Bill Text: NY A05919 | 2023-2024 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced) 2024-01-03 - referred to agriculture [A05919 Detail]
Download: New_York-2023-A05919-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5919 2023-2024 Regular Sessions IN ASSEMBLY March 24, 2023 ___________ Introduced by M. of A. BARRETT, LUPARDO, THIELE, FAHY -- read once and referred to the Committee on Agriculture AN ACT to amend the agriculture and markets law, the tax law and the environmental conservation 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 a 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. LBD01378-02-3A. 5919 2 1 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 2 sion 59 to read as follows: 3 59. 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 shall 28 exceed the taxpayer's tax for such year and the taxpayer's New York 29 adjusted gross income for such year does not exceed sixty thousand 30 dollars, the excess shall be treated as an overpayment of tax to be 31 credited or refunded in accordance with the provisions of section six 32 hundred eighty-six of this chapter, provided, however, that no interest 33 shall be paid thereon. If the taxpayer's New York adjusted gross income 34 for such year exceeds sixty thousand dollars, the excess credit may be 35 carried over to the following year or years and may be deducted from the 36 taxpayer's tax for such year or years. 37 § 5. Section 606 of the tax law is amended by adding a new subsection 38 (ooo) to read as follows: 39 (ooo) Carbon farming credit. (1) Allowance of credit. A taxpayer who 40 provides farm products and who practices carbon farming shall be allowed 41 a credit against the tax imposed by this article. 42 (2) Definitions. For the purposes of this subsection, the following 43 definitions shall apply: 44 (A) "Farm products" shall have the same meaning as set forth in subdi- 45 vision five of section two of the agriculture and markets law. 46 (B) "Carbon farming" shall have the same meaning as set forth in 47 subdivision five of section one hundred fifty of the agriculture and 48 markets law. 49 (3) Application of credit. Such credit shall be calculated based on 50 the economic value of carbon farming as determined by the commissioner 51 of environmental conservation, in consultation with the commissioner of 52 agriculture and markets pursuant to paragraph ccc of subdivision two of 53 section 3-0301 of the environmental conservation law. 54 (4) Certification required. The taxpayer shall attach to its tax 55 return its final certificate of eligibility issued by the commissioner 56 of environmental conservation pursuant to section 19-0309 of the envi-A. 5919 3 1 ronmental conservation law. In no event shall the taxpayer be allowed a 2 credit greater than the amount of the credit listed on the final certif- 3 icate verifying the emissions reductions to be credited to the taxpayer. 4 (5) Carryover of credit. If the amount of the credit allowable under 5 this subsection shall exceed the taxpayer's tax for such year and the 6 taxpayer's New York adjusted gross income for such year does not exceed 7 sixty thousand dollars, the excess shall be treated as an overpayment of 8 tax to be credited or refunded in accordance with the provisions of 9 section six hundred eighty-six of this article, provided, however, 10 that no interest shall be paid thereon. If the taxpayer's New York 11 adjusted gross income for such year exceeds sixty thousand dollars, 12 the excess credit may be carried over to the following year or years 13 and may be deducted from the taxpayer's tax for such year or years. 14 § 6. Subdivision 2 of section 3-0301 of the environmental conservation 15 law is amended by adding a new paragraph ccc to read as follows: 16 ccc. Cooperate with the department of agriculture and markets to 17 develop educational materials to promote and encourage carbon farming. 18 Such materials shall promote farming practices which reduce, sequester 19 and mitigate greenhouse gas emissions through the implementation of 20 carbon farming strategies and on land used in support of a farm opera- 21 tion; and develop and codify a metric to quantify the storage of carbon 22 using the United States Department of Agriculture's COMET-Planner, 23 COMET-Farm, and other quantification tools. The department shall develop 24 and distribute an application and certification procedure which verifies 25 the carbon stored to be credited to each farm. The department may 26 promulgate rules and regulations necessary to implement this section. 27 § 7. Subdivision 1 of section 19-0309 of the environmental conserva- 28 tion law, as amended by chapter 817 of the laws of 1987, is amended to 29 read as follows: 30 1. For the purposes of sections 208, 210, 606 and 612 of the Tax Law, 31 the commissioner or his designated representative is hereby authorized 32 to issue certificates of compliance concerning air pollution control 33 facilities [and], air pollution controlled process facilities and carbon 34 farming as defined in such law. No such certificate shall be issued 35 unless the facility to which it is applicable is in compliance with 36 applicable provisions of titles 1 to 11, inclusive, and title 19 of 37 article 17, article 19, and title 1 of article 27 of this chapter; of 38 the Public Health Law; of the state sanitary code and of codes, rules, 39 regulations, permits or orders issued pursuant thereto. 40 § 8. Section 16 of the agriculture and markets law is amended by 41 adding a new subdivision 53 to read as follows: 42 53. Cooperate with the department of environmental conservation to 43 develop educational materials to encourage carbon farming and how to 44 use the United States Department of Agriculture's COMET-Planner, COMET- 45 Farm, and other carbon quantification tools. The program shall promote 46 farming practices which reduce, sequester and mitigate greenhouse gas 47 emissions on land used in support of a farm operation. The department 48 shall promote the carbon farming tax credit provided in sections two 49 hundred ten-B and six hundred six of the tax law. 50 § 9. This act shall take effect on the ninetieth day after it shall 51 have become a law. Effective immediately, the addition, amendment, 52 and/or repeal of any rule or regulation necessary for the implementation 53 of this act on its effective date are authorized to be made and 54 completed on or before such effective date.
