Relates to tax credits provided for solar energy system equipment; provides credit for the lease of solar energy equipment and the purchase of power generated by solar equipment.

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S149A-2011 Actions

• Jun 20, 2012: SUBSTITUTED BY A34B
• Jun 20, 2012: ORDERED TO THIRD READING CAL.1428
• Jun 20, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jun 7, 2011: REPORTED AND COMMITTED TO FINANCE
• May 6, 2011: PRINT NUMBER 149B
• May 6, 2011: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Apr 28, 2011: PRINT NUMBER 149A
• Apr 28, 2011: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S149A-2011 Votes

S149A-2011 Memo

BILL NUMBER:S149A

TITLE OF BILL:
An act
to amend the tax law, in relation to tax credits provided for solar
energy system equipment

PURPOSE:
The purpose of this legislation is encourage homeowners to install and
utilize solar energy equipment by allowing individuals who lease
such equipment or purchase power under a written agreement with a
third party to benefit from a solar equipment tax credit.

SUMMARY OF PROVISIONS:
Section 1. Allows a taxpayer to qualify for a solar equipment tax
credit in cases where the lease of solar equipment under a written
agreement spans at least ten years or a power purchase agreement of
at least ten years from a third party is in force. Additionally this
section includes and clarifies expenditures for the lease of solar
energy system equipment.

JUSTIFICATION:
As we continue to move toward a greener economy it is very important
that residents be encouraged to utilize renewable forms of energy.
This should be true whether the taxpayer can afford to purchase and
install renewable generation such as solar equipment or if it is more
feasible for the individual to lease the equipment or contract with a
provider to purchase power. using the tax code to incentivize the
installation of solar equipment is the right way to encourage the
development of the renewable energy industry.

In addition to the obvious benefits to the taxpayer, the use of more
photovoltaic generation equipment will also benefit our environment
by reducing the negative effects of greenhouse gas emissions as well
and increasing our ability to become more energy independent.

LEGISLATIVE HISTORY:
S.8025 of 2009-2010; Referred to Investigations and Government
Operations

FISCAL IMPLICATIONS:
Given the nature of how the credit will be taken
and the fact that the leases and power purchase agreements that are
effected all last more than ten years, it is estimated that this
provision will have a fiscal impact of less than $1,000,000 annually.

EFFECTIVE DATE:
This act shall take effect immediately.

S149A-2011 Text

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

                                   149--A

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 (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:


    Section  1.  Paragraph 2 of subsection (g-1) of section 606 of the tax
  law, as amended by chapter 378 of the laws of 2005 and subparagraph  (B)
  as  amended  by  chapter  251 of the laws of 2006, is amended to read as
  follows:

    (2) Qualified solar energy system equipment expenditures. (A) The term
  "qualified solar energy system equipment  expenditures"  means  expendi-
  tures for:

    (I)  the  purchase of solar energy system equipment which is installed
  in connection with residential property which is [(i)]  (I)  located  in
  this  state  and [(ii)] (II) which is used by the taxpayer as his or her
  principal residence at the time the solar  energy  system  equipment  is
  placed in service;
    (II) THE LEASE OF SOLAR ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREE-
  MENT  THAT  SPANS  AT  LEAST  TEN  YEARS WHERE SUCH EQUIPMENT OWNED BY A
  PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH  RESIDEN-
  TIAL  PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED
  BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE  SOLAR
  ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR
    (III)  THE  PURCHASE  OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT
  LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED  IS  GENERATED  BY  SOLAR
  ENERGY  SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER WHICH
  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

  LOCATED  IN  THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR
  HER PRINCIPAL RESIDENCE AT THE TIME THE SOLAR 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 energy system equipment.
    (C)  Such  qualified  expenditures  FOR  THE  PURCHASE OF SOLAR ENERGY
  SYSTEM EQUIPMENT shall not include interest or other finance charges.
    (D) SUCH QUALIFIED EXPENDITURES FOR THE LEASE OF SOLAR  ENERGY  SYSTEM
  EQUIPMENT  OR  THE  PURCHASE  OF  POWER  UNDER AN AGREEMENT DESCRIBED IN
  CLAUSES (II) OR (III)  OF  SUBPARAGRAPH  (A)  OF  THIS  PARAGRAPH  SHALL
  INCLUDE  AN  AMOUNT  EQUAL  TO ALL PAYMENTS MADE DURING THE TAXABLE YEAR
  UNDER SUCH AGREEMENT. PROVIDED, HOWEVER,  SUCH  CREDITS  SHALL  ONLY  BE
  ALLOWED  FOR  FOURTEEN  YEARS AFTER THE FIRST TAXABLE YEAR IN WHICH SUCH
  CREDIT IS ALLOWED.
    S 2. This act shall take effect immediately.