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S 4077

Relates to establishing an abatement and exemption from real property taxes for capital improvements to reduce carbon emissions

2025 Regular Session Introduced by Joe Addabbo and 14 co-sponsors

Establishes property tax abatements and exemptions for carbon-reducing capital improvements, administered by local governments to spur retrofit investments.

REFERRED TO LOCAL GOVERNMENT
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WeVote Research Nonpartisan
Bill Summary · S 4077

Summary: S 4077 — Abatement and Exemption from Real Property Taxes for Capital Improvements to Reduce Carbon Emissions

Basic bill information

  • Bill number: S 4077
  • Title: Relates to establishing an abatement and exemption from real property taxes for capital improvements to reduce carbon emissions
  • Status: REFERRED TO LOCAL GOVERNMENT
  • Introduced: January 31, 2025
  • Classification: bill
  • Sponsors: Kevin S. Parker (primary); and a broad slate of cosponsors including Luis R. Sepúlveda, Nathalia Fernandez, Toby Ann Stavisky, Robert Jackson, Zellnor Myrie, Brad Hoylman-Sigal, Jamaal Bailey, Julia Salazar, Jeremy Cooney, Jessica Scarcella-Spanton, Andrew Gounardes, Leroy Comrie, Joseph P. Addabbo Jr., Kristen Gonzalez, among others
  • Related bills: S 9603 (prior-session), S 943 (prior-session); A 2047 (companion)

Purpose and intent

  • The bill would establish an abatement and exemption from real property taxes tied to capital improvements that are undertaken to reduce carbon emissions. In short, property owners who invest in eligible, carbon-reducing capital improvements could receive a reduction or exemption in their property tax assessments.
  • The overarching goal is to incentivize investments in projects and technologies that lower carbon emissions at real properties, thereby supporting climate and environmental objectives while encouraging capital upgrades.

Key provisions (high level; specifics to be set in the text)

  • Establishment of a formal abatement and property tax exemption program linked to capital improvements designed to reduce carbon emissions.
  • Authorization for local governments (as the bill is currently categorized to Local Government) to administer, implement, and oversee the program, including eligibility determination, application processes, and ongoing compliance.
  • Criteria to qualify a capital improvement as “carbon-reducing” would be defined in the bill (not provided in the available information). This could cover various upgrades or installations that demonstrably lower carbon output.
  • Duration, sequencing, and potential phasing of the abatement/exemption, as well as any caps or thresholds, would be specified in the enacted text.
  • Possible interaction with existing local property tax rules, exemptions, and abatements, including any sunset provisions or periodic re-evaluation requirements (details not provided here).

Affected stakeholders and potential impacts

  • Property owners undertaking eligible carbon-reducing capital improvements (commercial, residential, or mixed-use real property, depending on the bill’s later language).
  • Local governments, which would administer and monitor the abatement/exemption program and assess its fiscal impact on tax rolls.
  • Communities and the broader public, through potential reductions in carbon emissions and possible broader economic effects (e.g., job creation in retrofits and construction, improved energy efficiency).

Procedural/timeline aspects

  • Introduced and referred to the Committee on Local Government on January 31, 2025.
  • The bill has a companion in the Assembly (A 2047) and related Senate bills from prior sessions (S 943, S 9603), indicating ongoing interest in carbon-related property tax incentives.
  • Next steps would typically include committee hearings, potential amendments, and a full floor vote, followed by consideration by the other house and potential signature into law.

Notes for readers

  • Details such as eligibility criteria, definitions of “capital improvements,” program duration, cap amounts, applicable property types, and administration rules are not provided in the current summary and would be found in the bill’s text and any accompanying fiscal/legislative reports.
  • Stakeholders should monitor updates from the Local Government Committee for hearings, amendments, and potential changes to the program’s scope and fiscal impact.

Compiled from official sources — confirm details with the bill’s official record.

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