A08072 Summary:

BILL NO    A08072 

SAME AS    SAME AS S02437

SPONSOR    Walker

COSPNSR    

MLTSPNSR   

Ren S28 to be S38-a, amd SS38-a, 187-c, 606 & 210-B, Tax L

Relates to biofuel production credit for production of biomethane, a biodiesel
fuel.
Go to top

A08072 Actions:

BILL NO    A08072 

06/05/2015 referred to ways and means
Go to top

A08072 Memo:

BILL NUMBER:A8072

TITLE OF BILL:

An act to amend the tax law, in relation to biofuel production credit
for production of biomethane

PURPOSE OR GENERAL IDEA OF BILL:

Relates to production credit for production of biomethane

Summary Of Provision:

Section 1 renumbers section 38-a to Section 28 of the tax law, as
added by section 1 of part X of chapter 62 of the laws of 2006 that
establishes a new credit of twenty-five cents per gallon for
production of biomethane after the production of the first forty
thousand gallons per year presented to market

Section 2 defines the term "biomethane"

Section 3 amends Section 187-c of the tax law, as amended by section 2
of part K of chapter 59 of the laws of 2012, with regards to the
biofuel production credit

Section 4 also amends Section 187-c of the tax law, as amended by
section 15 of part S of chapter 59 of the laws of 2014, with regards
to the biofuel production credit

Section 5 amends subdivision 38 of section 210 of the tax law, as
amended by section 3 of part K of chapter 59 of the laws of 2012, with
regards to the biofuel production credit

Section 6 amends subdivision (jj) of section 606 of the tax law, as
amended by section 4 of part K of chapter 59 of the laws of 2012, with
regards to the biofuel production credit

Section 7 amends subdivision 24 of section 210-B of the tax law, as
added by section 17 of part A of chapter 59 of the laws of 2014, with
regards to the biofuel production credit

Section 8 provides that this act shall take effect immediately.

JUSTIFICATION:

Renewable Natural Gas, also known as RNG or biomethane, is chemically
identical to fossil natural gas but much cleaner, and the first
commercially viable, sustainable transportation fuel that can greatly
reduce consumption of diesel fuel. RNG is made from biogases that emit
as organic waste that break down in environments with no air. It is
produced from many biomass and biogas sources including municipal
wastewater, landfill gas, and solid waste. It is a renewable fuel that
can be used from light-duty vehicles to heavy-duty freight trucks.
Buses and trucks make up just 4% of all vehicles but they use 23% of
all highway fuel that is almost all high-carbon diesel produced from
foreign sources of oil. With today's technologies, organic wastes
thrown away daily in cities and towns in New York State could be


turned into fuel. National estimates are that organic wastes could
displace 16% of all diesel fuel consumed in the United States.

RNG slashes carbon emissions to near zero. This biomethane production
tax credit will help improve the environment by making better use of
waste and conserving natural resources. New York State's municipal
waste stream could be reduced by nearly 30% through greater production
of RNG.

PRIOR LEGISLATIVE HISTORY:

2013-14: S.7452 (Gipson) - Referred to Investigations and Government
Operations

FISCAL IMPLICATIONS:

None to the State

EFFECTIVE DATE:

Immediate
Go to top

A08072 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         8072

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                     June 5, 2015
                                      ___________

       Introduced by M. of A. WALKER -- read once and referred to the Committee
         on Ways and Means

       AN  ACT  to  amend the tax law, in relation to biofuel production credit
         for production of biomethane

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1. Section 28 of the tax law, as added by section 1 of part X
    2  of chapter 62 of the laws of 2006, is renumbered section 38-a.
    3    S 2. Subdivisions (a) and (b) of section 38-a of the tax law, subdivi-
    4  sion (a) as amended by section 1 of part K of chapter 59 of the laws  of
    5  2012,  subdivision  (b) as added by section 1 of part X of chapter 62 of
    6  the laws of 2006, such section as renumbered by section one of this act,
    7  are amended to read as follows:
    8    (a) General. A taxpayer subject to tax under article nine,  nine-A  or
    9  twenty-two  of  this  chapter shall be allowed a credit against such tax
   10  pursuant to  the  provisions  referenced  in  subdivision  (d)  of  this
   11  section. The credit (or pro rata share of earned credit in the case of a
   12  partnership)  for  each gallon of biofuel produced at a biofuel plant on
   13  or after January first, two thousand six shall equal fifteen  cents  per
   14  gallon  OR  TWENTY-FIVE  CENTS  PER  GALLON FOR PRODUCTION OF BIOMETHANE
   15  after the production of  the  first  forty  thousand  gallons  per  year
   16  presented  to  market.  The credit under this section shall be capped at
   17  two and one-half million dollars per taxpayer per taxable year for up to
   18  no more than four consecutive taxable years per biofuel  plant.  If  the
   19  taxpayer  is  a  partner in a partnership or shareholder of a New York S
   20  corporation, then the cap imposed by the  preceding  sentence  shall  be
   21  applied at the entity level, so that the aggregate credit allowed to all
   22  the  partners  or  shareholders  of each such entity in the taxable year
   23  does not exceed two and one-half million dollars. The tax credit allowed
   24  pursuant to this section shall apply to taxable years  beginning  before
   25  January first, two thousand twenty.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06529-01-5
       A. 8072                             2

    1    (b)  Definitions. For the purpose of this section, the following terms
    2  shall have the following meanings:
    3    (1)  "Biofuel" means a fuel which includes biodiesel [and], ethanol OR
    4  BIOMETHANE.
    5    (2) The term "biodiesel" shall mean a fuel  comprised  exclusively  of
    6  mono-alkyl  esters of long chain fatty acids derived from vegetable oils
    7  or animal fats, designated B100, which meets the specifications of Amer-
    8  ican Society of Testing and Materials designation D 6751-02.
    9    (3) The term "ethanol" shall mean ethyl alcohol  manufactured  in  the
   10  United  States  and  its territories and sold (i) for fuel use and which
   11  has been rendered unfit for beverage  use  in  a  manner  and  which  is
   12  produced at a facility approved by the federal bureau of alcohol, tobac-
   13  co and firearms for the production of ethanol for fuel, or (ii) as dena-
   14  tured  ethanol  used  by  blenders  and refiners which has been rendered
   15  unfit for beverage use.  The term "biofuel" may also include  any  other
   16  standard  approved by the New York state energy and research development
   17  authority.
   18    [(2)] (4) THE TERM "BIOMETHANE" SHALL MEAN BIOGASES THAT  ARE  EMITTED
   19  AS ORGANIC WASTES THAT BREAK DOWN IN AIRLESS ENVIRONMENTS. BIOMETHANE IS
   20  PRODUCED  FROM  A  VARIETY  OF  BIOMASS AND/OR BIOGAS SOURCES, INCLUDING
   21  LANDFILL GAS, SOLID WASTE, MUNICIPAL WASTEWATER AND AGRICULTURAL  MANURE
   22  VIA  AIRLESS  TANKS  CALLED ANAEROBIC DIGESTERS. IT CAN ALSO BE PRODUCED
   23  FROM OTHER SOURCES SUCH AS FORESTRY AND AGRICULTURAL WASTE  THROUGH  THE
   24  PROCESS OF THERMAL GASIFICATION AND METHANATION, ALTHOUGH THESE TECHNOL-
   25  OGIES  ARE  NOT  YET WIDELY USED. BIOMETHANE IS A RENEWABLE FUEL, EASILY
   26  DISTRIBUTED THROUGH EXISTING INFRASTRUCTURE AND IS SUITABLE FOR APPLICA-
   27  TIONS FROM LIGHT-DUTY VEHICLES TO HEAVY-DUTY FREIGHT TRUCKS.
   28    (5) "Biofuel plant" means a commercial facility located  in  New  York
   29  state  at  which one or more biofuels are produced.  FOR THE PURPOSES OF
   30  THIS SECTION, ANY COMMERCIAL FACILITY WHERE BIOMETHANE IS PRODUCED SHALL
   31  BE CONSIDERED A SEPARATE BIOFUEL PLANT.
   32    S 3. Section 187-c of the tax law, as amended by section 2 of  part  K
   33  of chapter 59 of the laws of 2012, is amended to read as follows:
   34    S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
   35  credit  to  be  computed   as   provided   in   section   [twenty-eight]
   36  THIRTY-EIGHT-A of this chapter, [as added by part X of chapter sixty-two
   37  of  the laws of two thousand six,] against the tax imposed by this arti-
   38  cle. Provided, however, that the amount of such credit  allowed  against
   39  the tax imposed by section one hundred eighty-four of this article shall
   40  be the excess of the amount of such credit over the amount of any credit
   41  allowed  by  this section against the tax imposed by section one hundred
   42  eighty-three of this article. In no event shall the  credit  under  this
   43  section  be  allowed  in  an amount which will reduce the tax payable to
   44  less than the applicable minimum tax fixed by section one hundred eight-
   45  y-three or one hundred eighty-five of this  article.  If,  however,  the
   46  amount  of  the  credit  allowed under this section for any taxable year
   47  reduces the tax to such amount, the excess shall be treated as an  over-
   48  payment  of  tax  to  be  credited  or  refunded  in accordance with the
   49  provisions of section six hundred eighty-six of this chapter.  Provided,
   50  however, the provisions of subsection (c) of section one thousand eight-
   51  y-eight of this chapter notwithstanding, no interest shall be paid ther-
   52  eon.  The  tax  credit  allowed  pursuant to this section shall apply to
   53  taxable years beginning before January first, two thousand twenty.
   54    S 4. Section 187-c of the tax law, as amended by section 15 of part  S
   55  of chapter 59 of the laws of 2014, is amended to read as follows:
       A. 8072                             3

    1    S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
    2  credit  to  be  computed   as   provided   in   section   [twenty-eight]
    3  THIRTY-EIGHT-A of this chapter, [as added by part X of chapter sixty-two
    4  of  the laws of two thousand six,] against the tax imposed by this arti-
    5  cle.  Provided,  however, that the amount of such credit allowed against
    6  the tax imposed by section one hundred eighty-four of this article shall
    7  be the excess of the amount of such credit over the amount of any credit
    8  allowed by this section against the tax imposed by section  one  hundred
    9  eighty-three  of  this  article. In no event shall the credit under this
   10  section be allowed in an amount which will reduce  the  tax  payable  to
   11  less than the applicable minimum tax fixed by section one hundred eight-
   12  y-three  of  this article. If, however, the amount of the credit allowed
   13  under this section for any taxable year reduces the tax to such  amount,
   14  the  excess  shall be treated as an overpayment of tax to be credited or
   15  refunded in accordance with the provisions of section six hundred eight-
   16  y-six of this chapter. Provided, however, the provisions  of  subsection
   17  (c)  of  section one thousand eighty-eight of this chapter notwithstand-
   18  ing, no interest shall be paid thereon. The tax credit allowed  pursuant
   19  to  this  section  shall apply to taxable years beginning before January
   20  first, two thousand twenty.
   21    S 5. Subsection (jj) of section 606 of the  tax  law,  as  amended  by
   22  section  4  of  part  K of chapter 59 of the laws of 2012, is amended to
   23  read as follows:
   24    (jj) Biofuel production credit. A taxpayer shall be allowed  a  credit
   25  to  be  computed as provided in section [twenty-eight] THIRTY-EIGHT-A of
   26  this chapter, [as added by part X of chapter sixty-two of  the  laws  of
   27  two  thousand  six,]  against  the  tax  imposed by this article. If the
   28  amount of the credit allowed under this subsection for any taxable  year
   29  shall  exceed  the  taxpayer's  tax  for  such year, the excess shall be
   30  treated as an overpayment of tax to be credited or refunded  in  accord-
   31  ance with the provisions of section six hundred eighty-six of this arti-
   32  cle,  provided, however, that no interest shall be paid thereon. The tax
   33  credit allowed pursuant to this section shall  apply  to  taxable  years
   34  beginning before January first, two thousand twenty.
   35    S  6.  Subdivision  24  of  section  210-B of the tax law, as added by
   36  section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
   37  read as follows:
   38    24.  Biofuel  production  credit.  (a)  General.  A  taxpayer shall be
   39  allowed a credit, to be computed as provided in  section  [twenty-eight]
   40  THIRTY-EIGHT-A  of this chapter [added as part X of chapter sixty-two of
   41  the laws of two thousand six,] against the tax imposed by this  article.
   42  The credit allowed under this subdivision for any taxable year shall not
   43  reduce  the  tax due for such year to less than the fixed dollar minimum
   44  amount prescribed in paragraph (d) of subdivision  one  of  section  two
   45  hundred  ten  of  this article. However, if the amount of credit allowed
   46  under this subdivision for any taxable year  reduces  the  tax  to  such
   47  amount  or  if the taxpayer otherwise pays tax based on the fixed dollar
   48  minimum amount, any amount of credit thus not deductible in such taxable
   49  year shall be treated as  an  overpayment  of  tax  to  be  credited  or
   50  refunded  in  accordance  with  the  provisions  of section one thousand
   51  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
   52  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
   53  notwithstanding, no interest shall  be  paid  thereon.  The  tax  credit
   54  allowed  pursuant to this section shall apply to taxable years beginning
   55  before January first, two thousand twenty.
       A. 8072                             4

    1    S 7. This act shall take effect immediately; provided however that the
    2  amendments to section 187-c of the tax law made by section four of  this
    3  act  shall take effect on the same date as section 15 of part S of chap-
    4  ter 59 of the laws of 2014 takes  effect;  provided,  further  that  the
    5  amendment  to  subdivision  24  of  section 210-B of the tax law made by
    6  section six of this act shall take effect on  the  same  date  and  same
    7  manner  as section 17 of part A of chapter 59 of the laws of 2014, takes
    8  effect.
Go to top
Page display time = 0.149 sec