Back in 2019, the New York State Legislature brought into action the Climate Leadership and Community Protection Act (CLCPA), a robust plan designed to measurably decrease greenhouse emissions throughout the state while also considerably increasing its renewable energy capacity. Outlined in the CLCPA is a mandate that, by 2030, up to 70% of the statewide electrical generation must be supplied by renewable energy. This mandate goes a step further by stipulating that, by 2040, 100% of the state’s electric generation should be supplied by zero-emission sources. Nassau Lawyer, Vol. 73, No. 1 – September 2023 originally published this.
While this groundbreaking legislation is crucial to New York State’s environmental future, it also raises significant questions and issues surrounding the real property taxation of renewable energy systems, such as solar and wind turbines.
Owing to this ambitious and vital sustainability plan, corporations, businesses, and law professionals will face a transformation in how they navigate the ever-changing landscape of real property taxation of renewable energy systems in New York State. As the state takes on a more aggressive stance towards achieving environmental sustainability, it is crucial for legal professionals working with corporations and law firms to not only understand the financial implications of installing renewable energy systems but also to stay up-to-date with the evolving regulations surrounding the taxation of such systems.
Increasing renewable energy outputs in the coming years means that there will be inevitable growth in the installation of wind and solar energy systems. Thus, understanding the potential tax implications and regulations linked to installing such systems becomes not only a wise move but also a requirement.
Efforts are increasing throughout the state toward meeting the emissions reductions and renewable energy targets established by the CLCPA. While the tax implications of these renewable energy systems remain to be a significant variable in the financial analyses of these corporate projects, there is a growing need for more detailed and clear taxation criteria for these burgeoning systems. Given the increasing interest in installing solar and wind systems throughout New York, there is a growing demand for certainty and consistency in taxation rules to ensure the ultimate goal of sustainable energy is achieved while also preventing unusual financial burdens on corporations.