AB8047 Summary:

BILL NOA08047A
 
SAME ASSAME AS S05439-B
 
SPONSORJones
 
COSPNSRWilliams, Crouch
 
MLTSPNSR
 
Amd 606, Tax L
 
Relates to providing a tax credit for the cost of wood pellets; defines "qualified densified biomass fuel expenditures" and "densified biomass fuel".
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AB8047 Actions:

BILL NOA08047A
 
05/25/2017referred to ways and means
01/03/2018referred to ways and means
01/05/2018amend (t) and recommit to ways and means
01/05/2018print number 8047a
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AB8047 Committee Votes:

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AB8047 Floor Votes:

There are no votes for this bill in this legislative session.
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AB8047 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8047A
 
SPONSOR: Jones
  TITLE OF BILL: An act to amend the tax law, in relation to providing a tax credit for a portion of the cost of qualified densified biomass fuel expenditures; and providing for the repeal of such provisions upon expiration thereof   PURPOSE: This bill creates a tax credit for the purchase of biomass fuel for residential use, typically wood pellets for use in a wood pellet boiler.   SUMMARY OF PROVISIONS: Section I. Amends the tax law to add a new subsection that permits a resident owner of real property to claim a tax credit in an amount equal to thirty percent of qualified biomass fuel expenditures; defines "qual- ified biomass fuel expenditures" and "biomass fuel" accordingly. Section 2. Sets forth the effective date and expiration of the aforemen- tioned tax credit.   JUSTIFICATION: Wood-fueled heating systems, also called biomass systems, burn wood pellets, chips or logs to provide warmth in a single room or to power central heating and hot water boilers. Heating a home with a wood pellet boiler has a number of advantages over heating with traditional fossil fuels. Wood pellets cost as much as 60% less than traditional heating fuel sources, and are a sustainable, renewable, and carbon-neutral fuel source. Wood pellets are produced in a number of locations throughout North America, with multiple producers located within New York State. Almost any home can be converted to utilize a wood pellet boiler, either as a stand-alone heat source or as a primary heat source in conjunction with a secondary backup boiler. NYSERDA currently offers a number of incentives for residential homeowners to install wood pellet boilers to heat their homes and convert from more traditional electric and/or gas heat. However, such incentives are not applicable for the purchase of fuel to use in these boilers once installed. This bill would create a tax credit for resident owners of real property under the tax law for fuel expenditures, incentivizing New Yorkers to install and use biomass fuel to heat their homes, which in turn could continue to drive the state toward record uses of renewable energy.   LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately and shall expire and be deemed repealed five years after such effective date.
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AB8047 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8047--A
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 25, 2017
                                       ___________
 
        Introduced  by M. of A. JONES, HARRIS, WILLIAMS, CROUCH -- read once and
          referred to the Committee on Ways and  Means  --  recommitted  to  the
          Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee

        AN ACT to amend the tax law, in relation to providing a tax credit for a
          portion of the cost of qualified densified biomass fuel  expenditures;
          and providing for the repeal of such provisions upon expiration there-
          of
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
     2  subsection (ccc) to read as follows:
     3    (ccc)  Credit  for qualified densified biomass fuel expenditures.  (1)
     4  Any resident owner of real property as defined in  section  one  hundred
     5  two  of  the real property tax law shall be allowed a credit against the
     6  tax imposed under this article in an amount equal to thirty  percent  of
     7  qualified densified biomass fuel expenditures.
     8    (2)  For  purposes of this subsection, the following definitions shall
     9  apply:
    10    (a) "Qualified densified biomass fuel expenditures" shall mean expend-
    11  itures for the cost of  densified  biomass  fuel,  manufactured  in  the
    12  United  States  of  America, and used to heat a dwelling unit located in
    13  the state and used as a residence by the taxpayer, or to heat water  for
    14  use in such a dwelling unit.
    15    (b)  "Densified  biomass  fuel" shall mean a solid fuel derived by the
    16  mechanical densification and refining of biomass sourced from  woody  or
    17  agricultural feedstocks. Such term shall include wood pellets.
    18    (3)  If the amount of the credit allowed under this subsection for any
    19  taxable year shall exceed the taxpayer's tax for such year,  the  excess
    20  shall  be treated as an overpayment of tax to be credited or refunded in
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09855-05-7

        A. 8047--A                          2
 
     1  accordance with the provisions of section six hundred eighty-six of this
     2  article, provided, however, that no interest shall be paid thereon.
     3    §  2.  This  act shall take effect immediately and shall expire and be
     4  deemed repealed five years after such effective date.
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