Memo in Support, A5522/S3203
RE: AN ACT to amend the tax law, in relation to exempting the sale and installation of commercial solar energy systems equipment from state sales and compensating use taxes and granting municipalities the option to grant such exemption
S.3203-B Maziarz / A.5522-B Englebright
MEMORANDUM IN SUPPORT
This memorandum is submitted by Energy Coalition New York in support of the subject bill which would amend the sales tax statute to exempt commercial solar energy systems equipment from a tax on sales and installation.
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 & 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 bill 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 consumers. 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 to include commercial solar energy systems equipment. 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.
Based on the foregoing, Energy Coalition New York requests favorable action on this legislation.