N.Y.
General City Law Section 25-AA
Definitions
(a)
“Eligible building”. A building or structure which is located in an eligible revitalization area and:(1)
is eligible to obtain benefits under title two-D or two-F of article four of the real property tax law, or would be eligible to receive benefits under such title except that such property is exempt from real property taxation and the requirements of paragraph (b) of subdivision seven of section four hundred eighty-nine-dddd of such title two-D, or the requirements of subparagraph (ii) of paragraph (b) of subdivision five of section four hundred eighty-nine-cccccc of such title two-F, whichever is applicable, of the real property tax law have not been satisfied, provided that application for such benefits was made after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand twenty-seven, that construction or renovation of such building or structure was described in such application, that such building or structure has been substantially improved by such construction or renovation, and(i)
that the minimum required expenditure as defined in such title has been made, or(ii)
where there is no applicable minimum required expenditure, the building was constructed within such period or periods of time established by title two-D or two-F, whichever is applicable, of article four of the real property tax law for construction of a new building or structure; or(2)
has obtained approval after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand twenty-seven, for financing by an industrial development agency established pursuant to article eighteen-A of the general municipal law, provided that such financing has been used in whole or in part to substantially improve such building or structure by construction or renovation, that expenditures have been made for improvements to such real property in excess of twenty per centum of the value at which such real property was assessed for tax purposes for the tax year in which such improvements commenced, and that such expenditures have been made within thirty-six months after the earlier of (i) the issuance by such agency of bonds for such financing, or(ii)
the conveyance of title to such building or structure to such agency; or(3)
is owned by the city of New York or the New York state urban development corporation, or a subsidiary corporation thereof, a lease for which was approved in accordance with the applicable provisions of the charter of such city or by the board of directors of such corporation, as the case may be, and such approval was obtained after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand twenty-seven, provided that expenditures have been made for improvements to such real property in excess of twenty per centum of the value at which such real property was assessed for tax purposes for the tax year in which such improvements commenced, and that such expenditures have been made within thirty-six months after the effective date of such lease; or(4)
is eligible to obtain benefits under title two-E of article four of the real property tax law, or would be eligible to receive benefits under such title except that such property is exempt from real property taxation and the requirements of paragraph (b) of subdivision ten of Real Property Tax Law § 489-CCCCC (Eligibility for benefits)section four hundred eighty-nine-ccccc of the real property tax law have not been satisfied, provided that application for such benefits was made after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand three, that renovation of such building or structure was described in such application, that such building or structure has been substantially improved by such renovation, and that the minimum required expenditure as defined in such title has been made.(b)
“Eligible charges” and “eligible public utility service charges”.(1)
(i) Eligible charges are charges made by a private utility to an eligible redistributor of energy or a qualified eligible redistributor of energy for energy services purchased from such private utility at a rate or rates established pursuant to an order or rule of the New York state public service commission or the federal energy regulatory commission, other than charges for the purchase of the commodity of electricity, and shall include applicable rate reductions for economic development or similar purposes, and all taxes payable thereon and shall exclude charges in accordance with paragraph two of this subdivision.(ii)
Eligible public utility service charges are actual charges for energy services made by a public utility service, and shall include all taxes payable thereon, and shall exclude those charges excluded in accordance with paragraph two of this subdivision, provided, however, that the department of business services of a city having a population of one million or more may by rule adjust eligible public utility service charges for purposes of adjusting the special rebate based thereon to an amount that would be comparable to the special rebate available to a comparable customer of a private utility as determined by such department.(2)
Eligible charges and eligible public utility service charges shall not include charges related to:(i)
energy services used by persons that are not eligible revitalization area energy users, and(ii)
any special charges on bills relating to such energy services, including but not limited to collection charges, late payment charges, or excess distribution charges. Eligible charges and eligible public utility service charges shall include charges for energy services used for common areas, systems and facilities of an eligible building meeting the criteria of paragraph one, two or three of subdivision (a) of this section or a targeted eligible building meeting the criteria of paragraph one, two or three of subdivision (q) of this section to the extent such common areas, systems or facilities are used by eligible revitalization area energy users, except that charges attributable to other users, if minor and incidental, may be included in eligible charges and eligible public utility service charges for such common areas, systems and facilities. Eligible charges and eligible public utility service charges shall not include charges for energy services used for common areas, systems and facilities of an eligible building meeting the criteria of paragraph four of subdivision (a) of this section or a targeted eligible building meeting the criteria of paragraph four of subdivision (q) of this section unless such common areas, systems and facilities are separate from the common areas, systems and facilities that serve that portion of the mixed-use property, as defined in title two-E of article four of the real property tax law, used for residential purposes and serve only that portion of such mixed-use property used for commercial purposes.(c)
“Eligible redistributor of energy”. A person that owns or leases an eligible building, or a portion thereof, and that purchases energy services on a metered basis from a private utility or public utility service, and(i)
resells or otherwise redistributes such energy services to one or more eligible revitalization area energy users that occupy such building or structure or (ii) consumes or uses such energy services itself and qualifies as an eligible revitalization area energy user as defined in subdivision (e) of this section, provided, however, that a person that owns or leases any portion of an eligible building meeting the criteria of paragraph four of subdivision (a) of this section shall not be an eligible redistributor of energy unless that portion of such mixed-use property, as defined in title two-E of article four of the real property tax law, used for commercial purposes is metered directly and separately from other portions of such mixed-use property.(d)
“Eligible revitalization area”. Any area of a city having a population of one million or more, provided that in the city of New York the eligible revitalization area shall be the area in the borough of Manhattan bounded by Murray Street on the north starting at the intersection of West Street and Murray Street; running easterly along the center line of Murray Street; connecting through City Hall Park with the center line of Frankfort Street and running easterly along the center lines of Frankfort and Dover Streets to the intersection of Dover Street and South Street; running southerly along the center line of South Street to Peter Minuit Plaza; connecting through Peter Minuit Plaza to the center line of State Street and running northwesterly along the center line of State Street to the intersection of State Street and Battery Place; running westerly along the center line of Battery Place to the intersection of Battery Place and West Street; and running northerly along the center line of West Street to the intersection of West Street and Murray Street. Any tax lot which is partly located inside the eligible revitalization area shall be deemed to be entirely located inside such area.(e)
“Eligible revitalization area energy user”. Any person that purchases or otherwise receives energy services for its own use and that occupies, operates or manages premises in an eligible building or targeted eligible building, provided such premises are metered or submetered as required in the last sentence of this subdivision, but such term shall not include a person that (i) occupies residential space;(ii)
is engaged primarily in manufacturing activity in such building;(iii)
is a hospital;(iv)
is a hotel; or(v)
occupies retail space. An eligible redistributor of energy or a qualified eligible redistributor of energy is an eligible revitalization area energy user with respect to (i) vacant premises within an eligible building or targeted eligible building, which premises have been constructed or renovated by such redistributor for occupancy by an eligible revitalization area energy user other than such redistributor, provided such vacant premises are metered or submetered in accordance with rules of such department of business services; and(ii)
common areas, systems and facilities to the extent such common areas, systems and facilities are used by eligible revitalization area energy users. Notwithstanding the foregoing provisions of this subdivision, a person shall not be an eligible revitalization area energy user if the premises occupied, operated or managed by such person (i) exceed the lesser of ten thousand contiguous square feet in area or the entire floor of a building and are not individually and accurately metered or submetered to determine the occupant’s usage of energy services, or(ii)
are located in that portion of mixed-use property, as defined in title two-E of article four of the real property tax law, used for commercial purposes, and such portion is not metered directly and separately from other portions of such mixed-use property.(f)
“Energy services bill”. A bill rendered for energy services, which shall include a bill for rent or similar charges for the occupancy of premises where such rent or similar charges include the use of energy services.(g)
“Hotel”. A building, or a portion thereof, which is regularly used and kept open as such for the lodging of guests. The term “hotel” includes, but is not limited to, an apartment hotel, a motel, boarding house or club, whether or not meals are served.(h)
“Hospital”. A hospital as defined in Public Health Law § 2801 (Definitions)section twenty-eight hundred one of the public health law.(i)
“Manufacturing activity”. An activity involving the assembly of goods to create a different article or the processing, fabrication or packaging of goods.(j)
“Person”. Any individual, partnership, association, corporation, limited liability company, agency of the state or federal government, public benefit corporation or instrumentality of such agency or corporation, estate or trust, and any combination of the foregoing.(k)
“Private utility”. A utility that provides energy services within any city having a population of one million or more, that is subject to the general jurisdiction and supervision of the New York state public service commission, and that is subject to a gross receipts tax imposed pursuant to the authority contained in subdivision (a) of Tax Law § 1201 (Taxes administered by cities of one million or more)section twelve hundred one of the tax law.(l)
“Public utility service”. A service established pursuant to article fourteen-A of the general municipal law by a city having a population of one million or more.(m)
“Qualified eligible redistributor of energy”. A person that owns or leases a targeted eligible building, or a portion thereof, and that purchases energy services on a metered basis from a public utility service, and(i)
resells or otherwise redistributes such energy services to one or more eligible revitalization area energy users that occupy such building or structure or (ii) consumes or uses such energy services itself and qualifies as an eligible revitalization area energy user as defined in subdivision (e) of this section, provided, however, that a person that owns or leases any portion of a targeted eligible building meeting the criteria of paragraph four of subdivision (q) of this section shall not be a qualified eligible redistributor of energy unless that portion of such mixed-use property, as defined in title two-E of article four of the real property tax law, used for commercial purposes is metered directly and separately from other portions of such mixed-use property.(n)
“Retail space”. Retail space other than space occupied by a banker, insurance broker, real estate broker, stockbroker, lawyer, doctor, accountant, or any licensed professional designated by rule of such department of business services.(o)
“Special rebate”. The amount of a reduction in an energy services bill rendered by a private utility or public utility service to an eligible redistributor of energy or a qualified eligible redistributor of energy, or an agent of either, and calculated as a percentage of eligible charges or eligible public utility service charges as specified in § 25-BB (Special rebates)section twenty-five-bb of this article.(p)
“Simple payback period”. The number of years necessary to recoup the cost of an energy conservation measure through annual energy cost savings.(q)
“Targeted eligible building”. A building or structure which is located in an eligible revitalization area and:(1)
is eligible to obtain benefits under title two-D of article four of the real property tax law, or would be eligible to receive benefits under such title except that such property is exempt from real property taxation and the requirements of paragraph (b) of subdivision seven of Real Property Tax Law § 489-DDDD (Eligibility for benefits)section four hundred eighty-nine-dddd of the real property tax law have not been satisfied, provided that application for such benefits was made after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand three, that construction or renovation of such building or structure was described in such application, that such building or structure has been substantially improved by such construction or renovation, and(i)
that twice the minimum required expenditure as defined in such title has been made, or(ii)
where there is no applicable minimum required expenditure, expenditures have been made for improvements to such real property in excess of forty per centum of the value at which such real property was assessed for tax purposes for the tax year in which such improvements commenced and the building has been constructed within such period or periods of time established by title two-D of article four of the real property tax law for construction of a new building or structure; or(2)
has obtained approval after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand three, for financing by an industrial development agency established pursuant to article eighteen-A of the general municipal law, provided that such financing has been used in whole or in part to substantially improve such building or structure by construction or renovation, that expenditures have been made for improvements to such real property in excess of forty per centum of the value at which such real property was assessed for tax purposes for the tax year in which such improvements commenced, and that such expenditures have been made within thirty-six months after the earlier of (i) the issuance by such agency of bonds for such financing, or(ii)
the conveyance of title to such building or structure to such agency; or(3)
is owned by the city of New York or the New York state urban development corporation, or a subsidiary corporation thereof, a lease for which was approved in accordance with the applicable provisions of the charter of such city or by the board of directors of such corporation, as the case may be, and such approval was obtained after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand three, provided that expenditures have been made for improvements to such real property in excess of forty per centum of the value at which such real property was assessed for tax purposes for the tax year in which such improvements commenced, and that such expenditures have been made within thirty-six months after the effective date of such lease; or(4)
is eligible to obtain benefits under title two-E of article four of the real property tax law, or would be eligible to receive benefits under such title except that such property is exempt from real property taxation and the requirements of paragraph (b) of subdivision ten of Real Property Tax Law § 489-CCCCC (Eligibility for benefits)section four hundred eighty-nine-ccccc of the real property tax law have not been satisfied, provided that application for such benefits was made after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand three, that renovation of such building or structure was described in such application, that such building or structure has been substantially improved by such renovation, and that twice the minimum required expenditure as defined in such title has been made.(r)
“Energy services”. The transmission and distribution of electricity, and such other services that are associated with such transmission and distribution, as shall be designated as energy services by rule of the department of business services of a city having a population of one million or more as such department deems necessary to promote economic development, provided that energy services shall not include the commodity of electricity.
Source:
Section 25-AA — Definitions, https://www.nysenate.gov/legislation/laws/GCT/25-AA (updated May 12, 2023; accessed Oct. 26, 2024).
