STATE OF NEW YORK
________________________________________________________________________
6159
2017-2018 Regular Sessions
IN SENATE
May 11, 2017
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
AN ACT to amend the tax law, in relation to biofuel production credit
for production of biomethane
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 38-a.
3 § 2. Subdivisions (a) and (b) of section 38-a 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, subdivision (b) as added by section 1 of part X of chapter 62 of
6 the laws of 2006, such section as renumbered by section one of this act,
7 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 biofuel produced at a biofuel plant on
13 or after January first, two thousand six shall equal fifteen cents per
14 gallon or twenty-five cents per gallon for production of biomethane
15 after the production of the first forty thousand gallons per year
16 presented to market. The credit under this section shall be capped at
17 two and one-half million dollars per taxpayer per taxable year for up to
18 no more than four consecutive taxable years per biofuel plant. If the
19 taxpayer is a partner in a partnership or shareholder of a New York S
20 corporation, then the cap imposed by the preceding sentence shall be
21 applied at the entity level, so that the aggregate credit allowed to all
22 the partners or shareholders of each such entity in the taxable year
23 does not exceed two and one-half million dollars. The tax credit allowed
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06185-01-7
S. 6159 2
1 pursuant to this section shall apply to taxable years beginning before
2 January first, two thousand twenty.
3 (b) Definitions. For the purpose of this section, the following terms
4 shall have the following meanings:
5 (1) "Biofuel" means a fuel which includes biodiesel [and], ethanol or
6 biomethane.
7 (2) The term "biodiesel" shall mean a fuel comprised exclusively of
8 mono-alkyl esters of long chain fatty acids derived from vegetable oils
9 or animal fats, designated B100, which meets the specifications of Amer-
10 ican Society of Testing and Materials designation D 6751-02.
11 (3) The term "ethanol" shall mean ethyl alcohol manufactured in the
12 United States and its territories and sold (i) for fuel use and which
13 has been rendered unfit for beverage use in a manner and which is
14 produced at a facility approved by the federal bureau of alcohol, tobac-
15 co and firearms for the production of ethanol for fuel, or (ii) as dena-
16 tured ethanol used by blenders and refiners which has been rendered
17 unfit for beverage use. The term "biofuel" may also include any other
18 standard approved by the New York state energy and research development
19 authority.
20 [(2)] (4) The term "biomethane" shall mean biogases that are emitted
21 as organic wastes that break down in airless environments. Biomethane is
22 produced from a variety of biomass and/or biogas sources, including
23 landfill gas, solid waste, municipal wastewater and agricultural manure
24 via airless tanks called anaerobic digesters. It can also be produced
25 from other sources such as forestry and agricultural waste through the
26 process of thermal gasification and methanation, although these technol-
27 ogies are not yet widely used. Biomethane is a renewable fuel, easily
28 distributed through existing infrastructure and is suitable for applica-
29 tions from light-duty vehicles to heavy-duty freight trucks.
30 (5) "Biofuel plant" means a commercial facility located in New York
31 state at which one or more biofuels are produced. For the purposes of
32 this section, any commercial facility where biomethane is produced shall
33 be considered a separate biofuel plant.
34 § 3. Section 187-c of the tax law, as amended by section 2 of part K
35 of chapter 59 of the laws of 2012, is amended to read as follows:
36 § 187-c. Biofuel production credit. A taxpayer shall be allowed a
37 credit to be computed as provided in section [twenty-eight] thirty-
38 eight-a of this chapter, [as added by part X of chapter sixty-two of the
39 laws of two thousand six,] against the tax imposed by this article.
40 Provided, however, that the amount of such credit allowed against the
41 tax imposed by section one hundred eighty-four of this article shall be
42 the excess of the amount of such credit over the amount of any credit
43 allowed by this section against the tax imposed by section one hundred
44 eighty-three of this article. In no event shall the credit under this
45 section be allowed in an amount which will reduce the tax payable to
46 less than the applicable minimum tax fixed by section one hundred eight-
47 y-three or one hundred eighty-five of this article. If, however, the
48 amount of the credit allowed under this section for any taxable year
49 reduces the tax to such amount, the excess shall be treated as an over-
50 payment of tax to be credited or refunded in accordance with the
51 provisions of section six hundred eighty-six of this chapter. Provided,
52 however, the provisions of subsection (c) of section one thousand eight-
53 y-eight of this chapter notwithstanding, no interest shall be paid ther-
54 eon. The tax credit allowed pursuant to this section shall apply to
55 taxable years beginning before January first, two thousand twenty.
S. 6159 3
1 § 4. Section 187-c of the tax law, as amended by section 15 of part S
2 of chapter 59 of the laws of 2014, is amended to read as follows:
3 § 187-c. Biofuel production credit. A taxpayer shall be allowed a
4 credit to be computed as provided in section [twenty-eight] thirty-
5 eight-a of this chapter, [as added by part X of chapter sixty-two of the
6 laws of two thousand six,] against the tax imposed by this article.
7 Provided, however, that the amount of such credit allowed against the
8 tax imposed by section one hundred eighty-four of this article shall be
9 the excess of the amount of such credit over the amount of any credit
10 allowed by this section against the tax imposed by section one hundred
11 eighty-three of this article. In no event shall the credit under this
12 section be allowed in an amount which will reduce the tax payable to
13 less than the applicable minimum tax fixed by section one hundred eight-
14 y-three of this article. If, however, the amount of the credit allowed
15 under this section for any taxable year reduces the tax to such amount,
16 the excess shall be treated as an overpayment of tax to be credited or
17 refunded in accordance with the provisions of section six hundred eight-
18 y-six of this chapter. Provided, however, the provisions of subsection
19 (c) of section one thousand eighty-eight of this chapter notwithstand-
20 ing, no interest shall be paid thereon. The tax credit allowed pursuant
21 to this section shall apply to taxable years beginning before January
22 first, two thousand twenty.
23 § 5. Subsection (jj) of section 606 of the tax law, as amended by
24 section 4 of part K of chapter 59 of the laws of 2012, is amended to
25 read as follows:
26 (jj) Biofuel production credit. A taxpayer shall be allowed a credit
27 to be computed as provided in section [twenty-eight] thirty-eight-a of
28 this chapter, [as added by part X of chapter sixty-two of the laws of
29 two thousand six,] against the tax imposed by this article. If the
30 amount of the credit allowed under this subsection for any taxable year
31 shall exceed the taxpayer's tax for such year, the excess shall be
32 treated as an overpayment of tax to be credited or refunded in accord-
33 ance with the provisions of section six hundred eighty-six of this arti-
34 cle, provided, however, that no interest shall be paid thereon. The tax
35 credit allowed pursuant to this section shall apply to taxable years
36 beginning before January first, two thousand twenty.
37 § 6. Subdivision 24 of section 210-B of the tax law, as added by
38 section 17 of part A of chapter 59 of the laws of 2014, is amended to
39 read as follows:
40 24. Biofuel production credit. (a) General. A taxpayer shall be
41 allowed a credit, to be computed as provided in section [twenty-eight]
42 thirty-eight-a of this chapter [added as part X of chapter sixty-two of
43 the laws of two thousand six,] against the tax imposed by this article.
44 The credit allowed under this subdivision for any taxable year shall not
45 reduce the tax due for such year to less than the fixed dollar minimum
46 amount prescribed in paragraph (d) of subdivision one of section two
47 hundred ten of this article. However, if the amount of credit allowed
48 under this subdivision for any taxable year reduces the tax to such
49 amount or if the taxpayer otherwise pays tax based on the fixed dollar
50 minimum amount, any amount of credit thus not deductible in such taxable
51 year shall be treated as an overpayment of tax to be credited or
52 refunded in accordance with the provisions of section one thousand
53 eighty-six of this chapter. Provided, however, the provisions of
54 subsection (c) of section one thousand eighty-eight of this chapter
55 notwithstanding, no interest shall be paid thereon. The tax credit
S. 6159 4
1 allowed pursuant to this section shall apply to taxable years beginning
2 before January first, two thousand twenty.
3 § 7. This act shall take effect immediately; provided however that the
4 amendments to section 187-c of the tax law made by section four of this
5 act shall take effect on the same date as section 15 of part S of chap-
6 ter 59 of the laws of 2014 takes effect.
