S02353 Summary:

BILL NOS02353
 
SAME ASNo Same As
 
SPONSORPARKER
 
COSPNSRCOMRIE
 
MLTSPNSR
 
Ren 28 to be 38-a, amd 38-a, 187-c, 606 & 210-B, Tax L
 
Relates to biofuel production credit for production of biomethane, a biodiesel fuel.
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S02353 Actions:

BILL NOS02353
 
01/13/2017REFERRED TO ENERGY AND TELECOMMUNICATIONS
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S02353 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2353
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                    January 13, 2017
                                       ___________
 
        Introduced  by  Sens.  PARKER, COMRIE -- read twice and ordered printed,
          and when printed to be committed to the Committee on Energy and  Tele-
          communications
 
        AN  ACT  to  amend the tax law, in relation to biofuel production credit
          for production of biomethane
 
          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 38-a.
     3    § 2. Subdivisions (a) and (b) of section 38-a 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,  subdivision  (b) as added by section 1 of part X of chapter 62 of
     6  the laws of 2006, such section as renumbered by section one of this act,
     7  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 biofuel produced at a biofuel plant on
    13  or after January first, two thousand six shall equal fifteen  cents  per
    14  gallon  or  twenty-five  cents  per  gallon for production of biomethane
    15  after the production of the first [forty]  fifty  thousand  gallons  per
    16  year  presented to market. The credit under this section shall be capped
    17  at two and one-half million dollars per taxpayer per taxable year for up
    18  to no more than four consecutive taxable years per biofuel plant. If the
    19  taxpayer is a partner in a partnership or shareholder of a  New  York  S
    20  corporation,  then  the  cap  imposed by the preceding sentence shall be
    21  applied at the entity level, so that the aggregate credit allowed to all
    22  the partners or shareholders of each such entity  in  the  taxable  year
    23  does not exceed two and one-half million dollars. The tax credit allowed

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06185-02-7

        S. 2353                             2
 
     1  pursuant  to  this section shall apply to taxable years beginning before
     2  January first, two thousand twenty.
     3    (b)  Definitions. For the purpose of this section, the following terms
     4  shall have the following meanings:
     5    (1) "Biofuel" means a fuel which includes biodiesel [and], ethanol  or
     6  biomethane.
     7    (2)  The  term  "biodiesel" shall mean a fuel comprised exclusively of
     8  mono-alkyl esters of long chain fatty acids derived from vegetable  oils
     9  or animal fats, designated B100, which meets the specifications of Amer-
    10  ican Society of Testing and Materials designation D 6751-02.
    11    (3)  The  term  "ethanol" shall mean ethyl alcohol manufactured in the
    12  United States and its territories and sold (i) for fuel  use  and  which
    13  has  been  rendered  unfit  for  beverage  use  in a manner and which is
    14  produced at a facility approved by the federal bureau of alcohol, tobac-
    15  co and firearms for the production of ethanol for fuel, or (ii) as dena-
    16  tured ethanol used by blenders and  refiners  which  has  been  rendered
    17  unfit  for  beverage use.  The term "biofuel" may also include any other
    18  standard approved by the New York state energy and research  development
    19  authority.
    20    [(2)]  (4)  The term "biomethane" shall mean biogases that are emitted
    21  as organic wastes that break down in airless environments. Biomethane is
    22  produced from a variety of  biomass  and/or  biogas  sources,  including
    23  landfill  gas, solid waste, municipal wastewater and agricultural manure
    24  via airless tanks called anaerobic digesters. It can  also  be  produced
    25  from  other  sources such as forestry and agricultural waste through the
    26  process of thermal gasification and methanation, although these technol-
    27  ogies are not yet widely used. Biomethane is a  renewable  fuel,  easily
    28  distributed through existing infrastructure and is suitable for applica-
    29  tions from light-duty vehicles to heavy-duty freight trucks.
    30    (5)  "Biofuel  plant"  means a commercial facility located in New York
    31  state at which one or more biofuels are produced.  For the  purposes  of
    32  this section, any commercial facility where biomethane is produced shall
    33  be considered a separate biofuel plant.
    34    §  3.  Section 187-c of the tax law, as amended by section 2 of part K
    35  of chapter 59 of the laws of 2012, is amended to read as follows:
    36    § 187-c. Biofuel production credit. A  taxpayer  shall  be  allowed  a
    37  credit  to  be  computed  as  provided in section [twenty-eight] thirty-
    38  eight-a of this chapter, [as added by part X of chapter sixty-two of the
    39  laws of two thousand six,] against the  tax  imposed  by  this  article.
    40  Provided,  however,  that  the amount of such credit allowed against the
    41  tax imposed by section one hundred eighty-four of this article shall  be
    42  the  excess  of  the amount of such credit over the amount of any credit
    43  allowed by this section against the tax imposed by section  one  hundred
    44  eighty-three  of  this  article. In no event shall the credit under this
    45  section be allowed in an amount which will reduce  the  tax  payable  to
    46  less than the applicable minimum tax fixed by section one hundred eight-
    47  y-three  or  one  hundred  eighty-five of this article. If, however, the
    48  amount of the credit allowed under this section  for  any  taxable  year
    49  reduces  the tax to such amount, the excess shall be treated as an over-
    50  payment of tax to  be  credited  or  refunded  in  accordance  with  the
    51  provisions  of section six hundred eighty-six of this chapter. Provided,
    52  however, the provisions of subsection (c) of section one thousand eight-
    53  y-eight of this chapter notwithstanding, no interest shall be paid ther-
    54  eon. The tax credit allowed pursuant to  this  section  shall  apply  to
    55  taxable years beginning before January first, two thousand twenty.

        S. 2353                             3
 
     1    §  4. Section 187-c of the tax law, as amended by section 15 of part S
     2  of chapter 59 of the laws of 2014, is amended to read as follows:
     3    §  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
     4  credit to be computed as  provided  in  section  [twenty-eight]  thirty-
     5  eight-a of this chapter, [as added by part X of chapter sixty-two of the
     6  laws  of  two  thousand  six,]  against the tax imposed by this article.
     7  Provided, however, that the amount of such credit  allowed  against  the
     8  tax  imposed by section one hundred eighty-four of this article shall be
     9  the excess of the amount of such credit over the amount  of  any  credit
    10  allowed  by  this section against the tax imposed by section one hundred
    11  eighty-three of this article. In no event shall the  credit  under  this
    12  section  be  allowed  in  an amount which will reduce the tax payable to
    13  less than the applicable minimum tax fixed by section one hundred eight-
    14  y-three of this article. If, however, the amount of the  credit  allowed
    15  under  this section for any taxable year reduces the tax to such amount,
    16  the excess shall be treated as an overpayment of tax to be  credited  or
    17  refunded in accordance with the provisions of section six hundred eight-
    18  y-six  of  this chapter. Provided, however, the provisions of subsection
    19  (c) of section one thousand eighty-eight of this  chapter  notwithstand-
    20  ing,  no interest shall be paid thereon. The tax credit allowed pursuant
    21  to this section shall apply to taxable years  beginning  before  January
    22  first, two thousand twenty.
    23    §  5.  Subsection  (jj)  of  section 606 of the tax law, as amended by
    24  section 4 of part K of chapter 59 of the laws of  2012,  is  amended  to
    25  read as follows:
    26    (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
    27  to be computed as provided in section [twenty-eight]  thirty-eight-a  of
    28  this  chapter,  [as  added by part X of chapter sixty-two of the laws of
    29  two thousand six,] against the tax  imposed  by  this  article.  If  the
    30  amount  of the credit allowed under this subsection for any taxable year
    31  shall exceed the taxpayer's tax for  such  year,  the  excess  shall  be
    32  treated  as  an overpayment of tax to be credited or refunded in accord-
    33  ance with the provisions of section six hundred eighty-six of this arti-
    34  cle, provided, however, that no interest shall be paid thereon. The  tax
    35  credit  allowed  pursuant  to  this section shall apply to taxable years
    36  beginning before January first, two thousand twenty.
    37    § 6. Subdivision 24 of section 210-B of  the  tax  law,  as  added  by
    38  section  17  of  part A of chapter 59 of the laws of 2014, is amended to
    39  read as follows:
    40    24. Biofuel production  credit.  (a)  General.  A  taxpayer  shall  be
    41  allowed  a  credit, to be computed as provided in section [twenty-eight]
    42  thirty-eight-a of this chapter [added as part X of chapter sixty-two  of
    43  the  laws of two thousand six,] against the tax imposed by this article.
    44  The credit allowed under this subdivision for any taxable year shall not
    45  reduce the tax due for such year to less than the fixed  dollar  minimum
    46  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    47  hundred ten of this article. However, if the amount  of  credit  allowed
    48  under  this  subdivision  for  any  taxable year reduces the tax to such
    49  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
    50  minimum amount, any amount of credit thus not deductible in such taxable
    51  year  shall  be  treated  as  an  overpayment  of  tax to be credited or
    52  refunded in accordance with  the  provisions  of  section  one  thousand
    53  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    54  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    55  notwithstanding,  no  interest  shall  be  paid  thereon. The tax credit

        S. 2353                             4
 
     1  allowed pursuant to this section shall apply to taxable years  beginning
     2  before January first, two thousand twenty.
     3    § 7. This act shall take effect immediately; provided however that the
     4  amendments  to section 187-c of the tax law made by section four of this
     5  act shall take effect on the same date as section 15 of part S of  chap-
     6  ter 59 of the laws of 2014 takes effect.
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