2016 New York Laws
RPT - Real Property Tax
Article 4 - EXEMPTIONS
Title 2 - (420-A - 489) PRIVATE PROPERTY
487 - Exemption from taxation for certain solar or wind energy systems or farm waste energy systems.

  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  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.
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. 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 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
  twenty-five.
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  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 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. 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 of its intent to require a contract for
  payments in lieu of taxes within sixty days  of  receiving  the  written
  notification.
(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.