Memo in Support, Revenue bill Part H

Revenue Article VII Budget Bill - Part H 

MEMORANDUM IN SUPPORT

            This memorandum is submitted on behalf of our client Energy Coalition New York in strong support of Part H of the subject revenue Article VII bill which is part of the Governor’s 2012-13 Executive Budget. This part of the revenue Article VII bill would expand the sales tax exemption for solar energy systems to include commercial properties and it also would broaden the current personal income tax credit for residential solar energy systems to include leased systems.

            Energy Coalition New York consists of New York State’s major gas and electric utility companies: Central Hudson Gas & Electric Corporation, Consolidated Edison Inc., National Fuel Gas Distribution Corporation, National Grid, New York State Electric and Gas Corporation and Rochester Gas and Electric Corporation. Coalition companies collectively employ more than 32,000 people, service more than 8.5 million customers and pay more than $3 billion in state and local taxes, assessments and fees. The member companies annually invest billions of dollars to make capital improvements to the electric and natural gas infrastructure located in New York State.

            This budget proposal provides a transparent and direct expansion of current subsidies to support New York’s solar energy goals. Energy Coalition New York supports renewable energy programs with the caveat that there are no negative impacts on electric and gas ratepayers. This proposal embodies an appropriate public policy approach to subsidize the development of solar energy as a social not a ratepayer cost.

            This bill would expand the current sales tax exemption on solar energy systems from residential properties to include commercial properties. Commercial use of solar energy systems is critical to the expansion of market penetration for solar. Commercial use will have positive impacts on the ultimate cost effectiveness and development of solar.

            This legislation also extends the personal income tax credit for solar energy systems to include the lease of solar equipment for a minimum of ten years. This is a positive expansion of solar opportunities for residential homeowners. Leasing of solar equipment might prove helpful in expanding the current subsidy to a broader income range of homeowners.

            Based on the foregoing, Energy Coalition New York requests favorable action on this provision of the Executive Budget.