Creates a tax credit for energy efficiency home improvements and products affixed to homes; directs NYSERDA 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.
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 SPECIFIC 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).
PRIOR LEGISLATIVE HISTORY: S.4159 of 2007/08; Referred to Investigations S.1215 of 2009/10; Reported to Finance
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 ________________________________________________________________________ 2711--B 2011-2012 Regular Sessions IN SENATE January 31, 2011 ___________Introduced by Sens. GRISANTI, DeFRANCISCO, HANNON, JOHNSON, MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 (tt) to read as follows: (TT) 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 TO THE TAXPAYER'S PRINCIPAL RESIDENCE, IF SUCH RESIDENCE IS LOCATED WITHIN THIS STATE. (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 HUNDREDEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07933-04-1 S. 2711--B 2
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: S 582-B. ENERGY EFFICIENT HOME IMPROVEMENTS. ENERGY EFFICIENT PRODUCTS AND HOME IMPROVEMENTS WHICH QUALIFIED FOR A TAX CREDIT UNDER SUBSECTION (TT) OF SECTION SIX HUNDRED SIX OF THE TAX LAW SHALL NOT INCREASE THE ASSESSED VALUATION FOR PURPOSES OF REAL PROPERTY TAXATION 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.