Relates to establishing an energy efficiency and carbon emission reduction tax credit for single family and multi-family homes for costs incurred for installing any improvement to a heating or cooling system generation which will increase efficiency or reduce fuel usage by at least ten percent.
TITLE OF BILL: An act to amend the public service law and the tax law, in relation to establishing an energy efficiency tax credit for single family and multi-family homes
PURPOSE: To provide a tax credit for single family and multi-family homes that will incent the use of cleaner burning fuels or on-site renewable energy in order to reduce carbon emissions, improve air quality and reduce capital costs to homeowners.
SUMMARY OF PROVISIONS: Section 1. Sets forth the title of the bill which shall be known as the energy efficiency and carbon emission reduction tax credit
Section 2 Amends the public service law to add a new section 73 that allows the Department of taxation and finance to coordinate with the Public Service Commission and NYSERDA to ensure that the residences that utilize this tax credit are known for the purpose of quantifying the benefits of the program
Section 3 Amends section 606 of the tax law by adding a new subsection vv that lays out the equipment that qualifies for the credit, enumerates the amounts allowed for single family homes as well as multi-family homes and lays out certain efficiency and emission reduction criterion that boilers and other equipment must achieve in order to qualify.
Section 4 identifies the amount and sources of funding for the credit starting in fiscal year 2013-14 and ending in fiscal year 2020-2021.
JUSTIFICATION: Currently, some dwellings use fuel sources that are more carbon-intense than others, or that operate at a lower level of efficiency than would be optimal. Although dwelling owners may want to purchase a new heating system that is less carbon-intense or more efficient, the cost of doing so is a deterrent. By providing a tax incentive, this bill would encourage homeowners to purchase more efficient and less carbon intensive heating systems.
LEGISLATIVE HISTORY: New Bill
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the 180th day after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 4533--A 2013-2014 Regular Sessions IN SENATE April 8, 2013 ___________Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public service law and the tax law, in relation to establishing an energy efficiency tax credit for single family and multi-family homes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "energy efficiency and carbon emission reduction tax credit act". S 2. The public service law is amended by adding a new section 73 to read as follows: S 73. COORDINATION WITH CERTAIN PROVISIONS OF THE TAX LAW. THE DEPART- MENT MAY REQUEST FROM THE DEPARTMENT OF TAXATION AND FINANCE OR THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY A SUMMARY OF INSPECTION REPORTS PREPARED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (WW) OF SECTION SIX HUNDRED SIX OF THE TAX LAW. SUCH SUMMARY SHALL INCLUDE THE TOTAL NUMBER OF RESIDENCES THAT HAVE BEEN GRANTED A CARBON EMISSIONS REDUCTION CREDIT, A DESCRIPTION OF THE IMPROVEMENTS TO WHICH THE CREDIT RELATES, AND AN INDICATION OF THE AMOUNT BY WHICH CARBON EMISSIONS ARE TO BE REDUCED AND/OR THE AMOUNT BY WHICH FUEL USAGE IS REDUCED. S 3. Section 606 of the tax law is amended by adding a new subsection (ww) to read as follows: (WW) CARBON EMISSIONS REDUCTION CREDIT. (1) ALLOWANCE OF CREDIT. SUBJECT TO APPROVAL BY THE DEPARTMENT PURSUANT TO THIS SECTION, A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI- CLE FOR COSTS INCURRED ON OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION BY SUCH TAXPAYER WHICH ARE DIRECTLY ASSOCIATED WITH INSTALLING ANYEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08685-05-3 S. 4533--A 2
IMPROVEMENT TO A HEATING OR COOLING SYSTEM WHICH WILL INCREASE EFFICIEN- CY BY AT LEAST TEN PERCENT OR REDUCE FUEL USAGE BY AT LEAST TEN PERCENT AND LEAD TO A SIGNIFICANT REDUCTION IN CARBON EMISSIONS AS DEFINED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY GUIDELINES, PROVIDED THAT SUCH PROJECT SHALL HAVE A RETURN ON INVESTMENT OF FIVE YEARS OR LESS AT MINIMUM. SUCH IMPROVEMENTS SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, THE INSTALLATION OF A HIGH EFFICIENCY BOILER OR FURNACE, AN IMPROVEMENT TO AND/OR REPLACEMENT OF A BURNER IN A BOILER, THE INSTALLATION OF ON-SITE RENEWABLE GENERATION, OR ANY OTHER IMPROVE- MENT TO A HEATING SYSTEM THAT SATISFIES THE CRITERIA SET FORTH IN THIS SUBSECTION. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBSECTION, FOR BOILERS THAT ARE REGULATED BY THE NEW YORK CITY DEPARTMENT OF ENVI- RONMENTAL PROTECTION, THE IMPROVEMENTS MUST RESULT IN A REDUCTION OF PARTICULATE MATTER THAT IS TWO AND ONE-HALF MICRONS OR LESS IN WIDTH (COMMONLY REFERRED TO AS PM 2.5 EMISSIONS) OF AT LEAST FIFTY PERCENT. (2) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE UP TO FIVE THOUSAND DOLLARS FOR A SINGLE FAMILY HOME AND UP TO TWENTY-FIVE THOUSAND DOLLARS FOR A MULTIPLE FAMILY DWELLING OF AT LEAST FIVE UNITS, TOWARDS THE TOTAL COST OF DESIGNING, PURCHASING AND INSTALLING SUCH A HEATING SYSTEM, WHICH COST SHALL INCLUDE THE DECOMMISSIONING AND REMOVAL OF EXISTING EQUIPMENT. IN NO CASE SHALL THE AMOUNT OF THE APPLICABLE CREDIT EXCEED THE AMOUNT OF THE INVESTMENT IN THE IMPROVEMENT MADE. (3) MULTIPLE TAXPAYERS. IF THE PRINCIPAL RESIDENCE IS SHARED BY TWO OR MORE TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR EACH SUCH ELIGIBLE TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF THE TOTAL EXPENDITURE FOR SUCH CONVERSION INCURRED BY EACH TAXPAYER. (4) APPLICATION FOR CREDIT. SUCH CREDIT SHALL BE GRANTED ONLY UPON APPLICATION BY THE ELIGIBLE TAXPAYER OR TAXPAYERS ON A FORM PRESCRIBED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND AFTER INSPECTION BY SUCH AUTHORITY, THE RESULTS OF WHICH SHALL BE SET FORTH IN A REPORT PREPARED THEREBY. THE APPLICATION SHALL REQUIRE SUBMISSION OF DOCUMENTATION OF THE CONVERSION, INCLUDING INVOICES FOR ANY SERVICES USED AND CONTRACTED AND EQUIPMENT INSTALLED OR ADDED, AS WELL AS ANY CONTRACTS WITH A HEATING SUPPLIER. THE APPLICATION AND INSPECTION REPORT SHALL BE FILED WITH THE DEPARTMENT ON OR BEFORE THE LAST DAY OF THE APPLICABLE TAXABLE YEAR, WHO SHALL APPROVE OR DISAPPROVE SUCH APPLICATION. A COPY OF SUCH APPLICATION SHALL BE FILED WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. (5) APPLICATION OF CREDIT. IF THE AMOUNT OF THE 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 CREDITED 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. (B) FOR PURPOSES OF THIS SUBSECTION, "PRINCIPAL RESIDENCE" FOR A SINGLE FAMILY DWELLING SHALL MEAN THE RESIDENTIAL PROPERTY WHERE THE TAXPAYER HAS HIS OR HER TRUE, FIXED, AND PERMANENT HOME TO WHICH, WHEN- EVER ABSENT HE OR SHE INTENDS TO RETURN. IN ORDER TO VERIFY A TAXPAYER'S CLAIM THAT A PARTICULAR PROPERTY IS A PRINCIPAL RESIDENCE, THE DEPART- MENT MAY ACCEPT VARIOUS DOCUMENTS THAT, TAKEN TOGETHER, ESTABLISH THAT THE TAXPAYER CLAIMING THE CREDIT PROVIDED BY THIS SUBSECTION OCCUPIES THE PROPERTY AS A PRINCIPAL RESIDENCE, INCLUDING, BUT NOT LIMITED TO, THE TAXPAYER'S DRIVER'S LICENSE, VOTER REGISTRATION CARD, CANCELLED CHECKS LISTING THE PROPERTY ADDRESS, STATEMENTS SUCH AS MEDICAL, BANK ORS. 4533--A 3
CHARGE ACCOUNTS OR INCOME TAX RECORDS INDICATING THE MAILING ADDRESS AND INSURANCE POLICIES. (C) THE PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP- MENT AUTHORITY SHALL PROVIDE ADDITIONAL DEFINITIONS AND GUIDELINES FOR THE ELIGIBILITY OF AN IMPROVEMENT OR PROJECT, WHICH SHALL INCLUDE DEFIN- ING THE PARAMETERS OF WHAT CONSTITUTES A SIGNIFICANT REDUCTION IN CARBON EMISSIONS FOR A SINGLE FAMILY OR MULTIPLE FAMILY DWELLING AS WELL AS ANY AND ALL APPLICABLE STANDARDS, OTHER THAN THOSE ENUMERATED IN THIS SUBSECTION. S 4. The New York state energy research and development authority shall make available funding in the amount of $15 million for fiscal years 2013-2014 and 2014-2015, and $3 million in each subsequent year until fiscal year 2020-2021. Funding for the carbon emissions reduction credit provided by subsection (ww) of section 606 of the tax law shall be provided through funds collected pursuant to proceeds collected but not allocated by the authority from the auction, pursuant to regulations of such authority, of emission allowances allocated by the department of environmental conservation to such authority pursuant to regulations adopted by such department. S 5. This act shall take effect on the one hundred eightieth day after it shall have become a law.