Bill > A00986

This bill provides a sales tax exemption for the sale and installation of both residential and commercial geothermal heat pump systems equipment in New York State. Specifically, the bill defines "residential geothermal heat pump system equipment" as an arrangement of components installed in and around a residential building that uses ground or ground water as a thermal energy source to provide heating, cooling, and/or hot water. Similarly, "commercial geothermal heat pump system equipment" is defined for commercial buildings with the same thermal energy characteristics. The bill amends the tax law to exempt the sales and installation of these systems from state and local sales taxes, though it allows local jurisdictions (cities, counties, and school districts) to opt back into taxing such equipment if they choose. The legislation provides detailed provisions for how local governments can elect to impose taxes on these exempt systems, including complex rules about which jurisdiction (county or city) has the primary right to tax such equipment in certain population scenarios. The bill is part of a broader effort to incentivize the adoption of renewable and energy-efficient heating and cooling technologies by reducing their upfront cost through tax exemptions.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A986