N.Y. Real Prop. Tax Law § 487

§ 487. Exemption from taxation for certain solar or wind energy\nsystems or farm waste energy systems. 1. As used in this section:\n (a) "Solar or wind energy equipment" means collectors, controls,\nenergy storage devices, heat pumps and pumps, heat exchangers,\nwindmills, and other materials, hardware or equipment necessary to the\nprocess by which solar radiation or wind is (i) collected, (ii)\nconverted into another form of energy such as thermal, electrical,\nmechanical or chemical, (iii) stored, (iv) protected from unnecessary\ndissipation and (v) distributed. It does not include pipes, controls,\ninsulation or other equipment which are part of the normal heating,\ncooling, or insulation system of a building. It does include insulated\nglazing or insulation to the extent that such materials exceed the\nenergy efficiency standards required by law.\n (b) "Solar or wind energy system" means an arrangement or combination\nof solar or wind energy equipment designed to provide heating, cooling,\nhot water, or mechanical, chemical, or electrical energy by the\ncollection of solar or wind energy and its conversion, storage,\nprotection and distribution.\n (c) "Authority" means the New York state energy research and\ndevelopment authority.\n (d) "Incremental cost" means the increased cost of a solar or wind\nenergy system or farm waste energy system or component thereof which\nalso serves as part of the building structure, above that for similar\nconventional construction, which enables its use as a solar or wind\nenergy or farm waste energy system or component.\n (e) "Farm waste electric generating equipment" means equipment that\ngenerates electric energy from biogas produced by the anaerobic\ndigestion of agricultural waste, such as livestock manure, farming waste\nand food processing wastes with a rated capacity of not more than one\nthousand kilowatts that is (i) manufactured, installed and operated in\naccordance with applicable government and industry standards, (ii)\nconnected to the electric system and operated in conjunction with an\nelectric corporation's transmission and distribution facilities, (iii)\noperated in compliance with the provisions of section sixty-six-j of the\npublic service law, (iv) fueled at a minimum of ninety percent on an\nannual basis by biogas produced from the anaerobic digestion of\nagricultural waste such as livestock manure materials, crop residues and\nfood processing wastes, and (v) fueled by biogas generated by anaerobic\ndigestion with at least fifty percent by weight of its feedstock being\nlivestock manure materials on an annual basis.\n (f) "Farm waste energy system" means an arrangement or combination of\nfarm waste electric generating equipment or other materials, hardware or\nequipment necessary to the process by which agricultural waste biogas is\nproduced, collected, stored, cleaned, and converted into forms of energy\nsuch as thermal, electrical, mechanical or chemical and by which the\nbiogas and converted energy are distributed on-site. It does not include\npipes, controls, insulation or other equipment which are part of the\nnormal heating, cooling or insulation system of a building.\n 2. Real property which includes a solar or wind energy system or farm\nwaste energy system approved in accordance with the provisions of this\nsection shall be exempt from taxation to the extent of any increase in\nthe value thereof by reason of the inclusion of such solar or wind\nenergy system or farm waste energy system for a period of fifteen years.\nWhen a solar or wind energy system or components thereof or farm waste\nenergy system also serve as part of the building structure, the increase\nin value which shall be exempt from taxation shall be equal to the\nassessed value attributable to such system or components multiplied by\nthe ratio of the incremental cost of such system or components to the\ntotal cost of such system or components. The exemption provided by this\nsection is inapplicable to any structure that satisfies the requirements\nfor exemption under section four hundred eighty-three-e of this title.\n 3. The president of the authority shall provide definitions and\nguidelines for the eligibility for exemption of the solar and wind\nenergy equipment and systems and farm waste energy equipment and systems\ndescribed in paragraphs (a) and (b) of subdivision one of this section.\n 4. No solar or wind energy system or farm waste energy system shall be\nentitled to any exemption from taxation under this section unless such\nsystem meets the guidelines set by the president of the authority and\nall other applicable provisions of law.\n 5. The exemption granted pursuant to this section shall only be\napplicable to solar or wind energy systems or farm waste energy systems\nwhich are (a) existing or constructed prior to July first, nineteen\nhundred eighty-eight or (b) constructed subsequent to January first,\nnineteen hundred ninety-one and prior to January first, two thousand\ntwenty-five.\n 6. Such exemption shall be granted only upon application by the owner\nof the real property on a form prescribed and made available by the\ncommissioner in cooperation with the authority. The applicant shall\nfurnish such information as the commissioner shall require. The\napplication shall be filed with the assessor of the appropriate county,\ncity, town or village on or before the taxable status date of such\ncounty, city, town or village. A copy of such application shall be filed\nwith the authority.\n 7. If the assessor is satisfied that the applicant is entitled to an\nexemption pursuant to this section, he or she shall approve the\napplication and enter the taxable assessed value of the parcel for which\nan exemption has been granted pursuant to this section on the assessment\nroll with the taxable property, with the amount of the exemption as\ncomputed pursuant to subdivision two of this section in a separate\ncolumn. In the event that real property granted an exemption pursuant to\nthis section ceases to be used primarily for eligible purposes, the\nexemption granted pursuant to this section shall cease.\n 8. (a) Notwithstanding the provisions of subdivision two of this\nsection, a county, city, town or village may by local law or a school\ndistrict, other than a school district to which article fifty-two of the\neducation law applies, may by resolution provide that no exemption under\nthis section shall be applicable within its jurisdiction with respect to\nany solar or wind energy system or farm waste energy system which began\nconstruction subsequent to January first, nineteen hundred ninety-one or\nthe effective date of such local law, ordinance or resolution, whichever\nis later. A copy of any such local law or resolution shall be filed with\nthe commissioner and with the president of the authority.\n (b) Construction of a solar or wind energy system or a farm waste\nenergy system shall be deemed to have begun upon the full execution of a\ncontract or interconnection agreement with a utility; provided however,\nthat if such contract or interconnection agreement requires a deposit to\nbe made, then construction shall be deemed to have begun when the\ncontract or interconnection agreement is fully executed and the deposit\nis made. The owner or developer of such a system shall provide written\nnotification to the appropriate local jurisdiction or jurisdictions upon\nexecution of the contract or the interconnection agreement.\n 9. (a) A county, city, town, village or school district, except a\nschool district under article fifty-two of the education law, that has\nnot acted to remove the exemption under this section may require the\nowner of a property which includes a solar or wind energy system which\nmeets the requirements of subdivision four of this section, to enter\ninto a contract for payments in lieu of taxes. Such contract may require\nannual payments in an amount not to exceed the amounts which would\notherwise be payable but for the exemption under this section. If the\nowner or developer of such a system provides written notification to a\ntaxing jurisdiction of its intent to construct such a system, then in\norder to require the owner or developer of such system to enter into a\ncontract for payments in lieu of taxes, such taxing jurisdiction must\nnotify such owner or developer of its intent to require a contract for\npayments in lieu of taxes within sixty days of receiving the written\nnotification.\n (b) The payment in lieu of a tax agreement shall not operate for a\nperiod of more than fifteen years, commencing in each instance from the\ndate on which the benefits of such exemption first become available and\neffective.\n