New York
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 11/11/2009
| Incentive Type: |
Property Tax Exemption |
| State: |
New York |
| Eligible Renewable/Other 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
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Agricultural
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| Amount: | 100% of the assessed value attributable to the system |
| Terms: | 15-year exemption |
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Web Site: |
http://www.orps.state.ny.us/
assessor/manuals/vol4/part1/section4.01/sec487.htm
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Authority 1:
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NY CLS Real Property Tax, Article 4 § 487
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| Date Enacted: | 1977; amended 1990, 2002, 2006 |
| Date Effective: | Before 7/1/88 or between 1/1/91 & 12/31/2010 |
| Expiration Date: | 12/31/2010 |
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Authority 2:
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Exemption Handbook
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| Date Enacted: | 11/06/2009 |
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Summary:
Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar and wind 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.
In September 2002, the property tax exemption was expanded (S.B 6592) to include farm-waste energy systems, 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. Senate Bill 5966A, enacted in July 2006, extended the previous January 1, 2006 expiration date until January 1, 2011.
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, 2011 (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, 2011, 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 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.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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