NY S05450

Establishes a tax abatement for facility-integrated carbon-to-value equipment (technologies that capture, remove, or beneficially use carbon dioxide) installed at Class 4 properties in cities with populations of one million or more persons.

Tax abatement equals the lesser of: 5% of eligible equipment expenditures, total taxes payable in that year, or $100,000 annually, available for a 4-year compliance period (extendable to 8 years for smaller buildings).

Equipment must be placed in service between January 1, 2023 and December 31, 2028, with applications accepted from January 1, 2024 through March 15, 2029.

Abatement requires applicants to maintain compliance with all applicable laws, keep equipment in working condition, allow inspections, and remain current on property taxes; non-compliance triggers revocation and repayment of abated taxes plus interest.

Designated city agencies certify eligible equipment and applications, while the Department of Taxation and Finance administers the abatement, revokes it for non-compliance, and establishes rules to implement the program.