BILL NUMBER: S4272
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to providing for
a direct-pay tax abatement credit for solar electric generating systems
and electric energy storage systems in connection with eligible build-
ings
 
PURPOSE OR GENERAL IDEA OF BILL:
To provide for a tax credit for the installation of solar electric
generating systems and electric storage for New York City non-profit
owned and/or income restricted affordable housing properties.
 
SUMMARY OF PROVISIONS:
Section 1 provides that properties that are owned by 501(c)(3) organiza-
tions, housing developments incorporated under article two, four, five,
or eleven of the private housing finance law, and properties that are
income restricted affordable housing properties shall be eligible for a
direct-pay credit equivalent to the tax abatement for solar electric
generating systems and electric energy storage equipment available to
other properties in New York City. The terms of such abatements are the
lesser of thirty percent of expenditures or $250,000 taken in equal
increments annually over a four-year period. The direct-pay credit for
eligible properties will be distributed through a check issued by the
New York City Department of Finance.
Section 2 provides that the provisions of the real property tax law
pertaining to the administration of the solar and electric storage
systems abatement also pertain to the direct-pay credit including that
properties are eligible for the benefit prior to January 1, 2036.
Section 3 sets the effective date as "effective immediately."
 
JUSTIFICATION:
In June 2023 the legislature passed and in September 2023 the Governor
signed into law bill A6113B, which extended and strengthened the exist-
ing incentive programs to encourage the installation of solar electric
generating systems and energy storage systems, in connection with class
one, class two and class four properties in New York City. The program
while enabled by the State is administered and paid for by the City.
This bill would allow not-for-profit owned properties such as houses of
worship and various affordable housing properties in New York City that
already pay no or reduced property taxes to benefit from a direct-pay
credit structured in accordance with the property-tax abatement avail-
able to other properties. This legislation is consistent with the
commitments of New York State in the Climate Leadership and Community
Protection Act (CLCPA) and the City of New York through Local Law 97 to
reduce greenhouse gas emission reduction and to provide cleaner, more
reliable power for every New Yorker. By enabling properties that provide
affordable housing including low-income housing to be eligible for the
same benefit as other properties this legislation will also help meet
environmental justice and equity goals.
 
PRIOR LEGISLATIVE HISTORY:
2024: A8355 (Carroll) - referred to real property taxation
2023: A8355 (Carroll) - referred to real property taxation
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S4272: 499-bbbb real property tax law