Bill Text: NY S04356 | 2017-2018 | General Assembly | Introduced
Bill Title: Creates the alternative fuel incentive fund; provides that monies allocated from the fund will be used for certain purposes; makes an appropriation therefor; provides that thirty million dollars will be allocated for research and development, twenty seven million dollars for the thruway authority to create alternative fuel stations on the thruway, twenty million dollars for a cellulosic ethanol refinery and five million dollars for administrative costs.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO FINANCE [S04356 Detail]
Download: New_York-2017-S04356-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4356 2017-2018 Regular Sessions IN SENATE February 10, 2017 ___________ Introduced by Sen. TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to creating the alternative fuel incentive fund; to amend the tax law, in relation to creating the alternative fuels credit; to amend the public authorities law, in relation to alternative fuel grants; and making an appropri- ation therefor The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The state finance law is amended by adding a new section 2 99-aa to read as follows: 3 § 99-aa. Alternative fuel incentive fund. 1. There is hereby estab- 4 lished in the joint custody of the state comptroller and the commission- 5 er of taxation and finance a special revenue fund to be known as the 6 "alternative fuel incentive fund". 7 2. The fund shall consist of the amount of revenues from sales taxes 8 imposed on the receipts of the price of motor and diesel fuel more than 9 one dollar or equal to or less than two dollars. 10 3. Monies of the fund, when allocated, shall be disbursed for the 11 following purposes: 12 (a) credits against personal income tax and corporate franchise tax 13 for the installation or conversion of fueling stations for alternative 14 fuels; 15 (b) grants for research and development in regards to fuel diversifi- 16 cation and energy efficiency in the transportation sector; 17 (c) installation of alternative fueling stations at each of the twen- 18 ty-seven travel plazas on the New York state thruway; 19 (d) grants for a cellulosic ethanol refinery; and 20 (e) administrative costs borne by the department of taxation and 21 finance and the New York state energy research and development authori- 22 ty. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06419-01-7S. 4356 2 1 § 2. Section 1148 of the tax law, as amended by section 57 of part HH 2 of chapter 57 of the laws of 2013, is amended to read as follows: 3 § 1148. Deposit and disposition of revenue. All taxes, interest and 4 penalties collected or received by the commissioner under this article 5 shall be deposited and disposed of pursuant to the provisions of section 6 one hundred seventy-one-a of this chapter; provided however, the comp- 7 troller shall on or before the twelfth day of each month, pay all such 8 taxes, interest and penalties collected under this article and remaining 9 to the comptroller's credit in such banks, banking houses or trust 10 companies at the close of business on the last day of the preceding 11 month, into the general fund of the state treasury, except as otherwise 12 provided in sections ninety-two-d, ninety-two-h, [and] ninety-two-r and 13 ninety-nine-aa of the state finance law and sections eleven hundred two, 14 eleven hundred four and eleven hundred nine of this article. 15 § 3. Section 606 of the tax law is amended by adding two new 16 subsections (p-1) and (ccc) to read as follows: 17 (p-1) Alternative fuels credit. (1) General. A taxpayer shall be 18 allowed a credit, to be computed as hereinafter provided, against the 19 tax imposed by this article for fuel flexible vehicles and qualified 20 hybrid vehicles placed in service during the taxable year. Provided, 21 however, that the credit provided for by this subsection with respect to 22 fuel flexible vehicles shall not be allowed to a gas corporation or 23 electric corporation as defined in subdivisions eleven and thirteen of 24 section two of the public service law, or a gas and electric corporation 25 as described in section sixty-four of the public service law, where such 26 corporation is subject to the supervision of the department of public 27 service. 28 (2) Fuel flexible and hybrid vehicles. The credit under this 29 subsection for fuel flexible and qualified hybrid vehicles shall equal 30 five hundred dollars per vehicle registered in this state. 31 (3) Definitions. (A) The term "fuel flexible vehicle" means a vehicle 32 which is equipped to use alternative fuel as defined in subdivision 33 fourteen of section three hundred fifty-one of the public authorities 34 law. 35 (B) The term "qualified hybrid vehicle" means a motor vehicle, as 36 defined in section one hundred twenty-five of the vehicle and traffic 37 law, other than an electric vehicle, that: 38 (i) draws propulsion energy from both 39 (a) an internal combustion engine (or heat engine that uses combusti- 40 ble fuel); and 41 (b) an energy storage device; and 42 (ii) employs a regenerative vehicle braking system that recovers waste 43 energy to charge such energy storage device. 44 (4) Carryovers. If the amount of credit allowable under this 45 subsection shall exceed the taxpayer's tax of such year, the excess, may 46 be carried over to the following year or years and may be deducted from 47 the taxpayer's tax for such year or years. 48 (5) Credit recapture. (A) Vehicles. If, within three full years from 49 the date a qualified hybrid vehicle is placed in service such vehicles 50 cease to be qualified, a recapture amount must be added back in the tax 51 year in which such cessation occurs. 52 (B) Cessation of qualification. (i) A qualified hybrid ceases to be 53 qualified if 54 (a) it is modified by the taxpayer so that it no longer meets the 55 requirements of a qualified hybrid vehicle.S. 4356 3 1 (b) the taxpayer receiving the credit under this subsection sells or 2 disposes of the vehicle and knows or has reason to know that the vehicle 3 will be so modified. 4 (ii) Recapture amount. The recapture amount is equal to the credit 5 allowable under this subsection. 6 (6) Termination. This subsection shall not apply to property placed in 7 service in taxable years beginning after December thirty-first, two 8 thousand eighteen. 9 (ccc) Alternative fuel credit for installation or conversion of fuel- 10 ing stations. (1) Allowance of credit. A taxpayer shall be allowed a 11 credit, to be computed hereinafter provided, against the tax imposed by 12 this article for the cost of installation construction, reconstruction 13 or acquisition of an alternative fuel refueling facility that is direct- 14 ly attributable to the storage, compression, charging or dispensing of 15 alternative fuels to motor vehicles. The income tax credit would be 16 thirty percent of the costs associated with such expenses. 17 (2) Application of credit. If the amount of the credit allowable under 18 this subsection for any taxable year exceeds the taxpayer's tax for such 19 year, fifty percent of the excess shall be treated as an overpayment of 20 tax to be credited or refunded as provided in section six hundred eight- 21 y-six of this article, provided, however, that no interest shall be paid 22 thereon. The balance of such credit not credited or refunded in such 23 taxable year may be carried over to the immediately succeeding taxable 24 year and may be deducted from the taxpayer's tax for such year. The 25 excess, if any, of the amount of the credit over the tax for such 26 succeeding year shall be treated as an overpayment of tax to be credited 27 or refunded as provided in section six hundred eighty-six of this arti- 28 cle, provided, however, that no interest shall be paid thereon. 29 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 30 of the tax law is amended by adding two new clauses (xliii) and (xliv) 31 to read as follows: 32 (xliii) Alternative fuels Amount of credit 33 credit under subsection under subdivision 34 (p-1) fifty-two of 35 section two hundred ten-B 36 (xliv) Alternative fuel credit Amount of credit 37 for installation or under subdivision 38 conservation of fueling fifty-three of section 39 stations under subsection two hundred ten-B 40 (ccc) 41 § 5. Section 210-B of the tax law is amended by adding two new subdi- 42 visions 52 and 53 to read as follows: 43 52. Alternative fuels credit. (a) General. A taxpayer shall be allowed 44 a credit, to be computed as hereinafter provided, against the tax 45 imposed by this article, for fuel flexible vehicles and qualified 46 hybrids. Provided, however, that the credit provided for by this 47 subsection with respect to fuel flexible vehicles shall not be allowed 48 to a gas corporation or electric corporation as defined in subdivisions 49 eleven and thirteen of section two of the public service law, or a gas 50 and electric corporation as described in section sixty-four of the 51 public service law, where such corporation is subject to the supervision 52 of the department of public service. 53 (b) Fuel flexible vehicles and qualified hybrid vehicles. The credit 54 under this subdivision for fuel flexible vehicles and qualified hybridS. 4356 4 1 vehicles shall equal five hundred dollars per vehicle registered in this 2 state. 3 (c) Definitions. (i) The term "fuel flexible vehicle" means a vehicle, 4 which is equipped to use alternative fuel as defined in subdivision 5 fourteen of section three hundred fifty-one of the public authorities 6 law. 7 (ii) The term "qualified hybrid vehicle" shall have the same meaning 8 as provided for under subparagraph (B) of paragraph three of subsection 9 (p-1) of section six hundred six of this chapter. 10 (d) Carryovers. In no event shall the credit under this subdivision be 11 allowed in an amount which will reduce the tax payable to less than the 12 higher of the amounts prescribed in paragraph (d) of subdivision one of 13 section two hundred ten of this article. Provided, however, that if the 14 amount of credit allowable under this subdivision for any taxable year 15 reduces the tax to such amount, any amount of credit not deductible in 16 such taxable year may be carried over to the following year or years and 17 may be deducted from the taxpayer's tax for such year or years. 18 (e) Credit recapture. (i) If, within three full years from the date a 19 qualified hybrid vehicle is placed in service ceases to be qualified, a 20 recapture amount must be added back in the tax year in which such cessa- 21 tion occurs. 22 (ii) A qualified hybrid vehicle ceases to be qualified if: 23 (A) it is modified by the taxpayer so that it no longer meets the 24 requirements of a qualified hybrid vehicle as defined in subparagraph 25 (B) of paragraph three of subsection (p-1) of section six hundred six of 26 this chapter; or 27 (B) the taxpayer receiving the credit under this subsection sells or 28 disposes of the vehicle and knows or has reason to know that the vehicle 29 will be so modified. 30 (iii) Recapture amount. The recapture amount is equal to the credit 31 allowable under this subdivision multiplied by a fraction, the numerator 32 of which is the total recovery period for the property minus the number 33 of recovery years prior to, but not including, the recapture year, and 34 the denominator of which is the total recovery period. 35 (f) Termination. This subdivision shall not apply to property placed 36 in service in taxable years beginning after December thirty-first, two 37 thousand eighteen. 38 53. Alternative fuel credit for installation or conversion of fueling 39 stations. (a) Allowance of credit. A taxpayer shall be allowed a credit, 40 to be computed as hereinafter provided, against the tax imposed by this 41 article for the cost of installation construction, reconstruction or 42 acquisition of an alternative fuel refueling facility that is directly 43 attributable to the storage, compression, charging or dispensing of 44 alternative fuels to motor vehicles. The income tax credit shall be 45 thirty percent of the costs associated with such expenses. 46 (b) Application of credit. The credit allowed under this subdivision 47 for any taxable year shall not reduce the tax due for such year to less 48 than the amount described in paragraph (d) of subdivision one of section 49 two hundred ten of this article. If the amount of the credit allowable 50 under this subdivision for any taxable year exceeds the taxpayer's tax 51 for such year, fifty percent of the excess shall be treated as an over- 52 payment of tax to be credited or refunded as provided in section six 53 hundred eighty-six of this chapter, provided, however, that no interest 54 shall be paid thereon. The balance of such credit not credited or 55 refunded in such taxable year may be carried over to the immediately 56 succeeding taxable year and may be deducted from the taxpayer's tax forS. 4356 5 1 such year. The excess, if any, of the amount of the credit over the tax 2 for such succeeding year shall be treated as an overpayment of tax to be 3 credited or refunded as provided in section six hundred eighty-six of 4 this chapter, provided, however, that no interest shall be paid thereon. 5 § 6. The tax law is amended by adding two new sections 187-t and 187-u 6 to read as follows: 7 § 187-t. Alternative fuels credit. 1. General. A taxpayer shall be 8 allowed a credit, to be credited against the taxes imposed under 9 sections one hundred eighty-three, one hundred eighty-four, and one 10 hundred eighty-five of this article. Such credit, to be computed as 11 hereinafter provided, shall be allowed for fuel flexible and hybrid 12 vehicles placed in service during the taxable year. Provided, however, 13 that the amount of such credit allowable against the tax imposed by 14 section one hundred eighty-four of this article shall be the excess of 15 the credit allowed by this section over the amount of such credit allow- 16 able against the tax imposed by section one hundred eighty-three of this 17 article. 18 2. Fuel flexible and hybrid vehicles. The credit under this subdivi- 19 sion for fuel flexible and qualified hybrid vehicles shall equal five 20 hundred dollars per vehicle registered in this state. 21 3. Definitions. (a) The term "fuel flexible vehicle" means a vehicle, 22 which is equipped to use alternative fuel as defined in subdivision 23 fourteen of section three hundred fifty-one of the public authorities 24 law. 25 (b) The term "qualified hybrid vehicle" shall have the same meaning as 26 provided for in subparagraph (B) of paragraph three of subsection (p-1) 27 of section six hundred six of this chapter. 28 4. Carryovers. In no event shall the credit under this section be 29 allowed in an amount which will reduce the tax payable to less than the 30 applicable minimum tax fixed by section one hundred eighty-three or one 31 hundred eighty-five of this article. If, however, the amount of credit 32 allowable under this section for any taxable year reduces the tax to 33 such amount, any amount of credit not deductible in such taxable year 34 may be carried over to the following year or years and may be deducted 35 from the taxpayer's tax for such year or years. 36 5. Credit recapture. (a) If, within three full years from the date a 37 qualified hybrid vehicle is placed in service ceases to be qualified, a 38 recapture amount must be added back in the tax year in which such cessa- 39 tion occurs. 40 (b) A qualified hybrid vehicle ceases to be qualified if: 41 (i) it is modified by the taxpayer so that it no longer meets the 42 requirements of a qualified hybrid vehicle as defined in subparagraph 43 (B) of paragraph three of subsection (p-1) of section six hundred six of 44 this chapter, or 45 (ii) the taxpayer receiving the credit under this section sells or 46 disposes of the vehicle and knows or has reason to know that the vehicle 47 will be so modified. 48 (c) The recapture amount is equal to the credit allowable under this 49 section. 50 6. Termination. This section shall not apply to property placed in 51 service in taxable years beginning after December thirty-first, two 52 thousand eighteen. 53 § 187-u. Alternative fuel credit for installation or conversion of 54 fueling stations. (1) Allowance of credit. A taxpayer shall be allowed a 55 credit, to be computed as hereinafter provided, against the tax imposed 56 by this article for the cost of installation construction, recon-S. 4356 6 1 struction or acquisition of an alternative fuel refueling facility that 2 is directly attributable to the storage, compression, charging or 3 dispensing of alternative fuels to motor vehicles. The income tax cred- 4 it shall be thirty percent of the costs associated with such expenses. 5 (2) Application of credit. If the amount of the credit allowable under 6 this section for any taxable year exceeds the taxpayer's tax for such 7 year, fifty percent of the excess shall be treated as an overpayment of 8 tax to be credited or refunded as provided in section six hundred eight- 9 y-six of this chapter, provided, however, that no interest shall be paid 10 thereon. The balance of such credit not credited or refunded in such 11 taxable year may be carried over to the immediately succeeding taxable 12 year and may be deducted from the taxpayer's tax for such year. The 13 excess, if any, of the amount of the credit over the tax for such 14 succeeding year shall be treated as an overpayment of tax to be credited 15 or refunded as provided in section six hundred eighty-six of this chap- 16 ter, provided, however, that no interest shall be paid thereon. 17 § 7. The public authorities law is amended by adding a new section 18 1884 to read as follows: 19 § 1884. Alternative fuel grants. The New York state energy research 20 and development authority shall: 21 1. Oversee and promote research and development regarding fuel diver- 22 sification and energy efficiency in the transportation sector; and 23 2. Provide grants for the creation of a cellulosic ethanol refinery. 24 § 8. Subdivision 10 of section 354 of the public authorities law, as 25 amended by section 2 of part TT of chapter 54 of the laws of 2016, is 26 amended to read as follows: 27 10. To construct, reconstruct or improve on or along the thruway 28 system in the manner herein provided, suitable facilities for gas 29 stations, restaurants, and other facilities for the public, or to lease 30 the right to construct, reconstruct or improve and operate such facili- 31 ties; such facilities shall be publicly offered for leasing for opera- 32 tion, or the right to construct, reconstruct or improve and operate such 33 facilities shall be publicly offered under rules and regulations to be 34 established by the authority, provided, however, that lessees operating 35 such facilities at the time this act becomes effective, may reconstruct 36 or improve them or may construct additional like facilities, in the 37 manner and upon such terms and conditions as the board shall determine; 38 and provided further, however, that such facilities constructed, recon- 39 structed or improved on or along the canal system shall be consistent 40 with the canal recreationway plan approved pursuant to section one 41 hundred thirty-eight-c of the canal law and section three hundred eight- 42 y-two of this title; and provided further, that each such facility which 43 contains or consists of a gas station shall include a facility for sell- 44 ing to the public alternative fuel, as defined in section three hundred 45 fifty-one of this article. 46 § 9. Section 351 of the public authorities law is amended by adding a 47 new subdivision 14 to read as follows: 48 14. "Alternative fuel" shall mean ethanol, methanol, natural gas, 49 propane, electricity (including electricity from solar energy), hydro- 50 gen, and any other fuel identified which is substantially not petrole- 51 um-based, which is consistent with the goals of protecting the safety 52 and health of the public and minimizing emissions of air pollutants, and 53 which is consistent with any applicable federal alternative fuel 54 requirements. 55 § 10. The sum of eighty-two million dollars ($82,000,000), or so much 56 thereof as may be necessary, is hereby appropriated as follows: thirtyS. 4356 7 1 million dollars for research and development in regards to fuel diver- 2 sification and energy efficiency in the transportation sector; twenty- 3 seven million dollars for the installation of alternative fueling 4 stations at each of the twenty-seven travel plazas on the New York state 5 thruway; twenty million dollars for a cellulosic ethanol refinery; and 6 five million dollars for administrative costs borne by the department of 7 taxation and finance and the New York state energy research and develop- 8 ment authority to the department of taxation and finance; out of moneys 9 in the state treasury in the general fund to the credit of the alterna- 10 tive fuel incentive fund, not otherwise appropriated, and made imme- 11 diately available, for the purpose of carrying out the provisions of 12 this act. Such moneys shall be payable on the audit and warrant of the 13 comptroller on vouchers certified or approved in the manner prescribed 14 by law. 15 § 11. This act shall take effect on the one hundred eightieth day 16 after it shall have become a law; provided, however, that the commis- 17 sioner of taxation and finance shall be authorized on and after the date 18 this act shall have become a law to adopt and amend any rules or regu- 19 lations and to take any steps necessary to implement the provisions of 20 this act.
