S04875 Summary:

BILL NOS04875
 
SAME ASNo Same As
 
SPONSORMETZGER
 
COSPNSRSANDERS
 
MLTSPNSR
 
Amd §§150 & 16, Ag & Mkts L; amd §§210-B & 606, Tax L; amd §§3-0301 & 19-0309, En Con L
 
Establishes a tax credit for farmers who maximize carbon sequestration potential through a "carbon farming" land management strategy; directs DEC to develop regulations related to certifying the amount of carbon sequestered or emissions reduced.
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S04875 Actions:

BILL NOS04875
 
03/28/2019REFERRED TO AGRICULTURE
01/08/2020REFERRED TO AGRICULTURE
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S04875 Committee Votes:

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S04875 Floor Votes:

There are no votes for this bill in this legislative session.
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S04875 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4875
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                     March 28, 2019
                                       ___________
 
        Introduced  by  Sen. METZGER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Agriculture
 
        AN ACT to amend the  agriculture  and  markets  law,  the  environmental
          conservation  law  and the tax law, in relation to enacting the carbon
          farming act

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This  act  shall be known and may be cited as the "carbon
     2  farming act".
     3    § 2. Legislative intent. The legislature  hereby  finds  and  declares
     4  that  soil  and vegetation management can significantly enhance soil and
     5  carbon sequestration, resulting in a wide  range  of  environmental  and
     6  agricultural  benefits  to  New  York  farmers and residents, including:
     7  increased yields; soil health; improved water quality; and reductions in
     8  greenhouse gases. The legislature further declares that enhancing carbon
     9  sequestration, the long term storage of carbon in plants, soils, geolog-
    10  ic formations and the ocean, through farming is in the best interest  of
    11  New  Yorkers.  It  is  therefore  the  intent of the legislature and the
    12  purpose of this act to encourage farmers to further sequester and  miti-
    13  gate  carbon  in this state by establishing carbon farming tax credit to
    14  reward and incentivize farmers to maintain or adopt practices that  help
    15  maximize New York's carbon sequestration potential.
    16    §  3.  Section  150  of  the agriculture and markets law is amended by
    17  adding a new subdivision 5 to read as follows:
    18    5. "Carbon farming" means the  implementation  of  a  land  management
    19  strategy  for  the  purposes  of  reducing, sequestering, and mitigating
    20  greenhouse gas emissions on land used in support of a farm operation and
    21  quantifying those  greenhouse  gas  benefits  using  the  United  States
    22  Department of Agriculture's COMET-Planner, COMET-Farm, and other quanti-
    23  fication tools.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00468-02-9

        S. 4875                             2
 
     1    §  4. Section 210-B of the tax law is amended by adding a new subdivi-
     2  sion 53 to read as follows:
     3    53. Carbon farming credit. (a) Allowance of credit. A taxpayer that is
     4  an  agricultural business that produces farm products shall be allowed a
     5  credit against the tax imposed by  this  article  for  the  practice  of
     6  carbon farming.
     7    (b)  Definitions.  For  purposes  of  this section the following terms
     8  shall have the following meanings:
     9    (i) "carbon farming" shall have the  same  meaning  as  set  forth  in
    10  subdivision  five  of  section  one hundred fifty of the agriculture and
    11  markets law;
    12    (ii) "farm products" shall have the  same  meaning  as  set  forth  in
    13  subdivision five of section two of the agriculture and markets law; and
    14    (iii)  "carbon  sequestration"  shall  mean  the  long term storage of
    15  carbon in plants and soils.
    16    (c) Such credit shall be calculated based on  the  economic  value  of
    17  carbon  farming  as  determined  by  the  commissioner  of environmental
    18  conservation, in consultation with the commissioner of  agriculture  and
    19  markets  and  the  commissioner pursuant to paragraph ccc of subdivision
    20  two of section 3-0301 of the environmental conservation law.
    21    (d) The taxpayer shall attach to its tax return its final  certificate
    22  of  eligibility issued by the commissioner of environmental conservation
    23  pursuant to section 19-0309 of the environmental conservation law. In no
    24  event shall the taxpayer be allowed a credit greater than the amount  of
    25  the  credit  listed  on  the  final  certificate verifying the emissions
    26  reductions to be credited to the taxpayer.
    27    (e) If the amount of the credit allowable under this  subdivision  for
    28  any  taxable  year  shall  exceed  the taxpayer's tax for such year, any
    29  amount of credit not deductible in such taxable year may be carried over
    30  to the following three years, and may be deducted for the  taxpayer  for
    31  such year.
    32    §  5. Section 606 of the tax law is amended by adding a new subsection
    33  (jjj) to read as follows:
    34    (jjj) Carbon farming credit. (1) Allowance of credit. A  taxpayer  who
    35  provides farm products and who practices carbon farming shall be allowed
    36  a credit against the tax imposed by this article.
    37    (2)  Definitions.  For  the purposes of this subsection, the following
    38  definitions shall apply:
    39    (A) "Farm products" shall have the same meaning as set forth in subdi-
    40  vision five of section two of the agriculture and markets law.
    41    (B) "Carbon farming" shall have the  same  meaning  as  set  forth  in
    42  subdivision  five  of  section  one hundred fifty of the agriculture and
    43  markets law.
    44    (3) Application of credit. Such credit shall be  calculated  based  on
    45  the  economic  value of carbon farming as determined by the commissioner
    46  of environmental conservation, in consultation with the commissioner  of
    47  agriculture  and markets pursuant to paragraph ccc of subdivision two of
    48  section 3-0301 of the environmental conservation law.
    49    (4) Certification required. The  taxpayer  shall  attach  to  its  tax
    50  return  its  final certificate of eligibility issued by the commissioner
    51  of environmental conservation pursuant to section 19-0309 of  the  envi-
    52  ronmental  conservation law. In no event shall the taxpayer be allowed a
    53  credit greater than the amount of the credit listed on the final certif-
    54  icate verifying the emissions reductions to be credited to the taxpayer.
    55    (5) Carryover of credit. If the amount of the credit  allowable  under
    56  this subsection for any taxable year shall exceed the taxpayer's tax for

        S. 4875                             3
 
     1  such  year, any amount of credit not deductible in such taxable year may
     2  be carried over to the following three years, and may  be  deducted  for
     3  the taxpayer for such year.
     4    § 6. Subdivision 2 of section 3-0301 of the environmental conservation
     5  law is amended by adding a new paragraph ccc to read as follows:
     6    ccc.  Cooperate  with  the  department  of  agriculture and markets to
     7  develop educational materials to promote and encourage  carbon  farming.
     8  Such  materials  shall promote farming practices which reduce, sequester
     9  and mitigate greenhouse gas  emissions  through  the  implementation  of
    10  carbon  farming  strategies and on land used in support of a farm opera-
    11  tion; and develop and codify a metric to quantify the storage of  carbon
    12  using  the  United  States  Department  of  Agriculture's COMET-Planner,
    13  COMET-Farm, and other quantification tools. The department shall develop
    14  and distribute an application and certification procedure which verifies
    15  the carbon stored to be  credited  to  each  farm.  The  department  may
    16  promulgate rules and regulations necessary to implement this section.
    17    §  7.  Subdivision 1 of section 19-0309 of the environmental conserva-
    18  tion law, as amended by chapter 817 of the laws of 1987, is  amended  to
    19  read as follows:
    20    1.  For the purposes of sections 208, 210, 606 and 612 of the Tax Law,
    21  the commissioner or his designated representative is  hereby  authorized
    22  to  issue  certificates  of  compliance concerning air pollution control
    23  facilities [and], air pollution controlled process facilities and carbon
    24  farming as defined in such law. No  such  certificate  shall  be  issued
    25  unless  the  facility  to  which  it is applicable is in compliance with
    26  applicable provisions of titles 1 to 11,  inclusive,  and  title  19  of
    27  article  17,  article  19, and title 1 of article 27 of this chapter; of
    28  the Public Health Law; of the state sanitary code and of  codes,  rules,
    29  regulations, permits or orders issued pursuant thereto.
    30    §  8.  Section  16  of  the  agriculture and markets law is amended by
    31  adding a new subdivision 50 to read as follows:
    32    50. Cooperate with the department  of  environmental  conservation  to
    33  develop    educational  materials to encourage carbon farming and how to
    34  use the United States Department of Agriculture's COMET-Planner,  COMET-
    35  Farm,  and other carbon quantification tools.  The program shall promote
    36  farming practices which reduce, sequester and  mitigate  greenhouse  gas
    37  emissions  on  land used in support of a farm operation.  The department
    38  shall promote the carbon farming tax credit  provided  in  sections  two
    39  hundred ten-b and six hundred six of the tax law.
    40    §  9.  This  act shall take effect on the ninetieth day after it shall
    41  have become a law; provided, however, that  effective  immediately,  the
    42  addition,  amendment,  and/or repeal of any rule or regulation necessary
    43  for the implementation of this act on its effective date are  authorized
    44  and directed to be made and completed on or before such effective date.
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