Exempts the sale and installation of commercial solar energy systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.
Ayes (57): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Huntley, Kennedy, Klein, Krueger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stewart-Cousin, Valesky, Young, Zeldin
Excused (4): Diaz, Hassell-Thomps, Johnson, Stavisky
Ayes (32): DeFrancisco, Johnson, Bonacic, Farley, Flanagan, Fuschillo, Golden, Griffo, Hannon, Lanza, Larkin, LaValle, Little, Nozzolio, Robach, Saland, Seward, Young, Krueger, Breslin, Diaz, Dilan, Duane, Gianaris, Montgomery, Oppenheimer, Parker, Perkins, Rivera, Stavisky, Stewart-Cousins, Squadron
Ayes W/R (2): Alesi, Peralta
Excused (1): Marcellino
TITLE OF BILL: An act to amend the tax law, in relation to exempting the sale and installation of commercial solar energy systems equipment from state sales and compensating use taxes and granting municipalities the option to grant such exemption
PURPOSE OR GENERAL IDEA OF THE BILL: Exempts the sale and installation of commercial solar energy systems equipment from sales and compensating use taxes.
SUMMARY OF PROVISIONS: Receipts from the retail sale of commercial solar energy systems equipment and the service of installing such systems, shall be exempt from taxes imposed by sections eleven hundred five and eleven hundred eleven of this article. For the purposes of this subdivision, commercial solar energy systems equipment shall mean an arrangement or combination of components installed upon nonresidential premises that utilize solar radiation to produce energy designed to provide heating, cooling, hot water/or electricity. Such arrangement or components shall not include equipment that is part of a non-solar energy system.
JUSTIFICATION: If we are to achieve the goal of 45% of New York State's electricity needs through clean renewable energy and improved energy efficiency by 2015, then we must provide incentives to encourage businesses to install solar energy systems just as we have done with homeowners. Currently, businesses must pay state and local taxes that can add thousands of dollars onto an installation that is already very costly. Eliminating all state sales taxes and providing local municipalities an option to eliminate their portion as well, will encourage more commercial solar installations. Coupled with the state's new net-metering legislation for commercial consumers, a commercial sales tax exemption will provide a more realistic investment climate for businesses. Because of their size, the installation of commercial solar energy systems will significantly advance New York State's obligation to meet its Renewable Portfolio Standard of renewable energy sources by 2015. A commercial solar sales tax exemption will help to stimulate and rebuild our economy, create green collar jobs and reduce our dependence on foreign oil while fighting global warming and protecting our environment.
LEGISLATIVE HISTORY: 04/27/09 REFERRED TO ENERGY AND TELECOMMUNICATIONS 01/06/10 REFERRED TO ENERGY AND TELECOMMUNICATIONS 03/15/10 AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS 03/15/10 PRINT NUMBER 5074A
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately, provided that section one of this act shall take effect on the first of January next succeeding the date on which this act shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 3203--B 2011-2012 Regular Sessions IN SENATE February 11, 2011 ___________Introduced by Sens. MAZIARZ, DUANE, JOHNSON, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications -- reported favorably from said commit- tee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Energy and Telecommuni- cations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to exempting the sale and installation of commercial solar energy systems equipment from state sales and compensating use taxes and granting municipalities the option to grant such exemption THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1115 of the tax law is amended by adding a new subdivision (hh) to read as follows: (HH) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE EXEMPT FROM TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR THE PURPOSES OF THIS SUBDIVISION, "COMMER- CIAL SOLAR ENERGY SYSTEMS EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBI- NATION OF COMPONENTS INSTALLED UPON NON-RESIDENTIAL PREMISES THAT UTILIZE SOLAR RADIATION TO PRODUCE ENERGY DESIGNED TO PROVIDE HEATING, COOLING, HOT WATER AND/OR ELECTRICITY. SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS PART OF A NON-SOLAR ENERGY SYSTEM. S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 3 of part GG of chapter 57 of the laws of 2010, is amended to read as follows: (1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions ofEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08775-04-2 S. 3203--B 2
the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. (i) Any local law, ordinance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes author- ized by this subdivision, shall, notwithstanding any provision of law to the contrary, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, proc- essing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment exemption provided for in subdivision (ee), THE COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT EXEMPTION PROVIDED FOR IN SUBDIVISION (HH) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to either such residential solar energy systems equipment exemption, SUCH COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT EXEMPTION or such clothing and footwear exemption. S 3. Section 1210 of the tax law is amended by adding a new subdivi- sion (p) to read as follows: (P) NOTWITHSTANDING ANY OTHER PROVISION OF STATE OR LOCAL LAW, ORDI- NANCE OR RESOLUTION TO THE CONTRARY: (1) ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE IN WHICH THE TAXES IMPOSED BY SECTION ELEVEN HUNDRED SEVEN OF THIS CHAPTER ARE IN EFFECT, ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ELECT TO PROVIDE THE SAME EXEMPTIONS FROM SUCH TAXES AS THE COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT EXEMPTION FROM STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (HH) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER BY ENACTING A RESOLUTION IN THE FORM SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION; WHEREUPON, UPON COMPLIANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF THIS SECTION, SUCH ENACTMENT OF SUCH RESOLUTION SHALL BE DEEMED TO BE AN AMENDMENT TO SUCH SECTION ELEVEN HUNDRED SEVEN AND SUCH SECTION ELEVEN HUNDRED SEVEN SHALL BE DEEMED TO INCORPORATE SUCH EXEMPTIONS AS IF THEY HAD BEEN DULY ENACTED BY THE STATE LEGISLATURE AND APPROVED BY THE GOVERNOR.S. 3203--B 3
(2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF LOCAL LEGISLATIVE BODY) AS FOLLOWS: SECTION ONE. RECEIPTS FROM SALES OF AND CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, PROPERTY AND SERVICES EXEMPT FROM STATE SALES AND COMPENSATING USE TAXES PURSUANT TO SUBDIVI- SION (HH) OF SECTION 1115 OF THE TAX LAW SHALL ALSO BE EXEMPT FROM SALES AND COMPENSATING USE TAXES IMPOSED IN THIS JURISDICTION. SECTION TWO. THIS RESOLUTION SHALL TAKE EFFECT JANUARY 1, (INSERT THE YEAR, BUT NOT EARLIER THAN THE YEAR 2012) AND SHALL APPLY TO SALES MADE, SERVICES RENDERED AND USES OCCURRING ON AND AFTER THAT DATE IN ACCORD- ANCE WITH THE APPLICABLE TRANSITIONAL PROVISIONS IN SECTIONS 1106, 1216 AND 1217 OF THE NEW YORK TAX LAW. S 4. This act shall take effect immediately, provided that section one of this act shall take effect on the first of January next succeeding the date on which this act shall have become a law.