Bill Text: NY S03217 | 2021-2022 | 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 1-0)

Status: (Introduced - Dead) 2022-05-10 - REPORTED AND COMMITTED TO FINANCE [S03217 Detail]

Download: New_York-2021-S03217-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         3217--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 28, 2021
                                       ___________

        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on  Energy  and  Telecommuni-
          cations  --  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
    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.
                                                                   LBD07263-03-1
        S. 3217--A                          2

     1  pursuant to this section shall apply to taxable years  beginning  before
     2  January first, two thousand [twenty] twenty-five.
     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 15 of part S
    35  of chapter 59 of the laws of 2014, 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  of  this article. If, however, the amount of the credit allowed
    48  under this section for any taxable year reduces the tax to such  amount,
    49  the  excess  shall be treated as an overpayment of tax to be credited or
    50  refunded in accordance with the provisions of section six hundred eight-
    51  y-six of this chapter. Provided, however, the provisions  of  subsection
    52  (c)  of  section one thousand eighty-eight of this chapter notwithstand-
    53  ing, no interest shall be paid thereon. The tax credit allowed  pursuant
    54  to  this  section  shall apply to taxable years beginning before January
    55  first, two thousand [twenty] twenty-five.
        S. 3217--A                          3

     1    § 4. Subsection (jj) of section 606 of the  tax  law,  as  amended  by
     2  section  4  of  part  K of chapter 59 of the laws of 2012, is amended to
     3  read as follows:
     4    (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
     5  to be computed as provided in section [twenty-eight]  thirty-eight-a  of
     6  this  chapter,  [as  added by part X of chapter sixty-two of the laws of
     7  two thousand six,] against the tax  imposed  by  this  article.  If  the
     8  amount  of the credit allowed under this subsection for any taxable year
     9  shall exceed the taxpayer's tax for  such  year,  the  excess  shall  be
    10  treated  as  an overpayment of tax to be credited or refunded in accord-
    11  ance with the provisions of section six hundred eighty-six of this arti-
    12  cle, provided, however, that no interest shall be paid thereon. The  tax
    13  credit  allowed  pursuant  to  this section shall apply to taxable years
    14  beginning before January first, two thousand [twenty] twenty-five.
    15    § 5. Subdivision 24 of section 210-B of  the  tax  law,  as  added  by
    16  section  17  of  part A of chapter 59 of the laws of 2014, is amended to
    17  read as follows:
    18    24. Biofuel production  credit.  (a)  General.  A  taxpayer  shall  be
    19  allowed  a  credit, to be computed as provided in section [twenty-eight]
    20  thirty-eight-a of this chapter [added as part X of chapter sixty-two  of
    21  the  laws of two thousand six,] against the tax imposed by this article.
    22  The credit allowed under this subdivision for any taxable year shall not
    23  reduce the tax due for such year to less than the fixed  dollar  minimum
    24  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    25  hundred ten of this article. However, if the amount  of  credit  allowed
    26  under  this  subdivision  for  any  taxable year reduces the tax to such
    27  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
    28  minimum amount, any amount of credit thus not deductible in such taxable
    29  year  shall  be  treated  as  an  overpayment  of  tax to be credited or
    30  refunded in accordance with  the  provisions  of  section  one  thousand
    31  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    32  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    33  notwithstanding,  no  interest  shall  be  paid  thereon. The tax credit
    34  allowed pursuant to this section shall apply to taxable years  beginning
    35  before January first, two thousand [twenty] twenty-five.
    36    § 6. This act shall take effect immediately.