S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2069
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 15, 2015
                                      ___________
       Introduced  by M. of A. CROUCH, BARCLAY, FINCH, McDONOUGH -- Multi-Spon-
         sored by -- M. of A.  HAWLEY, KOLB, McKEVITT, THIELE -- read once  and
         referred to the Committee on Ways and Means
       AN  ACT  to  amend the tax law, in relation to establishing a tax credit
         for alternative energy systems and generating equipment
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The tax law is amended by adding a new section 24-b to read
    2  as follows:
    3    S  24-B.  CREDIT  FOR ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIP-
    4  MENT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWEN-
    5  TY-TWO OR THIRTY-THREE OF THIS CHAPTER, WHOSE BUSINESS IS  NOT  SUBSTAN-
    6  TIALLY  ENGAGED IN THE COMMERCIAL GENERATION, DISTRIBUTION, TRANSMISSION
    7  OR SERVICING OF ENERGY OR ENERGY PRODUCTS, AND WHO EMPLOYS ONE  OR  MORE
    8  FULL-TIME  EMPLOYEES,  EXCLUDING GENERAL EXECUTIVE OFFICERS (IN THE CASE
    9  OF A CORPORATION), SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX,  PURSUANT
   10  TO  THE  PROVISIONS  REFERENCED  IN SUBDIVISION (E) OF THIS SECTION. THE
   11  CREDIT SHALL BE ALLOWED FOR QUALIFIED EXPENDITURES WHICH MEET THE ELIGI-
   12  BILITY CRITERIA, IF ANY, PRESCRIBED BY THE DEPARTMENT,  IN  CONSULTATION
   13  WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE NEW YORK STATE
   14  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, DISBURSED IN NEW YORK STATE.
   15    (B)  DEFINITIONS.  FOR  THE  PURPOSES  OF THIS SECTION:   (1) THE TERM
   16  "SOLAR AND WIND ENERGY SYSTEM EQUIPMENT" SHALL REFER TO A  SYSTEM  WHICH
   17  SHALL  MEET  THE ELIGIBILITY REQUIREMENTS SET BY THE DEPARTMENT OF ENVI-
   18  RONMENTAL CONSERVATION AND THE NEW YORK STATE ENERGY  AND  RESEARCH  AND
   19  DEVELOPMENT AUTHORITY WHICH SERVES AS:
   20    (I)  SOLAR  ELECTRIC GENERATING EQUIPMENT WHICH SHALL MEAN AN ARRANGE-
   21  MENT OR COMBINATION OF COMPONENTS UTILIZING SOLAR RADIATION  TO  PRODUCE
   22  ENERGY  DESIGNED  TO PROVIDE HEATING, COOLING, HOT WATER OR ELECTRICITY.
   23  SUCH ARRANGEMENT OR COMPONENTS SHALL NOT INCLUDE EQUIPMENT THAT IS  PART
   24  OF  A  NON-SOLAR  ENERGY  SYSTEM  OR WHICH USES ANY SORT OF RECREATIONAL
   25  FACILITY OR EQUIPMENT AS A STORAGE MEDIUM;
   26    (II) A WIND ENERGY SYSTEM, WHICH SHALL MEAN AN ARRANGEMENT OR COMBINA-
   27  TION OF COMPONENTS DESIGNED  TO  GENERATE  AND  PROVIDE  ELECTRICITY  OR
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05130-01-5
       A. 2069                             2
    1  MECHANICAL  ENERGY  THROUGH  THE PROCESS OF CONVERTING FORCE PROVIDED BY
    2  WIND INTO MECHANICAL AND/OR ELECTRICAL ENERGY, AND STORING OR DISTRIBUT-
    3  ING SUCH ENERGY.
    4    (2)  THE TERM "FUEL CELL ELECTRIC GENERATING EQUIPMENT" SHALL REFER TO
    5  ON-SITE ELECTRICITY GENERATION SYSTEMS, LOCATED IN REAL PROPERTY LOCATED
    6  IN NEW YORK STATE UTILIZING  PROTON  EXCHANGE  MEMBRANE  FUEL  CELLS  OR
    7  MOLTEN  CARBONATE  FUEL  CELL TECHNOLOGIES.   "FUEL CELL" MEANS A DEVICE
    8  THAT PRODUCES ELECTRICITY DIRECTLY FROM  HYDROGEN  OR  HYDROCARBON  FUEL
    9  THROUGH A NON-COMBUSTIVE ELECTROCHEMICAL PROCESS.
   10    (3)  THE  TERM  "GEOTHERMAL  RESOURCE  TRANSFER SYSTEM" MEANS A SYSTEM
   11  TRANSFERRING ENERGY THROUGH THE USE OF A  RESOURCE  IN  NEW  YORK  STATE
   12  INCLUDING:
   13    (I)  ALL  PRODUCTS OF GEOTHERMAL PROCESSES EMBRACING INDIGENOUS STEAM,
   14  HOT WATER, AND HOT BRINES;
   15    (II) STEAM AND OTHER GASES, HOT WATER AND HOT  BRINES  RESULTING  FROM
   16  WATER,  GAS,  OR  OTHER  FLUIDS  ARTIFICIALLY INTRODUCED INTO GEOTHERMAL
   17  FORMATIONS;
   18    (III) HEAT OR OTHER ASSOCIATED ENERGY FOUND IN GEOTHERMAL  FORMATIONS;
   19  AND
   20    (IV)  ANY  BYPRODUCTS  DERIVED  FROM THEM, WHERE "BYPRODUCT" MEANS ANY
   21  MINERAL OR MINERALS (EXCLUSIVE OF  OIL,  HYDROCARBON  GAS,  AND  HELIUM)
   22  WHICH  ARE  FOUND  IN  SOLUTION  OR IN ASSOCIATION WITH OTHER GEOTHERMAL
   23  RESOURCES AND WHICH HAVE A VALUE OF LESS THAN  SEVENTY-FIVE  PERCENT  OF
   24  THE VALUE OF THE GEOTHERMAL STEAM OR ARE NOT, BECAUSE OF QUANTITY, QUAL-
   25  ITY,  OR  TECHNICAL DIFFICULTIES IN EXTRACTION AND PRODUCTION, OF SUFFI-
   26  CIENT VALUE TO WARRANT EXTRACTION AND PRODUCTION BY THEMSELVES.
   27    (4) THE TERM "BIOMASS ENERGY CONVERSION EQUIPMENT" SHALL  MEAN  EQUIP-
   28  MENT   THAT   CONVERTS  FOREST  AND/OR  AGRICULTURAL  MATERIALS  THROUGH
   29  COMBUSTION, GASIFICATION, OR PYROLYSIS INTO HEAT, ELECTRICITY,  OR  HEAT
   30  AND ELECTRICITY THAT IS:
   31    (I)  MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH APPLICA-
   32  BLE GOVERNMENT AND INDUSTRY STANDARDS,
   33    (II) IN THE CASE OF BIOMASS-GENERATED ELECTRICITY, EITHER USED TO MEET
   34  THE ELECTRICITY REQUIREMENTS OF THE OWNER OR THE OWNER AND USERS LOCATED
   35  WITHIN ONE-HALF MILE OF THE INSTALLED EQUIPMENT,  OR  CONNECTED  TO  THE
   36  ELECTRIC  SYSTEM  AND  OPERATED  IN  CONJUNCTION WITH AN ELECTRIC CORPO-
   37  RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES,
   38    (III) IN THE CASE OF BIOMASS-GENERATED HEAT, EITHER USED TO  MEET  THE
   39  REQUIREMENTS  OF  THE  OWNER  OR  OF OTHER BUSINESSES AND HEAT CUSTOMERS
   40  LOCATED WITHIN ONE-QUARTER MILE OF THE INSTALLED EQUIPMENT.
   41    (5) THE TERM "CREDIT ALLOWANCE YEAR" MEANS THE FIRST TAXABLE YEAR WITH
   42  RESPECT TO WHICH THE CREDIT MAY BE CLAIMED PURSUANT TO THE INITIAL CRED-
   43  IT COMPONENT CERTIFICATE ISSUED PURSUANT  TO  SUBDIVISION  (D)  OF  THIS
   44  SECTION.
   45    (6)  THE  TERM  "TAXABLE  YEAR"  MEANS  THE TAXABLE YEAR OF A BUSINESS
   46  TAXPAYER FILING A NEW YORK STATE TAX RETURN UNDER ARTICLE NINE-A,  TWEN-
   47  TY-TWO  OR THIRTY-THREE OF THIS CHAPTER. IF THE BUSINESS DOES NOT HAVE A
   48  TAXABLE YEAR BECAUSE IT IS EXEMPT FROM  TAXATION  OR  OTHERWISE  IS  NOT
   49  REQUIRED  TO  FILE  SUCH  A  RETURN UNDER ANY OF SUCH STATUTES, THE TERM
   50  "TAXABLE YEAR" MEANS (I) THE BUSINESS'S FEDERAL TAXABLE YEAR, OR (II) IF
   51  THE BUSINESS DOES NOT HAVE A FEDERAL TAXABLE YEAR,  THE  GIVEN  CALENDAR
   52  YEAR.
   53    (7)  "QUALIFIED  EXPENDITURES"  SHALL BE REMITTED COSTS FOR MATERIALS,
   54  LABOR COSTS PROPERLY ALLOCABLE  TO  ON-SITE  PREPARATION,  ASSEMBLY  AND
   55  ORIGINAL  INSTALLATION,  ARCHITECTURAL  AND  ENGINEERING  SERVICES,  AND
   56  DESIGNS AND PLANS DIRECTLY RELATED TO THE CONSTRUCTION  OR  INSTALLATION
       A. 2069                             3
    1  OF  SOLAR  AND  WIND  ENERGY SYSTEM EQUIPMENT, SOLAR ELECTRIC GENERATING
    2  EQUIPMENT, FUEL CELL ELECTRIC  GENERATING  EQUIPMENT  AND/OR  GEOTHERMAL
    3  RESOURCE  TRANSFER SYSTEM EQUIPMENT DIRECTLY RELATED TO THE CONSTRUCTION
    4  OR  INSTALLATION OF SUCH EQUIPMENT INTENDED FOR THE ORIGINAL USE OF SAID
    5  TAXPAYER, AT, OR DIRECTLY RELATED TO, A PROPERTY IN NEW YORK STATE  THAT
    6  OPERATES AS THE SITUS OF A BUSINESS ENTITY OF SAID TAXPAYER. SUCH QUALI-
    7  FIED  EXPENDITURES  SHALL  NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES
    8  WHETHER SUCH CHARGES ACCRUE AS A RESULT OF LEASE OR  OWNERSHIP  OF  SUCH
    9  EQUIPMENT.    FOR PURPOSES OF DETERMINING THE EXPENSES SERVING AS QUALI-
   10  FIED EXPENDITURES UNDER THIS SECTION, ANY AMOUNT OF  FEDERAL,  STATE  OR
   11  LOCAL  GRANT  RECEIVED  BY  THE  TAXPAYER  USED  FOR THE PURCHASE AND/OR
   12  INSTALLATION OF SUCH EQUIPMENT AND WHICH IS NOT INCLUDED IN THE  FEDERAL
   13  GROSS  INCOME  OF  THE TAXPAYER SHALL NOT SERVE AS A QUALIFYING EXPENDI-
   14  TURE.
   15    (C) ALLOWANCE OF CREDIT. (1) QUALIFIED ALTERNATIVE ENERGY SYSTEMS  AND
   16  GENERATING  EQUIPMENT EXPENSES. QUALIFIED ALTERNATIVE ENERGY SYSTEMS AND
   17  GENERATING EQUIPMENT EXPENSES ARE THOSE QUALIFIED EXPENDITURES GENERATED
   18  FROM THE PURCHASE AND INSTALLATION OF ELIGIBLE EQUIPMENT  AS  ENUMERATED
   19  IN SUBDIVISION (B) OF THIS SECTION.
   20    (2)  CREDIT  FOR SOLAR AND WIND ENERGY SYSTEM EQUIPMENT. THE AMOUNT OF
   21  CREDIT FOR THE PURCHASE AND INSTALLATION  OF  ELIGIBLE  SOLAR  AND  WIND
   22  ENERGY SYSTEM EQUIPMENT SHALL BE FIFTY PERCENT OF THE QUALIFIED EXPENSES
   23  FOR  TAXPAYERS  UNDER  ARTICLE  NINE-A  OR  THIRTY-THREE, AND FORTY-FIVE
   24  PERCENT OF THE QUALIFIED EXPENSES FOR TAXPAYERS UNDER ARTICLE TWENTY-TWO
   25  OF THIS CHAPTER, INCURRED IN PURCHASING AND INSTALLING ANY  SUCH  SYSTEM
   26  OR COMBINATION THEREOF.
   27    (3)  CREDIT  FOR  FUEL  CELL ELECTRIC GENERATING EQUIPMENT, GEOTHERMAL
   28  RESOURCE TRANSFER SYSTEM  EQUIPMENT  AND/OR  BIOMASS  ENERGY  CONVERSION
   29  EQUIPMENT.  THE  AMOUNT  OF  CREDIT FOR THE PURCHASE AND INSTALLATION OF
   30  ELIGIBLE FUEL CELL ELECTRIC GENERATING  EQUIPMENT,  GEOTHERMAL  RESOURCE
   31  TRANSFER  SYSTEM  EQUIPMENT  AND/OR  BIOMASS ENERGY CONVERSION EQUIPMENT
   32  SHALL BE FORTY-FIVE PERCENT OF  THE  QUALIFIED  EXPENSES  FOR  TAXPAYERS
   33  UNDER  ARTICLE  NINE,  NINE-A  OR THIRTY-THREE, AND FORTY PERCENT OF THE
   34  QUALIFIED EXPENSES FOR TAXPAYERS UNDER ARTICLE TWENTY-TWO OF THIS  CHAP-
   35  TER, INCURRED IN PURCHASING AND INSTALLING ANY SUCH SYSTEM.
   36    (4)  MULTIPLE TAXPAYERS. WHERE QUALIFYING EXPENDITURES ARE ACCUMULATED
   37  FROM THE CONSTRUCTION AND/OR THE INSTALLATION OF QUALIFYING  ALTERNATIVE
   38  SYSTEMS  AND  GENERATING  EQUIPMENT ARE SHARED BY TWO OR MORE TAXPAYERS,
   39  THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SECTION SHALL BE  PRORATED
   40  ACCORDING  TO THE PERCENTAGE OF THE TOTAL EXPENDITURE FOR SUCH EQUIPMENT
   41  CONTRIBUTED BY EACH TAXPAYER.
   42    (D) CREDIT QUALIFICATION. (1) REALIZATION OF  CREDIT.  CREDITS  EARNED
   43  UNDER THIS SECTION SHALL BE QUALIFYING EXPENDITURES INCURRED AFTER JANU-
   44  ARY  FIRST, TWO THOUSAND SIXTEEN, THAT ACCREDIT TO THE TAXPAYER'S CREDIT
   45  ALLOWANCE YEAR  AND  EACH  SUBSEQUENT  TAXABLE  YEAR  ACCORDING  TO  THE
   46  PROVISIONS OF SUBDIVISION (C) OF THIS SECTION.
   47    (2)  CREDIT  COMPONENT  CERTIFICATE.  A TAXPAYER WHO WISHES TO MAKE AN
   48  INITIAL CLAIM FOR CREDITS UNDER THIS SECTION SHALL SUBMIT AN APPLICATION
   49  FOR A CREDIT COMPONENT CERTIFICATE TO THE DIRECTOR OF THE NEW YORK STATE
   50  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY UPON THE SUCCESSFUL  INSTALLA-
   51  TION  AND  OPERATION  FOR  AT  LEAST THREE CONTINUOUS MONTHS OF ELIGIBLE
   52  EQUIPMENT THAT RATE AS QUALIFIED EXPENDITURES. THE PRESIDENT OF THE  NEW
   53  YORK  STATE  ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, IN CONSULTATION
   54  WITH THE COMMISSIONER AND THE COMMISSIONER  OF  ENVIRONMENTAL  CONSERVA-
   55  TION, SHALL PRESCRIBE THE REQUIREMENTS FOR THE ACCEPTANCE OF SUCH APPLI-
   56  CATION, BUT AT A MINIMUM THE APPLICATION SHALL LIST THE AMOUNT OF QUALI-
       A. 2069                             4
    1  FYING  EXPENDITURES,  THE  RATING  CAPACITY  IN  KILOWATT  HOURS OF SUCH
    2  EQUIPMENT, AND THE ANTICIPATED REDUCTION  IN  THE  USE  OF  CONVENTIONAL
    3  ENERGY  GENERATION  SOURCES  REALIZED THROUGH THE USE OF SUCH EQUIPMENT.
    4  SUCH  APPLICATION  SHALL  REQUIRE  A  FEE OF FIFTY DOLLARS FOR EACH FIVE
    5  MILLION DOLLARS OF GROSS RECEIPTS LISTED BY THE TAXPAYER FOR THE TAXABLE
    6  YEAR IMMEDIATELY PRECEDING THE INITIAL CREDIT ALLOWANCE YEAR  AFTER  THE
    7  FIRST  FIVE MILLION DOLLARS IN GROSS RECEIPTS FOR SUCH TAXABLE YEAR. ANY
    8  EXPANSION OF ALTERNATIVE RATED CAPACITY ADHERING TO INCREASED QUALIFYING
    9  EXPENDITURES BEYOND SUCH  EXPENDITURES  UTILIZED  IN  A  PRIOR  ACCEPTED
   10  APPLICATION  SHALL  REQUIRE AN ADDITIONAL APPLICATION FOR FURTHER CREDIT
   11  CLAIMS UNDER THIS SECTION.
   12    (3) ISSUANCE OF CERTIFICATE. THE PRESIDENT OF THE NEW YORK STATE ENER-
   13  GY RESEARCH AND DEVELOPMENT AUTHORITY SHALL  REVIEW  APPLICATIONS  FILED
   14  UNDER  THIS  SECTION  TO  VERIFY AN ELIGIBLE BUSINESS'S CLAIMED BENEFITS
   15  UNDER THIS SECTION. THE PRESIDENT SHALL SUPPLY TO EACH COMPANY A CERTIF-
   16  ICATE MARKING THE APPROVAL OF QUALIFYING EXPENSES FOR APPLICATION TO THE
   17  COMMISSIONER FOR CREDITS UNDER THIS SECTION WITHIN NINETY  DAYS  OF  THE
   18  RECEIPT  OF  SUCH  APPLICATION.  A  COPY  OF  THIS  CERTIFICATE SHALL BE
   19  ATTACHED TO ANY RETURNS SUCH TAXPAYER IS REQUIRED  TO  FILE  UNDER  THIS
   20  CHAPTER.  IF  ANY EXPENSES USED AS PART OF THE CREDIT BASE OF QUALIFYING
   21  EXPENDITURES ARE DENIED FOR SUCH CREDIT CLAIM BY THE  PRESIDENT  OF  THE
   22  NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SUCH DENIAL
   23  SHALL BE REPORTED TO THE TAXPAYER AND THE COMMISSIONER WITH  A  DETAILED
   24  EXPLANATION OF THE RATIONALE FOR SUCH DENIAL.
   25    (4) REVOCATION OF BENEFITS. IN ADDITION TO ANY OTHER PENALTIES ENUMER-
   26  ATED UNDER THIS CHAPTER, A VIOLATION OF THE TERMS OF THIS SUBDIVISION OR
   27  ANY  WILLFUL  MISREPRESENTATION  OF ANY OF THE TERMS OF THIS SECTION MAY
   28  RESULT IN THE RESCINDING OF THE CERTIFICATE ISSUED UNDER THIS  PARAGRAPH
   29  AND  A RECAPTURE OF CURRENT AND PREVIOUSLY RECEIVED BENEFITS. THE PRESI-
   30  DENT OF THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY
   31  SHALL REPORT TO THE COMMISSIONER ANY DETERMINATIONS OF VIOLATIONS OF THE
   32  TERMS  OF  THIS SECTION.  THE COMMISSIONER AND THE COMMISSIONER OF ENVI-
   33  RONMENTAL CONSERVATION SHALL MAKE RECOMMENDATIONS TO  THE  PRESIDENT  OF
   34  THE  NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FOR THE
   35  RESCINDING OF ANY CERTIFICATE ISSUED PURSUANT TO THIS SECTION  THAT  THE
   36  COMMISSIONER  OF  ENVIRONMENTAL  CONSERVATION  DETERMINES RESULTS FROM A
   37  WILLFUL FALSE CLAIM OF THE CAPABILITIES OR AMOUNT OF QUALIFYING EXPENDI-
   38  TURES OF SOLAR AND WIND ENERGY SYSTEM EQUIPMENT AND FUEL  CELL  ELECTRIC
   39  GENERATING EQUIPMENT.
   40    (5)  EARLY  DISPOSITION.  THE  DISCONTINUED  USE OF ANY SOLAR AND WIND
   41  ENERGY SYSTEM EQUIPMENT, FUEL  CELL  ELECTRIC  GENERATING  EQUIPMENT  OR
   42  GEOTHERMAL  RESOURCE  TRANSFER SYSTEM EQUIPMENT WITHIN FIVE YEARS OF THE
   43  CREDIT ALLOWANCE YEAR SHALL RESULT  IN  THE  RECAPTURE  OF  CURRENT  AND
   44  PREVIOUSLY RECEIVED BENEFITS UNLESS SUCH DISPOSITION IS DUE TO THE INOP-
   45  ERATIVENESS  OF  SUCH EQUIPMENT BEYOND ANY REASONABLE CONTROL OR EFFORTS
   46  OF THE TAXPAYER OR THE REPLACEMENT OF SUCH EQUIPMENT BY  MORE  EFFICIENT
   47  AND  TECHNICALLY  ADVANCED  ALTERNATIVE  ENERGY  SYSTEMS APPROVED BY THE
   48  COMMISSIONER OF ENVIRONMENTAL CONSERVATION AND THE PRESIDENT OF THE  NEW
   49  YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. SUCH EARLY DISPO-
   50  SITION SHALL NOT INCLUDE THE TRANSFER OF OWNERSHIP INTEREST OF THE PROP-
   51  ERTY SUCH EQUIPMENT OPERATES WITHIN UNLESS THE TRANSFER RESULTS  IN  THE
   52  CESSATION  OF  THE  OPERATION OF SUCH EQUIPMENT WITHIN FIVE YEARS OF THE
   53  CREDIT ALLOWANCE YEAR. THE TAXPAYER SHALL ANNUALLY ATTEST TO THE  PRESI-
   54  DENT  OF  THE  NEW  YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
   55  THAT SUCH EQUIPMENT REMAINS IN QUALIFYING USE.
       A. 2069                             5
    1    (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
    2  THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
    3    (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 49
    4    (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (CCC)
    5    (3) ARTICLE 33: SECTION 1511, SUBDIVISION (DD).
    6    S  2. Section 210-B of the tax law is amended by adding a new subdivi-
    7  sion 49 to read as follows:
    8    49. ALTERNATIVE ENERGY SYSTEMS AND GENERATING  EQUIPMENT  CREDIT.    A
    9  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
   10  SECTION TWENTY-FOUR-B OF THIS CHAPTER, AGAINST THE TAX IMPOSED  BY  THIS
   11  ARTICLE.  THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
   12  SHALL NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS  THAN  THE  AMOUNT
   13  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED
   14  TEN OF THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE  UNDER
   15  THIS  SUBDIVISION  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
   16  ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR YEARS MAY BE
   17  CARRIED OVER TO ANY OR ALL OF THE FOLLOWING FIVE TAXABLE YEARS  AND  MAY
   18  BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   19    S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
   20  of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
   21  follows:
   22  (XLI) CREDIT FOR ALTERNATIVE         QUALIFYING EXPENDITURES
   23  ENERGY SYSTEMS AND                   UNDER SUBDIVISION FORTY-NINE
   24  GENERATING EQUIPMENT                 OF SECTION TWO HUNDRED
   25  UNDER SUBSECTION (CCC)               TEN-B
   26    S  4. Section 606 of the tax law is amended by adding a new subsection
   27  (ccc) to read as follows:
   28    (CCC) ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIPMENT CREDIT.  (1)
   29  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
   30  COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-B OF THIS  CHAPTER,  AGAINST
   31  THE TAX IMPOSED BY THIS ARTICLE.
   32    (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
   33  THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
   34  SUCH YEAR, SUCH EXCESS AMOUNT MAY BE CARRIED OVER TO ANY OR ALL  OF  THE
   35  FOLLOWING  FIVE  TAXABLE  YEARS  NEXT  FOLLOWING  THE  TAXABLE YEAR WITH
   36  RESPECT TO WHICH THE CREDIT IS ALLOWED AND  MAY  BE  DEDUCTED  FROM  THE
   37  TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   38    S  5.  Section 1511 of the tax law is amended by adding a new subdivi-
   39  sion (dd) to read as follows:
   40    (DD) ALTERNATIVE ENERGY SYSTEMS AND GENERATING EQUIPMENT CREDIT.   (1)
   41  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
   42  COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-B OF THIS  CHAPTER,  AGAINST
   43  THE TAXES IMPOSED BY THIS ARTICLE.
   44    (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
   45  FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
   46  THAN  THE  MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
   47  FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A  OF  THIS  ARTICLE.
   48  HOWEVER, IF THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY
   49  TAXABLE  YEAR  REDUCED THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS
   50  NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR YEARS MAY BE CARRIED OVER TO  ANY
   51  OR  ALL OF THE FOLLOWING FIVE TAXABLE YEARS AND MAY BE DEDUCTED FROM THE
   52  TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   53    S 6.  This act shall take effect immediately and shall apply to  taxa-
   54  ble years commencing on and after January 1, 2015.