STATE OF NEW YORK ________________________________________________________________________ 1373--A 2025-2026 Regular Sessions IN ASSEMBLY January 9, 2025 ___________ Introduced by M. of A. WALKER, BURDICK, DINOWITZ, STERN, SHRESTHA, GONZALEZ-ROJAS, DAVILA, EPSTEIN, R. CARROLL, CUNNINGHAM, KELLES, ROSENTHAL, BARRETT, SIMON, K. BROWN, COLTON, DeSTEFANO, BENDETT, SLATER, MAMDANI -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to residential solar tax cred- its 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 amended 2 by chapter 378 of the laws of 2005, paragraphs 1 and 2 as amended by 3 chapter 375 of the laws of 2012, paragraph 3 as amended, paragraph 5 as 4 added, and paragraphs 6, 7 and 8 as renumbered by chapter 128 of the 5 laws of 2007, is amended to read as follows: 6 (g-1) Solar energy system equipment credit. (1) General. An individual 7 taxpayer shall be allowed a credit against the tax imposed by this arti- 8 cle equal to twenty-six percent of qualified solar energy system equip- 9 ment expenditures, except as provided in subparagraph (D) of paragraph 10 two of this subsection. This credit shall not exceed three thousand 11 seven hundred fifty dollars for qualified solar energy equipment placed 12 in service before September first, two thousand six, [and] five thousand 13 dollars for qualified solar energy equipment placed in service on or 14 after September first, two thousand six and before January first, two 15 thousand twenty-six, and ten thousand dollars for qualified solar energy 16 equipment placed in service on or after January first, two thousand 17 twenty-six. 18 (2) Qualified solar energy system equipment expenditures. (A) The term 19 "qualified solar energy system equipment expenditures" means expendi- 20 tures for: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00075-03-5
A. 1373--A 2 1 (i) the purchase of solar energy system equipment which is installed 2 in connection with residential property which is (I) located in this 3 state and (II) which is used by the taxpayer as [his or her] their prin- 4 cipal residence at the time the solar energy system equipment is placed 5 in service; 6 (ii) the lease of solar energy system equipment under a written agree- 7 ment that spans at least ten years where such equipment owned by a 8 person other than the taxpayer is installed in connection with residen- 9 tial property which is (I) located in this state and (II) which is used 10 by the taxpayer as [his or her] their principal residence at the time 11 the solar energy system equipment is placed in service; or 12 (iii) the purchase of power under a written agreement that spans at 13 least ten years whereunder the power purchased is generated by solar 14 energy system equipment owned by a person other than the taxpayer which 15 is installed in connection with residential property which is (I) 16 located in this state and (II) which is used by the taxpayer as [his or 17 her] their principal residence at the time the solar energy system 18 equipment is placed in service. 19 (B) Such qualified expenditures shall include expenditures for materi- 20 als, labor costs properly allocable to on-site preparation, assembly and 21 original installation, architectural and engineering services, and 22 designs and plans directly related to the construction or installation 23 of the solar energy system equipment. 24 (C) Such qualified expenditures for the purchase of solar energy 25 system equipment shall not include interest or other finance charges. 26 (D) Such qualified expenditures for the lease of solar energy system 27 equipment or the purchase of power under an agreement described in 28 clauses (ii) or (iii) of subparagraph (A) of this paragraph shall 29 include an amount equal to all payments made during the taxable year 30 under such agreement. Provided, however, such credits shall only be 31 allowed for fourteen years after the first taxable year in which such 32 credit is allowed. Provided further, however, the twenty-five percent 33 limitation in paragraph one of this subsection shall only apply to the 34 total aggregate amount of all payments to be made pursuant to an agree- 35 ment referenced in clauses (ii) or (iii) of subparagraph (A) of this 36 paragraph, and shall not apply to individual payments made during a 37 taxable year under such agreement except to the extent such limitation 38 on an aggregate basis has been reached. 39 (3) Solar energy system equipment. The term "solar energy system 40 equipment" shall mean an arrangement or combination of components 41 utilizing solar radiation, which, when installed in a residence, produc- 42 es and may store energy designed to provide heating, cooling, hot water 43 or electricity for use in such residence. Such arrangement or components 44 may include electric energy storage equipment but shall not include any 45 other equipment connected to solar energy system equipment that is a 46 component of part or parts of a non-solar energy system or which uses 47 any sort of recreational facility or equipment as a storage medium. 48 Solar energy system equipment that generates and stores electricity for 49 use in a residence must conform to applicable requirements set forth in 50 section sixty-six-j of the public service law. Provided, however, where 51 solar energy system equipment is purchased and installed by a condomin- 52 ium management association or a cooperative housing corporation, for 53 purposes of this subsection only, the term "ten kilowatts" in such 54 section sixty-six-j shall be read as ["fifty] "ten kilowatts multiplied 55 by the number of owner-occupied units in the cooperative or condominium 56 management association."
A. 1373--A 3 1 (4) Multiple taxpayers. Where solar energy system equipment is 2 purchased and installed in a principal residence shared by two or more 3 taxpayers, the amount of the credit allowable under this subsection for 4 each such taxpayer shall be prorated according to the percentage of the 5 total expenditure for such solar energy system equipment contributed by 6 each taxpayer. 7 (5) Proportionate share. Where solar energy system equipment is 8 purchased and installed by a condominium management association or a 9 cooperative housing corporation, a taxpayer who is a member of the 10 condominium management association or who is a tenant-stockholder in the 11 cooperative housing corporation may for the purpose of this subsection 12 claim a proportionate share of the total expense as the expenditure for 13 the purposes of the credit attributable to [his] their principal resi- 14 dence. 15 (6) Grants. For purposes of determining the amount of the expenditure 16 incurred in purchasing and installing solar energy system equipment, the 17 amount of any federal, state or local grant received by the taxpayer, 18 which was used for the purchase and/or installation of such equipment 19 and which was not included in the federal gross income of the taxpayer, 20 shall not be included in the amount of such expenditures. 21 (7) When credit allowed. The credit provided for herein shall be 22 allowed with respect to the taxable year, commencing after nineteen 23 hundred ninety-seven, in which the solar energy system equipment is 24 placed in service. 25 (8) Carryover of credit and refundability. If the amount of the cred- 26 it, and carryovers of such credit, allowable under this subsection for 27 any taxable year shall exceed the taxpayer's tax for such year, such 28 excess amount may be carried over to the five taxable years next follow- 29 ing the taxable year with respect to which the credit is allowed and may 30 be deducted from the taxpayer's tax for such year or years. For taxable 31 years beginning on or after January first, two thousand twenty-six, if 32 the amount of the credit allowable under this subsection shall exceed 33 the taxpayer's tax liability for such year, and the taxpayer meets the 34 definition of low to moderate income, as defined in subdivision (c) of 35 section nine hundred seventy-c of the general municipal law, or resides 36 in a disadvantaged community, as defined in subdivision five of section 37 75-0101 of the environmental conservation law, the excess shall be 38 treated as an overpayment of tax to be credited or refunded in accord- 39 ance with the provisions of section six hundred eighty-six of this arti- 40 cle, provided, however, that no interest shall be paid thereon. 41 § 2. This act shall take effect immediately.