New York Laws
Title 2 - Private Property
487 - Exemption From Taxation for Certain Energy Systems.

(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.
(g) "Micro-hydroelectric energy equipment" means any energy storage
device, penstock, turbine, generator and other materials, hardware and
equipment necessary to the process by which the flow of stream or river
water or water from other water bodies is (i) converted into electrical
energy; (ii) protected from unnecessary dissipation; and (iii)
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 not include insulated glazing or
insulation to the extent that such materials exceed the energy
efficiency standards established by law.
(h) "Micro-hydroelectric energy system" means an arrangement or
combination of micro-hydroelectric energy equipment designed to provide
electrical energy by the use of flowing water. 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 not
include insulated glazing or insulation to the extent that such
materials exceed the energy efficiency standards established by law.
(i) "Fuel cell electric generating equipment" means a solid oxide,
molten carbonate, proton exchange membrane or phosphoric acid fuel cell
with a combined rated capacity of not more than two thousand kilowatts.
It does not include insulated glazing or insulation to the extent that
such materials exceed the energy efficiency standards established by
law.
(j) "Fuel cell electric generating system" means an arrangement or
combination of equipment designed to produce electrical energy through
reaction of chemicals, including but not limited to hydrogen, oxygen,
methane and natural gas.
(k) "Micro-combined heat and power generating equipment" means an
integrated, cogenerating building heating and electrical power
generation system, owned, leased or operated by a residential customer,
located at such customer's premises, operating on any fuel and of any
applicable engine, fuel cell, fuel-flexible linear generator or other
technology with a rated capacity of at least one kilowatt and not more
than ten kilowatts electric and any thermal output that has a design
total fuel use efficiency in the production of heat and electricity of
not less than eighty percent, and annually produces at least two
thousand kilowatt hours of useful energy in the form of electricity that
may work in combination with supplemental or parallel conventional
heating systems, that is manufactured, installed and operated in
accordance with applicable government and industry standards, that is
connected to the electric system and operated in conjunction with an
electric corporation's transmission and distribution facilities. 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 not include insulated glazing or insulation to the extent that
such materials exceed the energy efficiency standards established by
law.
(l) "Micro-combined heat and power generating equipment system" means
an arrangement or combination of equipment designed to produce
electrical energy and heat for a residential customer on such customer's
premises.
(m) "Electric energy storage equipment" means a set of technologies
capable of storing electric energy and releasing that energy as electric
power at a later time. Electric energy storage technologies may store
energy as potential, kinetic, chemical or thermal energy, that can be
released as electric power and include, but are not limited to, various
types of batteries, flywheels, electrochemical capacitors, compressed
air storage and thermal storage devices.
(n) "Electric energy storage system" means an arrangement or
combination of equipment designed to store electrical energy in electric
energy storage equipment and release electric power at a later time.
(o) "Fuel-flexible linear generator electric generating equipment" or
"fuel-flexible linear generator" means an integrated system consisting
of oscillators, cylinders, electricity conversion equipment and
associated balance of plant components that directly convert the linear
motion of the oscillators into electricity and which has a combined
rated capacity of not more than two thousand kilowatts.
(p) "Fuel-flexible linear generator electric generating system" means
an arrangement or combination of fuel-flexible linear generator electric
generating equipment designed to produce electrical energy from linear
motion created by the reaction of gaseous or liquid fuels, including but
not limited to biogas and natural gas.
2. Real property which includes a solar or wind energy system, farm
waste energy system, micro-hydroelectric energy system, fuel cell
electric generating system, micro-combined heat and power generating
equipment system, electric energy storage equipment and electric energy
storage system, or fuel-flexible linear generator electric generating
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,
farm waste energy system, micro-hydroelectric energy system, fuel cell
electric generating system, micro-combined heat and power generating
equipment system, electric energy storage equipment and electric energy
storage system, or fuel-flexible linear generator electronic generating
system for a period of fifteen years. When a solar or wind energy system
or components thereof, farm waste energy system, micro-hydroelectric
energy system, fuel cell electric generating system, micro-combined heat
and power generating equipment system, electric energy storage equipment
and electric energy storage system, or fuel-flexible linear generator
electronic generating 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, farm waste energy equipment and systems,
micro-hydroelectric equipment and systems, fuel cell electric generating
equipment and systems, micro-combined heat and power generating
equipment and systems, electric energy storage equipment and electric
energy storage system, and fuel-flexible linear generator electric
generating equipment and systems described in paragraphs (a), (b), (e),
(f), (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p) of subdivision
one of this section.
4. No solar or wind energy system, farm waste energy system,
micro-hydroelectric energy system, fuel cell electric generating system,
micro-combined heat and power generating equipment system, electric
energy storage equipment and electric energy storage system, or
fuel-flexible linear generator electric generating 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 (a) solar or wind energy systems or farm waste energy
systems which are (i) existing or constructed prior to July first,
nineteen hundred eighty-eight or (ii) constructed subsequent to January
first, nineteen hundred ninety-one and prior to January first, two
thousand thirty, and (b) micro-hydroelectric energy systems, fuel cell
electric generating systems, micro-combined heat and power generating
equipment systems, electric energy storage equipment or electric energy
storage system, or fuel-flexible linear generator electric generating

system which are constructed subsequent to January first, two thousand
eighteen and prior to January first, two thousand thirty.
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 set
forth in a separate column 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 either (i) 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, and/or (ii) that no exemption under this
section shall be applicable within its jurisdiction with respect to any
micro-hydroelectric energy system, fuel cell electric generating system,
micro-combined heat and power generating equipment system, electric
energy storage equipment or electric energy storage system, or
fuel-flexible linear generator electric generating system constructed
subsequent to January first, two thousand eighteen 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 in writing of its intent to require a
contract for payments in lieu of taxes within sixty days of receiving
the written notification. Written notification to a taxing jurisdiction
for this purpose shall include a hard copy letter sent to the
highest-ranking official of the taxing jurisdiction. Such letter shall
explicitly reference subdivision nine of section four hundred
eighty-seven of the real property tax law, and clearly state that,
unless the taxing jurisdiction responds within sixty days in writing
with its intent to require a contract for payments in lieu of taxes,
such project shall not be obligated to make such payments.
(b) Notwithstanding paragraph (a) of this subdivision, should a taxing
jurisdiction adopt a law or resolution at any time within or prior to
the sixty day window, indicating the taxing jurisdiction's ongoing
intent to require a contract for payments in lieu of taxes for such
systems, such law or resolution shall be considered notification to
owners or developers and no further action is required on the part of
the taxing jurisdiction, provided that such law or resolution remains in
effect through the end of the sixty day notification period.
(c) Any 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.
10. Notwithstanding the foregoing provisions of this section, on or
after April first, two thousand nineteen, 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 real property that comprises or includes a solar
or wind energy system, farm waste energy system, microhydroelectric
energy system, fuel cell electric generating system, microcombined heat
and power generating equipment system, electric energy storage system,
or fuel-flexible linear generator as such terms are defined in
paragraphs (b), (f), (h), (j), (l), (n), and (o) of subdivision one of
this section (hereinafter, individually or collectively, "energy
system"), shall be permanently exempt from any taxation, special ad
valorem levies, and special assessments to the extent provided in
section four hundred ninety of this article, and the owner of such
property shall not be subject to any requirement to enter into a
contract for payments in lieu of taxes in accordance with subdivision
nine of this section, if: (a) the energy system is installed on real
property that is owned or controlled by the state of New York, a
department or agency thereof, or a state authority as that term is
defined by subdivision one of section two of the public authorities law;
and (b) the state of New York, a department or agency thereof, or a
state authority as that term is defined by subdivision one of section
two of the public authorities law has agreed to purchase the energy
produced by such energy system or the environmental credits or
attributes created by virtue of the energy system's operation, in
accordance with a written agreement with the owner or operator of such
energy system. Such exemption shall be granted only upon application by
the owner of the real property on a form prescribed by the commissioner,
which 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.

Structure New York Laws