Bill Text: NY S07103 | 2019-2020 | General Assembly | Introduced

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Bill Title: Provides a tax credit for the purchase of on-farm anaerobic digesters or other farm-related equipment that is used in the process of turning farm waste into methane for commercial use.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S07103 Detail]

Download: New_York-2019-S07103-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7103

                    IN SENATE

                                       (Prefiled)

                                     January 8, 2020
                                       ___________

        Introduced  by  Sen.  JORDAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Budget and Revenue

        AN ACT to amend the tax law, in relation to providing a tax  credit  for
          the  purchase  of  on-farm  anaerobic  digesters or other farm-related
          equipment that is used in the process of turning farm waste into meth-
          ane for commercial use

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The tax law is amended by adding two new sections 28-a and
     2  187-q to read as follows:
     3    § 28-a. Methane production equipment credit. (a) General.  A  taxpayer
     4  subject  to tax under article nine, nine-A or twenty-two of this chapter
     5  shall be allowed a one-time credit against  such  tax  pursuant  to  the
     6  provisions referenced in subdivision (b) of this section. The credit (or
     7  pro  rata  share  of  the  credit  in the case of a partnership) for the
     8  purchase and implementation at a farm  located  in  New  York  state  of
     9  on-farm anaerobic digesters or other farm-related equipment that is used
    10  in the process of turning farm waste into methane for use by the taxpay-
    11  er  or  other commercial use shall be the full-value of the equipment at
    12  the time of purchase. The tax credit allowed pursuant  to  this  section
    13  shall  apply  to taxable years beginning on and after January first, two
    14  thousand twenty-one.
    15    (b) Cross-references. For application of the credit  provided  for  in
    16  this section, see the following provisions of this chapter:
    17    (1) Article 9: Section 187-q.
    18    (2) Article 9-A: Section 210-B, subdivision 28.
    19    (3) Article 22: Section 606, subsections (i) and (kkk).
    20    §  187-q.  Methane  production  equipment  credit. A taxpayer shall be
    21  allowed a credit to be computed as provided in section twenty-eight-a of
    22  this chapter against the tax imposed by this article. Provided, however,
    23  that the amount of such  credit  allowed  against  the  tax  imposed  by
    24  section  one  hundred eighty-four of this article shall be the excess of
    25  the amount of such credit over the amount of any credit allowed by  this

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14369-02-0
        S. 7103                             2

     1  section  against  the tax imposed by section one hundred eighty-three of
     2  this article. In no event shall the credit under this section be allowed
     3  in an amount which will reduce the tax payable to less than the applica-
     4  ble  minimum tax fixed by section one hundred eighty-three of this arti-
     5  cle. If, however, the amount of the credit allowed  under  this  section
     6  for any taxable year reduces the tax to such amount, 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 chap-
     9  ter. Provided, however, the provisions of subsection (c) of section  one
    10  thousand eighty-eight of this chapter notwithstanding, no interest shall
    11  be  paid thereon.  The tax credit allowed pursuant to this section shall
    12  apply to taxable years beginning on and after January first,  two  thou-
    13  sand twenty-one.
    14    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    15  sion 28 to read as follows:
    16    28. Methane production equipment credit. A taxpayer shall be allowed a
    17  credit, to be computed as provided in  section  twenty-eight-a  of  this
    18  chapter  against  the  tax  imposed  by this article. The credit allowed
    19  under this subdivision for any taxable year shall not reduce the tax due
    20  for such year to less than the fixed dollar minimum amount prescribed in
    21  paragraph (d) of subdivision one of section  two  hundred  ten  of  this
    22  article. However, if the amount of credit allowed under this subdivision
    23  for  any  taxable year reduces the tax to such amount or if the taxpayer
    24  otherwise pays tax based on the fixed dollar minimum amount, any  amount
    25  of  credit  thus not deductible in such taxable year shall be treated as
    26  an overpayment of tax to be credited or refunded in accordance with  the
    27  provisions   of   section  one  thousand  eighty-six  of  this  chapter.
    28  Provided, however, the provisions of subsection (c) of section one thou-
    29  sand eighty-eight of this chapter notwithstanding, no interest shall  be
    30  paid  thereon.  The  tax  credit  allowed pursuant to this section shall
    31  apply to taxable years beginning on and after January first,  two  thou-
    32  sand twenty-one.
    33    §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    34  of the tax law is amended by adding a  new  clause  (xlvi)  to  read  as
    35  follows:

    36  (xlvi) Methane production equipment  Amount of credit under
    37  credit under subsection (kkk)        subdivision twenty-eight of
    38                                       section two hundred ten-B
    39    §  4. Section 606 of the tax law is amended by adding a new subsection
    40  (kkk) to read as follows:
    41    (kkk) Methane production equipment credit. A taxpayer shall be allowed
    42  a credit to be computed as provided in section  twenty-eight-a  of  this
    43  chapter  against  the  tax imposed by this article. If the amount of the
    44  credit allowed under this subsection for any taxable year  shall  exceed
    45  the  taxpayer's  tax  for  such  year, the excess shall be treated as an
    46  overpayment of tax to be credited or refunded  in  accordance  with  the
    47  provisions  of section six hundred eighty-six of this article, provided,
    48  however, that no interest shall be paid thereon. The tax credit  allowed
    49  pursuant  to  this section shall apply to taxable years beginning on and
    50  after January first, two thousand twenty-one.
    51    § 5. This act shall take effect immediately and  shall  apply  to  tax
    52  years commencing on and after January 1, 2021. Effective immediately the
    53  addition,  amendment  and/or  repeal of any rule or regulation necessary
    54  for the implementation of this act on its effective date are  authorized
    55  to be made and completed on or before such date.