SECTION 4.01PAGE 20.01 New York Stat e Office ofReal Proper ty Services ASSESSOR’S MANUALVolume 4: Exemption Administration DATE1/1/01Solar or Wind Energy Systems RPTL Section 487 Exemp tion Code(s): Pu blicly owned propert y 3030 Pr ivately owned propert y 4950 Year Originally Enacted: 1977, reenacted 1990 Related Statutes: None SUMMARY: Real property t hat conta ins a solar or wind energy system a pproved by the State En ergy Research a nd Developmen t Auth ority is exempt from t axa tion for a period of 15 years to the exten t of an y increa se in ass essed value du e to the system . Such property is liable for special ad va lorem levies and special assessments. The exemption enacted in 1990 is subject to local option (see below). A. ELIGIBILITY REQUIREMENTS 1. Ownership Requirements : None. 2. Property Location Requirements: None. 3. Property Use Requirements: Property must contain a solar or wind energy system, an ar ra ngemen t of solar or wind energy equipment d esigned to provide hea ting, cooling, hot water, or m echa nical, chem ical, or electrical en ergy by th e collec tion of solar or wind energy and its conversion, storage, protection, a nd distribution. Solar or wind energy equipment qualifying the property for exemption includes collec tors, cont rols, energy st ora ge devices, heat pum ps a nd pumps, heat exchangers, windmills, and other materials, hardware, or equipment necessary to the process by which s olar ra diation or wind is collected, converted into another form of energy, stored, protected from unnecessary dissipation, and distributed. It does not include pipes, cont rols, insulat ion, hea t pumps, or other equipment that is part of the normal heating, cooling, or insulation system of a building. It does include ins ulat ed glazing or ins ulation to the extent that such materials exceed the energy efficiency standards requ ired by l aw. 4. Certification by State or Local Government : None required. 5. Required Construction Start Date or Other Time Requirement: Solar or wind energy system must be (a) in existence or constructed prior to Ju ly 1, 1988, or (b) constructed after Janu ar y 1, 1991 and bef ore J anuary 1, 2006. B. LOCAL OPTION: Yes -- With r espect to solar or wind energy systems constructed a fter J an ua ry 1, 1991 and before J anua ry 1, 2006, each coun ty, city, town, village an d school dist rict (except t he city schoo l distr icts of New Yo rk , Buff alo, Roc hes ter , Syra cuse, and Yonkers) may choose whet her to disallow th e exemption. The option m ust be exercised by co un ties, cities, t owns, a nd vil lages t hr ough adoption of a local law a nd by school distr icts by adoption of a resolution.
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8/7/2019 ASSESSOR’S MANUAL Real Property Wind & Solar Tax Exemptions NYState
Exemp tion Code(s): Pu blicly owned propert y 3030 _Pr ivately owned propert y 4950 _
Year Origina lly En acted: 1977, reen acted 1990
Related Stat utes: None
SUMMARY: Real property t hat conta ins a solar or wind energy system a pproved by the Sta teEn ergy Research a nd Developmen t Auth ority is exempt from t axa tion for a period of 15 yearsto the exten t of an y increa se in ass essed value du e to the system . Such property is liable forspecial ad va lorem levies and special assessm ents. The exemption ena cted in 1990 is subject t olocal option (see below). A. ELIGI BILITY REQUI REME NTS
1. Ownership Requirements: None.
2. Pr opert y Location Requirement s: None.
3. Pr operty Use Requirement s: Property must contain a solar or wind energysystem, an ar ra ngemen t of solar or wind energy equipment d esigned to providehea ting, cooling, hot wat er, or m echa nical, chem ical, or electr ical en ergy by th ecollection of solar or wind en ergy a nd its conversion, st orage, protection, a nddistribution. Solar or wind energy equipment qualifying the property forexemption includes collectors, cont rols, energy st ora ge devices, hea t pum ps a ndpumps, heat exchangers, windmills, and other materials, hardware, orequipment necessary t o the pr ocess by which s olar ra diation or wind is collected,converted into another form of energy, stored, protected from unnecessarydissipation, and distr ibuted. It does not include pipes, cont rols, insulat ion, hea tpumps, or other equipment that is part of the normal heating, cooling, orinsula tion system of a bu ilding. It does include ins ulat ed glazing or ins ulat ionto the extent that such materials exceed the energy efficiency standardsrequ ired by law.
4. Cert ificat ion by Sta te or Local Govern men t : None required.
5. Required Const ru ction Sta rt Date or Other Time Requirement: Solar or windener gy system m ust be (a) in existence or const ru cted prior t o Ju ly 1, 1988, or (b)constr ucted after J anu ar y 1, 1991 and before J anu ar y 1, 2006.
B. LOCAL OPTI ON: Yes -- With r espect to solar or wind ener gy systems const ru cted a fter
J an ua ry 1, 1991 and before J an ua ry 1, 2006, each coun ty, city, town, village an d school
dist rict (except t he city school distr icts of New York , Buffalo, Roches ter , Syracuse, an d
Yonkers) m ay choose whet her to disallow th e exempt ion. The option m ust be exercised
by coun ties, cities, t owns, a nd villages t hr ough adoption of a local law a nd by school
distr icts by adoption of a resolution.
8/7/2019 ASSESSOR’S MANUAL Real Property Wind & Solar Tax Exemptions NYState
1. Gener al Mun icipal an d School Distr ict Taxes: Increase in assessed valueattributable to the solar or wind energy system. If a solar or wind energysystem or components of it also serve as part of the building structure, theincrease in value exempt from ta xation is equal t o the assessed value att ribut-able to such system or componen ts m ultiplied by the ra tio of "incremen ta l cost"of the syst em or component s to th e total cost of the system or componen ts. The"incremen ta l cost" is th e increased cost of the solar or wind ener gy system orcomponen t wh ich a lso serves a s pa rt of th e building str uctur e, above the cost forsimilar conventional construction, which enables its use as a solar or windener gy system or componen t.
Example
a. Tota l cost of solar ene rgy syst em: $10,000
b. Increm ent al cost of system: $4,000
c. Rat io of increm ent al cost to tota l cost[(b) divided by (a)]: 40%
d. Increa se in assess ed value of propert y
at tr ibuta ble to addit ion of solar ener gy system : $6,000
e. Assessed value exempt due to addit ion of syst em [(d) tim es (c)]: $2,400
See a lso the exam ples given in t he definitions/guidelines booklet following th isExempt ion Pr ofile.
2. Special Ad Valorem Levies an d Special Assessm ent s: No exemption allowed.
F. CODING OF EXEMPTION ON ASSESSMEN T ROLL:
Code Descript ion of Alter na tive Codes Possible
3030 Pu blicly owned propert y
4950 Pr ivately owned propert y
Assessmen t Roll Section(s): Taxable (RPS Section 1).
NOTE: These codes should not be used t o identify propert y tha t is exempt un der a nyof th e sta tu tes listed u nder Similar Exempt ions below. For coding of such pr opert y, seethe Exemption P rofile for t he sta tut e tha t a pplies.
8/7/2019 ASSESSOR’S MANUAL Real Property Wind & Solar Tax Exemptions NYState
G. FILING REQUIREMEN TS (Owner or Occupa nt of Pr operty):
Form RP -487 (9/00) - Applicat ion for Ta x Exemp tion of Solar or Wind E ner gy Syst ems
See sample form following Exemption Profile. Please note that the definitions
guidelines booklet (which follows t he sam ple application form ) issued by t he form erEn ergy Office r ema ins in full force an d effect un til modified or repea led by th e NYSResea rch a nd Development Auth ority. Additiona l copies of th e booklet ma y be obta inedfrom the New York State Energy Research and Development Authority, 286Wash ington Avenue Exten sion, Alban y, N.Y. 12203-6399.
H. REPORTING REQUIREMENTS (Assessor): None. I. SIMILAR EXEMPTI ONS:
Subject Stat ute
Energy conservation improvements to
cert ain residen tial prem ises RPTL §487-a
NOTE: The n ext 2 pages a re 20.05 an d 20.06 -- Form RP-487.
8/7/2019 ASSESSOR’S MANUAL Real Property Wind & Solar Tax Exemptions NYState
