New York Solar Legislation Update

A series of bipartisan bills were signed by Governor Andrew Cuomo on August 20th aimed at supporting business and homeowner investments in solar energy.  We outline the bills below.

Bill 34-B, expands the 25% tax credit for non- 3^rd party owners, lessees, and PPA off takers. The credit does not exceed $3,750 for “qualified solar energy system equipment expenditures” before September 1^st, 2006 or $5,000 on “qualified solar energy system equipment expenditures” after September 1^st 2006. Qualified solar expenditures include:

A) Solar equipment installed on a property in the state and is the principal residence of the taxpayer at the time of install.

B) A solar equipment lease of at least 10 years in New York and is the principal residence of the taxpayer at the time of install.

C) Power purchase agreement spanning at least 10 years in New York and is the principal residence of the taxpayer at the time of install.

D) The expenditures connected with installation and labor.

E) This does not include the interest or other finance charges of solar equipment purchase.

Bill A10620 allows a property tax abatement over a “compliance period” of four years available to solar-generating systems installed in cities of one million people or more. The bill covers:

A)  Installations before January 1^st 2011 can receive a tax credit that is the lesser of:

1. 8.75% of facility cost
2. 8.75% total amount of taxes payable
3. $62,500

B) Installations on or after January 1^st 2011 and before January 1^st 2013 can receive a tax credit that is the lesser of:

1. 5% of facility cost
2. 5% total amount of taxes payable
3. $62,500

C) Installations on or after January 1^st 2013 but before or on January 1^st 2015 can receive a tax credit that is the lesser of:

1. 2.5% of facility cost
2. 2.5% total amount of taxes payable
3. $62,500

Senate Bill S03203 exempts commercial solar energy system installation costs from state sales tax obligations. Additionally Senate Bill S03203 gives municipalities the power to grant certain systems a tax exemption.

On another note, the much anticipated, “NY Solar Jobs Act” legislation, formally bill A05713 has been watered down under a renamed Assembly Bill  A09149.  This new bill, proposed by Assemblyman Steven Englebright eliminates language creating a state-wide SREC market due to push back from the New York Senate and Governor’s office. Representatives from Steven Englebright’s office, maintain “cautious optimism” that the bill will gain support when the 2013 Legislative Session begins in January. As of September 7^th,  the “Solar Jobs Act” is searching for a Senate sponsor.

Analysis of the bill can be found on VoteSolar.org here. The bill sets a solar target of 670 MW in 2015 and ramps up to 3,000 MW in 2021 but segments goals in to three separate requirements, based on type of utility. The bill allows the utilities the ability to define how they plan to achieve the solar mandate and does not specify interim solar requirements between 2015 and 2021.

Tags: A09149, A10620, Bill 34-B, S03203, SRECs, Tax Credit