Extends the solar energy system equipment tax credit carryover period from five years to ten years.
TITLE OF BILL: An act to amend the tax law, in relation to the solar energy system equipment tax credit
PURPOSE: This legislation extends the solar energy system equipment tax credit carryover period from five to ten years.
SUMMARY OF PROVISIONS: Paragraph 8 of subsection (g-1) of Section 606 of the tax law, as amended by Chapter 378 of the Laws of 2005 and as renumbered by Chapter 128 of the Laws of 2007, is amended to extend the solar energy system equipment tax credit carryover period from five to ten taxable years.
JUSTIFICATION: New York's solar energy system equipment tax credit provides individuals with an incentive to choose to invest in photovoltaic systems as an alternative energy choice. The current credit system, subject to certain limits, is 25% of the qualified solar energy system equipment expenditures for the purchase and installation of a system that uses solar radiation to produce energy for heating, cooling, hot water or electricity for residential use. If the credit is greater than the amount of taxes owed, the balance will not be refunded. However, any credit amount in excess of the tax due can be carried over for a maximum of up to five years. In some cases, individuals with lower incomes would not have enough income tax liability over a five-year period to claim the full amount of the individual credit. This legislation will extend such carryover period from five to ten years to better afford those individuals with the opportunity to receive the full amount of their tax credit.
LEGISLATIVE HISTORY: New legislation.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2013.
STATE OF NEW YORK ________________________________________________________________________ 4623--A 2011-2012 Regular Sessions IN SENATE April 13, 2011 ___________Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment 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 committee AN ACT to amend the tax law, in relation to the solar energy system equipment tax credit THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 8 of subsection (g-1) of section 606 of the tax law, as amended by chapter 378 of the laws of 2005 and as renumbered by chapter 128 of the laws of 2007, is amended to read as follows: (8) Carryover of credit. If the amount of the credit, and carryovers of such credit, allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, such excess amount may be carried over to the
[five]TEN taxable years next following the taxable year with respect to which the credit is allowed and may be deducted from the taxpayer's tax for such year or years. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2013.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01243-02-2