BILL NUMBER: S3353
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the tax law, in relation to providing an exemption for
geothermal heat pump systems equipment
 
PURPOSE OR GENERAL IDEA OF BILL:
To encourage geothermal energy use in New York State by eliminating
sales tax on the equipment and installation of geothermal systems in,
residential and commercial buildings and to allow for local election to
suspend the sales tax.
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill would amend section 1115 of the tax law by adding a new subdi-
vision, eliminating sales and use tax for the purchase and installation
of residential geothermal systems and a new subdivision mm, eliminating
sales and use tax for the purchase and installation of commercial geoth-
ermal systems.
Section 1210 and 1224 of the tax law is amended to allow for local muni-
cipalities to suspend the sales tax for geothermal purchases.
 
JUSTIFICATION:
Geothermal energy, a renewable energy source, is a reliable and effec-
tive way to reduce the need for carbon based energy sources. By elimi-
nating sales and use tax for both the purchase and installation of
geothermal systems, more New York State residents would be able to
afford this energy course. Similar laws exist to exempt sales and use
tax for the purchase and installation of solar equipment.
 
PRIOR LEGISLATIVE HISTORY:
2022 REPORTED FROM BUDGET AND REVENUE AND COMMITTED TO SENATE FINANCE
2022 referred to ways and means
2021 REPORTED FROM BUDGET AND REVENUE AND COMMITTED TO SENATE FINANCE
2021 referred to ways and means
2020 REFERRED TO SENATE RULES
2019 REFERRED TO SENATE ENERGY AND TELECOMMUNICATIONS
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period, as described in subdivision (b) of section 1136 of-the tax law,
beginning at least ninety days after the date this act shall have become
a law and shall apply to sales made on or after such date; provided that
sections four and six of this act shall take effect on the same date and
in the same manner as part J of chapter 59 of the laws of 2021 takes
effect.

Statutes affected:
S3353: 1115 tax law, 1210 tax law, 1212 tax law, 1224 tax law