Provides a tax credit for the purchase or conversion of an electric vessel or zero emission vessel; provides a tax credit for electric vessel recharging property.
STATE OF NEW YORK
________________________________________________________________________
3803
2025-2026 Regular Sessions
IN SENATE
January 30, 2025
___________
Introduced by Sen. PARKER -- 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 providing a tax credit for
the purchase or conversion of an electric vessel or zero emission
vessel; and to providing a tax credit for electric vessel recharging
property
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 50 to read
2 as follows:
3 § 50. Electric and zero emission vessel tax credit. (a) Allowance of
4 credit. (1) A taxpayer that purchases a qualifying electric vessel or
5 zero emission vessel, that meets the eligibility requirements of subdi-
6 vision (b) of this section and that is subject to tax under article
7 nine-A or twenty-two of this chapter may claim an electric and zero
8 emission vessel tax credit against such tax in the taxable year in which
9 the purchase is made. A taxpayer that converts a vessel to a qualifying
10 electric vessel or zero emission vessel, that meets the eligibility
11 requirements of subdivision (b) of this section and that is subject to
12 tax under article nine-A or twenty-two of this chapter may claim an
13 electric and zero emission vessel tax credit against such tax in the
14 taxable year in which the conversion is made.
15 (2) The amount of the credit allowed under this section shall be
16 calculated as follows:
17 (i) in the case of a qualifying electric vessel or zero emission
18 vessel purchased after December thirty-first, two thousand twenty-five
19 and before January first, two thousand thirty-one, thirty percent of the
20 tax imposed upon such purchase pursuant to article twenty-eight of this
21 chapter;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07763-01-5
S. 3803 2
1 (ii) in the case of a qualifying electric vessel or zero emission
2 vessel purchased during a calendar year after December thirty-first, two
3 thousand thirty-one and before January first, two thousand thirty-seven,
4 thirty percent of the tax imposed upon such purchase pursuant to article
5 twenty-eight of this chapter determined under this paragraph for the
6 preceding calendar year, reduced by five percentage points for each year
7 after two thousand thirty-one; and
8 (iii) in the case of a vessel converted to a qualifying vessel after
9 December thirty-first, two thousand twenty-five and before January
10 first, two thousand thirty-one, thirty percent of the tax imposed upon
11 the cost of such conversion pursuant to article twenty-eight of this
12 chapter; and
13 (iv) in the case of a vessel converted to a qualifying vessel during a
14 calendar year after December thirty-first, two thousand thirty-one and
15 before January first, two thousand thirty-seven, thirty percent of the
16 tax imposed upon the cost of such conversion pursuant to article twen-
17 ty-eight of this chapter determined under this paragraph for the preced-
18 ing calendar year, reduced by five percentage points for each year after
19 two thousand thirty-one.
20 (3) No credit shall be allowed for a qualifying vessel purchased or
21 converted after December thirty-first, two thousand thirty-seven.
22 (4) A taxpayer that is a partner in a partnership, member of a limited
23 liability company or shareholder in a subchapter S corporation shall be
24 allowed its pro rata share of the credit earned by the partnership,
25 limited liability company or subchapter S corporation that meets the
26 eligibility criteria described in subdivision (b) of this section to
27 claim an electric and zero emission vessel tax credit. In no event may
28 the total amount of the credit earned by the partnership, limited
29 liability company or subchapter S corporation exceed forty thousand
30 dollars for all vessels in any tax year.
31 (5) No cost or expense paid or incurred by the taxpayer that is
32 included as part of the calculation of this credit shall be the basis of
33 any other tax credit allowed under this chapter.
34 (b) Eligibility criteria. To be eligible to claim an electric and zero
35 emission vessel tax credit, a taxpayer must:
36 (1) (i) purchase an electric vessel or zero emission vessel during the
37 calendar year for which the credit is claimed; or (ii) convert a vessel
38 to a qualifying vessel during the calendar year for which the credit is
39 claimed;
40 (2) pay taxes pursuant to article twenty-eight of this chapter on: (i)
41 the purchase of the electric vessel or zero emission vessel; or (ii) the
42 purchase of equipment and/or services to convert the vessel to a quali-
43 fying vessel;
44 (3) register the vessel in this state for at least six months of the
45 taxable year in which the credit is claimed;
46 (4) purchase the vessel for personal use or lease, not for re-sale;
47 and
48 (5) in the case of a conversion, submit an application to and obtain
49 approval of such application by the department describing the conversion
50 and approved costs to complete such conversion.
51 (c) Definitions. As used in this section the following terms shall
52 have the following meanings:
53 (1) "Vessel" means a vessel as defined in section twenty-two hundred
54 fifty of the vehicle and traffic law that is an electric vessel or a
55 zero emission vessel.
S. 3803 3
1 (2) "Electric vessel" means a commercially available, mass-produced
2 vessel originally equipped by the manufacturer with an on board electric
3 propulsion system or a vessel retrofitted with an electric propulsion
4 system, provided the vehicle owner can provide supporting documentation
5 of such retrofit. "Electric vessel" includes: (i) an electric vessel
6 that has a battery that is recharged by connecting the vessel to an
7 external power source; and (ii) a plug-in hybrid electric vessel that
8 has a battery that be can be recharged by connecting the vessel to an
9 external power source or by an onboard internal-combustion engine and
10 generator.
11 (3) "Zero emission vessel" means a vessel powered by means of a
12 battery or fuel cell or a combination thereof, or another source of
13 power, that produces zero exhaust emissions of any greenhouse gas,
14 criteria pollutant or precursor pollutant under any and all possible
15 operational modes and conditions.
16 (4) "Qualifying vessel" means an electric vessel or zero emission
17 vessel as designated by the department or a vessel that has been
18 converted to an electric vessel or zero emission vessel as provided in
19 subdivision (d) of this section.
20 (d) Qualifying vessels. (1) The department, in consultation with the
21 department of environmental conservation, shall compile a list of elec-
22 tric vessels and zero emission vessels that qualify for an electric and
23 zero emission vessel tax credit.
24 (2) The department, in consultation with the department of environ-
25 mental conservation, shall develop guidelines for the conversion of a
26 vessel to a qualifying vessel and shall develop an application process
27 to certify the expenses necessary for the conversion. A taxpayer will
28 not be eligible to claim the credit unless he or she has completed the
29 application process and the application has been approved by the depart-
30 ment.
31 (e) Information sharing. The department and the department of environ-
32 mental conservation shall be allowed and are directed to share and
33 exchange information regarding the information contained on the credit
34 application for claiming the electric and zero emission vessel tax cred-
35 it and such information exchanged between the department and the depart-
36 ment of environmental conservation shall not be subject to disclosure or
37 inspection under the state's freedom of information law.
38 (f) Cross references. For application of the credit provided for in
39 this section, see the following provisions of this chapter:
40 (1) article 9-A: section 210-B, subdivision 61; and
41 (2) article 22: section 606, subsection (bbb).
42 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
43 sion 61 to read as follows:
44 61. Electric and zero emission vessel tax credit. (a) Allowance of
45 credit. A taxpayer will be allowed a credit, to be computed as provided
46 in section fifty of this chapter, against the taxes imposed by this
47 article.
48 (b) Application of credit. The credit allowed under this subdivision
49 for the taxable year will not reduce the tax due for such year to less
50 than the amount prescribed in paragraph (d) of subdivision one of
51 section two hundred ten of this article. However, if the amount of cred-
52 it allowed under this subdivision for the taxable year reduces the tax
53 to such amount or if the taxpayer otherwise pays tax based on the fixed
54 dollar minimum amount, any amount of credit not deductible in such taxa-
55 ble year will be treated as an overpayment of tax to be credited or
56 refunded in accordance with the provisions of section one thousand
S. 3803 4
1 eighty-six of this chapter. Provided, however, the provisions of
2 subsection (c) of section one thousand eighty-eight of this chapter
3 notwithstanding, no interest will be paid thereon.
4 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
5 of the tax law is amended by adding a new clause (lii) to read as
6 follows:
7 (lii) Electric and zeroAmount of credit under
8 emission vessel tax creditsubdivision sixty-one of
9 under subsection (bbb)section two hundred ten-B
10 § 4. Section 606 of the tax law is amended by adding a new subsection
11 (bbb) to read as follows:
12 (bbb) Electric and zero emission vessel tax credit. (1) Allowance of
13 credit. A taxpayer shall be allowed a credit, to be computed as provided
14 in section fifty of this chapter, against the tax imposed by this arti-
15 cle.
16 (2) Application of credit. If the amount of the credit allowed under
17 this subsection for the taxable year exceeds the taxpayer's tax for such
18 year, the excess will be treated as an overpayment of tax to be credited
19 or refunded in accordance with the provisions of section six hundred
20 eighty-six of this article, provided, however, that no interest will be
21 paid thereon.
22 § 5. Subdivision 3 of section 187-b of the tax law is amended by
23 adding a new paragraph (c) to read as follows:
24 (c) The term "vehicle" includes a vessel as defined in section fifty
25 of this chapter.
26 § 6. Paragraph (c) of subdivision 30 of section 210-B of the tax law
27 is amended by adding a new subparagraph (iii) to read as follows:
28 (iii) The term "vehicle" includes a vessel as defined in section fifty
29 of this chapter.
30 § 7. Paragraph 3 of subsection (p) of section 606 of the tax law is
31 amended by adding a new subparagraph (C) to read as follows:
32 (C) The term "vehicle" includes a vessel as defined in section fifty
33 of this chapter.
34 § 8. Severability. If any provision of this act, or any application of
35 any provision of this act, is held to be invalid, that shall not affect
36 the validity or effectiveness of any other provision of this act, or of
37 any other application of any provision of this act, which can be given
38 effect without that provision or application; and to that end, the
39 provisions and applications of this act are severable.
40 § 9. This act shall take effect immediately and shall apply to taxable
41 years beginning on or after January 1, 2026.
