Local Option - Solar, Wind & Biomass Energy Systems Exemption (New York)

This is the approved revision of this page, as well as being the most recent.
Jump to: navigation, search

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place New York

Name Local Option - Solar, Wind & Biomass Energy Systems Exemption
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Residential, Agricultural
Eligible Technologies Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Solar Pool Heating, Daylighting, Anaerobic Digestion
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% exemption for 15 years (unless local jurisdiction has opted out)




Eligible System Size Farm-waste energy systems: maximum size of 400 kW

Other eligible property: no specific limits



Start Date In-service date of before 07/01/1988 or between 01/01/1991 & 01/01/2025
Expiration Date 2025-01-01


















Website http://www.tax.ny.gov/research/property/assess/manuals/vol4/pt1/sec4_01/sec487.htm
Date added to DSIRE 2001-11-26
Last DSIRE Review 2014-09-15



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Note: In pursuant to S.B. 07026, the expiration deadline for the eligible renewable energy projects have been extended to 01/01/2025.


Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar, wind energy, and farm-waste energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted decide whether or not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option clause was added. The exemption is valid unless a government opts out of the exemption, as opposed to the more common practice of requiring governments to "opt-in" in order to offer an exemption.

As originally created, the exemption was limited to solar and wind energy systems, but in September 2002, it was expanded (S.B 6592) to include farm-waste energy systems. These are defined as systems and related equipment that generate electric energy from biogas produced by the anaerobic digestion of agricultural waste -- such as livestock manure, farming waste and food processing wastes. The maximum rated system capacity for eligible farm-waste energy systems is 400 kilowatts (kW) and systems must be connected to the electric grid and operated in accordance with the state's net metering law (Public Service Law 66-j) in order to qualify. S.B. 5966A enacted in July 2006 extended the previous December 31, 2006 in-service deadline to December 31, 2010, and A.B. 10875 enacted in August 2010 extended the deadline until December 31, 2014. S.B 07062 further extended the deadline to January 1st, 2025.

The exemption applies to systems that are (a) existing or constructed prior to July 1, 1988 (mandatory), or (b) constructed subsequent to January 1, 1991, and prior to January 1, 2025 (local option). The law intends to encourage the installation of solar, wind and farm-waste energy equipment systems and to ensure property owners that their real property taxes will not increase as a result of the installation of these systems. The amount of the exemption is equal to the increase in assessed value attributable to the solar, wind or farm-waste energy system. The definition of solar includes passive solar heating systems such as mass wall and direct gain systems. In the case of solar pool heating, solar energy collection, control, and distribution equipment is eligible; however, the pool itself does not qualify as a storage medium or otherwise. The exemption applies only to general municipal and school district taxes; it cannot be applied to special assessments or special ad valorem levies.

With respect to systems constructed after January 1, 1991, and before January 1, 2025, each county, city, town, village and school district (except the city school districts of New York, Buffalo, Rochester, Syracuse and Yonkers) may choose whether to disallow the exemption. The option must be exercised by counties, cities, towns and villages through adoption of a local law and by school districts through adoption of a resolution. Click here for a list of local bodies that have opted not to offer the exemption. Alternately, a local government that has not opted out of the exemption is permitted to require the property owner to enter into a contract for payments in lieu of taxes, not to exceed the amount payable without the exemption.

Eligibility definitions and guidelines solar, wind-energy, and farm waste energy equipment have been issued by the New York State Research and Development Authority (NYSERDA) and are available above or on the program website.


Incentive Contact

Contact Name Public Information Officer
Department Office of Real Property Tax Services

Address WA Harriman State Campus

Place Albany, New York
Zip/Postal Code 12227
Phone (518) 591-5232


Email orpts.mail@tax.ny.gov
Website http://www.tax.ny.gov/about/orpts/regions.htm
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: NYCL Real Property Tax § 487
Date Effective Before 07/01/1988 or between 01/01/1991 & 12/31/2014
Date Enacted 1977 (subsequently amended)
Expiration Date 12/31/2014 (as amended)

Authority 2: Exemption Handbook

Date Enacted 11/06/2009 (most recent version)


Authority 3: S.B. 07026
Date Effective 2014-09-04
Date Enacted 2014-09-04
Expiration Date 2025-01-01
















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"