Bill > A01161

This bill amends the New York Real Property Tax Law to expand and modify the tax exemption for combined heat and power (CHP) generating equipment. The bill replaces the term "micro-combined" with "combined" and broadens the definition of CHP equipment to include both residential and commercial systems. The equipment's rated capacity is increased from ten kilowatts to fifteen megawatts, and the minimum total fuel use efficiency is reduced from 80% to 60%. The bill maintains a 15-year property tax exemption for CHP systems installed between January 1, 2018, and January 1, 2030, allowing local governments and school districts to opt out of the exemption for systems constructed after January 1, 2018. CHP systems are defined as integrated, cogenerating building heating and electrical power generation systems that serve a customer on their premises, using various technologies to produce electricity and heat with a specified efficiency level. The changes aim to make CHP technology more accessible and attractive by providing a more flexible and comprehensive tax exemption. The bill will take effect on January 1, 2026.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A1161