New York Green Building Tax Credits from Syracuse Solar and Wind

12/31/09 for new certificates

In 2000, New York State passed an innovative Green Building Tax Credit for business and personal income taxpayers. The credit can be applied against corporate taxes, personal income, insurance corporation taxes and banking corporation taxes. The incentive applies to owners and tenants of eligible buildings and tenant spaces which meet certain "green" standards. These standards increase energy efficiency, improve indoor air quality, and reduce the environmental impacts of large commercial and residential buildings in New York State, among other benefits.  
 
The original 2000 legislation (Period one) allowed applicants to apply for a Credit Component Certificate in years 2001-2004 and to claim the credits over five years. Legislation enacted in 2005 (Period two) extended the program, allowing applicants to apply for a Credit Component Certificate from 2005-2009. Taxpayers who are issued an Initial Credit Component Certificates for Period two have nine taxable years (2006-2014) to claim the credits. The original law provided for $25 million in credit certificates; the 2005 legislation added another $25 million.  
 
Owners and tenants must work through an architect or engineer who will help obtain a credit certificate from the state for their project. The credits are distributed over a five year period with any unredeemed portion able to be carried forward indefinitely or transferred to a new owner or tenant.  
 
Projects can qualify for credits under six different program components:  

1. Whole Building Credit (owner or tenant), where base building and all tenant space are green;  
   
2. Base Building Credit (owner), for non-dwelling spaces;  
   
3. Tenant Space Credit (owner or tenant), where the base building must be green to qualify if the tenant space is under 10,000 square feet;  
   
4. Fuel Cell Credit, for systems fueled by a "qualifying alternate energy source;"  
   
5. Photovoltaic Module Credit; and  
   
6. Green Refrigerant Credit, for new air conditioning equipment using an EPA-approved non-ozone depleting refrigerant.

The components 4, 5 and 6 above must serve green spaces. For example, to qualify for the PV Module Credit, the building which the system serves must meet all requirements for energy, indoor air quality, materials, water conservation and commissioning. Credit cannot be earned simply by placing a PV system, for example, on a building.  
 
The New York Department of Environmental Conservation must update the tax credit regulations (6NYCRR Part 638) before applications can be accepted for the $25 million allocated for Period two. Visit the program web site above for announcements regarding updated regulations.