Bill Text: NY A09803 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes a tax credit for the purchase and installation of geothermal energy systems.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-02-13 - referred to ways and means [A09803 Detail]
Download: New_York-2019-A09803-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9803 IN ASSEMBLY February 13, 2020 ___________ Introduced by M. of A. RYAN, CARROLL -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a credit for geothermal energy systems The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (g-3) to read as follows: 3 (g-3) Geothermal energy systems credit. (1) General. An individual 4 taxpayer shall be allowed a credit against the tax imposed by this arti- 5 cle equal to twenty-five percent of qualified geothermal energy system 6 expenditures, except as provided in subparagraph (D) of paragraph two of 7 this subsection. This credit shall not exceed five thousand dollars for 8 a qualified geothermal energy system placed in service on or after 9 September first, two thousand twenty. 10 (2) Qualified geothermal energy systems expenditures. (A) The term 11 "qualified geothermal energy system expenditures" means expenditures 12 for: 13 (i) the purchase of geothermal energy system equipment which is 14 installed in connection with residential property which is (I) located 15 in this state and (II) which is used by the taxpayer as his or her prin- 16 cipal residence at the time the geothermal energy system equipment is 17 placed in service; 18 (ii) the lease of geothermal energy system equipment under a written 19 agreement that spans at least ten years where such equipment owned by a 20 person other than the taxpayer is installed in connection with residen- 21 tial property which is (I) located in this state and (II) which is used 22 by the taxpayer as his or her principal residence at the time the geoth- 23 ermal energy system equipment is placed in service; or 24 (iii) the purchase of power under a written agreement that spans at 25 least ten years whereunder the power purchased is generated by geother- 26 mal energy system equipment owned by a person other than the taxpayer 27 which is installed in connection with residential property which is (I) 28 located in this state and (II) used by the taxpayer as his or her prin- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05723-03-0A. 9803 2 1 cipal residence at the time the geothermal energy system equipment is 2 placed in service. 3 (B) Such qualified expenditures shall include expenditures for materi- 4 als, labor costs properly allocable to on-site preparation, assembly and 5 original installation, architectural and engineering services, and 6 designs and plans directly related to the construction or installation 7 of the geothermal energy system equipment. 8 (C) Such qualified expenditures for the purchase of geothermal energy 9 system equipment shall not include interest or other finance charges. 10 (D) Such qualified expenditures for the lease of geothermal energy 11 system equipment or the purchase of power under an agreement described 12 in clause (ii) or (iii) of subparagraph (A) of this paragraph shall 13 include an amount equal to all payments made during the taxable year 14 under such agreement. Provided, however, such credits shall only be 15 allowed for fourteen years after the first taxable year in which such 16 credit is allowed. Provided further, however, the twenty-five percent 17 limitation in paragraph one of this subsection shall only apply to the 18 total aggregate amount of all payments to be made pursuant to an agree- 19 ment referenced in clause (ii) or (iii) of subparagraph (A) of this 20 paragraph, and shall not apply to individual payments made during a 21 taxable year under such agreement except to the extent such limitation 22 on an aggregate basis has been reached. 23 (3) Geothermal energy system equipment. The term "geothermal energy 24 system equipment" shall mean a system whose original use begins with the 25 taxpayer; which meets the eligibility criteria, if any, prescribed by 26 the department; and which is a ground coupled solar thermal system that 27 utilizes the solar thermal energy stored in the ground or in bodies of 28 water to produce heat, and which is commonly known as or referred to as 29 a ground source heat pump system. 30 (4) Multiple taxpayers. Where geothermal energy system equipment is 31 purchased and installed in a principal residence shared by two or more 32 taxpayers, the amount of the credit allowable under this subsection for 33 each such taxpayer shall be prorated according to the percentage of the 34 total expenditure for such geothermal energy system equipment contrib- 35 uted by each taxpayer. 36 (5) Proportionate share. Where geothermal energy system equipment is 37 purchased and installed by a condominium management association or a 38 cooperative housing corporation, a taxpayer who is a member of the 39 condominium management association or who is a tenant-stockholder in the 40 cooperative housing corporation may for the purpose of this subsection 41 claim a proportionate share of the total expense as the expenditure for 42 the purposes of the credit attributable to his principal residence. 43 (6) Grants. For purposes of determining the amount of the expenditure 44 incurred in purchasing and installing geothermal energy system equip- 45 ment, the amount of any federal, state or local grant received by the 46 taxpayer, which was used for the purchase and/or installation of such 47 equipment and which was not included in the federal gross income of the 48 taxpayer, shall not be included in the amount of such expenditures. 49 (7) When credit allowed. The credit provided for herein shall be 50 allowed with respect to the taxable year, commencing after two thousand 51 twenty-one, in which the geothermal energy system equipment is placed in 52 service. 53 (8) Carryover of credit. If the amount of the credit, and carryovers 54 of such credit, allowable under this subsection for any taxable year 55 shall exceed the taxpayer's tax for such year, such excess amount may be 56 carried over to the five taxable years next following the taxable yearA. 9803 3 1 with respect to which the credit is allowed and may be deducted from the 2 taxpayer's tax for such year or years. 3 § 2. This act shall take effect immediately and shall apply to taxable 4 years commencing on and after January 1, 2021.
