Bill Text: NY S02437 | 2015-2016 | General Assembly | Amended

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2016-05-23 - PRINT NUMBER 2437A [S02437 Detail]

Download: New_York-2015-S02437-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         2437--A
                               2015-2016 Regular Sessions
                    IN SENATE
                                    January 23, 2015
                                       ___________
        Introduced  by  Sens.  PARKER, COMRIE -- read twice and ordered printed,
          and when printed to be committed to the Committee on Energy and  Tele-
          communications  -- recommitted to the Committee on Energy and Telecom-
          munications in accordance with Senate Rule  6,  sec.  8  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        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]  fifty  thousand  gallons  per
    16  year  presented to market. The credit under this section shall be capped
    17  at two and one-half million dollars per taxpayer per taxable year for up
    18  to 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06529-02-6
        S. 2437--A                          2
     1  the partners or shareholders of each such entity  in  the  taxable  year
     2  does not exceed two and one-half million dollars. The tax credit allowed
     3  pursuant  to  this section shall apply to taxable years beginning before
     4  January first, two thousand twenty.
     5    (b)  Definitions. For the purpose of this section, the following terms
     6  shall have the following meanings:
     7    (1) "Biofuel" means a fuel which includes biodiesel [and], ethanol  or
     8  biomethane.
     9    (2)  The  term  "biodiesel" shall mean a fuel comprised exclusively of
    10  mono-alkyl esters of long chain fatty acids derived from vegetable  oils
    11  or animal fats, designated B100, which meets the specifications of Amer-
    12  ican Society of Testing and Materials designation D 6751-02.
    13    (3)  The  term  "ethanol" shall mean ethyl alcohol manufactured in the
    14  United States and its territories and sold (i) for fuel  use  and  which
    15  has  been  rendered  unfit  for  beverage  use  in a manner and which is
    16  produced at a facility approved by the federal bureau of alcohol, tobac-
    17  co and firearms for the production of ethanol for fuel, or (ii) as dena-
    18  tured ethanol used by blenders and  refiners  which  has  been  rendered
    19  unfit  for  beverage use.  The term "biofuel" may also include any other
    20  standard approved by the New York state energy and research  development
    21  authority.
    22    [(2)]  (4)  The term "biomethane" shall mean biogases that are emitted
    23  as organic wastes that break down in airless environments. Biomethane is
    24  produced from a variety of  biomass  and/or  biogas  sources,  including
    25  landfill  gas, solid waste, municipal wastewater and agricultural manure
    26  via airless tanks called anaerobic digesters. It can  also  be  produced
    27  from  other  sources such as forestry and agricultural waste through the
    28  process of thermal gasification and methanation, although these technol-
    29  ogies are not yet widely used. Biomethane is a  renewable  fuel,  easily
    30  distributed through existing infrastructure and is suitable for applica-
    31  tions from light-duty vehicles to heavy-duty freight trucks.
    32    (5)  "Biofuel  plant"  means a commercial facility located in New York
    33  state at which one or more biofuels are produced.  For the  purposes  of
    34  this section, any commercial facility where biomethane is produced shall
    35  be considered a separate biofuel plant.
    36    §  3.  Section 187-c of the tax law, as amended by section 2 of part K
    37  of chapter 59 of the laws of 2012, is amended to read as follows:
    38    § 187-c. Biofuel production credit. A  taxpayer  shall  be  allowed  a
    39  credit  to  be  computed  as  provided in section [twenty-eight] thirty-
    40  eight-a of this chapter, [as added by part X of chapter sixty-two of the
    41  laws of two thousand six,] against the  tax  imposed  by  this  article.
    42  Provided,  however,  that  the amount of such credit allowed against the
    43  tax imposed by section one hundred eighty-four of this article shall  be
    44  the  excess  of  the amount of such credit over the amount of any credit
    45  allowed by this section against the tax imposed by section  one  hundred
    46  eighty-three  of  this  article. In no event shall the credit under this
    47  section be allowed in an amount which will reduce  the  tax  payable  to
    48  less than the applicable minimum tax fixed by section one hundred eight-
    49  y-three  or  one  hundred  eighty-five of this article. If, however, the
    50  amount of the credit allowed under this section  for  any  taxable  year
    51  reduces  the tax to such amount, the excess shall be treated as an over-
    52  payment of tax to  be  credited  or  refunded  in  accordance  with  the
    53  provisions  of section six hundred eighty-six of this chapter. Provided,
    54  however, the provisions of subsection (c) of section one thousand eight-
    55  y-eight of this chapter notwithstanding, no interest shall be paid ther-
        S. 2437--A                          3
     1  eon. The tax credit allowed pursuant to  this  section  shall  apply  to
     2  taxable years beginning before January first, two thousand twenty.
     3    §  4. Section 187-c of the tax law, as amended by section 15 of part S
     4  of chapter 59 of the laws of 2014, is amended to read as follows:
     5    § 187-c. Biofuel production credit. A  taxpayer  shall  be  allowed  a
     6  credit  to  be  computed  as  provided in section [twenty-eight] thirty-
     7  eight-a of this chapter, [as added by part X of chapter sixty-two of the
     8  laws of two thousand six,] against the  tax  imposed  by  this  article.
     9  Provided,  however,  that  the amount of such credit allowed against the
    10  tax imposed by section one hundred eighty-four of this article shall  be
    11  the  excess  of  the amount of such credit over the amount of any credit
    12  allowed by this section against the tax imposed by section  one  hundred
    13  eighty-three  of  this  article. In no event shall the credit under this
    14  section be allowed in an amount which will reduce  the  tax  payable  to
    15  less than the applicable minimum tax fixed by section one hundred eight-
    16  y-three  of  this article. If, however, the amount of the credit allowed
    17  under this section for any taxable year reduces the tax to such  amount,
    18  the  excess  shall be treated as an overpayment of tax to be credited or
    19  refunded in accordance with the provisions of section six hundred eight-
    20  y-six of this chapter. Provided, however, the provisions  of  subsection
    21  (c)  of  section one thousand eighty-eight of this chapter notwithstand-
    22  ing, no interest shall be paid thereon. The tax credit allowed  pursuant
    23  to  this  section  shall apply to taxable years beginning before January
    24  first, two thousand twenty.
    25    § 5. Subsection (jj) of section 606 of the  tax  law,  as  amended  by
    26  section  4  of  part  K of chapter 59 of the laws of 2012, is amended to
    27  read as follows:
    28    (jj) Biofuel production credit. A taxpayer shall be allowed  a  credit
    29  to  be  computed as provided in section [twenty-eight] thirty-eight-a of
    30  this chapter, [as added by part X of chapter sixty-two of  the  laws  of
    31  two  thousand  six,]  against  the  tax  imposed by this article. If the
    32  amount of the credit allowed under this subsection for any taxable  year
    33  shall  exceed  the  taxpayer's  tax  for  such year, the excess shall be
    34  treated as an overpayment of tax to be credited or refunded  in  accord-
    35  ance with the provisions of section six hundred eighty-six of this arti-
    36  cle,  provided, however, that no interest shall be paid thereon. The tax
    37  credit allowed pursuant to this section shall  apply  to  taxable  years
    38  beginning before January first, two thousand twenty.
    39    §  6.  Subdivision  24  of  section  210-B of the tax law, as added by
    40  section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
    41  read as follows:
    42    24.  Biofuel  production  credit.  (a)  General.  A  taxpayer shall be
    43  allowed a credit, to be computed as provided in  section  [twenty-eight]
    44  thirty-eight-a  of this chapter [added as part X of chapter sixty-two of
    45  the laws of two thousand six,] against the tax imposed by this  article.
    46  The credit allowed under this subdivision for any taxable year shall not
    47  reduce  the  tax due for such year to less than the fixed dollar minimum
    48  amount prescribed in paragraph (d) of subdivision  one  of  section  two
    49  hundred  ten  of  this article. However, if the amount of credit allowed
    50  under this subdivision for any taxable year  reduces  the  tax  to  such
    51  amount  or  if the taxpayer otherwise pays tax based on the fixed dollar
    52  minimum amount, any amount of credit thus not deductible in such taxable
    53  year shall be treated as  an  overpayment  of  tax  to  be  credited  or
    54  refunded  in  accordance  with  the  provisions  of section one thousand
    55  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    56  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
        S. 2437--A                          4
     1  notwithstanding, no interest shall  be  paid  thereon.  The  tax  credit
     2  allowed  pursuant to this section shall apply to taxable years beginning
     3  before January first, two thousand twenty.
     4    § 7. This act shall take effect immediately; provided however that the
     5  amendments  to section 187-c of the tax law made by section four of this
     6  act shall take effect on the same date as section 15 of part S of  chap-
     7  ter 59 of the laws of 2014 takes effect.