Creates a tax credit for energy efficiency home improvements and products affixed to homes; directs NYSRDA to develop a list of qualified products and improvements and provides that such improvements shall not affect the assessed valuation of real property for tax purposes.
BILL NUMBER: S1215
TITLE OF BILL : An act to amend the tax law and the real property tax law, in relation to providing a tax credit for the purchase of energy efficient home improvements
PURPOSE : To provide an income tax credit of up to 25% of the cost of any items that improve the energy efficiency of a home, up to $2,500. Also requires the New York State Energy Research and Development Agency (NYSERDA) to develop a list of acceptable energy efficiency improvements that will be covered under the program and provides that such upgrades shall not affect the assessed value of the home.
SUMMARY OF PROVISIONS : Section 1 amends the tax law to provide an income tax credit of up .to 25% of the cost of any items that improve the energy efficiency of a home, up to a maximum of $2,500. Also directs NYSERDA to adopt rules and regulations setting forth home improvements which qualify for the tax credit and have them provide such list on their website.
Section 2 amends the Real Property Tax law by requiring that any energy efficiency upgrades not affect the assessed value of the home.
Section 3 provides that this act will take effect on the first of January of the following year after it becomes law.
JUSTIFICATION : Many energy efficient products can raise the value of a home. Increased assessments as a result of increases home values could be a deterrent to a homeowner to replacing inefficient materials with energy efficient ones. This legislation will help to offset the cost of any items that improve the energy efficiency of a home (i.e. new windows, insulation).
LEGISLATIVE HISTORY :
FISCAL IMPLICATIONS : Fiscal implications will depend on program participation. Costs per household are specific in the legislation.
EFFECTIVE DATE : This act shall take effect on the first of January next succeeding the date on which it shall become law.
STATE OF NEW YORK ________________________________________________________________________ 1215 2009-2010 Regular Sessions IN SENATE January 28, 2009 ___________Introduced by Sens. THOMPSON, DILAN, FOLEY, C. JOHNSON, ONORATO, PARKER, SMITH -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law and the real property tax law, in relation to providing a tax credit for the purchase of energy efficient home improvements THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 606 of the tax law is amended by adding a new subsection (qq) to read as follows: (QQ) CREDIT FOR THE PURCHASE OF ENERGY EFFICIENT HOME IMPROVEMENTS. (1) ALLOWANCE AND AMOUNT OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CRED- IT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE COST OF ENERGY EFFICIENT HOME IMPROVEMENTS, AS PROVIDED IN PARAGRAPH TWO OF THIS SUBSECTION, UP TO A TWO THOUSAND FIVE HUNDRED DOLLAR LIMIT FOR ALL HOME IMPROVEMENTS MADE BY SUCH TAXPAY- ER. (2) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL ADOPT RULES AND REGULATIONS SETTING FORTH HOME IMPROVEMENTS WHICH QUALI- FY FOR THE CREDIT UNDER THIS SUBSECTION. SUCH AUTHORITY SHALL DEVELOP A LIST OF SUCH IMPROVEMENTS AND PRODUCTS AND MAKE SUCH LIST AVAILABLE ON ITS WEBSITE. (3) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 2. The real property tax law is amended by adding a new section 582-b to read as follows:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04711-01-9 S. 1215 2
S 582-B. ENERGY EFFICIENT HOME IMPROVEMENTS. ENERGY EFFICIENT PRODUCTS AND HOME IMPROVEMENTS WHICH HAVE BEEN DETERMINED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AS QUALIFIED FOR A TAX CREDIT UNDER SUBSECTION (QQ) OF SECTION SIX HUNDRED SIX OF THE TAX LAW SHALL NOT INCREASE THE ASSESSED VALUATION FOR PURPOSES OF REAL PROPERTY TAXA- TION OF ANY REAL PROPERTY TO WHICH SUCH IMPROVEMENTS ARE MADE OR PRODUCTS ARE AFFIXED. S 3. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law and shall apply to taxable years commencing on and after such date.