ENERGY SYSTEM EQUIPMENT
PROVIDED FOR IN THIS SUBDIVISION SHALL BE ALLOWED WITH  RESPECT  TO  THE
TAXABLE  YEAR,  COMMENCING  AFTER TWO THOUSAND ELEVEN, IN WHICH THE WIND
ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE.
  (F) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT,  AND  CARRYOVERS
OF  SUCH  CREDIT,  ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
CARRIED OVER TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE  TAXABLE  YEAR
WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  2.  The  subsection  heading  and paragraphs 1, 2, 3, 4, 5 and 7 of
subsection (g-1) of section 606 of the tax law, the  subsection  heading
and  paragraphs  1,  2, 4 and 7 as amended by chapter 378 of the laws of
2005, subparagraph (B) of paragraph 2 as amended by chapter 251  of  the
laws  of  2006,  paragraph  3 as amended by, paragraph 5 as added by and
paragraph 7 as renumbered by chapter  128  of  the  laws  of  2007,  are
amended to read as follows:
  Solar  AND WIND energy system equipment credit. (1) General. [An indi-
vidual] A taxpayer shall be allowed a credit against the tax imposed  by
this  article  equal  to  twenty-five percent of qualified solar OR WIND
energy system equipment expenditures. This credit shall not exceed three
thousand seven hundred fifty dollars for qualified solar  energy  equip-
ment  placed  in  service  before September first, two thousand six, and
five thousand dollars for qualified solar  energy  equipment  placed  in
service  on  or after September first, two thousand six, AND SEVEN THOU-
SAND FIVE HUNDRED DOLLARS FOR QUALIFIED WIND ENERGY SYSTEM EQUIPMENT.
  (2) Qualified solar OR WIND energy system equipment expenditures.  (A)
The  term "qualified solar OR WIND energy system equipment expenditures"
means expenditures for the purchase  of  solar  OR  WIND  energy  system
equipment  which  is  installed  in connection with residential property
which is (i) located in this state and (ii) which is used by the taxpay-
er as his or her principal [residence] PREMISES at the time the solar OR
WIND energy system equipment is placed in service.
  (B) Such qualified expenditures shall include expenditures for materi-
als, labor costs properly allocable to on-site preparation, assembly and
original  installation,  architectural  and  engineering  services,  and
designs  and  plans directly related to the construction or installation
of the solar OR WIND energy system equipment.
  (C) Such qualified expenditures shall not include  interest  or  other
finance charges.
  (3)  Solar  OR  WIND  energy system equipment. The term "solar OR WIND
energy system equipment" shall mean an  arrangement  or  combination  of
components   utilizing  solar  radiation  OR  WIND  POWER,  which,  when
installed in a residence, produces energy designed to  provide  heating,
A. 3814                             3

cooling,  hot water or electricity for use in such [residence] PREMISES.
Such arrangement or components shall not include equipment connected  to
solar  OR  WIND  energy  system equipment that is a component of part or
parts of a non-solar OR NON-WIND energy system or which uses any sort of
recreational  facility  or  equipment as a storage medium. Solar OR WIND
energy system equipment that generates electricity for use in  a  [resi-
dence]  TAXPAYER'S  PREMISES must conform to applicable requirements set
forth in section sixty-six-j of the public service law. Provided, howev-
er, where solar  OR  WIND  energy  system  equipment  is  purchased  and
installed by a condominium management association or a cooperative hous-
ing  corporation,  for  purposes  of this subsection only, the term "ten
kilowatts" in such section sixty-six-j shall be  read  as  "fifty  kilo-
watts."
  (4) Multiple taxpayers. Where solar OR WIND energy system equipment is
purchased  and  installed  in a principal [residence] PREMISES shared by
two or more taxpayers, the amount of the  credit  allowable  under  this
subsection  for  each  such  taxpayer shall be prorated according to the
percentage of the total expenditure for such solar OR WIND energy system
equipment contributed by each taxpayer.
  (5) Proportionate share. Where solar OR WIND energy  system  equipment
is  purchased and installed by a condominium management association or a
cooperative housing corporation, a taxpayer  who  is  a  member  of  the
condominium management association or who is a tenant-stockholder in the
cooperative  housing  corporation may for the purpose of this subsection
claim a proportionate share of the total expense as the expenditure  for
the  purposes  of  the credit attributable to his OR HER principal resi-
dence.
  (7) When credit allowed. The credit FOR SOLAR ENERGY SYSTEM  EQUIPMENT
provided  for  [herein] IN THIS SUBSECTION shall be allowed with respect
to the taxable year, commencing after nineteen hundred ninety-seven,  in
which the solar energy system equipment is placed in service.  THE CRED-
IT  FOR  WIND  ENERGY  SYSTEM  EQUIPMENT PROVIDED FOR IN THIS SUBSECTION
SHALL BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER  TWO
THOUSAND  ELEVEN, IN WHICH THE WIND ENERGY SYSTEM EQUIPMENT IS PLACED IN
SERVICE.
  S 3. This act shall take effect immediately.