S04563 Summary:

BILL NO    S04563B

SAME AS    SAME AS A09525-A

SPONSOR    YOUNG

COSPNSR    GIPSON, LITTLE, O'MARA, RITCHIE, VALESKY

MLTSPNSR   

Ren S28 to be S42, amd SS42, 187-c, 210, 210-b & 606, Tax L

Includes the production of cellulosic ethanol, densified biofuel and renewable
fuel oil within the biofuel production tax credit; expands the cap for such
credit to $10,000,000 a year and expands the term for which a taxpayer may take
such credit to 10 years.
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S04563 Actions:

BILL NO    S04563B

04/10/2013 REFERRED TO ENERGY AND TELECOMMUNICATIONS
04/23/2013 REPORTED AND COMMITTED TO FINANCE
01/08/2014 REFERRED TO ENERGY AND TELECOMMUNICATIONS
04/29/2014 REPORTED AND COMMITTED TO FINANCE
05/05/2014 AMEND AND RECOMMIT TO FINANCE
05/05/2014 PRINT NUMBER 4563A
05/08/2014 AMEND AND RECOMMIT TO FINANCE
05/08/2014 PRINT NUMBER 4563B
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S04563 Votes:

There are no votes for this bill in this legislative session.
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S04563 Memo:

Memo not available
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S04563 Text:

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

                                        4563--B

                              2013-2014 Regular Sessions

                                   I N  S E N A T E

                                    April 10, 2013
                                      ___________

       Introduced  by  Sens.  YOUNG,  GIPSON,  O'MARA,  RITCHIE, VALESKY -- (at
         request of the Legislative Commission  on  Rural  Resources)  --  read
         twice  and  ordered  printed,  and when printed to be committed to the
         Committee on Energy  and  Telecommunications  --  recommitted  to  the
         Committee  on  Energy and Telecommunications in accordance with Senate
         Rule 6, sec. 8 -- reported favorably from said committee and committed
         to the Committee on Finance --  committee  discharged,  bill  amended,
         ordered  reprinted  as  amended  and  recommitted to said committee --
         committee discharged, bill amended, ordered reprinted as  amended  and
         recommitted to said committee

       AN ACT to amend the tax law, in relation to the biofuel production cred-
         it  for  the  production  of cellulosic ethanol, densified biofuel and
         renewable fuel oil

         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 42.
    3    S 2. Subdivisions (a) and (b) of section 42 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 and subdivision (b) as added by section 1 of part X of  chapter  62
    6  of  the  laws of 2006, such section as renumbered by section one of this
    7  act, 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 LIQUID biofuel produced at a biofuel
   13  plant on or after January first, two thousand six  shall  equal  fifteen
   14  cents  per  gallon,  OR  TWENTY-FIVE  CENTS PER GALLON FOR PRODUCTION OF
   15  CELLULOSIC ETHANOL OR RENEWABLE FUEL OIL after  the  production  of  the
   16  first  forty  thousand  gallons per year presented to market. THE CREDIT

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10038-06-4
       S. 4563--B                          2

    1  FOR EACH BONE DRY TON OF DENSIFIED BIOFUEL PRODUCED AT A  BIOFUEL  PLANT
    2  ON  OR AFTER JANUARY FIRST, TWO THOUSAND SIX SHALL EQUAL FIFTEEN DOLLARS
    3  PER BONE DRY TON AFTER THE PRODUCTION OF THE FIRST TEN THOUSAND TONS PER
    4  YEAR  PRESENTED TO MARKET. The credit under this section shall be capped
    5  at [two and one-half] TEN million dollars per taxpayer per taxable  year
    6  for  up to no more than [four] TEN consecutive taxable years per biofuel
    7  plant. If the taxpayer is a partner in a partnership or shareholder of a
    8  New York S corporation, then the cap imposed by the  preceding  sentence
    9  shall  be  applied  at  the  entity  level, so that the aggregate credit
   10  allowed to all the partners or shareholders of each such entity  in  the
   11  taxable year does not exceed [two and one-half] TEN million dollars. The
   12  tax credit allowed pursuant to this section shall apply to taxable years
   13  beginning before January first, two thousand twenty.
   14    (b)  Definitions. For the purpose of this section, the following terms
   15  shall have the following meanings:
   16    (1) "Biofuel" means a fuel which includes  biodiesel  [and],  ethanol,
   17  DENSIFIED  BIOFUEL  AND  RENEWABLE  FUEL OIL. The term "biodiesel" shall
   18  mean a fuel comprised exclusively of mono-alkyl  esters  of  long  chain
   19  fatty acids derived from vegetable oils or animal fats, designated B100,
   20  which  meets the specifications of American Society of Testing and Mate-
   21  rials designation D 6751-02. The term "ethanol" shall mean ethyl alcohol
   22  manufactured in the United States and its territories and sold  (i)  for
   23  fuel  use and which has been rendered unfit for beverage use in a manner
   24  and which is produced at a facility approved by the  federal  bureau  of
   25  alcohol, tobacco and firearms for the production of ethanol for fuel, or
   26  (ii)  as  denatured ethanol used by blenders and refiners which has been
   27  rendered unfit for beverage use.  The term "biofuel"  may  also  include
   28  any  other  standard  approved by the New York state energy and research
   29  development authority.  THE TERM "RENEWABLE FUEL OIL" SHALL MEAN A  FUEL
   30  COMPRISED  OF ANY NON-FOOD BIOMASS BASED FEEDSTOCK THAT CAN BE USED AS A
   31  FULL OR PARTIAL SUBSTITUTE FOR TRADITIONAL PETROLEUM FUELS.
   32    (2) "CELLULOSIC ETHANOL" MEANS THE PRODUCTION OF ETHANOL  FROM  LIGNO-
   33  CELLULOSIC  BIOMASS FEEDSTOCKS, INCLUDING CELLULOSIC COMPONENTS OF SEPA-
   34  RATED FOOD WASTE AS DEFINED IN TABLE 1 OF C.F.R. S 80.1426  AND  BY-PRO-
   35  DUCTS  FROM  AGRICULTURAL  WASTE,  THAT  ARE  ALTERED THROUGH ACTIVITIES
   36  REFERENCED IN SUBPARAGRAPH FIVE OF PARAGRAPH (B) OF SUBDIVISION  ONE  OF
   37  SECTION  THIRTY-ONE  HUNDRED  TWO-E  OF THE PUBLIC AUTHORITIES LAW. SUCH
   38  LIGNOCELLULOSIC BIOMASS FEEDSTOCKS MAY INCLUDE, BUT ARE NOT  NECESSARILY
   39  LIMITED TO, SWITCHGRASSES OR WILLOWS, AGRICULTURAL AND FORESTRY RESIDUES
   40  AS  DEFINED IN TABLE 1 OF C.F.R.  S 80.1426, CLEAN WOOD AND WOOD WASTES,
   41  PULP AND PAPER MILL WASTES OR EXTRACTS, AND  NON-RECYCLABLE  PAPER.  ANY
   42  QUESTION  AS TO WHETHER ANY FEEDSTOCK QUALIFIES UNDER THIS SECTION SHALL
   43  BE DETERMINED BY THE PRESIDENT OF THE NEW YORK STATE ENERGY AND RESEARCH
   44  DEVELOPMENT AUTHORITY.
   45    (3) "DENSIFIED BIOFUEL" MEANS A SOLID FUEL DERIVED BY  THE  MECHANICAL
   46  DENSIFICATION AND REFINING OF BIOMASS SOURCED FROM WOODY OR AGRICULTURAL
   47  FEEDSTOCKS.
   48    (4)  "Biofuel  plant"  means a commercial facility located in New York
   49  state at which one or more biofuels are produced.  FOR THE  PURPOSES  OF
   50  THIS  SECTION, ANY COMMERCIAL FACILITY WHERE CELLULOSIC ETHANOL, RENEWA-
   51  BLE FUEL OIL OR DENSIFIED BIOFUEL IS  PRODUCED  SHALL  BE  CONSIDERED  A
   52  SEPARATE BIOFUEL PLANT.
   53    S  3.  Section 187-c of the tax law, as amended by section 2 of part K
   54  of chapter 59 of the laws of 2012, is amended to read as follows:
   55    S 187-c. Biofuel production credit. A  taxpayer  shall  be  allowed  a
   56  credit to be computed as provided in section [twenty-eight] FORTY-TWO of
       S. 4563--B                          3

    1  this  chapter,  [as  added by part X of chapter sixty-two of the laws of
    2  two thousand six,] against the tax imposed by  this  article.  Provided,
    3  however,  that the amount of such credit allowed against the tax imposed
    4  by  section  one hundred eighty-four of this article shall be the excess
    5  of the amount of such credit over the amount of any  credit  allowed  by
    6  this section against the tax imposed by section one hundred eighty-three
    7  of  this  article.  In  no  event shall the credit under this section be
    8  allowed in an amount which will reduce the tax payable to less than  the
    9  applicable  minimum tax fixed by section one hundred eighty-three or one
   10  hundred eighty-five of this article. If,  however,  the  amount  of  the
   11  credit  allowed  under this section for any taxable year reduces the tax
   12  to such amount, the excess shall be treated as an overpayment of tax  to
   13  be credited or refunded in accordance with the provisions of section six
   14  hundred eighty-six of this chapter. Provided, however, the provisions of
   15  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
   16  notwithstanding, no interest shall  be  paid  thereon.  The  tax  credit
   17  allowed  pursuant to this section shall apply to taxable years beginning
   18  before January first, two thousand twenty.
   19    S 4. Section 187-c of the tax law, as amended by section 15 of part  S
   20  of chapter 59 of the laws of 2014, is amended to read as follows:
   21    S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
   22  credit to be computed as provided in section [twenty-eight] FORTY-TWO of
   23  this chapter, [as added by part X of chapter sixty-two of  the  laws  of
   24  two  thousand  six,]  against the tax imposed by this article. Provided,
   25  however, that the amount of such credit allowed against the tax  imposed
   26  by  section  one hundred eighty-four of this article shall be the excess
   27  of the amount of such credit over the amount of any  credit  allowed  by
   28  this section against the tax imposed by section one hundred eighty-three
   29  of  this  article.  In  no  event shall the credit under this section be
   30  allowed in an amount which will reduce the tax payable to less than  the
   31  applicable minimum tax fixed by section one hundred eighty-three of this
   32  article.  If,  however,  the  amount  of  the  credit allowed under this
   33  section for any taxable year reduces the tax to such amount, the  excess
   34  shall  be treated as an overpayment of tax to be credited or refunded in
   35  accordance with the provisions of section six hundred eighty-six of this
   36  chapter. Provided, however, the provisions of subsection (c) of  section
   37  one  thousand  eighty-eight of this chapter notwithstanding, no interest
   38  shall be paid thereon. The tax credit allowed pursuant to  this  section
   39  shall  apply  to taxable years beginning before January first, two thou-
   40  sand twenty.
   41    S 5. Subdivision 38 of section 210 of  the  tax  law,  as  amended  by
   42  section  3  of  part  K of chapter 59 of the laws of 2012, is amended to
   43  read as follows:
   44    38. Biofuel production credit. A taxpayer shall be allowed  a  credit,
   45  to  be  computed as provided in section [twenty-eight] FORTY-TWO of this
   46  chapter, [as added by part X of chapter sixty-two of  the  laws  of  two
   47  thousand  six,]  against  the  tax  imposed  by this article. The credit
   48  allowed under this subdivision for any taxable year shall not reduce the
   49  tax due for such year to less than the higher of the amounts  prescribed
   50  in  paragraphs  (c) and (d) of subdivision one of this section. However,
   51  if the amount of credit allowed under this subdivision for  any  taxable
   52  year  reduces  the  tax  to  such  amount, any amount of credit thus not
   53  deductible in such taxable year shall be treated as  an  overpayment  of
   54  tax  to  be  credited  or  refunded in accordance with the provisions of
   55  section one thousand eighty-six of this chapter. Provided, however,  the
   56  provisions  of  subsection  (c)  of section one thousand eighty-eight of
       S. 4563--B                          4

    1  this chapter notwithstanding, no interest shall be paid thereon. The tax
    2  credit allowed pursuant to this section shall  apply  to  taxable  years
    3  beginning before January first, two thousand twenty.
    4    S  6.  Subdivision  24  of  section  210-b of the tax law, as added by
    5  section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
    6  read as follows:
    7    24.  Biofuel  production  credit.  [(a)  General.] A taxpayer shall be
    8  allowed a credit, to be computed as provided in  section  [twenty-eight]
    9  FORTY-TWO  of  this chapter [added as part X of chapter sixty-two of the
   10  laws of two thousand six], against the tax imposed by this article.  The
   11  credit  allowed  under  this  subdivision for any taxable year shall not
   12  reduce the tax due for such year to less than the fixed  dollar  minimum
   13  amount  prescribed  in  paragraph  (d) of subdivision one of section two
   14  hundred ten of this article.  However, if the amount of  credit  allowed
   15  under  this  subdivision  for  any  taxable year reduces the tax to such
   16  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
   17  minimum amount, any amount of credit thus not deductible in such taxable
   18  year  shall  be  treated  as  an  overpayment  of  tax to be credited or
   19  refunded in accordance with  the  provisions  of  section  one  thousand
   20  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
   21  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
   22  notwithstanding,  no  interest  shall  be  paid  thereon. The tax credit
   23  allowed pursuant to this section shall apply to taxable years  beginning
   24  before January first, two thousand twenty.
   25    S  7.  Subsection  (jj)  of  section 606 of the tax law, as amended by
   26  section 4 of part K of chapter 59 of the laws of  2012,  is  amended  to
   27  read as follows:
   28    (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
   29  to be computed as provided in section [twenty-eight] FORTY-TWO  of  this
   30  chapter,  [as  added  by  part X of chapter sixty-two of the laws of two
   31  thousand six,] against the tax imposed by this article. If the amount of
   32  the credit allowed under this subsection  for  any  taxable  year  shall
   33  exceed  the taxpayer's tax for such year, the excess shall be treated as
   34  an overpayment of tax to be credited or refunded in accordance with  the
   35  provisions  of section six hundred eighty-six of this article, provided,
   36  however, that no interest shall be paid thereon. The tax credit  allowed
   37  pursuant  to  this section shall apply to taxable years beginning before
   38  January first, two thousand twenty.
   39    S 8. This act shall take effect immediately, except that section  four
   40  of this act shall take effect on the same date and in the same manner as
   41  section  15  of  part  S of chapter 59 of the laws of 2014 takes effect;
   42  section six of this act shall take effect on the same date  and  in  the
   43  same  manner  as  section 17 of part A of chapter 59 of the laws of 2014
   44  takes effect; and provided, however, that the amendments to  subdivision
   45  38 of section 210 of the tax law made by section five of this act, shall
   46  not  affect  the repeal of such subdivision and shall be deemed repealed
   47  therewith.
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