Creates the clean fuel and job creation tax credit of 2013 to incentivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies.
STATE OF NEW YORK
________________________________________________________________________
5904
2013-2014 Regular Sessions
IN ASSEMBLY
March 8, 2013
___________
Introduced by M. of A. GABRYSZAK -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the public service law and the tax law, in relation to
creating the clean fuel and job creation tax credit to incentivize
power plants to repower existing facilities or construct new facili-
ties which use cleaner burning fuels or add significant pollution
control technologies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public service law is amended by adding a new section
2 73 to read as follows:
3 § 73. Coordination with certain provisions of the tax law. The depart-
4 ment may request from the department of taxation and finance a list of
5 electric generating facilities that have been granted a clean fuel and
6 job creation tax credit as such credit is described in section thirty-
7 eight of the tax law. The list shall include the location of the facili-
8 ty receiving the credit, a description of the project to which the cred-
9 it relates, the amount of the credit, and the tax year for which the
10 credit was granted.
11 § 2. The tax law is amended by adding a new section 38 to read as
12 follows:
13 § 38. Clean fuel and job creation tax credit. (a) Allowance of credit.
14 A taxpayer subject to tax under article nine, nine-A or twenty-two of
15 this chapter, which is an electric generating facility, shall be allowed
16 a credit against such tax, pursuant to the provisions referenced in
17 subdivision (c) of this section. The credit shall be allowed for
18 certain investments made by any major electric generating facility in
19 the state such as repowering projects, qualified energy infrastructure
20 investments, and qualified new construction projects as described in
21 this section. The credit shall be as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05917-03-3
A. 5904 2
1 (1) twelve and one-half percent of the first one hundred million
2 dollars in investment;
3 (2) fifteen percent of the next one hundred million dollars in invest-
4 ment or portion thereof; and
5 (3) twenty percent of the total investment over and above two hundred
6 million dollars.
7 (b) Definitions. As used in this section, the following terms shall
8 have the following meanings:
9 (1) "Repowering project" shall mean improvements to an existing major
10 electric generating facility that will allow the facility, or a new unit
11 or units at the facility, or the combination of the new unit or units
12 and the facility to meet the relevant environmental requirements
13 contained in subparagraphs (i), (ii), (iii) and (iv) of paragraph (b) of
14 subdivision four of section one hundred sixty-five of the public service
15 law.
16 (2) "Qualified energy infrastructure investment" shall mean any
17 investment needed to deliver a new fuel source to an existing electric
18 generating facility, replace or retrofit a burner or turbine, utilize
19 on-site renewable energy generation, or any other substantial investment
20 that will have a direct impact on the facility's ability to meet the
21 environmental requirements contained in subparagraphs (i), (ii), (iii)
22 and (iv) of paragraph (b) of subdivision four of section one hundred
23 sixty-five of the public service law.
24 (3) "Qualified new construction project" shall mean constructing a new
25 major electric generating facility in the same location as an existing
26 facility or on property directly adjacent or contiguous to said proper-
27 ty, where the new facility by itself or in combination with the existing
28 facility will allow the site as a whole to meet the environmental
29 requirements contained in subparagraphs (i), (ii), (iii) and (iv) of
30 paragraph (b) of subdivision four of section one hundred sixty-five of
31 the public service law.
32 (4) "Major electric generating facility" shall mean a major electric
33 generating facility as defined in section one hundred sixty of the
34 public service law.
35 (c) A major electric generating facility which undertakes a repowering
36 project, a qualified energy infrastructure investment, a qualified new
37 construction project, or other investment in pollution control equipment
38 or additional energy infrastructure with the goal of meeting relevant
39 environmental requirements shall be allowed to claim a credit under this
40 section.
41 § 3. The tax law is amended by adding a new section 187-s to read as
42 follows:
43 § 187-s. Clean fuel and job creation tax credit. (a) Allowance of
44 credit. A taxpayer shall be allowed a credit, to be computed as provided
45 in section thirty-eight of this chapter, against the tax imposed by
46 sections one hundred eighty-three and one hundred eighty-four of this
47 article.
48 (b) Application of credit. In no event shall the credit under this
49 section be allowed in an amount which will reduce the tax payable to
50 less than the applicable minimum tax fixed by section one hundred eight-
51 y-three or one hundred eighty-four of this article. If, however, the
52 amount of credit allowable under this section for any taxable year
53 reduces the tax to such amount, any amount of credit not deductible in
54 such taxable year may be carried over to the following year or years and
55 may be deducted from the taxpayer's tax for such year or years.
A. 5904 3
1 § 4. Section 210 of the tax law is amended by adding a new subdivision
2 46 to read as follows:
3 46. Clean fuel and job creation tax credit. (a) Allowance of credit. A
4 taxpayer shall be allowed a credit, to be computed as provided in
5 section thirty-eight of this chapter, against the tax imposed by this
6 article.
7 (b) Application of credit. The credit allowed under this subdivision
8 for any taxable year may not reduce the tax due for such year to less
9 than the amount prescribed in paragraph (d) of subdivision one of this
10 section. However, if the amount of credit allowed under this subdivision
11 for any taxable year reduces the tax to such amount, any amount of cred-
12 it thus not deductible in such taxable year will be treated as an over-
13 payment of tax to be credited or refunded in accordance with the
14 provisions of section one thousand eighty-six of this chapter. Provided,
15 however, the provisions of subsection (c) of section one thousand eight-
16 y-eight of this chapter notwithstanding, no interest will be paid there-
17 on.
18 § 5. Section 606 of the tax law is amended by adding a new subsection
19 (vv) to read as follows:
20 (vv) Clean fuel and job creation tax credit. (1) Allowance of credit.
21 A taxpayer shall be allowed a credit, to be computed as provided in
22 section thirty-eight of this chapter, against the tax imposed by this
23 article.
24 (2) Application of credit. If the amount of the credit allowed under
25 this subsection for any taxable year exceeds the taxpayer's tax for such
26 year, the excess will be treated as an overpayment of tax to be credited
27 or refunded in accordance with the provisions of section six hundred
28 eighty-six of this article, provided, however, that no interest will be
29 paid thereon.
30 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
31 of the tax law is amended by adding a new clause (xxxv) to read as
32 follows:
33 (xxxv) Clean fuel and job creationAmount of clean fuel and
34 credit under subsection (vv)job creation credit under
35 subdivision forty-six
36 of section two hundred ten
37 § 7. This act shall take effect on the ninetieth day after it shall
38 have become a law.
