Memorandum in Support A.9380 (Galef) / S.6660-A (Ritchie)
April 28, 2014
A.9380 (Galef) / S.6660-A (Ritchie) - AN ACT to amend the real property tax law, in relation to the tax exemption for nuclear powered electric generating facilities
The Independent Power Producers of New York, Inc. (IPPNY) is a trade association representing companies involved in the development of electric generating facilities, the generation, sale, and marketing of electric power, and the development of natural gas facilities in the State of New York. IPPNY Member companies produce over 75 percent of New York’s electric power.
IPPNY supports A.9380 (Galef) / S.6660-A (Ritchie). This legislation extends existing provisions of the Real Property Tax Law involving nuclear powered electric generating facilities. The purpose of these bills is to continue the ability of local taxing jurisdictions (such as local governments and school districts) to continue to enter voluntarily into negotiations with the nuclear facilities located in their area. The legislation simply extends from January 1, 2016 until January 1, 2031 the authority under existing law for these entities to enter into payment in lieu of taxes (PILOT) property tax agreements with nuclear facilities.
The two way agreements provide certainty for the taxing jurisdictions and the facility owners.
Nuclear facilities are either the largest or amongst the biggest employers and taxpayers in their local communities. Unlike most properties, the value of generating facilities depends largely on the market, and their property values dramatically could increase or decrease each year. Continuing the applicability of this existing law helps stabilize property taxes for residents and for future planning.
The legislation also continues to provide regulatory certainty and consistency that enables power generators to plan for the future and helps maintain investment in our state. New York's existing generating resources are powered by cutting-edge technologies and a wide variety of fuel types such as nuclear. New York’s six nuclear facilities provide approximately 30 percent of the state’s energy. A diverse electricity supply mix that includes nuclear facilities protects the reliability of New York's energy system and provides benefits to consumers.
For the reasons stated above, IPPNY supports A.9380 (Galef) / S.6660-A (Ritchie).
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