STATE OF NEW YORK
________________________________________________________________________
9544
IN SENATE
March 23, 2026
___________
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the biofuel production cred-
it
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) and paragraph 1 of subdivision (b) of
2 section 28 of the tax law, as added by section 1 of part X of chapter 62
3 of the laws of 2006, subdivision (a) as amended by section 1 of part K
4 of chapter 59 of the laws of 2012, are amended to read as follows:
5 (a) General. A taxpayer subject to tax under article nine, nine-A or
6 twenty-two of this chapter shall be allowed a credit against such tax
7 pursuant to the provisions referenced in subdivision (d) of this
8 section. The credit (or pro rata share of earned credit in the case of a
9 partnership) for each gallon of biofuel produced at a biofuel plant on
10 or after January first, two thousand [six] twenty-two shall equal
11 fifteen cents per gallon after the production of the first forty thou-
12 sand gallons per year presented to market. The credit under this section
13 shall be capped at two and one-half million dollars per taxpayer per
14 taxable year for up to no more than four consecutive taxable years per
15 biofuel plant. If the taxpayer is a partner in a partnership or share-
16 holder of a New York S corporation, then the cap imposed by the preced-
17 ing sentence shall be applied at the entity level, so that the aggregate
18 credit allowed to all the partners or shareholders of each such entity
19 in the taxable year does not exceed two and one-half million dollars.
20 The tax credit allowed pursuant to this section shall apply to taxable
21 years beginning before January first, two thousand [twenty]
22 twenty-seven.
23 (1) "Biofuel" means a fuel which includes biodiesel [and ethanol],
24 renewable diesel and renewable hydrocarbon diesel. The term "biodiesel"
25 shall mean a fuel comprised exclusively of mono-alkyl esters of long
26 chain fatty acids derived from vegetable oils or animal fats, designated
27 B100, which meets the specifications of American Society of Testing and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15297-01-6
S. 9544 2
1 Materials designation D 6751-02. The [term "ethanol" shall mean ethyl
2 alcohol manufactured in the United States and its territories and sold
3 (i) for fuel use and which has been rendered unfit for beverage use in a
4 manner and which is produced at a facility approved by the federal
5 bureau of alcohol, tobacco and firearms for the production of ethanol
6 for fuel, or (ii) as denatured ethanol used by blenders and refiners
7 which has been rendered unfit for beverage use] terms "renewable diesel"
8 and "renewable hydrocarbon diesel" mean a diesel fuel substitute
9 produced from nonpetroleum renewable sources, including vegetable oils
10 and animal fats, that meets the registration requirements for fuels and
11 fuel additives established by the federal Environmental Protection Agen-
12 cy in 40 C.F.R. Part 79 (2008) and conforms to the specifications of
13 ASTM D975. Renewable diesel and renewable hydrocarbon diesel shall not
14 include any fuel from co-processed biomass with a feedstock that is not
15 biomass. The term "biofuel" may also include any other standard
16 approved by the New York state energy and research development authori-
17 ty.
18 § 2. Section 187-c of the tax law, as amended by section 15 of part S
19 of chapter 59 of the laws of 2014, is amended to read as follows:
20 § 187-c. Biofuel production credit. A taxpayer shall be allowed a
21 credit to be computed as provided in section twenty-eight of this chap-
22 ter, as added by part X of chapter sixty-two of the laws of two thousand
23 six, against the tax imposed by this article. Provided, however, that
24 the amount of such credit allowed against the tax imposed by section one
25 hundred eighty-four of this article shall be the excess of the amount of
26 such credit over the amount of any credit allowed by this section
27 against the tax imposed by section one hundred eighty-three of this
28 article. In no event shall the credit under this section be allowed in
29 an amount which will reduce the tax payable to less than the applicable
30 minimum tax fixed by section one hundred eighty-three of this article.
31 If, however, the amount of the credit allowed under this section for any
32 taxable year reduces the tax to such amount, the excess shall be treated
33 as an overpayment of tax to be credited or refunded in accordance with
34 the provisions of section six hundred eighty-six of this chapter.
35 Provided, however, the provisions of subsection (c) of section one thou-
36 sand eighty-eight of this chapter notwithstanding, no interest shall be
37 paid thereon. The tax credit allowed pursuant to this section shall
38 apply to taxable years beginning before January first, two thousand
39 [twenty] twenty-seven.
40 § 3. Subdivision 24 of section 210-B of the tax law, as added by
41 section 17 of part A of chapter 59 of the laws of 2014, is amended to
42 read as follows:
43 24. Biofuel production credit. [(a) General.] A taxpayer shall be
44 allowed a credit, to be computed as provided in section twenty-eight of
45 this chapter added as part X of chapter sixty-two of the laws of two
46 thousand six, against the tax imposed by this article. The credit
47 allowed under this subdivision for any taxable year shall not reduce the
48 tax due for such year to less than the fixed dollar minimum amount
49 prescribed in paragraph (d) of subdivision one of section two hundred
50 ten of this article. However, if the amount of credit allowed under this
51 subdivision for any taxable year reduces the tax to such amount or if
52 the taxpayer otherwise pays tax based on the fixed dollar minimum
53 amount, any amount of credit thus not deductible in such taxable year
54 shall be treated as an overpayment of tax to be credited or refunded in
55 accordance with the provisions of section one thousand eighty-six of
56 this chapter. Provided, however, the provisions of subsection (c) of
S. 9544 3
1 section one thousand eighty-eight of this chapter notwithstanding, no
2 interest shall be paid thereon. The tax credit allowed pursuant to this
3 section shall apply to taxable years beginning before January first, two
4 thousand [twenty] twenty-seven.
5 § 4. Subsection (jj) of section 606 of the tax law, as amended by
6 section 4 of part K of chapter 59 of the laws of 2012, is amended to
7 read as follows:
8 (jj) Biofuel production credit. A taxpayer shall be allowed a credit
9 to be computed as provided in section twenty-eight of this chapter, as
10 added by part X of chapter sixty-two of the laws of two thousand six,
11 against the tax imposed by this article. If the amount of the credit
12 allowed under this subsection for any taxable year shall exceed the
13 taxpayer's tax for such year, the excess shall be treated as an overpay-
14 ment of tax to be credited or refunded in accordance with the provisions
15 of section six hundred eighty-six of this article, provided, however,
16 that no interest shall be paid thereon. The tax credit allowed pursuant
17 to this section shall apply to taxable years beginning before January
18 first, two thousand [twenty] twenty-seven.
19 § 5. This act shall take effect on the first of January next succeed-
20 ing the date on which it shall have become a law and shall apply to
21 taxable years beginning on and after such date.
