Bill Text: NY A06269 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to biofuel production credit for production of biomethane, a biodiesel fuel.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A06269 Detail]

Download: New_York-2019-A06269-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6269
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 4, 2019
                                       ___________
        Introduced by M. of A. WALKER -- read once and referred to the Committee
          on Ways and Means
        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
    24  pursuant to this section shall apply to taxable years  beginning  before
    25  January first, two thousand twenty.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05950-01-9
        A. 6269                             2
     1    (b)  Definitions. For the purpose of this section, the following terms
     2  shall have the following meanings:
     3    (1)  "Biofuel" means a fuel which includes biodiesel [and], ethanol or
     4  biomethane.
     5    (2) The term "biodiesel" shall mean a fuel  comprised  exclusively  of
     6  mono-alkyl  esters of long chain fatty acids derived from vegetable oils
     7  or animal fats, designated B100, which meets the specifications of Amer-
     8  ican Society of Testing and Materials designation D 6751-02.
     9    (3) The term "ethanol" shall mean ethyl alcohol  manufactured  in  the
    10  United  States  and  its territories and sold (i) for fuel use and which
    11  has been rendered unfit for beverage  use  in  a  manner  and  which  is
    12  produced at a facility approved by the federal bureau of alcohol, tobac-
    13  co and firearms for the production of ethanol for fuel, or (ii) as dena-
    14  tured  ethanol  used  by  blenders  and refiners which has been rendered
    15  unfit for beverage use.  The term "biofuel" may also include  any  other
    16  standard  approved by the New York state energy and research development
    17  authority.
    18    [(2)] (4) The term "biomethane" shall mean biogases that  are  emitted
    19  as organic wastes that break down in airless environments. Biomethane is
    20  produced  from  a  variety  of  biomass and/or biogas sources, including
    21  landfill gas, solid waste, municipal wastewater and agricultural  manure
    22  via  airless  tanks  called anaerobic digesters. It can also be produced
    23  from other sources such as forestry and agricultural waste  through  the
    24  process of thermal gasification and methanation, although these technol-
    25  ogies  are  not  yet widely used. Biomethane is a renewable fuel, easily
    26  distributed through existing infrastructure and is suitable for applica-
    27  tions from light-duty vehicles to heavy-duty freight trucks.
    28    (5) "Biofuel plant" means a commercial facility located  in  New  York
    29  state  at  which one or more biofuels are produced.  For the purposes of
    30  this section, any commercial facility where biomethane is produced shall
    31  be considered a separate biofuel plant.
    32    § 3. Section 187-c of the tax law, as amended by section 15 of part  S
    33  of chapter 59 of the laws of 2014, is amended to read as follows:
    34    §  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
    35  credit to be computed as  provided  in  section  [twenty-eight]  thirty-
    36  eight-a of this chapter, [as added by part X of chapter sixty-two of the
    37  laws  of  two  thousand  six,]  against the tax imposed by this article.
    38  Provided, however, that the amount of such credit  allowed  against  the
    39  tax  imposed by section one hundred eighty-four of this article shall be
    40  the excess of the amount of such credit over the amount  of  any  credit
    41  allowed  by  this section against the tax imposed by section one hundred
    42  eighty-three of this article. In no event shall the  credit  under  this
    43  section  be  allowed  in  an amount which will reduce the tax payable to
    44  less than the applicable minimum tax fixed by section one hundred eight-
    45  y-three of this article. If, however, the amount of the  credit  allowed
    46  under  this section for any taxable year reduces the tax to such amount,
    47  the excess shall be treated as an overpayment of tax to be  credited  or
    48  refunded in accordance with the provisions of section six hundred eight-
    49  y-six  of  this chapter. Provided, however, the provisions of subsection
    50  (c) of section one thousand eighty-eight of this  chapter  notwithstand-
    51  ing,  no interest shall be paid thereon. The tax credit allowed pursuant
    52  to this section shall apply to taxable years  beginning  before  January
    53  first, two thousand twenty.
    54    §  4.  Subsection  (jj)  of  section 606 of the tax law, as amended by
    55  section 4 of part K of chapter 59 of the laws of  2012,  is  amended  to
    56  read as follows:
        A. 6269                             3
     1    (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
     2  to be computed as provided in section [twenty-eight]  thirty-eight-a  of
     3  this  chapter,  [as  added by part X of chapter sixty-two of the laws of
     4  two thousand six,] against the tax  imposed  by  this  article.  If  the
     5  amount  of the credit allowed under this subsection for any taxable year
     6  shall exceed the taxpayer's tax for  such  year,  the  excess  shall  be
     7  treated  as  an overpayment of tax to be credited or refunded in accord-
     8  ance with the provisions of section six hundred eighty-six of this arti-
     9  cle, provided, however, that no interest shall be paid thereon. The  tax
    10  credit  allowed  pursuant  to  this section shall apply to taxable years
    11  beginning before January first, two thousand twenty.
    12    § 5. Subdivision 24 of section 210-B of  the  tax  law,  as  added  by
    13  section  17  of  part A of chapter 59 of the laws of 2014, is amended to
    14  read as follows:
    15    24. Biofuel production  credit.  (a)  General.  A  taxpayer  shall  be
    16  allowed  a  credit, to be computed as provided in section [twenty-eight]
    17  thirty-eight-a of this chapter [added as part X of chapter sixty-two  of
    18  the  laws of two thousand six,] against the tax imposed by this article.
    19  The credit allowed under this subdivision for any taxable year shall not
    20  reduce the tax due for such year to less than the fixed  dollar  minimum
    21  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    22  hundred ten of this article. However, if the amount  of  credit  allowed
    23  under  this  subdivision  for  any  taxable year reduces the tax to such
    24  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
    25  minimum amount, any amount of credit thus not deductible in such taxable
    26  year  shall  be  treated  as  an  overpayment  of  tax to be credited or
    27  refunded in accordance with  the  provisions  of  section  one  thousand
    28  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    29  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    30  notwithstanding,  no  interest  shall  be  paid  thereon. The tax credit
    31  allowed pursuant to this section shall apply to taxable years  beginning
    32  before January first, two thousand twenty.
    33    § 6. This act shall take effect immediately.