REAL PROPERTY TAX LAW
ARTICLE 4. EXEMPTIONS
TITLE 2. PRIVATE PROPERTY
NY CLS RPTL § 487 (2008)
§
487. Exemption from taxation for certain solar or wind energy systems or
farm waste 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
(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 [fig
1] 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 four hundred 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 seventy-five 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.
2. Real property which includes a solar
or wind energy system or farm waste energy 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 or farm
waste energy system for a period of fifteen years. When a solar or wind energy system or
components thereof or farm waste energy 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.
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 and farm waste energy
equipment and systems described in paragraphs (a) and (b) of subdivision one of
this section.
4. No solar or wind energy
system or farm waste energy 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 solar or wind energy systems
or farm waste energy systems which are (a) existing or constructed prior to
July first, nineteen hundred eighty-eight or (b) constructed subsequent to
January first, nineteen hundred ninety-one and prior to January first, two
thousand [fig 1] eleven.
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 state board in
cooperation with the authority. The applicant shall furnish such information as
the board 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 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. 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 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 constructed
subsequent to January first, nineteen hundred ninety-one 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 state board and with the
president of the authority.
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.
(b) The 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.