§ 19 — Green building credit

New York § 19

• Jurisdiction: New York
• Law TAX: Tax
• Art. 1: Short Title; Definitions; Miscellaneous

Text

§ 19. Green building credit. (a) Allowance of credit. (1) General.\n(A) Green building credit. A taxpayer subject to tax under article nine,\nnine-A, twenty-two or thirty-three of this chapter shall be allowed a\ngreen building credit against such tax, pursuant to the provisions\nreferenced in subdivision (f) of this section. Provided, however, no\ncredit shall be allowed under this section unless the taxpayer has\ncomplied with the applicable requirements of paragraph two of\nsubdivision (d) of this section (relating to reports to DEC). The amount\nof the credit shall be the sum of the credit components specified in\nparagraphs two through seven of this subdivision. Provided, however, the\namount of each such credit component shall not exceed the limit set\nforth in the initial credit component certificate obtained pursuant to\nsubdivision (c) of this section. In the determination of such credit\ncomponents, no cost paid or incurred by the taxpayer shall be the basis\nfor more than one such component.\n (B) Credit to successor owner. If a credit is allowed to a building\nowner pursuant to this subdivision with respect to property, and such\nproperty (or an interest therein) is sold, the credit for the period\nafter the sale which would have been allowable under this subdivision to\nthe prior owner had the property not been sold shall be allowable to the\nnew owner. Credit for the year of sale shall be allocated between the\nparties on the basis of the number of days during such year that the\nproperty or interest was held by each.\n (C) Credit to successor tenant. If a credit is allowed to a tenant\npursuant to this subdivision with respect to property, and if such\ntenancy is terminated but such property remains in use in the building\nby a successor tenant, the credit for the period after such termination\nwhich would have been allowable under this subdivision to the prior\ntenant had the tenancy not been terminated shall be allowable to the\nsuccessor tenant. Credit for the year of termination shall be allocated\nbetween the parties on the basis of the number of days during such year\nthat the property was used by each.\n (D) Notwithstanding any other provision of law to the contrary, in the\ncase of allowance of credit under this section to a successor owner or\ntenant, as provided in subparagraph (B) or (C) of this paragraph, the\ncommissioner shall have the authority to reveal to the successor owner\nor tenant any information, with respect to the credit of the prior owner\nor tenant, which is the basis for the denial in whole or in part of the\ncredit claimed by such successor owner or tenant.\n (2) Green whole-building credit component. The green whole-building\ncredit component shall be equal to the applicable percentage of the\nallowable costs paid or incurred by the taxpayer (whether owner or\ntenant), for either the construction of a green building or the\nrehabilitation of a building which is not a green building to be a green\nbuilding. Provided, however, the credit component shall not exceed the\nmaximum amount specified in the initial credit component certificate.\nThe applicable percentage shall be 1.4 percent, except that if the\nbuilding is located in an economic development area, the applicable\npercentage shall be 1.6 percent. The credit component amount so\ndetermined shall be allowed for the credit allowance year, but only if\n(A) the taxpayer has obtained and filed both an initial credit component\ncertificate and an eligibility certificate issued pursuant to\nsubdivision (c) of this section, (B) a certificate of occupancy for the\nbuilding has been issued and (C) where the credit allowance year is a\nyear described in subparagraph (B) of paragraph two-a of subdivision (b)\nof this section, the green building or rehabilitation remains in service\nduring such year. Such credit component amount shall be allowed also for\neach of the next four succeeding taxable years with respect to which the\ntaxpayer has obtained and filed an eligibility certificate pursuant to\nsubdivision (c) of this section. Provided, further, the allowable costs\nmay not exceed, in the aggregate, one hundred fifty dollars per square\nfoot with respect to the portion of the building which comprises the\nbase building and seventy-five dollars per square foot with respect to\nthe portion of the building which comprises the tenant space.\n (3) Green base building credit component. The green base building\ncredit component shall be equal to the applicable percentage of the\nallowable costs paid or incurred by the taxpayer, if the owner, for\neither the construction of a green base building or for the\nrehabilitation of a base building which is not a green base building to\nbe a green base building. Provided, however, the credit component shall\nnot exceed the maximum amount specified in the initial credit component\ncertificate. The applicable percentage shall be one percent, except\nthat if the building is located in an economic development area, the\napplicable percentage shall be 1.2 percent. The credit component amount\nso determined shall be allowed for the credit allowance year, but only\nif (A) the taxpayer has obtained and filed both an initial credit\ncomponent certificate and an eligibility certificate issued pursuant to\nsubdivision (c) of this section, (B) a certificate of occupancy for the\nbuilding has been issued and (C) where the credit allowance year is a\nyear described in subparagraph (B) of paragraph two-a of subdivision (b)\nof this section, the green base building or rehabilitation of a base\nbuilding remains in service during such year. Such credit component\namount shall be allowed also for each of the next four succeeding\ntaxable years with respect to which the taxpayer has obtained and filed\nan eligibility certificate pursuant to subdivision (c) of this section.\nProvided, further, the allowable costs for the base building may not\nexceed, in the aggregate, one hundred fifty dollars per square foot.\n (4) Green tenant space credit component. The green tenant space credit\ncomponent shall be equal to the applicable percentage of allowable costs\nfor tenant improvements paid or incurred by the taxpayer (whether owner\nor tenant) in constructing (including completing) tenant space, or\nrehabilitating tenant space which is not green tenant space to be green\ntenant space. Provided, however, the credit component shall not exceed\nthe maximum amount specified in the initial credit component\ncertificate. The applicable percentage shall be one percent, except that\nif the building is located in an economic development area the\napplicable percentage shall be 1.2 percent. Provided, however, that the\nowner, or a tenant who occupies fewer than ten thousand square feet,\nshall qualify for such green tenant space credit component only in the\nevent that the base building is a green base building. The credit\ncomponent amount so determined shall be allowed for the credit allowance\nyear, but only if (A) the taxpayer has obtained and filed an initial\ncredit component certificate and an eligibility certificate issued\npursuant to subdivision (c) of this section and (B) where the credit\nallowance year is a year described in subparagraph (B) of paragraph\ntwo-a of subdivision (b) of this section, the construction, completion\nor rehabilitation remains in service during such year. Such credit\ncomponent amount shall be allowed also for each of the next four\nsucceeding taxable years with respect to which the taxpayer has obtained\nand filed an eligibility certificate pursuant to subdivision (c) of this\nsection. Provided, however, the allowable costs for tenant space shall\nnot exceed, in the aggregate, seventy-five dollars per square foot. In\nthe event that both an owner and tenant incur such costs for tenant\nspace with respect to the same tenant space and such costs in the\naggregate exceed seventy-five dollars per square foot, the owner shall\nhave priority as to costs constituting the basis for the green tenant\nspace credit component.\n (5) Fuel cell credit component. A fuel cell credit component shall be\nallowed for the installation of a fuel cell which is a qualifying\nalternate energy source, installed to serve a green building, green base\nbuilding or green tenant space. The amount of the credit component shall\nbe six percent of the sum of the capitalized costs paid or incurred by\nthe taxpayer with respect to each fuel cell installed to serve such\nbuilding or space, including the cost of the foundation or platform and\nthe labor cost associated with installation, such capitalized costs not\nto exceed one thousand dollars per kilowatt of installed DC rated\ncapacity. Provided, however, the credit component shall not exceed the\nmaximum amount specified in the initial credit component certificate.\nThe fuel cell credit component amount so determined shall be allowed for\nthe credit allowance year, but only if (A) the taxpayer has obtained and\nfiled an initial credit component certificate and an eligibility\ncertificate issued pursuant to subdivision (c) of this section and (B)\nwhere the credit allowance year is a year described in subparagraph (B)\nof paragraph two-a of subdivision (b) of this section, the fuel cell\nremains in service during such year. Such credit component amount shall\nbe allowed also with respect to each of the four taxable years next\nfollowing during which the fuel cell remains in service. Provided,\nhowever, that the amount of any federal, state or local grant received\nby the taxpayer and used for the purchase and/or installation of such\nfuel cell and which was not included in the federal gross income of the\ntaxpayer shall be subtracted from the amount of such cost.\n (6) Photovoltaic module credit component. A photovoltaic module credit\ncomponent shall be allowed for the installation of photovoltaic modules\nwhich constitute a qualifying alternate energy source installed to serve\na green building, green base building or green tenant space. The amount\nof the credit component shall be twenty percent of the incremental cost\npaid or incurred by the taxpayer for building-integrated photovoltaic\nmodules and five percent of the cost of non-building-integrated\nphotovoltaic modules, in either case such cost not to exceed the product\nof (i) three dollars and (ii) the number of watts included in the DC\nrated capacity of the photovoltaic modules. Provided, however, the\ncredit component shall not exceed the maximum amount specified in the\ninitial credit component certificate. The credit component amount so\ndetermined shall be allowed for the credit allowance year, but only if\n(A) the taxpayer has obtained and filed an initial credit component\ncertificate and an eligibility certificate issued pursuant to\nsubdivision (c) of this section and (B) where the credit allowance year\nis a year described in subparagraph (B) of paragraph two-a of\nsubdivision (b) of this section, the modules remain in service during\nsuch year. Such credit amount shall be allowed also for the four taxable\nyears next following during which the modules remain in service.\nProvided, however, that the amount of any federal, state or local grant\nreceived by the taxpayer and used for the purchase and/or installation\nof such photovoltaic equipment and which was not included in the federal\ngross income of the taxpayer shall be subtracted from the amount of such\ncost.\n (7) Green refrigerant component. A green refrigerant component shall\nbe allowed for new air conditioning equipment (including chillers and\nabsorption chillers, water or air cooled unitary equipment, water-cooled\nheat pumps, packaged terminal heat pumps, air conditioners, and other\nsimilar air conditioning equipment) that uses an EPA-approved non-ozone\ndepleting refrigerant installed to serve a green building, green base\nbuilding or green tenant space. The amount of the credit component shall\nbe two percent of the cost of such air conditioning equipment. The\ncommissioner of environmental conservation, in consultation with\nNYSERDA, shall promulgate regulations concerning the eligibility of\nother EPA-approved refrigerants to receive a credit pursuant to this\nparagraph. Provided, however, the credit component shall not exceed the\nmaximum amount specified in the initial credit component certificate.\nThe green refrigerant component amount so determined shall be allowed\nfor the credit allowance year, but only if (A) the taxpayer has obtained\nand filed an initial credit component certificate and an eligibility\ncertificate issued pursuant to subdivision (c) of this section, and (B)\nwhere the credit allowance year is a year described in subparagraph (B)\nof paragraph two-a of subdivision (b) of this section, the air\nconditioning equipment remains in service. Such credit component amount\nshall be allowed also with respect to each of the four taxable years\nnext following during which the air conditioning equipment remains in\nservice.\n (b) Definitions. As used in this section, the following terms shall\nhave the following meanings:\n (1) "Allowable costs" means amounts properly chargeable to capital\naccount (other than for land), which are paid or incurred on or after\nJune first, nineteen hundred ninety-nine, for: construction or\nrehabilitation; commissioning costs; interest paid or incurred during\nthe construction or rehabilitation period; legal, architectural,\nengineering and other professional fees allocable to construction or\nrehabilitation; closing costs for construction, rehabilitation or\nmortgage loans; recording taxes and filing fees incurred with respect to\nconstruction or rehabilitation; site costs (such as temporary electric\nwiring, scaffolding, demolition costs, and fencing and security\nfacilities); and costs of furniture, carpeting, partitions, walls and\nwall coverings, ceilings, drapes, blinds, lighting, plumbing, electrical\nwiring and ventilation; provided that such costs shall not include the\ncost of telephone systems and computers (other than electrical wiring\ncosts) and shall not include the cost of fuel cells or photovoltaic\nmodules (including installation) or the cost of new air conditioning\nequipment using an EPA-approved non-ozone depleting refrigerant or other\nEPA-approved refrigerant approved by the commissioner of environmental\nconservation (excluding installation).\n (2) "Base building" means all areas of a building not intended for\noccupancy by a tenant or owner, including but not limited to the\nstructural components of the building, exterior walls, floors, windows,\nroofs, foundations, chimneys and stacks, parking areas, mechanical rooms\nand mechanical systems, and owner-controlled and/or operated service\nspaces, sidewalks, main lobby, shafts and vertical transportation\nmechanisms, stairways and corridors.\n (2-a) "Credit allowance year" means the later of (A) the taxable year\nduring which the property, construction, completion or rehabilitation\nreferred to in paragraphs two through seven of subdivision (a) of this\nsection has been placed in service or has received a final certificate\nof occupancy or (B) the first taxable year with respect to which the\ncredit may be claimed pursuant to the initial credit component\ncertificate issued pursuant to subdivision (c) of this section.\n (3) "Commissioning" means the testing and fine-tuning of heat,\nventilating and air conditioning and other systems to assure proper\nfunctioning and adherence to design criteria and the preparation of\nsystem operation manuals and instruction of maintenance personnel.\n (4) "DEC" means the New York state department of environmental\nconservation. "DOH" means the New York state department of health. "EPA"\nmeans the United States environmental protection agency.\n (5) "Economic development area" means an area which is designated (A)\nan empire zone pursuant to article eighteen-B of the general municipal\nlaw or (B) an empowerment zone or enterprise community pursuant to\nsection 1391 of the Internal Revenue Code.\n (6) "Eligible building" means a building located in this state which\nis:\n (A) classified B2, B3, B4, C1, C2, C5, or C6 for purposes of the New\nYork state uniform fire prevention and building code or similarly\nclassified under any subsequent code; provided that any such building\ncontains at least twenty thousand square feet of interior space, or\n (B) a residential multi-family building with at least twelve dwelling\nunits that contain at least twenty thousand square feet of interior\nspace, or\n (C) one or more residential multi-family buildings with at least two\ndwelling units that are part of a single or phased construction project\nthat contains, in the aggregate, at least twenty thousand square feet of\ninterior space; provided that in any single phase of such project at\nleast ten thousand square feet of interior space is under construction\nor rehabilitation, or\n (D) any combination of buildings described in subparagraphs (A), (B)\nand (C) of this paragraph, and\n (E) is not a building located on freshwater wetlands or tidal wetlands\nthe construction of which requires a permit under section 24-0701 or\n25-0403, respectively, of the environmental conservation law, or on\nwetlands such that the construction thereof requires a permit pursuant\nto section 404 of the federal clean water act (33 U.S.C. § 1344).\n (7) "Energy code" means the New York state energy conservation\nconstruction code.\n (8) "Fuel cell" means a device that produces electricity directly from\nhydrogen or hydrocarbon fuel through a non-combustive electro-chemical\nprocess.\n (9) "Green base building" means a base building which is part of an\neligible building and which meets the following standards:\n (A) Energy and energy efficiency. (i) Energy use is no more than\nsixty-five percent (in the case of new construction of a base building)\nor seventy-five percent (in the case of rehabilitation of a base\nbuilding) of the use permitted under the energy code or, in the event\nsuch standard is revised or superseded, energy use shall meet such other\nenergy efficiency standards that DEC, in consultation with NYSERDA,\nshall establish in regulations promulgated pursuant to paragraph one of\nsubdivision (e) of this section, in effect at the time the base building\nor rehabilitation thereof is placed in service.\n (ii) All appliances and any heating, cooling and water heating\nequipment used in the base building and subject to the regulations\npromulgated by DEC, in consultation with NYSERDA, pursuant to paragraph\none of subdivision (e) of this section, shall meet the standards\nestablished by such regulations in effect at the time the base building\nor rehabilitation thereof is placed in service.\n (B) Zoning, indoor air quality, building materials, finishes and\nfurnishings. (i) The base building shall comply with all applicable\nzoning, land use and erosion control requirements, stormwater management\nordinances, building code requirements and environmental regulations. In\nthe case of the rehabilitation of an existing building, all existing\nenvironmental hazards shall be identified and managed in accordance with\napplicable laws, regulations and industry guidelines.\n (ii) Buildings classified B2, B3, B4, C1, C2, C5, or C6, for purposes\nof the New York state uniform fire prevention and building code, or\nsimilarly classified under any subsequent code, shall meet the following\nindoor air quality requirements:\n (I) ventilation and exchange of indoor/outdoor air shall meet the\nstandards established by regulations promulgated by DEC, in consultation\nwith DOH and NYSERDA, pursuant to paragraph two of subdivision (e) of\nthis section;\n (II) if smoking is permitted in specific areas of the building,\nseparate air ventilation and circulation shall be provided for smoking\nand non-smoking areas;\n (III) the ventilation system shall include an air purging system that\nis capable of replacing one hundred percent of the air on any floor, on\na minimum of two floors at a time. The air shall be purged for a period\nof one week on every floor immediately prior to initial occupancy and on\nany floor that undergoes renovation immediately prior to re-occupancy;\nprovided that, if a taxpayer obtains certification from a licensed\narchitect, engineer, certified industrial hygienist, or other licensed\nor certified professional whom the commissioner of environmental\nconservation shall approve, pursuant to regulations, verifying that\noff-gassing and any other contamination can be reduced to comparable\nlevels in less than one week, the period of purging may be shortened.\nThe taxpayer shall maintain a copy of such certification in accordance\nwith the provisions of subdivision (d) of this section.\n (C) Building fresh air intake shall be located a minimum of\ntwenty-five feet away from loading areas, building exhaust fans, cooling\ntowers and other point sources of contamination.\n (D) During construction or rehabilitation, the ventilation system\ncomponents and pathways shall be protected from contamination in\naccordance with an indoor air quality management plan for the\nconstruction or rehabilitation process that meets the standards\nestablished in regulations promulgated by DEC, in consultation with DOH\nand NYSERDA, pursuant to paragraph two of subdivision (e) of this\nsection. In the event that such areas are not protected from\ncontamination in accordance with such standards, they shall be cleaned\nprior to occupancy.\n (E) A licensed engineer, certified industrial hygienist, or other\nlicensed or certified professional whom the commissioner of\nenvironmental conservation shall approve, pursuant to regulations, shall\nconduct indoor air quality testing with respect to the entire building\nimmediately following occupancy, if any, and on an annual basis, to\nmonitor supply and return air and ambient air for carbon monoxide,\ncarbon dioxide, total volatile organic compounds, radon, and particulate\nmatter. Provided, however, once radon measurements have been found to be\nsatisfactory, subsequent annual testing is not required. The taxpayer\nshall record baseline readings immediately following occupancy, if any,\nand annually thereafter. In the event that the taxpayer does not\nestablish that during a taxable year during which any part of the\nbuilding is occupied, indoor air quality met the standards established\nin regulations promulgated by DEC, in consultation with DOH and NYSERDA,\npursuant to paragraph two of subdivision (e) of this section, the base\nbuilding shall not constitute a green base building.\n (F) The mechanical plant of the building shall be commissioned in\naccordance with the standards established in regulations promulgated by\nDEC, in consultation with NYSERDA, pursuant to subparagraph (D) of\nparagraph one of subdivision (e) of this section, which standards shall\nbe informed by documents such as ASHRAE G-1 and the United States\ngeneral services administration "Model Commissioning Plan and Guide\nSpecifications". For purposes of this subparagraph the term "ASHRAE"\nmeans the American society of heating, refrigerating and air\nconditioning engineers.\n (G) Separate waste disposal chutes or a carousel compactor system for\nrecyclable materials shall be provided for the recycling of waste by\noccupants, or recycling shall be otherwise facilitated by, at a minimum,\nproviding a readily accessible designated collection area or areas with\nsufficient space to store recyclable materials separately between\ncollection dates.\n (H) All plumbing fixtures in the public areas of the building shall\nmeet the plumbing fixture requirements of the energy policy act of 1992\nor any successor provision in effect at the time the building or\nrehabilitation is placed in service.\n (I) Prior to initial occupancy and upon request, the owner of the\nbuilding shall provide each tenant with (1) written notification of the\nopportunity to apply for a tax credit pursuant to this section and (2)\nwritten guidelines regarding opportunities to improve the energy\nefficiency and air quality of tenant space and to reduce and recycle\nwaste streams.\n (J) All building materials, finishes and furnishings used in the base\nbuilding and subject to the regulations promulgated by DEC, in\nconsultation with NYSERDA, pursuant to subparagraph (A) of paragraph\nthree of subdivision (e) of this section, shall meet the standards\nestablished by such regulations in effect at the time the building or\nrehabilitation is placed in service; provided further that with respect\nto furnishings, this requirement shall apply only to newly purchased\nitems.\n (K) All tenant space in the building occupied by the owner must be\ngreen tenant space.\n (10) "Green building" means a building wherein the base building is a\ngreen base building and all tenant space is green tenant space.\n (11) "Green tenant space" means tenant space in a building if such\nbuilding is an eligible building and if such tenant space complies with\nthe following requirements:\n (A) Energy and energy efficiency. (i) Energy use for tenant space is\nno more than sixty-five percent (in the case of new construction) or\nseventy-five percent (in the case of rehabilitation) of the use\npermitted under the energy code or, in the event such standard is\nrevised or superseded, energy use shall meet such other energy\nefficiency standards that DEC, in consultation with NYSERDA, shall\nestablish in regulations promulgated pursuant to paragraph one of\nsubdivision (e) of this section, in effect at the time the improvements\nwith respect to which a tax credit is claimed are placed in service.\n (ii) All appliances and any heating, cooling and water heating\nequipment used in the tenant space and subject to the regulations\npromulgated by DEC, in consultation with NYSERDA, pursuant to paragraph\none of subdivision (e) of this section shall meet the standards\nestablished by such regulations or, in the event that such standards are\nrevised, the standards in effect at the time the improvements with\nrespect to which a tax credit is claimed are placed in service.\n (B) Code requirements, indoor air quality, building materials,\nfinishes and furnishings. (i) The tenant space shall comply with all\napplicable building code requirements and environmental regulations and,\nwith respect to projects other than new construction, all existing\nenvironmental hazards shall be identified and managed in accordance with\napplicable laws, regulations and industry guidelines.\n (ii) In the case of buildings classified B2, B3, B4, C1, C2, C5, or\nC6, for purposes of the New York state uniform fire prevention and\nbuilding code, or similarly classified under any subsequent code,\nventilation and exchange of indoor/outdoor air shall meet the standards\nestablished in regulations promulgated by DEC, in consultation with DOH\nand NYSERDA, pursuant to paragraph two of subdivision (e) of this\nsection.\n (iii) For buildings in which smoking is permitted, the taxpayer shall\nensure that, if smoking is permitted in the tenant space, it is\npermitted only in areas in which the air ventilation and circulation is\nseparate from that for non-smoking areas.\n (iv) During construction or rehabilitation, the ventilation system\ncomponents and pathways shall be protected from contamination in\naccordance with an indoor air quality management plan for the\nconstruction or rehabilitation process that meets the standards\nestablished in regulations promulgated by DEC, in consultation with DOH\nand NYSERDA, pursuant to paragraph two of subdivision (e) of this\nsection. In the event that such areas are not protected from\ncontamination in accordance with such standards, they shall be cleaned\nprior to occupancy.\n (v) A licensed engineer, certified industrial hygienist, or other\nlicensed or certified professional whom the commissioner of\nenvironmental conservation shall approve, pursuant to regulations, shall\nconduct indoor air quality testing with respect to the tenant space\nimmediately following occupancy, if any, and on an annual basis, to\nmonitor supply and return air and ambient air for carbon monoxide,\ncarbon dioxide, total volatile organic compounds, radon, and particulate\nmatter. Provided, however, once radon measurements have been found to be\nsatisfactory, subsequent annual testing is not required. The taxpayer\nshall record baseline readings immediately following occupancy, if any,\nand annually thereafter. In the event that the taxpayer does not\nestablish that during a taxable year during which the tenant space is\noccupied, indoor air quality met the standards established in\nregulations promulgated by DEC, in consultation with DOH and NYSERDA,\npursuant to paragraph two of subdivision (e) of this section, the tenant\nspace shall not constitute green tenant space.\n (vi) All plumbing fixtures in the tenant space shall meet the plumbing\nfixture requirements of the energy policy act of 1992 or successor\nprovision in effect at the time the improvements with respect to which a\ntax credit is claimed are placed in service.\n (vii) All building materials, finishes and furnishings selected for\nuse in the tenant space and subject to the regulations promulgated by\nDEC, in consultation with NYSERDA, pursuant to subparagraph (A) of\nparagraph three of subdivision (e) of this section, shall meet the\nstandards established by such regulations or, in the event that such\nstandards are revised, the standards in effect at the time the\nimprovements with respect to which a tax credit is claimed are placed in\nservice, provided that, with respect to furnishings, this requirement\nshall apply only to newly purchased items.\n (12) "Incremental cost of building-integrated photovoltaic modules"\nmeans:\n (A) the cost of building-integrated photovoltaic modules and any\nassociated inverter, additional wiring or other electrical equipment or\nadditional mounting or structural materials, less the cost of spandrel\nglass or other building material that would have been used in the event\nthat building-integrated photovoltaic modules were not installed,\n (B) incremental labor costs properly allocable to on-site preparation,\nassembly and original installation of photovoltaic modules, and\n (C) incremental architectural and engineering services and designs and\nplans directly related to the construction or installation of\nphotovoltaic modules.\n (13) "NYSERDA" means the New York state energy research and\ndevelopment authority.\n (14) "Qualifying alternate energy sources" means building-integrated\nand non-building-integrated photovoltaic modules and fuel cells\ninstalled to serve the base building or tenant space which have the\ncapability to monitor their AC output, and which are validated upon\ninstallation, and annually thereafter, to ensure that such systems meet\ntheir design specifications.\n (15) "Tenant improvements" means improvements which are necessary or\nappropriate to support or conduct the business of a tenant or occupying\nowner.\n (16) "Tenant space" means the portion of a building intended for\noccupancy by a tenant or occupying owner.\n (c) Certifications. (1) Initial credit component certificate. Upon\napplication by a taxpayer, DEC shall issue an initial credit component\ncertificate where the taxpayer has made a showing that the taxpayer is\nlikely within a reasonable time to place in service property which would\nwarrant the allowance of a credit under this section. Such certificate\nshall state the first taxable year for which the credit may be claimed\nand an expiration date, and shall apply only to property placed in\nservice by such expiration date. Such expiration date may be extended at\nthe discretion of DEC, in order to avoid unwarranted hardship. Such\ncertificates shall state the maximum amount of credit component\nallowable for each of the five taxable years for which the credit\ncomponent is allowed, under paragraphs two through seven of subdivision\n(a) of this section.\n (a) Period one. Initial credit component certificates for period one\nmay be issued in years 2000-2004. Such certificates for period one shall\nnot be issued, in the aggregate, for more than twenty-five million\ndollars worth of credit components. In addition, such certificates for\nperiod one shall be limited in their applicability, as follows:\nCredit components in the aggregate With respect to taxable\nshall not be allowed for more than: years beginning in:\n$ 1 million 2001\n$ 2 million 2002\n$ 3 million 2003\n$ 4 million 2004\n$ 5 million 2005\n$ 4 million 2006\n$ 3 million 2007\n$ 2 million 2008\n$ 1 million 2009\nProvided, however, that if as of the end of a calendar year,\ncertificates for credit component amounts totalling less than the amount\npermitted with respect to taxable years commencing in such calendar year\nhave been issued, then the amount permitted with respect to taxable\nyears commencing in the subsequent calendar year shall be augmented by\nthe amount of such shortfall.\n (b) Period two. Initial credit component certificates for period two\nmay be issued in years 2005-2009. Such certificates for period two shall\nnot be issued, in the aggregate, for more than twenty-five million\ndollars worth of credit components. The total amount of credit component\nallowable for the five taxable years for which the credit components are\nallowed, as set forth on any one initial credit component certificate,\nshall be limited to two million dollars. However, a taxpayer that is the\nowner or tenant of more than one building that qualifies for the credits\nprovided for under this section may be issued initial credit component\ncertificates with respect to each such building with the aggregate\namount of credit components permitted for each such certificate being\ntwo million dollars. Provided further, a taxpayer that is the owner or\ntenant of a building for which an initial credit component certificate\nwas issued for period one, shall not be issued an initial credit\ncomponent certificate with respect to such building for period two. In\naddition, such certificates for period two shall be limited in their\napplicability, as follows:\nCredit components in the aggregate With respect to taxable\nshall not be allowed for more than: years beginning in:\n$ 1 million 2006\n$ 2 million 2007\n$ 3 million 2008\n$ 4 million 2009\n$ 5 million 2010\n$ 4 million 2011\n$ 3 million 2012\n$ 2 million 2013\n$ 1 million 2014\nProvided, however, that if as of the end of a calendar year,\ncertificates for credit component amounts totaling less than the amount\npermitted with respect to taxable years commencing in such calendar year\nhave been issued, then the amount permitted with respect to taxable\nyears commencing in the subsequent calendar year shall be augmented by\nthe amount of such shortfall. Provided, further, that if at the end of\ncalendar year two thousand nine, certificates for credit component\namounts issued by the DEC have totaled less than twenty-five million\ndollars for calendar years 2005-2009, then the period to issue initial\ncredit component certificates shall be extended to the end of calendar\nyear two thousand ten and the DEC shall be permitted to issue in two\nthousand ten initial credit component certificates for amounts that\nequal the difference between the amounts issued for calendar years\n2005-2009 and twenty-five million dollars.\n (c) For purposes of either period one or two, if a taxpayer who is\nissued an initial credit component certificate is unable to claim as a\ncredit any amount of credit component (i) such amount of unclaimed\ncredit component may be allocated to another taxpayer that has already\nbeen issued an initial credit component certificate with such\ncertificate being reissued to reflect the amount so allocated, provided\nthat such other taxpayer applied for and would have qualified for such\nadditional amount, and with respect to period two the initial credit\ncomponent certificate of such other taxpayer as augmented does not\nexceed the two million dollar limit, or as an alternative (ii) the DEC\nmay issue to other applicants new initial credit component certificates\nwhich include such amounts of unclaimed credit components. If a taxpayer\nis unable to claim all or a portion of the amount of credit components\nafter the close of the last calendar year for which initial credit\ncomponent certificates may be issued, the DEC shall have twelve months\nto accept applications for and issue initial credit component\ncertificates for such amount of unclaimed credit components.\n (2) Eligibility certificate. For each taxable year for which a\ntaxpayer claims a credit under this section with respect to a green\nbuilding, green base building or green tenant space, a fuel cell, or\nphotovoltaic modules, or air conditioning equipment using an\nEPA-approved non-ozone depleting refrigerant or other EPA-approved\nrefrigerant approved by the commissioner of environmental conservation,\nthe taxpayer shall obtain from an architect or professional engineer\nlicensed to practice in this state an eligibility certificate. Such\ncertificate shall consist of a certification, under the seal of such\narchitect or engineer, that the building, base building or tenant space\nwith respect to which the credit is claimed is a green building, green\nbase building or green tenant space, respectively, that the fuel cell or\nphotovoltaic modules constitute qualifying alternate energy sources and\nthat the air conditioning equipment uses an EPA-approved non-ozone\ndepleting refrigerant or other EPA-approved refrigerant approved by the\ncommissioner of environmental conservation and remains in service. Such\ncertification shall be made in accordance with the standards and\nguidelines in effect at the time the property which is the basis for the\ncredit was placed in service. Such certification shall set forth the\nspecific findings upon which the certification was based. The taxpayer\nshall file such certificate, and the associated initial credit component\ncertificate, with the claim for credit and shall file duplicate copies\nwith DEC. Such certificate shall include sufficient information to\nidentify each building or space, and such other information as DEC and\nthe commissioner shall prescribe.\n (3) Wrongful certification. If DEC has reason to believe that an\narchitect or professional engineer, in making any certification under\nthis subdivision, engaged in professional misconduct, then DEC shall so\ninform the education department.\n (d) Other requirements; miscellaneous. (1) Record keeping. Each\ntaxpayer shall, for any taxable year for which the green building credit\nprovided for under this section is claimed, maintain records of the\nfollowing information:\n (A) annual energy consumption for building, base building or tenant\nspace;\n (B) annual results of air monitoring;\n (C) annual confirmation that the building, base building or tenant\nspace continues to meet requirements regarding smoking areas, if\nprovided;\n (D) tenant guidelines referred to in subparagraph (I) of paragraph\nnine of subdivision (b) of this section, if applicable;\n (E) all written notification of tenants and requests to remedy any\nindoor air quality problems;\n (F) initial and annual (by month) results of validation of performance\nof photovoltaic modules and fuel cells; and\n (G) certifications as to off-gassing and other contamination, as\nprescribed in subclause (III) of clause (ii) of subparagraph (B) of\nparagraph nine of subdivision (b) of this section, where applicable.\n (2) Reporting to DEC. Each taxpayer shall also provide to DEC the\ninformation described in paragraph one of this subdivision, in the form\nand at the time prescribed by DEC, such time to be determined in\nconsultation with the commissioner. Such information shall be provided\nto DEC with respect to each taxable year with respect to which the\ntaxpayer claims a credit under this section.\n (3) Regulations. The commissioner, the commissioner of environmental\nconservation and the commissioner of education are hereby authorized to\npromulgate and adopt regulations necessary to the implementation of this\nsection. Such regulations shall construe the provisions of this section\nin such a manner as to encourage the development of green buildings,\ngreen base buildings and green tenant space and to maintain high but\ncommercially reasonable standards for obtaining tax credits hereunder.\nSuch regulations shall establish a reasonable time or period of time for\nsubmission of applications, and shall establish a method for allocating\ninitial credit component certificates among eligible applicants.\nRegulations, standards or requirements adopted pursuant to this section\nshall apply only to a "green base building" as defined in paragraph nine\nof subdivision (b) of this section, a "green building" as defined in\nparagraph ten of subdivision (b) or "green tenant space" as defined in\nparagraph eleven of subdivision (b) of this section.\n (4) Report. For period one, on or before April first, two thousand\neleven, the commissioner and the commissioner of DEC, jointly and in\nconsultation with NYSERDA, shall submit a written report regarding the\nnumber of certifications and taxpayers claiming the credit provided for\nunder this section; the amount of the credits claimed, the geographical\ndistribution of the credits claimed; and any other such available\ninformation DEC may deem meaningful and appropriate. A preliminary\nversion of such report for period one shall be so issued by April first,\ntwo thousand five. For period two, on or before April first, two\nthousand sixteen the commissioner and the commissioner of DEC, jointly\nand in consultation with NYSERDA, shall submit a written report\nregarding the number of certificates and taxpayers claiming the credit\nprovided for under this section; the amount of the credits claimed, the\ngeographical distribution of the credits claimed; and any other such\navailable information DEC may deem meaningful and appropriate. A\npreliminary version of such report for period two shall be issued by\nApril first, two thousand ten. The commissioner and the commissioner of\nDEC shall ensure that the information is presented and/or classified in\na manner consistent with the secrecy requirements of this chapter. DEC\nshall also make recommendations regarding the establishment of a\npermanent green building tax credit program. Recommendations may include\nmethods to enhance the effectiveness, simplicity or other aspects of the\nprogram. The report shall be submitted to the governor, the temporary\npresident of the senate, the speaker of the assembly, the chairman of\nthe senate finance committee and the chairman of the assembly ways and\nmeans committee.\n (e) Standards and regulations. (1) Energy standards: base buildings.\nWithin six months of the effective date of this section, DEC, in\nconsultation with NYSERDA, shall promulgate the following, with respect\nto base buildings:\n (A) regulations establishing standards for energy use for eligible\nbuildings. DEC, in consultation with NYSERDA shall review and update\nsuch regulations if deemed necessary at least every two years from the\ndate on which such regulations are promulgated.\n (B) regulations establishing standards for appliances and heating,\ncooling and water heating equipment that, on the effective date of this\nsection, are covered by specifications from organizations such as the\nUnited States department of energy or environmental protection agency.\nThe development of such regulations shall be informed by such\nspecifications. DEC, in consultation with NYSERDA shall review and\nupdate such regulations if deemed necessary at least every two years\nfrom the date on which such regulations are promulgated.\n (C) regulations indicating the methodology by which a taxpayer shall\ndemonstrate compliance with subparagraph (A) of paragraph nine of\nsubdivision (b) of this section. Such regulations shall include, at a\nminimum, a requirement to conduct hourly computer modeling for one full\nyear.\n (D) regulations establishing standards for the commissioning of\nbuildings.\n (2) Indoor air standards: base buildings. Within six months of the\neffective date of this section, DEC, in consultation with DOH and\nNYSERDA, shall promulgate regulations establishing standards, with\nrespect to base buildings, for (A) ventilation and exchange of\nindoor/outdoor air, (B) indoor air quality management plans for the\nconstruction or rehabilitation process, and (C) indoor air quality with\nrespect to levels of carbon monoxide, carbon dioxide and total volatile\norganic compounds, radon and particulate matter.\n (3) Standards for materials, water conservation, drainage: base\nbuildings. Within one year of the effective date of this section, DEC,\nin consultation with NYSERDA, shall promulgate the following, with\nregard to base buildings:\n (A) regulations establishing standards for building materials,\nfinishes and furnishings regarding minimum percentages of recycled\ncontent and renewable source material and maximum levels of toxicity and\nvolatile organic compounds and any other standards that the DEC deems\nappropriate. Standards shall be developed for building materials,\nfinishes and furnishings, including but not limited to concrete and\nconcrete masonry units; wood and wood products; millwork substrates;\ninsulation; ceramic, ceramic/glass and cementitious tiles; ceiling tiles\nand panels; flooring and carpet; paints, coatings, sealants and\nadhesives; and furniture. The development of such standards shall be\ninformed by the LEED rating system. The DEC shall review and update such\nregulations if deemed necessary at least every two years from the date\non which such regulations are promulgated. For purposes of this clause,\n"LEED rating system" means the leadership in energy and environmental\ndesign green building rating system criteria being developed by the\nUnited States green building council.\n (B) regulations establishing standards for buildings located in areas\nwhere water use is not metered, which regulations shall require, at a\nminimum, that the building include one of the following features:\n (i) a gray water system that recovers non-sewage waste water or uses\nroof or ground storm water collection systems, or recovers ground water\nfrom sump pumps;\n (ii) for buildings with a cooling tower system, such system shall be\ndesigned with delimiters to reduce drift and evaporation; or\n (iii) for buildings with exterior plants, all such plants shall be\ntolerant of climate, soils and natural water availability and shall not\nreceive watering from municipal potable water after a period of\nestablishment is complete.\n (C) regulations establishing standards for buildings located in areas\nthat do not have sewers or that have designated storm sewers, which\nregulations shall require, at a minimum, that the building shall include\none of the following features:\n (i) an oil grit separator or water quality pond for pretreatment of\nrunoff from any surface parking areas; or\n (ii) at least fifty percent of nonlandscaped areas (including\nroadways, surface parking, plazas and pathways), if any, shall be\ncomprised of pervious paving materials.\n (D) regulations indicating the methodology by which taxpayers shall\ndemonstrate compliance with subparagraphs (B) and (C) of paragraph nine\nof subdivision (b) of this section.\n (4) Energy standards: tenant space. Within six months of the effective\ndate of this section, DEC, in consultation with NYSERDA, shall\npromulgate regulations, with respect to tenant space, indicating the\nmethodology by which taxpayers shall demonstrate compliance with\nsubparagraph (A) of paragraph eleven of subdivision (b) of this section.\n (5) Standards for indoor air quality, building materials, finishes and\nfurnishings: tenant space. Within one year of the effective date of this\nsection, DEC, in consultation with DOH and NYSERDA, shall promulgate\nregulations, with respect to tenant space, indicating the methodology by\nwhich taxpayers shall demonstrate compliance with subparagraph (B) of\nparagraph eleven of subdivision (b) of this section.\n (f) Cross-references. For application of the credit provided for in\nthis section, see the following provisions of this chapter:\n (1) Article nine: Section one hundred eighty-seven-d;\n (2) Article nine-A: Subdivision sixteen of section two hundred ten-B;\n (3) Article twenty-two: Subsections (i) and (y) of section six hundred\nsix;\n (4) Article thirty-three: Subdivision (o) of section fifteen hundred\neleven.\n