Bill Text: NY S07255 | 2017-2018 | General Assembly | Introduced

New York Senate Bill 7255 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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-Introduced.html

                STATE OF NEW YORK
        ________________________________________________________________________
                                          7255
                    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
        AN  ACT  to  amend the tax law, in relation to biofuel production credit
          for production of cellulosic ethanol
          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, subdivision (a) as amended by section
     3  1 of part K of chapter 59 of  the  laws  of  2012,  subdivision  (d)  as
     4  amended  by  section  46 of part A of chapter 59 of the laws of 2014, is
     5  renumbered section 28-a and amended to read as follows:
     6    § 28-a. Biofuel production credit.  (a) General. A taxpayer subject to
     7  tax under article nine, nine-A or twenty-two of this  chapter  shall  be
     8  allowed  a credit against such tax pursuant to the provisions referenced
     9  in subdivision (d) of this section. The credit (or  pro  rata  share  of
    10  earned  credit  in the case of a partnership) for each gallon of biofuel
    11  produced at a biofuel plant on or after January first, two thousand  six
    12  shall equal fifteen cents per gallon or twenty-five cents per gallon for
    13  production of cellulosic ethanol after the production of the first forty
    14  thousand  gallons  per  year  presented to market. The credit under this
    15  section shall be capped at two and one-half million dollars per taxpayer
    16  per taxable year for up to no more than four consecutive  taxable  years
    17  per  biofuel  plant.  If  the  taxpayer is a partner in a partnership or
    18  shareholder of a New York S corporation, then the  cap  imposed  by  the
    19  preceding  sentence  shall  be  applied at the entity level, so that the
    20  aggregate credit allowed to all the partners  or  shareholders  of  each
    21  such entity in the taxable year does not exceed two and one-half million
    22  dollars.  The tax credit allowed pursuant to this section shall apply to
    23  taxable years beginning before January first, two thousand twenty.
    24    (b) Definitions. For the purpose of this section, the following  terms
    25  shall have the following meanings:
    26    (1)  "Biofuel"  means a fuel which includes biodiesel and ethanol. The
    27  term "biodiesel" shall mean a fuel comprised exclusively  of  mono-alkyl
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06053-03-8

        S. 7255                             2
     1  esters  of  long chain fatty acids derived from vegetable oils or animal
     2  fats, designated B100, which meets the specifications of American Socie-
     3  ty of Testing and Materials designation D 6751-02.  The  term  "ethanol"
     4  shall  mean  ethyl  alcohol  manufactured  in  the United States and its
     5  territories and sold (i) for fuel use and which has been rendered  unfit
     6  for  beverage  use  in  a  manner  and  which  is produced at a facility
     7  approved by the federal bureau of alcohol, tobacco and firearms for  the
     8  production  of  ethanol  for  fuel, or (ii) as denatured ethanol used by
     9  blenders and refiners which has been rendered unfit  for  beverage  use.
    10  The  term  "biofuel" may also include any other standard approved by the
    11  New York state energy and research development authority.
    12    (2) "Cellulosic ethanol" means the production of ethanol  from  ligno-
    13  cellulosic  biomass  feedstocks  not  used  for food production that are
    14  altered through activities referenced in subparagraph five of  paragraph
    15  (b) of subdivision one of section thirty-one hundred two-e of the public
    16  authorities  law.  Such  lignocellulosic biomass feedstocks may include,
    17  but are not necessarily limited to, switchgrasses or  willows,  agricul-
    18  tural  and forestry residues, clean wood and wood wastes, pulp and paper
    19  mill wastes or extracts, and non-recyclable paper. Any  question  as  to
    20  whether any feedstock qualifies under this paragraph shall be determined
    21  by  the  president of the New York state energy and research development
    22  authority in consultation with the commissioner of environmental conser-
    23  vation and the commissioner of agriculture and markets.
    24    (3) "Biofuel plant" means a commercial facility located  in  New  York
    25  state  at  which one or more biofuels are produced.  For the purposes of
    26  this section,  any  commercial  facility  where  cellulosic  ethanol  is
    27  produced shall be considered a separate biofuel plant.
    28    (c) Reporting requirements. A taxpayer wishing to claim a credit under
    29  this section shall annually certify to the commissioner (i) that biofuel
    30  produced  at the eligible biofuel plant meets all existing standards for
    31  biofuel and (ii) the amount of biofuel produced at the eligible  biofuel
    32  plant during a taxable year.
    33    (d)  Cross-references.  For  application of the credit provided for in
    34  this section, see the following provisions of this chapter:
    35    (1) Article 9: Section 187-c.
    36    (2) Article 9-A: Section 210-B, subdivision 24.
    37    (3) Article 22: Section 606, subsections (i) and (jj).
    38    § 2. Section 187-c of the tax law, as amended by section 15 of part  S
    39  of chapter 59 of the laws of 2014, is amended to read as follows:
    40    §  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
    41  credit to be computed as  provided  in  section  [twenty-eight]  twenty-
    42  eight-a of this chapter, [as added by part X of chapter sixty-two of the
    43  laws  of  two  thousand  six,]  against the tax imposed by this article.
    44  Provided, however, that the amount of such credit  allowed  against  the
    45  tax  imposed by section one hundred eighty-four of this article shall be
    46  the excess of the amount of such credit over the amount  of  any  credit
    47  allowed  by  this section against the tax imposed by section one hundred
    48  eighty-three of this article. In no event shall the  credit  under  this
    49  section  be  allowed  in  an amount which will reduce the tax payable to
    50  less than the applicable minimum tax fixed by section one hundred eight-
    51  y-three of this article. If, however, the amount of the  credit  allowed
    52  under  this section for any taxable year reduces the tax to such amount,
    53  the excess shall be treated as an overpayment of tax to be  credited  or
    54  refunded in accordance with the provisions of section six hundred eight-
    55  y-six  of  this chapter. Provided, however, the provisions of subsection
    56  (c) of section one thousand eighty-eight of this  chapter  notwithstand-

        S. 7255                             3
     1  ing,  no interest shall be paid thereon. The tax credit allowed pursuant
     2  to this section shall apply to taxable years  beginning  before  January
     3  first, two thousand twenty.
     4    §  3.  Subdivision  24  of  section  210-B of the tax law, as added by
     5  section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
     6  read as follows:
     7    24.  Biofuel  production  credit.  (a)  General.  A  taxpayer shall be
     8  allowed a credit, to be computed as provided in  section  [twenty-eight]
     9  twenty-eight-a  of this chapter [added as part X of chapter sixty-two of
    10  the laws of two thousand six], against the tax imposed by this  article.
    11  The credit allowed under this subdivision for any taxable year shall not
    12  reduce  the  tax due for such year to less than the fixed dollar minimum
    13  amount prescribed in paragraph (d) of subdivision  one  of  section  two
    14  hundred  ten  of this article.  However, if the amount of credit allowed
    15  under this subdivision for any taxable year  reduces  the  tax  to  such
    16  amount  or  if the taxpayer otherwise pays tax based on the fixed dollar
    17  minimum amount, any amount of credit thus not deductible in such taxable
    18  year shall be treated as  an  overpayment  of  tax  to  be  credited  or
    19  refunded  in  accordance  with  the  provisions  of section one thousand
    20  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    21  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    22  notwithstanding, no interest shall  be  paid  thereon.  The  tax  credit
    23  allowed  pursuant to this section shall apply to taxable years beginning
    24  before January first, two thousand twenty.
    25    § 4. 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] twenty-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    § 5. This act shall take effect immediately.