Bill Text: NY S08256 | 2017-2018 | General Assembly | Introduced
Bill Title: Establishes a tax credit for farmers who maximize carbon sequestration potential through a "carbon farming" land management strategy; directs DEC to develop regulations related to certifying the amount of carbon sequestered or emissions reduced.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-04-24 - REFERRED TO AGRICULTURE [S08256 Detail]
Download: New_York-2017-S08256-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8256 IN SENATE April 24, 2018 ___________ Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Agriculture AN ACT to amend the agriculture and markets law, the environmental conservation law and the tax law, in relation to enacting the carbon farming act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "carbon 2 farming act". 3 § 2. Legislative intent. The legislature hereby finds and declares 4 that soil and vegetation management can significantly enhance soil and 5 carbon sequestration, resulting in a wide range of environmental and 6 agricultural benefits to New York farmers and residents, including: 7 increased yields; soil health; improved water quality; and reductions in 8 greenhouse gases. The legislature further declares that enhancing carbon 9 sequestration, the long term storage of carbon in plants, soils, geolog- 10 ic formations and the ocean, through farming is in the best interest of 11 New Yorkers. It is therefore the intent of the legislature and the 12 purpose of this act to encourage farmers to further sequester and miti- 13 gate carbon in this state by establishing carbon farming tax credit to 14 reward and incentivize farmers to maintain or adopt practices that help 15 maximize New York's carbon sequestration potential. 16 § 3. Section 150 of the agriculture and markets law is amended by 17 adding a new subdivision 5 to read as follows: 18 5. "Carbon farming" means the implementation of a land management 19 strategy for the purposes of reducing, sequestering, and mitigating 20 greenhouse gas emissions on land used in support of a farm operation and 21 quantifying those greenhouse gas benefits using the United States 22 Department of Agriculture's COMET-Planner, COMET-Farm, and other quanti- 23 fication tools. 24 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 25 sion 53 to read as follows: 26 53. Carbon farming credit. (a) Allowance of credit. A taxpayer that is 27 an agricultural business that produces farm products shall be allowed a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07578-11-8S. 8256 2 1 credit against the tax imposed by this article for the practice of 2 carbon farming. 3 (b) Definitions. For purposes of this section the following terms 4 shall have the following meanings: 5 (i) "carbon farming" shall have the same meaning as set forth in 6 subdivision five of section one hundred fifty of the agriculture and 7 markets law; 8 (ii) "farm products" shall have the same meaning as set forth in 9 subdivision five of section two of the agriculture and markets law; and 10 (iii) "carbon sequestration" shall mean the long term storage of 11 carbon in plants and soils. 12 (c) Such credit shall be calculated based on the economic value of 13 carbon farming as determined by the commissioner of environmental 14 conservation, in consultation with the commissioner of agriculture and 15 markets and the commissioner pursuant to paragraph ccc of subdivision 16 two of section 3-0301 of the environmental conservation law. 17 (d) The taxpayer shall attach to its tax return its final certificate 18 of eligibility issued by the commissioner of environmental conservation 19 pursuant to section 19-0309 of the environmental conservation law. In no 20 event shall the taxpayer be allowed a credit greater than the amount of 21 the credit listed on the final certificate verifying the emissions 22 reductions to be credited to the taxpayer. 23 (e) If the amount of the credit allowable under this subdivision for 24 any taxable year shall exceed the taxpayer's tax for such year, any 25 amount of credit not deductible in such taxable year may be carried over 26 to the following three years, and may be deducted for the taxpayer for 27 such year. 28 § 5. Section 606 of the tax law is amended by adding a new subsection 29 (jjj) to read as follows: 30 (jjj) Carbon farming credit. (1) Allowance of credit. A taxpayer who 31 provides farm products and who practices carbon farming shall be allowed 32 a credit against the tax imposed by this article. 33 (2) Definitions. For the purposes of this subsection, the following 34 definitions shall apply: 35 (A) "Farm products" shall have the same meaning as set forth in subdi- 36 vision five of section two of the agriculture and markets law. 37 (B) "Carbon farming" shall have the same meaning as set forth in 38 subdivision five of section one hundred fifty of the agriculture and 39 markets law. 40 (3) Application of credit. Such credit shall be calculated based on 41 the economic value of carbon farming as determined by the commissioner 42 of environmental conservation, in consultation with the commissioner of 43 agriculture and markets pursuant to paragraph ccc of subdivision two of 44 section 3-0301 of the environmental conservation law. 45 (4) Certification required. The taxpayer shall attach to its tax 46 return its final certificate of eligibility issued by the commissioner 47 of environmental conservation pursuant to section 19-0309 of the envi- 48 ronmental conservation law. In no event shall the taxpayer be allowed a 49 credit greater than the amount of the credit listed on the final certif- 50 icate verifying the emissions reductions to be credited to the taxpayer. 51 (5) Carryover of credit. If the amount of the credit allowable under 52 this subsection for any taxable year shall exceed the taxpayer's tax for 53 such year, any amount of credit not deductible in such taxable year may 54 be carried over to the following three years, and may be deducted for 55 the taxpayer for such year.S. 8256 3 1 § 6. Subdivision 2 of section 3-0301 of the environmental conservation 2 law is amended by adding a new paragraph ccc to read as follows: 3 ccc. Cooperate with the department of agriculture and markets to 4 develop educational materials to promote and encourage carbon farming. 5 Such materials shall promote farming practices which reduce, sequester 6 and mitigate greenhouse gas emissions through the implementation of 7 carbon farming strategies and on land used in support of a farm opera- 8 tion; and develop and codify a metric to quantify the storage of carbon 9 using the United States Department of Agriculture's COMET-Planner, 10 COMET-Farm, and other quantification tools. The department shall develop 11 and distribute an application and certification procedure which verifies 12 the carbon stored to be credited to each farm. The department may 13 promulgate rules and regulations necessary to implement this section. 14 § 7. Subdivision 1 of section 19-0309 of the environmental conserva- 15 tion law, as amended by chapter 817 of the laws of 1987, is amended to 16 read as follows: 17 1. For the purposes of sections 208, 210, 606 and 612 of the Tax Law, 18 the commissioner or his designated representative is hereby authorized 19 to issue certificates of compliance concerning air pollution control 20 facilities [and], air pollution controlled process facilities and carbon 21 farming as defined in such law. No such certificate shall be issued 22 unless the facility to which it is applicable is in compliance with 23 applicable provisions of titles 1 to 11, inclusive, and title 19 of 24 article 17, article 19, and title 1 of article 27 of this chapter; of 25 the Public Health Law; of the state sanitary code and of codes, rules, 26 regulations, permits or orders issued pursuant thereto. 27 § 8. Section 16 of the agriculture and markets law is amended by 28 adding a new subdivision 49 to read as follows: 29 49. Cooperate with the department of environmental conservation to 30 develop educational materials to encourage carbon farming and how to 31 use the United States Department of Agriculture's COMET-Planner, COMET- 32 Farm, and other carbon quantification tools. The program shall promote 33 farming practices which reduce, sequester and mitigate greenhouse gas 34 emissions on land used in support of a farm operation. The department 35 shall promote the carbon farming tax credit provided in sections two 36 hundred ten-b and six hundred six of the tax law. 37 § 9. This act shall take effect on the ninetieth day after it shall 38 have become a law; provided, however, that effective immediately, the 39 addition, amendment, and/or repeal of any rule or regulation necessary 40 for the implementation of this act on its effective date are authorized 41 and directed to be made and completed on or before such effective date.
