STATE OF NEW YORK
________________________________________________________________________
5252
2005-2006 Regular Sessions
IN SENATE
April 28, 2005
___________
Introduced by Sen. JOHNSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to establishing a solar energy
system personal income tax credit
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Subsection (g-1) of section 606 of the tax law, as added
2 by chapter 399 of the laws of 1997, paragraph 1 and subparagraph (B) of
3 paragraph 2 as amended by chapter 467 of the laws of 1998, is amended to
4 read as follows:
5 (g-1) Solar [electric generating] energy system equipment credit. (1)
6 General. An individual taxpayer shall be allowed a credit against the
7 tax imposed by this article equal to twenty-five percent of qualified
8 solar [electric generating] energy system equipment expenditures. This
9 credit shall not exceed three thousand seven hundred fifty dollars for
10 qualified solar energy equipment placed in service before September
11 first, two thousand six, and five thousand dollars for qualified solar
12 energy equipment placed in service on or after September first, two
13 thousand six.
14 (2) Qualified solar [electric generating] energy system equipment
15 expenditures. (A) The term "qualified solar [electric generating] energy
16 system equipment expenditures" means expenditures[, limited to the
17 expenditure cap prescribed below,] for the purchase of solar [electric
18 generating] energy system equipment which is installed in connection
19 with residential property which is (i) located in this state and (ii)
20 which is used by the taxpayer as his or her principal residence at the
21 time the solar [electric generating] energy system equipment is placed
22 in service.
23 (B) [For purposes of the preceding subparagraph, the term "expenditure
24 cap" shall mean the product of (i) six dollars and (ii) the number of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11460-01-5
S. 5252 2
1 watts included in the rated capacity of the solar electric generating
2 equipment.
3 (C)] Such qualified expenditures shall include expenditures for mate-
4 rials, labor costs properly allocable to on-site preparation, assembly
5 and original installation, architectural and engineering services, and
6 designs and plans directly related to the construction or installation
7 of the solar electric generating equipment.
8 [(D)] (C) Such qualified expenditures shall not include interest or
9 other finance charges.
10 (3) Solar [electric generating] energy system equipment. [The term
11 "solar electric generating equipment" shall mean equipment which, when
12 installed at a residence, uses solar energy for the purpose of generat-
13 ing electricity for use in such residence, and which conforms to appli-
14 cable requirements set forth in section sixty-six-j of the public
15 service law.] The term "solar energy system equipment" shall mean an
16 arrangement or combination of components utilizing solar radiation,
17 which, when installed in a residence, produces energy designed to
18 provide heating, cooling, hot water or electricity for use in such resi-
19 dence. Such arrangement or components shall not include equipment
20 connected to solar energy system equipment that is a component of part
21 or parts of a non-solar energy system or which uses any sort of recre-
22 ational facility or equipment as a storage medium. Solar energy system
23 equipment that generates electricity for use in a residence must conform
24 to applicable requirements set forth in section sixty-six-j of the
25 public service law.
26 (4) Multiple taxpayers. Where solar [electric generating] energy
27 system equipment is purchased and installed in a principal residence
28 shared by two or more taxpayers, the amount of the credit allowable
29 under this subsection for each such taxpayer shall be prorated according
30 to the percentage of the total expenditure for such solar [electric
31 generating] energy system equipment contributed by each taxpayer.
32 (5) Grants. For purposes of determining the amount of the expenditure
33 incurred in purchasing and installing solar [electric generating] energy
34 system equipment, the amount of any federal, state or local grant
35 received by the taxpayer, which was used for the purchase and/or instal-
36 lation of such equipment and which was not included in the federal gross
37 income of the taxpayer, shall not be included in the amount of such
38 expenditures.
39 (6) When credit allowed. The credit provided for herein shall be
40 allowed with respect to the taxable year, commencing after nineteen
41 hundred ninety-seven, in which the solar [electric generating] energy
42 system equipment is placed in service.
43 (7) Carryover of credit. If the amount of the credit, and carryovers
44 of such credit, allowable under this subsection for any taxable year
45 shall exceed the taxpayer's tax for such year, such excess amount may be
46 carried over to the five taxable years next following the taxable year
47 with respect to which the credit is allowed and may be deducted from the
48 taxpayer's tax for such year or years.
49 § 2. This act shall take effect immediately and shall apply to taxable
50 years commencing on and after January 1, 2006.