NY Real Prop Tax L § 487 (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 487 - Exemption From Taxation for Certain Energy Systems.

§ 487. Exemption from taxation for certain energy systems.  1. As used in this section:  (a)  "Solar  or  wind  energy  equipment"  means collectors, controls, energy  storage  devices,  heat  pumps  and  pumps,   heat   exchangers, windmills,  and  other materials, hardware or equipment necessary to the process by  which  solar  radiation  or  wind  is  (i)  collected,  (ii) converted  into  another  form  of  energy  such as thermal, electrical, mechanical or chemical, (iii) stored, (iv)  protected  from  unnecessary dissipation  and  (v)  distributed. It does not include pipes, controls, insulation or other equipment which are  part  of  the  normal  heating, cooling,  or  insulation system of a building. It does include insulated glazing or insulation to the  extent  that  such  materials  exceed  the energy efficiency standards required by law.  (b)  "Solar or wind energy system" means an arrangement or combination of solar or wind energy equipment designed to provide heating,  cooling, hot  water,  or  mechanical,  chemical,  or  electrical  energy  by  the collection  of  solar  or  wind  energy  and  its  conversion,  storage, protection and distribution.  (c)   "Authority"  means  the  New  York  state  energy  research  and development authority.  (d) "Incremental cost" means the increased cost of  a  solar  or  wind energy  system  or  farm  waste energy system or component thereof which also serves as part of the building structure, above  that  for  similar conventional  construction,  which  enables  its  use as a solar or wind energy or farm waste energy system or component.  (e) "Farm waste electric generating equipment"  means  equipment  that generates   electric  energy  from  biogas  produced  by  the  anaerobic digestion of agricultural waste, such as livestock manure, farming waste and food processing wastes with a rated capacity of not  more  than  one thousand  kilowatts  that is (i) manufactured, installed and operated in accordance with  applicable  government  and  industry  standards,  (ii) connected  to  the  electric  system and operated in conjunction with an electric corporation's transmission and distribution  facilities,  (iii) operated in compliance with the provisions of section sixty-six-j of the public  service  law,  (iv)  fueled at a minimum of ninety percent on an annual  basis  by  biogas  produced  from  the  anaerobic  digestion  of agricultural waste such as livestock manure materials, crop residues and food  processing wastes, and (v) fueled by biogas generated by anaerobic digestion with at least fifty percent by weight of its  feedstock  being livestock manure materials on an annual basis.  (f)  "Farm waste energy system" means an arrangement or combination of farm waste electric generating equipment or other materials, hardware or equipment necessary to the process by which agricultural waste biogas is produced, collected, stored, cleaned, and converted into forms of energy such as thermal, electrical, mechanical or chemical  and  by  which  the biogas and converted energy are distributed on-site. It does not include pipes,  controls,  insulation  or  other equipment which are part of the normal heating, cooling or insulation system of a building.  (g) "Micro-hydroelectric energy equipment" means  any  energy  storage device,  penstock,  turbine, generator and other materials, hardware and equipment necessary to the process by which the flow of stream or  river water  or water from other water bodies is (i) converted into electrical energy;  (ii)  protected  from  unnecessary   dissipation;   and   (iii) distributed.  It  does  not include pipes, controls, insulation or other equipment which are part of the normal heating, cooling,  or  insulation system  of  a  building.  It  does  not  include  insulated  glazing  or insulation  to  the  extent  that  such  materials  exceed  the   energy efficiency standards established by law.  (h)  "Micro-hydroelectric  energy  system"  means  an  arrangement  or combination of micro-hydroelectric energy equipment designed to  provide electrical  energy  by  the  use  of  flowing water. It does not include pipes, controls, insulation or other equipment which  are  part  of  the normal heating, cooling, or insulation system of a building. It does not include  insulated  glazing  or  insulation  to  the  extent  that  such materials exceed the energy efficiency standards established by law.  (i) "Fuel cell electric generating equipment"  means  a  solid  oxide, molten  carbonate, proton exchange membrane or phosphoric acid fuel cell with a combined rated capacity of not more than two thousand  kilowatts. It  does  not include insulated glazing or insulation to the extent that such materials exceed the energy  efficiency  standards  established  by law.  (j)  "Fuel  cell  electric  generating system" means an arrangement or combination of equipment designed to produce electrical  energy  through reaction  of  chemicals,  including but not limited to hydrogen, oxygen, methane and natural gas.  (k) "Micro-combined heat and  power  generating  equipment"  means  an integrated,   cogenerating   building   heating   and  electrical  power generation system, owned, leased or operated by a residential  customer, located  at  such  customer's premises, operating on any fuel and of any applicable engine, fuel cell, fuel-flexible linear  generator  or  other technology  with  a rated capacity of at least one kilowatt and not more than ten kilowatts electric and any thermal output  that  has  a  design total  fuel  use efficiency in the production of heat and electricity of not less than  eighty  percent,  and  annually  produces  at  least  two thousand kilowatt hours of useful energy in the form of electricity that may  work  in  combination  with  supplemental  or parallel conventional heating  systems,  that  is  manufactured,  installed  and  operated  in accordance  with  applicable  government and industry standards, that is connected to the electric system and operated  in  conjunction  with  an electric corporation's transmission and distribution facilities. It does not  include  pipes,  controls,  insulation or other equipment which are part of the normal heating, cooling, or insulation system of a building. It does not include insulated glazing or insulation to the  extent  that such  materials  exceed  the  energy efficiency standards established by law.  (l) "Micro-combined heat and power generating equipment system"  means an   arrangement   or  combination  of  equipment  designed  to  produce electrical energy and heat for a residential customer on such customer's premises.  (m) "Electric energy storage equipment" means a  set  of  technologies capable of storing electric energy and releasing that energy as electric power  at  a  later time. Electric energy storage technologies may store energy as potential, kinetic, chemical or thermal energy,  that  can  be released  as electric power and include, but are not limited to, various types of batteries, flywheels,  electrochemical  capacitors,  compressed air storage and thermal storage devices.  (n)   "Electric   energy  storage  system"  means  an  arrangement  or combination of equipment designed to store electrical energy in electric energy storage equipment and release electric power at a later time.  (o) "Fuel-flexible linear generator electric generating equipment"  or "fuel-flexible  linear  generator" means an integrated system consisting of  oscillators,  cylinders,  electricity   conversion   equipment   and associated  balance of plant components that directly convert the linear motion of the oscillators into electricity  and  which  has  a  combined rated capacity of not more than two thousand kilowatts.  (p)  "Fuel-flexible linear generator electric generating system" means an arrangement or combination of fuel-flexible linear generator electric generating equipment designed to produce electrical energy  from  linear motion created by the reaction of gaseous or liquid fuels, including but not limited to biogas and natural gas.   2.  Real  property  which includes a solar or wind energy system, farm waste  energy  system,  micro-hydroelectric  energy  system,  fuel  cell electric  generating  system,  micro-combined  heat and power generating equipment system, electric energy storage equipment and electric  energy storage  system,  or  fuel-flexible linear generator electric generating system approved in accordance with the provisions of this section  shall be  exempt  from  taxation  to  the  extent of any increase in the value thereof by reason of the inclusion of such solar or wind energy  system, farm  waste  energy system, micro-hydroelectric energy system, fuel cell electric generating system, micro-combined  heat  and  power  generating equipment  system, electric energy storage equipment and electric energy storage system, or fuel-flexible linear generator electronic  generating system for a period of fifteen years. When a solar or wind energy system or  components  thereof,  farm  waste energy system, micro-hydroelectric energy system, fuel cell electric generating system, micro-combined heat and power generating equipment system, electric energy storage equipment and electric energy storage system, or  fuel-flexible  linear  generator electronic  generating  system  also  serve  as  part  of  the  building structure, the increase in value which shall  be  exempt  from  taxation shall  be  equal  to  the  assessed value attributable to such system or components multiplied by the ratio  of  the  incremental  cost  of  such system or components to the total cost of such system or components. The exemption provided by this section is inapplicable to any structure that satisfies  the  requirements  for  exemption  under section four hundred eighty-three-e of this title.   3. The president  of  the  authority  shall  provide  definitions  and guidelines  for  the  eligibility  for  exemption  of the solar and wind energy equipment and systems, farm waste energy equipment  and  systems, micro-hydroelectric equipment and systems, fuel cell electric generating equipment   and   systems,  micro-combined  heat  and  power  generating equipment and systems, electric energy storage  equipment  and  electric energy  storage  system,  and  fuel-flexible  linear  generator electric generating equipment and systems described in paragraphs (a), (b),  (e), (f),  (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p) of subdivision one of this section.   4.  No  solar  or  wind  energy  system,  farm  waste  energy  system, micro-hydroelectric energy system, fuel cell electric generating system, micro-combined  heat  and  power  generating  equipment system, electric energy  storage  equipment  and  electric  energy  storage  system,   or fuel-flexible  linear  generator  electric  generating  system  shall be entitled to any exemption from taxation under this section  unless  such system  meets  the  guidelines set by the president of the authority and all other applicable provisions of law.   5. The exemption granted  pursuant  to  this  section  shall  only  be applicable  to  (a)  solar  or  wind energy systems or farm waste energy systems which are (i) existing  or  constructed  prior  to  July  first, nineteen  hundred eighty-eight or (ii) constructed subsequent to January first, nineteen hundred ninety-one  and  prior  to  January  first,  two thousand  thirty,  and (b) micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat  and  power  generating equipment  systems, electric energy storage equipment or electric energy storage system, or fuel-flexible linear  generator  electric  generating  system  which  are constructed subsequent to January first, two thousand eighteen and prior to January first, two thousand thirty.   6.  Such exemption shall be granted only upon application by the owner of the real property on a form prescribed  and  made  available  by  the commissioner  in  cooperation  with  the  authority. The applicant shall furnish  such  information  as  the  commissioner  shall  require.   The application  shall be filed with the assessor of the appropriate county, city, town or village on or before  the  taxable  status  date  of  such county, city, town or village. A copy of such application shall be filed with the authority.   7.  If  the assessor is satisfied that the applicant is entitled to an exemption pursuant  to  this  section,  he  or  she  shall  approve  the application and enter the taxable assessed value of the parcel for which an exemption has been granted pursuant to this section on the assessment roll  with  the  taxable  property, with the amount of the exemption set forth in a separate column as computed pursuant to  subdivision  two  of this  section  in  a  separate  column.  In the event that real property granted an  exemption  pursuant  to  this  section  ceases  to  be  used primarily  for eligible purposes, the exemption granted pursuant to this section shall cease.   8. (a) Notwithstanding the  provisions  of  subdivision  two  of  this section,  a  county,  city, town or village may by local law or a school district, other than a school district to which article fifty-two of the education law applies, may by resolution  provide  either  (i)  that  no exemption under this section shall be applicable within its jurisdiction with  respect  to  any  solar or wind energy system or farm waste energy system which began construction subsequent to  January  first,  nineteen hundred ninety-one or the effective date of such local law, ordinance or resolution, whichever is later, and/or (ii) that no exemption under this section  shall be applicable within its jurisdiction with respect to any micro-hydroelectric energy system, fuel cell electric generating system, micro-combined heat and  power  generating  equipment  system,  electric energy   storage   equipment  or  electric  energy  storage  system,  or fuel-flexible linear generator electric  generating  system  constructed subsequent to January first, two thousand eighteen or the effective date of  such  local law, ordinance or resolution, whichever is later. A copy of any such local law or resolution shall be filed with the commissioner and with the president of the authority.  (b) Construction of a solar or wind energy  system  or  a  farm  waste energy system shall be deemed to have begun upon the full execution of a contract  or interconnection agreement with a utility; provided however, that if such contract or interconnection agreement requires a deposit to be made, then construction shall  be  deemed  to  have  begun  when  the contract  or interconnection agreement is fully executed and the deposit is made. The owner or developer of such a system shall  provide  written notification to the appropriate local jurisdiction or jurisdictions upon execution of the contract or the interconnection agreement.   9.  (a)  A  county,  city,  town, village or school district, except a school district under article fifty-two of the education law,  that  has not  acted  to  remove  the exemption under this section may require the owner of a property which includes a solar or wind energy  system  which meets  the  requirements  of  subdivision four of this section, to enter into a contract for payments in lieu of taxes. Such contract may require annual payments in an amount not  to  exceed  the  amounts  which  would otherwise  be  payable  but for the exemption under this section. If the owner or developer of such a system provides written notification  to  a taxing  jurisdiction  of  its intent to construct such a system, then in order to require the owner or developer of such system to enter  into  a  contract  for  payments  in lieu of taxes, such taxing jurisdiction must notify such owner or developer in writing of its  intent  to  require  a contract  for  payments  in lieu of taxes within sixty days of receiving the  written notification. Written notification to a taxing jurisdiction for  this  purpose  shall  include  a  hard  copy  letter  sent  to  the highest-ranking  official  of the taxing jurisdiction. Such letter shall explicitly  reference  subdivision  nine   of   section   four   hundred eighty-seven  of  the  real  property  tax  law, and clearly state that, unless the taxing jurisdiction responds within  sixty  days  in  writing with  its  intent  to  require a contract for payments in lieu of taxes, such project shall not be obligated to make such payments.  (b) Notwithstanding paragraph (a) of this subdivision, should a taxing jurisdiction adopt a law or resolution at any time within  or  prior  to the  sixty  day  window,  indicating  the  taxing jurisdiction's ongoing intent to require a contract for payments in  lieu  of  taxes  for  such systems,  such  law  or  resolution  shall be considered notification to owners or developers and no further action is required on  the  part  of the taxing jurisdiction, provided that such law or resolution remains in effect through the end of the sixty day notification period.  (c)  Any  payment  in  lieu of a tax agreement shall not operate for a period of more than fifteen years, commencing in each instance from  the date  on which the benefits of such exemption first become available and effective.   10. Notwithstanding the foregoing provisions of this  section,  on  or after  April  first,  two  thousand  nineteen,  a  county, city, town or village may by local law or a  school  district,  other  than  a  school district to which article fifty-two of the education law applies, may by resolution provide that real property that comprises or includes a solar or  wind  energy  system,  farm  waste energy system, microhydroelectric energy system, fuel cell electric generating system, microcombined  heat and  power  generating equipment system, electric energy storage system, or  fuel-flexible  linear  generator  as  such  terms  are  defined   in paragraphs  (b),  (f), (h), (j), (l), (n), and (o) of subdivision one of this  section  (hereinafter,  individually  or   collectively,   "energy system"),  shall  be  permanently  exempt  from any taxation, special ad valorem levies, and  special  assessments  to  the  extent  provided  in section  four  hundred  ninety  of  this  article, and the owner of such property shall not be  subject  to  any  requirement  to  enter  into  a contract  for  payments  in lieu of taxes in accordance with subdivision nine of this section, if: (a) the energy system  is  installed  on  real property  that  is  owned  or  controlled  by  the  state of New York, a department or agency thereof, or a  state  authority  as  that  term  is defined by subdivision one of section two of the public authorities law; and  (b)  the  state  of  New York, a department or agency thereof, or a state authority as that term is defined by subdivision  one  of  section two  of  the  public  authorities  law has agreed to purchase the energy produced  by  such  energy  system  or  the  environmental  credits   or attributes  created  by  virtue  of  the  energy  system's operation, in accordance with a written agreement with the owner or operator  of  such energy  system. Such exemption shall be granted only upon application by the owner of the real property on a form prescribed by the commissioner, which application shall be filed with the assessor  of  the  appropriate county,  city,  town  or village on or before the taxable status date of such county, city, town or village.