Exemption Administration Manual, Part 2: Industrial, Commercial, and Public Service—Section 4.06 - RPTL §499-bbbb: Solar electric generating systems in New York City

Assessor Manuals

Section 4.06 - RPTL §499-bbbb: Solar electric generating systems in New York City

Exemption code(s):

Not applicable. (See Coding of abatement on assessment roll.)

Year originally enacted:

2008

Related statutes:

None.

Summary:

Real property located in New York City and in Class One, Two, or Four, and in which is installed a solar electric generating system is eligible for a four-year abatement in taxes, but liable for special assessments. The amount of the abatement is limited to (a) 8.75 percent of solar electric generating system expenditures per year (or 35 percent of expenditures over the term of the abatement -- see Property Use Requirements below) if the generating system is installed on or before December 31, 2010; (b) five percent of such expenditures per year (or 20 percent the expenditures over the term of the abatement) if the generating system is installed on or after January 1, 2011 and no later than December 31, 2013; (c) 2½ percent of such expenditures per year (or 10 percent of the expenditures over the term of the abatement) if the generating system is installed on or after January 1, 2013 and before January 1, 2014; or (d) five percent of such expenditures per year (or 20 percent of the expenditures over the term of the abatement) if the generating system is installed on or after January 1, 2014 and before January 1,2019.  However, the abatement in any year may not exceed the lesser of total taxes due or $62,500. The abatement commences on July 1 following approval of the application for abatement by an agency designated by the Mayor. An eligible building is limited to a single abatement under this section of law.

Eligibility requirements:

Ownership requirements:

Property must be owned by a private individual or organization.

Property location requirements:

Property must be located in New York City.

Property use requirements:

Property must have an installed solar electric generating system, which for the purposes of this abatement is a system that uses solar energy to generate electricity. This system may not include any equipment connected to a solar electric generating system that is a component of part or parts of a non-solar electric generating system or that uses any sort of recreational facility or equipment as a storage medium.

The following are considered eligible solar electric generating system expenditures: reasonable expenditures for materials, labor costs properly allocable to on-site preparation, assembly and original installation, architectural and engineering services, and designs and plans directly related to the construction or installation of a solar electric generating system installed in connection with an eligible building. These expenditures may not include interest or other finance charges, or any expenditure incurred using a federal, state, or local grant.

Certification by state or local government:

Project must be certified by an architect, engineer or other certified or licensed professional whom an agency designated by the Mayor may specify in rule.

Required construction start date or other time requirement:

An applicant may file for this abatement on or after January 1, 2009, but no later than March 15, 2015.

Local option

No.

Limitation on exemption

*See Calculation of exemption below.

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

The amount of the abatement depends on when the solar electric system is installed. If the system is installed on or before December 31, 2010 the abatement each year is 8.75 percent of eligible expenditures (see Property Use Requirements above), or 35 percent of the expenditures over the four-year abatement term. If the system is installed on or after January 1, 2011 and before January 1, 2013, the annual abatement is five percent of eligible expenditures, or 20 percent over the four-year term. If the system is installed on or after January 1, 2013 and before January 1, 2014, the annual abatement is 2½ percent of eligible expenditures, or 10 percent over the four-year term. If the system is installed on or after January 1, 2014 and before January 1, 2019, the annual abatement is five percent of eligible expenditures, or 20 percent over the four-year term.  In each instance, the abatement in any year may not exceed the total taxes due or $62,500, whichever is less. If the eligible building is a condominium, the abatement should be apportioned among all of the condominium tax lots within such eligible building.

If as a result of appeal to the City Tax Commission or a court order or by action by the Department of Finance, the billable assessed value for the fiscal year in which the abatement applies is reduced after the assessment roll becomes final, the Department of Finance should recalculate the abatement so that the abatement granted will not exceed the annual taxes as so reduced. The amount equal to the difference between the abatement originally granted and the abatement as so recalculated should be deducted from any refund otherwise payable or remission otherwise due as a result of such reduction in billable assessed value.

Special assessments:

No abatement allowed.

Coding of exemption on assessment roll

Assessment roll section(s):

Note: Since the abatement allowed here is a reduction in actual taxes levied rather than a reduction in assessed value, no exemption code should be used and no dollar amount should be entered in the "exempt value" section of the assessment roll.

Filing requirements (owner or occupant of property)

Visit: New York City Department of Finance.

Reporting requirements (assessor)

None.

Similar exemptions:

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