Bill Text: NY S07255 | 2017-2018 | General Assembly | Amended
Bill Title: Includes the production of cellulosic ethanol, densified biofuel and renewable fuel oil within the biofuel production tax credit.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-06-07 - REPORTED AND COMMITTED TO RULES [S07255 Detail]
Download: New_York-2017-S07255-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7255--A IN SENATE January 5, 2018 ___________ Introduced by Sens. RITCHIE, ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommu- nications -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the biofuel production cred- it for the production of cellulosic ethanol, densified biofuel and renewable fuel oil 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 44. 3 § 2. Subdivisions (a) and (b) of section 44 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 and subdivision (b) as added by section 1 of part X of chapter 62 6 of the laws of 2006, such section as renumbered by section one of this 7 act, 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 liquid biofuel produced at a biofuel 13 plant on or after January first, two thousand six shall equal fifteen 14 cents per gallon, or twenty-five cents per gallon for production of 15 cellulosic ethanol or renewable fuel oil after the production of the 16 first forty thousand gallons per year presented to market. The credit 17 for each bone dry ton of densified biofuel produced at a biofuel plant 18 on or after January first, two thousand six shall equal fifteen dollars 19 per bone dry ton after the production of the first ten thousand tons per 20 year presented to market. The credit under this section shall be capped 21 at [two and one-half] ten million dollars per taxpayer per taxable year 22 for up to no more than [four] ten consecutive taxable years per biofuel 23 plant. If the taxpayer is a partner in a partnership or shareholder of a 24 New York S corporation, then the cap imposed by the preceding sentence 25 shall be applied at the entity level, so that the aggregate credit EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06053-04-8S. 7255--A 2 1 allowed to all the partners or shareholders of each such entity in the 2 taxable year does not exceed [two and one-half] ten million dollars. The 3 tax credit allowed pursuant to this section shall apply to taxable years 4 beginning before 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, 8 densified biofuel and renewable fuel oil. The term "biodiesel" shall 9 mean a fuel comprised exclusively of mono-alkyl esters of long chain 10 fatty acids derived from vegetable oils or animal fats, designated B100, 11 which meets the specifications of American Society of Testing and Mate- 12 rials designation D 6751-02. The term "ethanol" shall mean ethyl alcohol 13 manufactured in the United States and its territories and sold (i) for 14 fuel use and which has been rendered unfit for beverage use in a manner 15 and which is produced at a facility approved by the federal bureau of 16 alcohol, tobacco and firearms for the production of ethanol for fuel, or 17 (ii) as denatured ethanol used by blenders and refiners which has been 18 rendered unfit for beverage use. The term "biofuel" may also include 19 any other standard approved by the New York state energy and research 20 development authority. The term "renewable fuel oil" shall mean a fuel 21 comprised of any non-food biomass based feedstock that can be used as a 22 full or partial substitute for traditional petroleum fuels. 23 (2) "Cellulosic ethanol" means the production of ethanol from ligno- 24 cellulosic biomass feedstocks, including cellulosic components of sepa- 25 rated food waste as defined in table 1 of C.F.R. § 80.1426 and by-pro- 26 ducts from agricultural waste, that are altered through activities 27 referenced in subparagraph five of paragraph (b) of subdivision one of 28 section thirty-one hundred two-e of the public authorities law. Such 29 lignocellulosic biomass feedstocks may include, but are not necessarily 30 limited to, switchgrasses or willows, agricultural and forestry residues 31 as defined in table 1 of C.F.R. § 80.1426, clean wood and wood wastes, 32 pulp and paper mill wastes or extracts, and non-recyclable paper. Any 33 question as to whether any feedstock qualifies under this section shall 34 be determined by the president of the New York state energy and research 35 development authority. 36 (3) "Densified biofuel" means a solid fuel derived by the mechanical 37 densification and refining of biomass sourced from woody or agricultural 38 feedstocks. 39 (4) "Biofuel plant" means a commercial facility located in New York 40 state at which one or more biofuels are produced. For the purposes of 41 this section, any commercial facility where cellulosic ethanol, renewa- 42 ble fuel oil or densified biofuel is produced shall be considered a 43 separate biofuel plant. 44 § 3. Section 187-c of the tax law, as amended by section 15 of part S 45 of chapter 59 of the laws of 2014, is amended to read as follows: 46 § 187-c. Biofuel production credit. A taxpayer shall be allowed a 47 credit to be computed as provided in section [twenty-eight] forty-four 48 of this chapter, [as added by part X of chapter sixty-two of the laws of49two thousand six,] against the tax imposed by this article. Provided, 50 however, that the amount of such credit allowed against the tax imposed 51 by section one hundred eighty-four of this article shall be the excess 52 of the amount of such credit over the amount of any credit allowed by 53 this section against the tax imposed by section one hundred eighty-three 54 of this article. In no event shall the credit under this section be 55 allowed in an amount which will reduce the tax payable to less than the 56 applicable minimum tax fixed by section one hundred eighty-three of thisS. 7255--A 3 1 article. If, however, the amount of the credit allowed under this 2 section for any taxable year reduces the tax to such amount, the excess 3 shall be treated as an overpayment of tax to be credited or refunded in 4 accordance with the provisions of section six hundred eighty-six of this 5 chapter. Provided, however, the provisions of subsection (c) of section 6 one thousand eighty-eight of this chapter notwithstanding, no interest 7 shall be paid thereon. The tax credit allowed pursuant to this section 8 shall apply to taxable years beginning before January first, two thou- 9 sand twenty. 10 § 4. Subdivision 24 of section 210-B of the tax law, as added by 11 section 17 of part A of chapter 59 of the laws of 2014, is amended to 12 read as follows: 13 24. Biofuel production credit. [(a) General.] A taxpayer shall be 14 allowed a credit, to be computed as provided in section [twenty-eight] 15 forty-four of this chapter [added as part X of chapter sixty-two of the16laws of two thousand six], against the tax imposed by this article. The 17 credit allowed under this subdivision for any taxable year shall not 18 reduce the tax due for such year to less than the fixed dollar minimum 19 amount prescribed in paragraph (d) of subdivision one of section two 20 hundred ten of this article. However, if the amount of credit allowed 21 under this subdivision for any taxable year reduces the tax to such 22 amount or if the taxpayer otherwise pays tax based on the fixed dollar 23 minimum amount, any amount of credit thus not deductible in such taxable 24 year shall be treated as an overpayment of tax to be credited or 25 refunded in accordance with the provisions of section one thousand 26 eighty-six of this chapter. Provided, however, the provisions of 27 subsection (c) of section one thousand eighty-eight of this chapter 28 notwithstanding, no interest shall be paid thereon. The tax credit 29 allowed pursuant to this section shall apply to taxable years beginning 30 before January first, two thousand twenty. 31 § 5. Subsection (jj) of section 606 of the tax law, as amended by 32 section 4 of part K of chapter 59 of the laws of 2012, is amended to 33 read as follows: 34 (jj) Biofuel production credit. A taxpayer shall be allowed a credit 35 to be computed as provided in section [twenty-eight] forty-four of this 36 chapter, [as added by part X of chapter sixty-two of the laws of two37thousand six,] against the tax imposed by this article. If the amount of 38 the credit allowed under this subsection for any taxable year shall 39 exceed the taxpayer's tax for such year, the excess shall be treated as 40 an overpayment of tax to be credited or refunded in accordance with the 41 provisions of section six hundred eighty-six of this article, provided, 42 however, that no interest shall be paid thereon. The tax credit allowed 43 pursuant to this section shall apply to taxable years beginning before 44 January first, two thousand twenty. 45 § 6. This act shall take effect immediately.
