S T A T E O F N E W Y O R K
________________________________________________________________________
S. 3465 A. 4961
2015-2016 Regular Sessions
S E N A T E - A S S E M B L Y
February 10, 2015
___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Local Govern-
ment
IN ASSEMBLY -- Introduced by M. of A. THIELE, GOTTFRIED -- read once and
referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to increasing the
value of the exemption for certain renewable energy systems or farm
waste energy systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 487 of the real property tax law, as amended by
chapter 515 of the laws of 2002, paragraph (e) of subdivision 1 as
amended by chapter 272 of the laws of 2013, subdivisions 5 and 8 and
paragraph (a) of subdivision 9 as amended by chapter 344 of the laws of
2014, subdivision 6 as further amended by subdivision (b) of section 1
of part W of chapter 56 of the laws of 2010 and subdivision 9 as added
by chapter 608 of the laws of 2002, is amended to read as follows:
S 487. Exemption from taxation for certain [solar or wind] RENEWABLE
energy systems or farm waste energy systems. 1. As used in this section:
(a) "[Solar or wind] RENEWABLE energy equipment" means collectors,
controls, energy storage devices, heat pumps and pumps, heat exchangers,
windmills, and other materials, hardware or equipment necessary to the
process by which solar radiation, GEOTHERMAL ENERGY or wind is (i)
collected, (ii) converted into another form of energy such as thermal,
electrical, mechanical or chemical, (iii) stored, (iv) protected from
unnecessary dissipation and (v) distributed. It does not include pipes,
controls, insulation or other equipment which are part of the normal
heating, cooling, or insulation system of a building. It does include
insulated glazing or insulation to the extent that such materials exceed
the energy efficiency standards required by law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08434-02-5
S. 3465 2 A. 4961
(b) "[Solar or wind] RENEWABLE energy system" means an arrangement or
combination of solar or wind energy equipment designed to provide heat-
ing, cooling, hot water, or mechanical, chemical, or electrical energy
by the collection of solar, GEOTHERMAL ENERGY or wind energy and its
conversion, storage, protection and distribution.
(c) "Authority" means the New York state energy research and develop-
ment authority.
(d) ["Incremental cost" means the increased cost of a solar or wind
energy system or farm waste energy system or component thereof which
also serves as part of the building structure, above that for similar
conventional construction, which enables its use as a solar or wind
energy or farm waste energy system or component.
(e)] "Farm waste electric generating equipment" means equipment that
generates electric energy from biogas produced by the anaerobic
digestion of agricultural waste, such as livestock manure, farming waste
and food processing wastes with a rated capacity of not more than one
thousand kilowatts that is (i) manufactured, installed and operated in
accordance with applicable government and industry standards, (ii)
connected to the electric system and operated in conjunction with an
electric corporation's transmission and distribution facilities, (iii)
operated in compliance with the provisions of section sixty-six-j of the
public service law, (iv) fueled at a minimum of ninety percent on an
annual basis by biogas produced from the anaerobic digestion of agricul-
tural waste such as livestock manure materials, crop residues and food
processing wastes, and (v) fueled by biogas generated by anaerobic
digestion with at least fifty percent by weight of its feedstock being
livestock manure materials on an annual basis.
[(f)] (E) "Farm waste energy system" means an arrangement or combina-
tion of farm waste electric generating equipment or other materials,
hardware or equipment necessary to the process by which agricultural
waste biogas is produced, collected, stored, cleaned, and converted into
forms of energy such as thermal, electrical, mechanical or chemical and
by which the biogas and converted energy are distributed on-site. It
does not include pipes, controls, insulation or other equipment which
are part of the normal heating, cooling or insulation system of a build-
ing.
2. Real property which includes a [solar or wind] RENEWABLE energy
system or farm waste energy system approved in accordance with the
provisions of this section shall be exempt from taxation to the extent
of any increase in the value thereof by reason of the inclusion of such
[solar or wind] RENEWABLE energy system or farm waste energy system for
a period of fifteen years. When a [solar or wind] RENEWABLE energy
system or components thereof or farm waste energy system also serve as
part of the building structure, the [increase in value which] TOTAL COST
OF THE SYSTEM shall be exempt from taxation [shall be equal to the
assessed value attributable to such system or components multiplied by
the ratio of the incremental cost of such system or components to the
total cost of such system or components]. THE EXEMPTION SHALL BE EQUAL
TO THE TOTAL COST OF THE SYSTEM. SUCH EXEMPTION SHALL BE SUBTRACTED FROM
THE TOTAL ASSESSED VALUE OF THE REAL PROPERTY. THE TOTAL EXEMPTION IN
NO CASE SHALL EXCEED FIFTY THOUSAND DOLLARS. WHERE THE MUNICIPALITY DOES
NOT TAX AT FULL VALUE, SUCH EXEMPTION SHALL BE PRO-RATED BASED UPON THE
APPLICABLE EQUALIZATION RATE.
3. The president of the authority shall provide definitions and guide-
lines for the eligibility for exemption of the [solar and wind] RENEWA-
BLE energy equipment and systems and farm waste energy equipment and
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systems described in paragraphs (a) and (b) of subdivision one of this
section.
4. No [solar or wind] RENEWABLE energy system or farm waste energy
system shall be entitled to any exemption from taxation under this
section unless such system meets the guidelines set by the president of
the authority and all other applicable provisions of law.
5. The exemption granted pursuant to this section shall only be appli-
cable to [solar or wind] RENEWABLE energy systems or farm waste energy
systems which are (a) existing or constructed prior to July first, nine-
teen hundred eighty-eight or (b) constructed subsequent to January
first, nineteen hundred ninety-one and prior to January first, two thou-
sand twenty-five.
6. Such exemption shall be granted only upon application by the owner
of the real property on a form prescribed and made available by the
commissioner in cooperation with the authority. The applicant shall
furnish such information as the commissioner shall require. The applica-
tion shall be filed with the assessor of the appropriate county, city,
town or village on or before the taxable status date of such county,
city, town or village. A copy of such application shall be filed with
the authority.
7. If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the applica-
tion and enter the taxable assessed value of the parcel for which an
exemption has been granted pursuant to this section on the assessment
roll with the taxable property, with the amount of the exemption as
computed pursuant to subdivision two of this section in a separate
column. In the event that real property granted an exemption pursuant to
this section ceases to be used primarily for eligible purposes, the
exemption granted pursuant to this section shall cease.
8. (a) Notwithstanding the provisions of subdivision two of this
section, a county, city, town or village may by local law or a school
district, other than a school district to which article fifty-two of the
education law applies, may by resolution provide that no exemption under
this section shall be applicable within its jurisdiction with respect to
any [solar or wind] RENEWABLE energy system or farm waste energy system
which began construction subsequent to January first, nineteen hundred
ninety-one or the effective date of such local law, ordinance or resol-
ution, whichever is later. A copy of any such local law or resolution
shall be filed with the commissioner and with the president of the
authority.
(b) Construction of a [solar or wind] RENEWABLE energy system or a
farm waste energy system shall be deemed to have begun upon the full
execution of a contract or interconnection agreement with a utility;
provided however, that if such contract or interconnection agreement
requires a deposit to be made, then construction shall be deemed to have
begun when the contract or interconnection agreement is fully executed
and the deposit is made. The owner or developer of such a system shall
provide written notification to the appropriate local jurisdiction or
jurisdictions upon execution of the contract or the interconnection
agreement.
9. (a) A county, city, town, village or school district, except a
school district under article fifty-two of the education law, that has
not acted to remove the exemption under this section may require the
owner of a property which includes a [solar or wind] RENEWABLE energy
system which meets the requirements of subdivision four of this section,
to enter into a contract for payments in lieu of taxes. Such contract
S. 3465 4 A. 4961
may require annual payments in an amount not to exceed the amounts which
would otherwise be payable but for the exemption under this section. If
the owner or developer of such a system provides written notification to
a taxing jurisdiction of its intent to construct such a system, then in
order to require the owner or developer of such system to enter into a
contract for payments in lieu of taxes, such taxing jurisdiction must
notify such owner or developer of its intent to require a contract for
payments in lieu of taxes within sixty days of receiving the written
notification.
(b) The payment in lieu of a tax agreement shall not operate for a
period of more than fifteen years, commencing in each instance from the
date on which the benefits of such exemption first become available and
effective.
S 2. This act shall take effect immediately.