Relates to increasing the tax credit provided for solar energy system equipment from $5000 to $10,000.
TITLE OF BILL: An act to amend the tax law, in relation to increasing the tax credit provided for solar energy system equipment
PURPOSE: To increase the allowable tax credit for the installation of solar energy system equipment.
SUMMARY OF PROVISIONS: Amends paragraph 1 of subsection (g-1) of section 606 of the tax law to allow for a tax credit up to $10,000 for qualified solar energy equipment placed in service on or after September 1, 2013.
EXISTING LAW: The current tax credit cap for qualified solar energy equipment is $5,002.
JUSTIFICATION: The allowable personal tax credit for solar energy equipment has not been increased since 2005 despite the fact that the purchase and installation costs remain higher than most New Yorkers can afford.
Solar energy technology has many advantages. It is a free and renewable energy source; environmentally friendly (no noise or smells); reduces or eliminates the cost of electricity; allows consumers to receive incentives and rebates from governments and utility companies; reduces reliance on foreign oil; and enables net metering, giving consumers the opportunity to sell their excess electricity or get a credit from the utility company.
Solar energy technology, however, still remains a costly alternative to the use of readily available fossil fuel technologies. The greatest obstacle to using this energy source is the initial cost of the equipment used to harness the suns energy. By increasing the solar energy equipment tax credit, more New Yorkers will be able to retrofit their homes with solar energy systems. Consumer demand will drive down the cost of solar panels, which will likely lead to an increase in solar cells to generate electricity.
Qualified solar energy expenditures include material and installation costs relating to components utilizing solar radiation to produce energy designed to provide heating, cooling, hot water, or electricity for residential use.
FISCAL IMPLICATIONS: 2008: 3.2 million; 2011: $4.0 million; the fiscal impact cannot be determined because the number of taxpayers who would take advantage of and qualify for a solar energy tax credit of an increased amount (up to $10,000) is uncertain.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 1412--A 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sens. MONTGOMERY, DILAN, KENNEDY, PARKER, SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the tax law, in relation to increasing the tax credit provided for solar energy system equipment THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subsection (g-1) of section 606 of the tax law, as amended by chapter 375 of the laws of 2012, is amended to read as follows: (1) General. An individual taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty-five percent of quali- fied solar energy system equipment expenditures, except as provided in subparagraph (D) of paragraph two of this subsection. This credit shall not exceed three thousand seven hundred fifty dollars for qualified solar energy equipment 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 PRIOR TO SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, AND TEN THOU- SAND DOLLARS FOR QUALIFIED SOLAR ENERGY EQUIPMENT PLACED IN SERVICE ON OR AFTER SEPTEMBER FIRST, TWO THOUSAND FOURTEEN. S 2. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2014.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01986-02-4