Exempts the sale and installation of fuel cell electric generating systems equipment from sales and compensating use taxes; grants municipalities the option to grant such exemption from local sales and use taxes.
TITLE OF BILL: An act to amend the tax law, in relation to exempting the sale and installation of commercial fuel cell electric generating equipment from state sales and compensating use tax and granting municipalities the option to grant such exemption
PURPOSE: To provide a tax exemption for the retail sale of and service of installing commercial fuel cell electric generating equipment.
SUMMARY OF PROVISIONS: Adds a new subdivision (ii) of section 1115 of the tax law to allow the retail sale of commercial fuel cell electric generating systems equipment and of the service of installing such systems imposed by section 1105 and 1111 of this article. In addition, the term "fuel cell electricity generating system equipment" is defined. Amends paragraph 1 of subdivision (a) of section 1210 of the tax law to include the exemption of commercial fuel cell electric generating equipment. Adds a new subdivision (q) of section 1210 of the tax law to allow any city with a population of one million or more, acting through its local legislative body, to have the authority to provide the same exemptions for commercial fuel cell electric generating equipment from state sales and compensating use taxes described in subdivision (ii) of section 1115 of this chapter. Such local legislative body shall provide such exemption by enacting a resolution.
EXISTING LAW: These systems are not currently exempt from sales tax.
JUSTIFICATION: Fuel cell electric generating technology have many advantages. Fuel cells commonly provide power to host facilities during power outages, enhancing storm response, and allowing critical facilities to remain operational in such events. The fuel flexibility of this technology unlocks a large portfolio of locally available fuels and the existing fuel infrastructure, which has the potential to increase the reliability of the power system and to keep more energy dollars in New York State. Fuel cells commonly provide power to host facilities during power outages, enhancing storm response, and allowing critical facilities to remain operational in such events. Fuel cells are exceptionally efficient, they can stretch available supplies of fuel, reduce energy costs and help reduce our dependence on foreign oil. The scalability and resiliency of fuel cells makes them suitable for a wide range of heat and power needs in electronics, homes, offices, and factories. In addition, this technology has a low impact on their surroundings, with near-silent operation and low emissions, making them suitable in locations where combustion systems may not be appropriate. Also, fuel cells can be used in conjunction with solar panels or wind farms to produce electricity when renewable energy is unavailable. The high capacity factors, fuel and efficiency, associated with this technology make it equal or superior to renewable technologies in the
displacement of conventional fossil generation, leading to lower air emissions, including carbon.
For these reasons, such technologies should be treated equally to renewable technologies determining the eligibility of a tax exemption for the retail sale of commercial fuel cell electric generating technologies. Qualified fuel cell electric generating expenditures would include the material and installation costs to produce energy designed to provide heating, cooling, hot water, or electricity for commercial use.
FISCAL IMPLICATIONS: None.
LEGISLATIVE HISTORY: New bill.
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 ________________________________________________________________________ 2448 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the tax law, in relation to exempting the sale and installation of commercial fuel cell electric generating equipment from state sales and compensating use tax 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 (ii) to read as follows: (II) RECEIPTS FROM THE RETAIL SALE OF COMMERCIAL FUEL CELL ELECTRIC GENERATING SYSTEMS EQUIPMENT AND OF THE SERVICE OF INSTALLING SUCH SYSTEMS SHALL BE EXEMPT FROM TAXES IMPOSED BY SECTION ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED ELEVEN OF THIS ARTICLE. FOR THE PURPOSES OF THIS SUBDIVISION, "FUEL CELL ELECTRICITY GENERATING SYSTEMS EQUIPMENT" SHALL MEAN AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED UPON NON-RE- SIDENTIAL PREMISES THAT UTILIZE A SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS. SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS PART OF A NON-FUEL CELL ENERGY SYSTEM. S 2. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by chapter 406 of the laws of 2012, 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 of 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 theEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07074-01-3 S. 2448 2
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), THE COMMERCIAL FUEL CELL ELECTRIC GENERATING EQUIPMENT EXEMPTION PROVIDED IN SUBDIVISION (II), 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, SUCH COMMERCIAL FUEL CELL ELECTRIC GENERATING EXEMPTION, or such cloth- ing and footwear exemption. S 3. Section 1210 of the tax law is amended by adding a new subdivi- sion (q) to read as follows: (Q) 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 FUEL CELL ELECTRIC GENERATING EQUIPMENT EXEMPTION FROM STATE SALES AND COMPENSATING USE TAXES DESCRIBED IN SUBDIVISION (II) 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. (2) FORM OF RESOLUTION: BE IT ENACTED BY THE (INSERT PROPER TITLE OF LOCAL LEGISLATIVE BODY) AS FOLLOWS:S. 2448 3
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 (II) 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 2013) AND SHALL APPLY TO SALES MADE, SERVICES RENDERED AND USES OCCURRING ON OR AFTER THAT DATE IN ACCORDANCE 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.