Bill Text: NY A07949 | 2023-2024 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Limits the use of fossil fuels in the research or production of energy for purposes of the excelsior jobs program; prohibits businesses engaged in the production, transmission, distribution, transportation or storage of fossil fuels from participation in the START-UP NY program; eliminates property that directly produces, transmits, distributes, transports or stores fossil fuels from qualifying tangible property for purposes of the investment tax credit and the Brownfield redevelopment tax credit; relates to tax on sales of motor fuel and petroleum products and makes conforming changes; relates to the definition of qualified rehabilitation expenditures for purposes of the tax credit for rehabilitation of historic properties; relates to the definition of a qualified emerging technology company; relates to the definition of manufacturer for purposes of the calculation of special tax benefits for qualified New York manufacturers; repeals provisions relating to manufacturing gallonage for purposes of the imposition of certain taxes; repeals provisions relating to reimbursement; repeals provisions relating to a utility credit or reimbursement; repeals provisions relating to an aviation fuel business which services four or more cities; repeals provisions relating to services rendered with respect to certain property; repeals provisions relating to fuel sold to an airline for use in its airplanes.
Spectrum: Partisan Bill (Democrat 31-0)
Status: (Introduced - Dead) 2024-01-03 - referred to economic development [A07949 Detail]
Download: New_York-2023-A07949-Introduced.html
Bill Title: Limits the use of fossil fuels in the research or production of energy for purposes of the excelsior jobs program; prohibits businesses engaged in the production, transmission, distribution, transportation or storage of fossil fuels from participation in the START-UP NY program; eliminates property that directly produces, transmits, distributes, transports or stores fossil fuels from qualifying tangible property for purposes of the investment tax credit and the Brownfield redevelopment tax credit; relates to tax on sales of motor fuel and petroleum products and makes conforming changes; relates to the definition of qualified rehabilitation expenditures for purposes of the tax credit for rehabilitation of historic properties; relates to the definition of a qualified emerging technology company; relates to the definition of manufacturer for purposes of the calculation of special tax benefits for qualified New York manufacturers; repeals provisions relating to manufacturing gallonage for purposes of the imposition of certain taxes; repeals provisions relating to reimbursement; repeals provisions relating to a utility credit or reimbursement; repeals provisions relating to an aviation fuel business which services four or more cities; repeals provisions relating to services rendered with respect to certain property; repeals provisions relating to fuel sold to an airline for use in its airplanes.
Spectrum: Partisan Bill (Democrat 31-0)
Status: (Introduced - Dead) 2024-01-03 - referred to economic development [A07949 Detail]
Download: New_York-2023-A07949-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7949 2023-2024 Regular Sessions IN ASSEMBLY August 18, 2023 ___________ Introduced by M. of A. SIMON, KELLES -- read once and referred to the Committee on Economic Development AN ACT to amend the economic development law and the public service law, in relation to limiting the use of fossil fuels in the research or production of energy for purposes of the excelsior jobs program; to amend the economic development law, in relation to prohibiting busi- nesses engaged in the production, transmission, distribution, trans- portation or storage of fossil fuels from participation in the START- UP NY program; to amend the tax law, in relation to eliminating property that directly produces, transmits, distributes, transports or stores fossil fuels from qualifying tangible property for purposes of the investment tax credit and the Brownfield redevelopment tax credit; to amend the tax law, in relation to tax on sales of motor fuel and petroleum products and to make conforming changes; to amend the tax law, in relation to the definition of qualified rehabilitation expend- itures for purposes of the tax credit for rehabilitation of historic properties; to amend the public authorities law, in relation to the definition of a qualified emerging technology company; to amend the tax law, in relation to the definition of manufacturer for purposes of the calculation of special tax benefits for qualified New York manufacturers; to repeal paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g) of section 301-a of the tax law relating to manu- facturing gallonage for purposes of the imposition of certain taxes; to repeal subdivisions (i), (j), and (l) of section 301-c of the tax law relating to reimbursement; to repeal section 301-d of the tax law relating to a utility credit or reimbursement; to repeal subdivision (f) of section 301-e of the tax law relating to an aviation fuel business which services four or more cities; to repeal subparagraph (xi) of paragraph 3 of subdivision (c) of section 1105 of the tax law relating to services rendered with respect to certain property; and to repeal paragraph 9 of subdivision (a) of section 1115 of the tax law relating to fuel sold to an airline for use in its airplanes EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08180-01-3A. 7949 2 The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "Fossil Fuel Subsidy Elimination Act". 3 § 2. Subdivisions 17, 18, 21, and 22 of section 352 of the economic 4 development law, subdivisions 17, 18 and 21 as amended by section 1 of 5 part K of chapter 59 of the laws of 2017, subdivision 18 as separately 6 amended by section 1 of part ZZ of chapter 59 of the laws of 2017, 7 subdivision 22 as amended by chapter 572 of the laws of 2022, are 8 amended to read as follows: 9 17. "Qualified investment" means an investment in tangible property 10 (including a building or a structural component of a building) owned by 11 a business enterprise which: 12 (a) is depreciable pursuant to section one hundred sixty-seven of the 13 internal revenue code; 14 (b) has a useful life of four years or more; 15 (c) is acquired by purchase as defined in section one hundred seven- 16 ty-nine (d) of the internal revenue code; 17 (d) does not directly produce, transmit, distribute, transport, or 18 store fossil fuels or directly utilize fossil fuels for the production 19 of on-site energy, including thermal energy, for any purpose. For the 20 purposes of this article, fossil fuel shall have the same definition as 21 in section 1-103 of the energy law; 22 (e) has a situs in this state; and 23 [(e)] (f) is placed in service in the state on or after the date the 24 certificate of eligibility is issued to the business enterprise. 25 18. "Regionally significant project" means (a) a manufacturer creating 26 at least ten net new jobs in the state and making significant capital 27 investment in the state; (b) a business creating at least ten net new 28 jobs in agriculture in the state and making significant capital invest- 29 ment in the state, (c) a financial services firm, distribution center, 30 or back office operation creating at least one hundred net new jobs in 31 the state and making significant capital investment in the state, (d) a 32 scientific research and development firm creating at least ten net new 33 jobs in the state, and making significant capital investment in the 34 state, (e) a life sciences company creating at least twenty net new jobs 35 in the state and making significant capital investment in the state or 36 (f) an entertainment company creating or obtaining at least two hundred 37 net new jobs in the state and making significant capital investment in 38 the state. Other businesses creating one hundred fifty or more net new 39 jobs in the state and making significant capital investment in the state 40 may be considered eligible as a regionally significant project by the 41 commissioner as well. A regionally significant project shall not be 42 engaged in the production, transmission, distribution, transportation, 43 storage, sale, purchase, or delivery of fossil fuels. The commissioner 44 shall promulgate regulations pursuant to section three hundred fifty-six 45 of this article to determine what additional criteria a business must 46 meet to be eligible as a regionally significant project, including, but 47 not limited to, whether a business exports a substantial portion of its 48 products or services outside of the state or outside of a metropolitan 49 statistical area or county within the state. 50 21. "Research and development expenditures" mean the expenses of the 51 business enterprise that are qualified research expenses under the 52 federal research and development credit under section forty-one of the 53 internal revenue code and are attributable to activities conducted inA. 7949 3 1 the state. If the federal research and development credit has expired, 2 then the research and development expenditures shall be calculated as if 3 the federal research and development credit structure and definition in 4 effect in federal tax year two thousand nine were still in effect. 5 Research and development expenditures does not include any expenses for 6 tangible personal property that directly produces, transmits, distrib- 7 utes, transports, or stores fossil fuels or directly utilizes fossil 8 fuels for the production of on-site energy, including thermal energy, 9 for any purpose. 10 22. "Scientific research and development" means conducting research 11 and experimental development in the physical, engineering, and life 12 sciences, including but not limited to agriculture, animal fiber, elec- 13 tronics, environmental, biology, botany, biotechnology, computers, chem- 14 istry, food, fisheries, forests, geology, health, mathematics, medicine, 15 oceanography, pharmacy, physics, plant fiber, veterinary, and other 16 allied subjects. For the purposes of this article, scientific research 17 and development does not include medical or veterinary laboratory test- 18 ing facilities, or any research that contributes to the production, 19 transmission, distribution, transportation, storage, sale, purchase, or 20 delivery of fossil fuels. 21 § 3. Subdivision 7 of section 355 of the economic development law, as 22 amended by chapter 494 of the laws of 2022, is amended to read as 23 follows: 24 7. For availability of special excelsior jobs program rates governing 25 the provision of [gas or] electric service, see subdivision twelve-d of 26 section sixty-six of the public service law. Such special excelsior jobs 27 program rates may remain available to participants as defined in this 28 article for a period of up to ten years commencing in the first taxable 29 year that the participant receives a certificate of tax credit, or the 30 first taxable year listed on its preliminary schedule of benefits, 31 whichever is later. Notwithstanding any other provision of this section, 32 such special excelsior job program rates shall remain available to a 33 Green CHIPS project which enters into a phase two of such project for 34 the entirety of both of its schedules of benefits. Provided however, if 35 a participant is removed from the excelsior jobs program pursuant to 36 this article, the excelsior jobs program rates may be denied. 37 § 4. Subdivision 12-d of section 66 of the public service law, as 38 added by section 8 of part G of chapter 61 of the laws of 2011, is 39 amended to read as follows: 40 12-d. Notwithstanding any other provision of law, upon application of 41 [a gas or] an electric corporation, the commission shall authorize such 42 corporation to charge a special excelsior jobs program rate equal to the 43 incremental cost of providing electric service to participants in the 44 excelsior jobs program as defined in article seventeen of the economic 45 development law. 46 § 5. Subdivision 2 of section 433 of the economic development law, as 47 added by section 1 of part A of chapter 68 of the laws of 2013, is 48 amended to read as follows: 49 2. The following types of businesses are prohibited from participating 50 in the START-UP NY program. 51 (a) retail and wholesale businesses; 52 (b) restaurants; 53 (c) real estate brokers; 54 (d) law firms; 55 (e) medical or dental practices; 56 (f) real estate management companies;A. 7949 4 1 (g) hospitality; 2 (h) finance and financial services; 3 (i) businesses providing personal services; 4 (j) businesses providing business administrative or support services, 5 unless such business has received permission from the commissioner to 6 apply to participate in the START-UP NY program upon demonstration that 7 the business would create no fewer than one hundred net new jobs in the 8 tax-free NY area; 9 (k) accounting firms; 10 (l) businesses providing utilities; [and] 11 (m) businesses engaged in the generation or distribution of electric- 12 ity, the distribution of natural gas, or the production of steam associ- 13 ated with the generation of electricity; and 14 (n) businesses engaged in the production, transmission, distribution, 15 transportation, or storage of fossil fuels as defined in section 1-103 16 of the energy law. 17 § 6. Subparagraph (i) of paragraph (b) of subdivision 1 of section 18 210-B of the tax law, as amended by section 2 of part P of chapter 59 of 19 the laws of 2017, is amended to read as follows: 20 (i) A credit shall be allowed under this subdivision with respect to 21 tangible personal property and other tangible property, including build- 22 ings and structural components of buildings, which are: depreciable 23 pursuant to section one hundred sixty-seven of the internal revenue 24 code, have a useful life of four years or more, are acquired by purchase 25 as defined in section one hundred seventy-nine (d) of the internal 26 revenue code, have a situs in this state and are (A) principally used by 27 the taxpayer in the production of goods by manufacturing, processing, 28 assembling, refining, mining, extracting, farming, agriculture, horti- 29 culture, floriculture, viticulture or commercial fishing, (B) industrial 30 waste treatment facilities or air pollution control facilities, used in 31 the taxpayer's trade or business, (C) research and development property, 32 or (D) principally used in the ordinary course of the taxpayer's trade 33 or business as a broker or dealer in connection with the purchase or 34 sale (which shall include but not be limited to the issuance, entering 35 into, assumption, offset, assignment, termination, or transfer) of 36 stocks, bonds or other securities as defined in section four hundred 37 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 38 defined in section four hundred seventy-five (e) of the Internal Revenue 39 Code, (E) principally used in the ordinary course of the taxpayer's 40 trade or business of providing investment advisory services for a regu- 41 lated investment company as defined in section eight hundred fifty-one 42 of the Internal Revenue Code, or lending, loan arrangement or loan orig- 43 ination services to customers in connection with the purchase or sale 44 (which shall include but not be limited to the issuance, entering into, 45 assumption, offset, assignment, termination, or transfer) of securities 46 as defined in section four hundred seventy-five (c)(2) of the Internal 47 Revenue Code, (F) principally used in the ordinary course of the taxpay- 48 er's business as an exchange registered as a national securities 49 exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- 50 ties Exchange Act of 1934 or a board of trade as defined in subparagraph 51 one of paragraph (a) of section fourteen hundred ten of the not-for-pro- 52 fit corporation law or as an entity that is wholly owned by one or more 53 such national securities exchanges or boards of trade and that provides 54 automation or technical services thereto, or (G) principally used as a 55 qualified film production facility including qualified film production 56 facilities having a situs in an empire zone designated as such pursuantA. 7949 5 1 to article eighteen-B of the general municipal law, where the taxpayer 2 is providing three or more services to any qualified film production 3 company using the facility, including such services as a studio lighting 4 grid, lighting and grip equipment, multi-line phone service, broadband 5 information technology access, industrial scale electrical capacity, 6 food services, security services, and heating, ventilation and air 7 conditioning. For purposes of clauses (D), (E) and (F) of this subpara- 8 graph, property purchased by a taxpayer affiliated with a regulated 9 broker, dealer, registered investment advisor, national securities 10 exchange or board of trade, is allowed a credit under this subdivision 11 if the property is used by its affiliated regulated broker, dealer, 12 registered investment advisor, national securities exchange or board of 13 trade in accordance with this subdivision. For purposes of determining 14 if the property is principally used in qualifying uses, the uses by the 15 taxpayer described in clauses (D) and (E) of this subparagraph may be 16 aggregated. In addition, the uses by the taxpayer, its affiliated regu- 17 lated broker, dealer and registered investment advisor under either or 18 both of those clauses may be aggregated. Provided, however, a taxpayer 19 shall not be allowed the credit provided by clauses (D), (E) and (F) of 20 this subparagraph unless the property is first placed in service before 21 October first, two thousand fifteen and (i) eighty percent or more of 22 the employees performing the administrative and support functions 23 resulting from or related to the qualifying uses of such equipment are 24 located in this state or (ii) the average number of employees that 25 perform the administrative and support functions resulting from or 26 related to the qualifying uses of such equipment and are located in this 27 state during the taxable year for which the credit is claimed is equal 28 to or greater than ninety-five percent of the average number of employ- 29 ees that perform these functions and are located in this state during 30 the thirty-six months immediately preceding the year for which the cred- 31 it is claimed, or (iii) the number of employees located in this state 32 during the taxable year for which the credit is claimed is equal to or 33 greater than ninety percent of the number of employees located in this 34 state on December thirty-first, nineteen hundred ninety-eight or, if the 35 taxpayer was not a calendar year taxpayer in nineteen hundred ninety- 36 eight, the last day of its first taxable year ending after December 37 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes 38 subject to tax in this state after the taxable year beginning in nine- 39 teen hundred ninety-eight, then the taxpayer is not required to satisfy 40 the employment test provided in the preceding sentence of this subpara- 41 graph for its first taxable year. For purposes of clause (iii) of this 42 subparagraph the employment test will be based on the number of employ- 43 ees located in this state on the last day of the first taxable year the 44 taxpayer is subject to tax in this state. If the uses of the property 45 must be aggregated to determine whether the property is principally used 46 in qualifying uses, then either each affiliate using the property must 47 satisfy this employment test or this employment test must be satisfied 48 through the aggregation of the employees of the taxpayer, its affiliated 49 regulated broker, dealer, and registered investment adviser using the 50 property. For purposes of clause (A) of this subparagraph, tangible 51 personal property and other tangible property shall not include property 52 principally used by the taxpayer in the production or distribution of 53 electricity, natural gas after extraction from wells, steam, or water 54 delivered through pipes and mains. For purposes of this subdivision, 55 tangible personal property and other tangible property does not include 56 property that directly produces, transmits, distributes, transports, orA. 7949 6 1 stores fossil fuels as defined in section 1-103 of the energy law, or 2 directly utilizes fossil fuels for the production of on-site energy, 3 including thermal energy, for any purpose. 4 § 7. Subdivision (m) of section 301-a of the tax law, as added by 5 section 20 of part K of chapter 61 of the laws of 2011, is amended to 6 read as follows: 7 (m) Special rate adjustment for certain vessels. Notwithstanding any 8 provision of this section to the contrary, the use of non-highway diesel 9 motor fuel in the engine of a vessel to propel such vessel shall be 10 subject to tax at the motor fuel and highway diesel motor fuel rate 11 provided for in this section, and shall be subject to the provisions of 12 section three hundred one-j of this article, including the adjustment 13 set forth in paragraph [four] three of subdivision (a) of such section 14 three hundred one-j. A credit or refund shall be available to the extent 15 tax paid on gallonage used to propel any such vessel exceeds the amount 16 of tax due based on the tax rate set forth herein. Provided, however, 17 that the commissioner shall require such documentary proof to qualify 18 for any credit or reimbursement provided hereunder as the commissioner 19 deems appropriate. 20 § 8. Paragraph 3 of subdivision (f) and paragraph 4 of subdivision (g) 21 of section 301-a of the tax law are REPEALED. 22 § 9. Subdivisions (a) and (d) of section 301-b of the tax law, subdi- 23 vision (a) as added by chapter 190 of the laws of 1990, paragraph 5 of 24 subdivision (a) as amended by section 3 of part E of chapter 59 of the 25 laws of 2012, paragraphs 6, 7 and 8 of subdivision (a) as added by 26 section 4 of part W-1 of chapter 109 of the laws of 2006, and subdivi- 27 sion (d) as amended by section 21 of part K of chapter 61 of the laws of 28 2011, are amended to read as follows: 29 (a) Products. (1) [Kerosene sold or used by a petroleum business which30is registered under article twelve-A of this chapter as a distributor of31diesel motor fuel so long as (i) such product has not been blended or32mixed with any other product constituting diesel motor fuel or motor33fuel or a residual petroleum product and (ii) such product is not used34by the petroleum business as fuel to operate a motor vehicle or sold by35such petroleum business to a consumer for use as fuel to operate a motor36vehicle.37(2) Kero-jet fuel (i) sold by a petroleum business which is registered38under article twelve-A of this chapter as a distributor of diesel motor39fuel to a consumer for use exclusively as jet aircraft fuel or to a40petroleum business registered under such article twelve-A as a "distrib-41utor of kero-jet fuel only" where such fixed base operator is engaged42solely in making or offering to make retail sales not in bulk of kero-43jet fuel directly into the fuel tank of an airplane for the purpose of44operating such airplane, (ii) used by a petroleum business, registered45under article twelve-A of this chapter as a distributor of diesel motor46fuel, exclusively as jet aircraft fuel, or (iii) sold at retail not in47bulk by a petroleum business registered under article twelve-A of this48chapter as a "distributor of kero-jet fuel only" where such fuel is49delivered directly into the fuel tank of a jet airplane for use in the50operation of such airplane.51(3)] Aviation gasoline, meeting the specifications set forth in Ameri- 52 can Standard Testing Material Specification D910 or Military Specifica- 53 tion MIL-G-5572, which is imported or caused to be imported into this 54 state by a petroleum business which is registered under article twelve-A 55 of this chapter as a distributor of motor fuel or produced, refined, 56 manufactured or compounded in this state by such a petroleum business.A. 7949 7 1 [(4) Residual petroleum product sold by a petroleum business regis-2tered under this article as a residual petroleum product business if3such product is sold by such petroleum business to a consumer for use4exclusively as bunker fuel for vessels or if such product is used by5such petroleum business exclusively as bunker fuel in its own vessels.6(5) Liquefied petroleum gases, such as butane, ethane or propane.7(6)] (2) E85 imported or caused to be imported into this state or 8 produced, refined, manufactured or compounded in this state by a petro- 9 leum business registered under article twelve-A of this chapter, as a 10 distributor of motor fuel, and then sold by such petroleum business and 11 delivered to a filling station and placed in a storage tank of such 12 filling station for such E85 to be dispensed directly into a motor vehi- 13 cle for use in the operation of such vehicle. 14 [(7)] (i) Partial B20 exemption. B20 imported or caused to be imported 15 into this state or produced, refined, manufactured or compounded in this 16 state by a petroleum business registered under article twelve-A of this 17 chapter, as a distributor of diesel motor fuel, and then sold by such 18 petroleum business. 19 (ii) Calculation of partial exemption. The amount of the partial 20 exemption under this paragraph shall be determined by multiplying the 21 quantity of B20 times twenty percent of the applicable taxes otherwise 22 imposed by this article on such fuel. 23 [(8)] (3) CNG or hydrogen. 24 (d) Sales to consumers for heating purposes. [(1)] Total residential 25 heating exemption. Non-highway diesel motor fuel sold by a petroleum 26 business registered under article twelve-A of this chapter as a distrib- 27 utor of diesel motor fuel or residual petroleum product sold by a petro- 28 leum business registered under this article as a residual petroleum 29 product business to the consumer exclusively for residential heating 30 purposes only if such non-highway diesel motor fuel is delivered into a 31 storage tank which is not equipped with a hose or other apparatus by 32 which such fuel can be dispensed into the fuel tank of a motor vehicle 33 and such storage tank is attached to the heating unit burning such fuel. 34 [(2) Partial non-residential heating exemption. (A) Non-highway diesel35motor fuel sold by a petroleum business registered under article36twelve-A of this chapter as a distributor of diesel motor fuel or resi-37dual petroleum product sold by a petroleum business registered under38this article as a residual petroleum product business to the consumer39exclusively for heating, other than residential heating purposes only if40such non-highway diesel motor fuel is delivered into a storage tank41which is not equipped with a hose or other apparatus by which such fuel42can be dispensed into the fuel tank of a motor vehicle and such storage43tank is attached to the heating unit burning such fuel (B) Calculation44of partial exemption. The partial exemption under this paragraph shall45be determined by multiplying the quantity of non-highway diesel motor46fuel and residual petroleum product eligible for the exemption times the47sum of the then current rate of the supplemental tax imposed by section48three hundred one-j of this article and forty-six percent of the then49current rate of the tax imposed by section three hundred one-a of this50article, with respect to the specific non-highway diesel motor fuel or51residual petroleum product rate, as the case may be.] 52 § 10. The subdivision heading and paragraph 1 of subdivision (c) of 53 section 301-b of the tax law, as added by chapter 190 of the laws of 54 1990, are amended to read as follows: 55 Sales to [New York state and] the federal government. (1) Motor fuel 56 imported or caused to be imported into this state or produced, refined,A. 7949 8 1 manufactured or compounded in this state by a petroleum business regis- 2 tered under article twelve-A of this chapter, as a distributor of motor 3 fuel, and then sold by such petroleum business to an organization 4 described in paragraph [one or] two of subdivision (a) of section eleven 5 hundred sixteen of this chapter where such motor fuel is used by such 6 organization for its own use or consumption. 7 § 11. The opening paragraph and subdivisions (a) and (b) of section 8 301-c of the tax law, the opening paragraph as amended by section 2 of 9 part T of chapter 59 of the laws of 2022, subdivision (a) as amended by 10 section 23 of part K of chapter 61 of the laws of 2011, and subdivision 11 (b) as amended by chapter 330 of the laws of 1991, are amended to read 12 as follows: 13 A subsequent purchaser shall be eligible for reimbursement of tax with 14 respect to the following gallonage, subsequently sold by such purchaser 15 in accordance with subdivision (a), (b), (e), (h), [(j), (k), (n) or16(o)] (i), (k) or (l) of this section or used by such purchaser in 17 accordance with subdivision (c), (d), (f), (g), [(i), (l), (m)] (j) or 18 (q) of this section, which gallonage has been included in the measure of 19 the tax imposed by this article on a petroleum business: 20 (a) [Non-highway Diesel motor fuel used for heating purposes. (1)] 21 Total residential heating reimbursement. Non-highway Diesel motor fuel 22 purchased in this state and sold by such purchaser to a consumer for use 23 exclusively for residential heating purposes but only where (i) such 24 non-highway diesel motor fuel is delivered into a storage tank which is 25 not equipped with a hose or other apparatus by which such non-highway 26 Diesel motor fuel can be dispensed into the fuel tank of a motor vehicle 27 and such storage tank is attached to the heating unit burning such non- 28 highway Diesel motor fuel, (ii) the tax imposed pursuant to this article 29 has been paid with respect to such non-highway diesel motor fuel and the 30 entire amount of such tax has been absorbed by such purchaser, and (iii) 31 such purchaser possesses documentary proof satisfactory to the commis- 32 sioner evidencing the absorption by it of the entire amount of the tax 33 imposed pursuant to this article. Provided, however, that the commis- 34 sioner is authorized, in the event that the commissioner determines that 35 it would not threaten the integrity of the administration and enforce- 36 ment of the tax imposed by this article, to provide a reimbursement with 37 respect to a retail sale to a consumer for residential heating purposes 38 of less than ten gallons of non-highway diesel motor fuel provided such 39 fuel is not dispensed into the tank of a motor vehicle. 40 [(2) Partial non-residential heating reimbursement. (A) Non-highway41Diesel motor fuel purchased in this state and sold by such purchaser to42a consumer for use exclusively for heating, other than for residential43heating purposes, but only where (i) such non-highway diesel motor fuel44is delivered into a storage tank which is not equipped with a hose or45other apparatus by which such non-highway Diesel motor fuel can be46dispensed into the fuel tank of a motor vehicle and such storage tank is47attached to the heating unit burning such non-highway Diesel motor fuel,48(ii) the tax imposed pursuant to this article has been paid with respect49to such non-highway diesel motor fuel and the entire amount of such tax50has been absorbed by such purchaser, and (iii) such purchaser possesses51documentary proof satisfactory to the commissioner evidencing the52absorption by it of the entire amount of the tax imposed pursuant to53this article.54(B) Calculation of partial reimbursement. Notwithstanding any other55provision of this article, the amount of the reimbursement under this56paragraph shall be determined by multiplying the quantity of non-highwayA. 7949 9 1diesel motor fuel eligible for the reimbursement times the sum of the2then current rate of the supplemental tax imposed by section three3hundred one-j of this article and forty-six percent of the then current4rate of the tax imposed by section three hundred one-a of this article,5with respect to the non-highway diesel motor fuel rate, as the case may6be.] 7 (b) Sales to [New York state and] the federal government. Motor fuel 8 and diesel motor fuel purchased in this state and sold by such purchaser 9 in this state to an organization described in paragraph [one or] two of 10 subdivision (a) of section eleven hundred sixteen of this chapter where 11 (i) such motor fuel or diesel motor fuel is for such organization's own 12 use or consumption, (ii) the tax imposed pursuant to this article has 13 been paid with respect to such motor fuel or diesel motor fuel and the 14 entire amount of such tax has been absorbed by such purchaser and, (iii) 15 such purchaser possesses documentary proof satisfactory to the commis- 16 sioner of taxation and finance evidencing the absorption by it of the 17 entire amount of the tax imposed pursuant to this article. Provided, 18 however, that the commissioner [of taxation and finance] shall require 19 such documentary proof to qualify for any reimbursement of tax provided 20 by this section as the commissioner deems appropriate, including the 21 expansion of any certification required pursuant to section two hundred 22 eighty-five-a or two hundred eighty-five-b of this chapter to cover the 23 taxes imposed pursuant to this article. 24 § 11-a. The opening paragraph of section 301-c of the tax law, as 25 amended by section 3 of part T of chapter 59 of the laws of 2022, is 26 amended to read as follows: 27 A subsequent purchaser shall be eligible for reimbursement of tax with 28 respect to the following gallonage, subsequently sold by such purchaser 29 in accordance with subdivision (a), (b), (e), (h), [(j)] or [(k)] (i) of 30 this section or used by such purchaser in accordance with subdivision 31 (c), (d), (f), (g), [(i), (l), (m)] (j) or (q) of this section, which 32 gallonage has been included in the measure of the tax imposed by this 33 article on a petroleum business: 34 § 12. Subdivisions (i), (j) and (l) of section 301-c of the tax law 35 are REPEALED. 36 § 13. Subdivisions (k), (m), (n), (o) and (p) of section 301-c of the 37 tax law are relettered subdivisions (i), (j), (k), (l) and (m). 38 § 14. Section 301-d of the tax law is REPEALED. 39 § 15. Subdivision (f) of section 301-e of the tax law is REPEALED. 40 § 16. Subdivision (a) of section 301-j of the tax law, as amended by 41 chapter 309 of the laws of 1996, paragraphs 1, 2, 3 and 4 as amended by 42 section 29 of part K of chapter 61 of the laws of 2011, is amended to 43 read as follows: 44 (a) Imposition of tax. (1) In addition to the taxes imposed by 45 sections three hundred one-a and three hundred one-e of this article, 46 there is hereby imposed upon every petroleum business subject to tax 47 imposed under section three hundred one-a of this article and every 48 aviation fuel business subject to the aviation gasoline component of the 49 tax imposed under section three hundred one-e of this article, a supple- 50 mental monthly tax for each or any part of a taxable month at a rate of 51 six and eight-tenths cents per gallon with respect to the products 52 included in each component of the taxes imposed by such section three 53 hundred one-a and the aviation gasoline component of the tax imposed by 54 such section three hundred one-e of this article.A. 7949 10 1 (2) [Provided, however, "commercial gallonage," as such term is2defined in subdivision (k) of section three hundred of this article,3shall be exempt from the measure of the tax imposed under this section.4(3)] Provided, further, "railroad diesel," as such term is defined in 5 subdivision (l) of section three hundred of this article, shall be 6 exempt from the measure of the tax imposed under this section. 7 [(4)] (3) Provided, further, a separate per gallon rate shall apply 8 with respect to highway diesel motor fuel. Such rate shall be determined 9 by taking the adjusted rate per gallon of tax imposed under paragraph 10 one of this subdivision as adjusted in accordance with paragraph [five] 11 four of this subdivision and subtracting therefrom one and three-quar- 12 ters cents. Commencing January first, two thousand twelve, and each 13 January thereafter, the per gallon rate applicable to highway diesel 14 motor fuel shall be the adjusted rate under paragraph one of this subdi- 15 vision as adjusted in accordance with paragraph [five] four of this 16 subdivision which commences on such date minus one and three-quarters 17 cents. The resulting rate under this paragraph shall be expressed in 18 hundredths of a cent. 19 [(5)] (4) Except as herein provided, the tax imposed under this 20 section shall be calculated in the same respective manner as the taxes 21 imposed by section three hundred one-a and section three hundred one-e 22 of this article. Except [for section three hundred one-d and except] as 23 otherwise provided in this section, all the provisions of this article 24 applicable to the taxes imposed by sections three hundred one-a and 25 three hundred one-e of this article, shall apply with respect to the 26 supplemental tax imposed by this section to the same extent as if it 27 were respectively imposed by such sections. 28 § 17. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 29 of the tax law, as amended by section 3 of part P of chapter 59 of the 30 laws of 2017, is amended to read as follows: 31 (A) A credit shall be allowed under this subsection with respect to 32 tangible personal property and other tangible property, including build- 33 ings and structural components of buildings, which are: depreciable 34 pursuant to section one hundred sixty-seven of the internal revenue 35 code, have a useful life of four years or more, are acquired by purchase 36 as defined in section one hundred seventy-nine (d) of the internal 37 revenue code, have a situs in this state and are (i) principally used by 38 the taxpayer in the production of goods by manufacturing, processing, 39 assembling, refining, mining, extracting, farming, agriculture, horti- 40 culture, floriculture, viticulture or commercial fishing, (ii) indus- 41 trial waste treatment facilities or air pollution control facilities, 42 used in the taxpayer's trade or business, (iii) research and development 43 property, (iv) principally used in the ordinary course of the taxpayer's 44 trade or business as a broker or dealer in connection with the purchase 45 or sale (which shall include but not be limited to the issuance, enter- 46 ing into, assumption, offset, assignment, termination, or transfer) of 47 stocks, bonds or other securities as defined in section four hundred 48 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 49 defined in section 475(e) of the Internal Revenue Code, (v) principally 50 used in the ordinary course of the taxpayer's trade or business of 51 providing investment advisory services for a regulated investment compa- 52 ny as defined in section eight hundred fifty-one of the Internal Revenue 53 Code, or lending, loan arrangement or loan origination services to 54 customers in connection with the purchase or sale (which shall include 55 but not be limited to the issuance, entering into, assumption, offset, 56 assignment, termination, or transfer) of securities as defined inA. 7949 11 1 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 2 or (vi) principally used as a qualified film production facility includ- 3 ing qualified film production facilities having a situs in an empire 4 zone designated as such pursuant to article eighteen-B of the general 5 municipal law, where the taxpayer is providing three or more services to 6 any qualified film production company using the facility, including such 7 services as a studio lighting grid, lighting and grip equipment, multi- 8 line phone service, broadband information technology access, industrial 9 scale electrical capacity, food services, security services, and heat- 10 ing, ventilation and air conditioning. For purposes of clauses (iv) and 11 (v) of this subparagraph, property purchased by a taxpayer affiliated 12 with a regulated broker, dealer, or registered investment adviser is 13 allowed a credit under this subsection if the property is used by its 14 affiliated regulated broker, dealer or registered investment adviser in 15 accordance with this subsection. For purposes of determining if the 16 property is principally used in qualifying uses, the uses by the taxpay- 17 er described in clauses (iv) and (v) of this subparagraph may be aggre- 18 gated. In addition, the uses by the taxpayer, its affiliated regulated 19 broker, dealer and registered investment adviser under either or both of 20 those clauses may be aggregated. Provided, however, a taxpayer shall not 21 be allowed the credit provided by clauses (iv) and (v) of this subpara- 22 graph unless (I) eighty percent or more of the employees performing the 23 administrative and support functions resulting from or related to the 24 qualifying uses of such equipment are located in this state, or (II) the 25 average number of employees that perform the administrative and support 26 functions resulting from or related to the qualifying uses of such 27 equipment and are located in this state during the taxable year for 28 which the credit is claimed is equal to or greater than ninety-five 29 percent of the average number of employees that perform these functions 30 and are located in this state during the thirty-six months immediately 31 preceding the year for which the credit is claimed, or (III) the number 32 of employees located in this state during the taxable year for which the 33 credit is claimed is equal to or greater than ninety percent of the 34 number of employees located in this state on December thirty-first, 35 nineteen hundred ninety-eight or, if the taxpayer was not a calendar 36 year taxpayer in nineteen hundred ninety-eight, the last day of its 37 first taxable year ending after December thirty-first, nineteen hundred 38 ninety-eight. If the taxpayer becomes subject to tax in this state after 39 the taxable year beginning in nineteen hundred ninety-eight, then the 40 taxpayer is not required to satisfy the employment test provided in the 41 preceding sentence of this subparagraph for its first taxable year. For 42 the purposes of clause (III) of this subparagraph the employment test 43 will be based on the number of employees located in this state on the 44 last day of the first taxable year the taxpayer is subject to tax in 45 this state. If the uses of the property must be aggregated to determine 46 whether the property is principally used in qualifying uses, then either 47 each affiliate using the property must satisfy this employment test or 48 this employment test must be satisfied through the aggregation of the 49 employees of the taxpayer, its affiliated regulated broker, dealer, and 50 registered investment adviser using the property. For purposes of clause 51 (i) of this subparagraph, tangible personal property and other tangible 52 property shall not include property principally used by the taxpayer in 53 the production or distribution of electricity, natural gas after 54 extraction from wells, steam, or water delivered through pipes and 55 mains. For purposes of this subsection, tangible personal property and 56 other tangible property does not include property that directly produc-A. 7949 12 1 es, transmits, distributes, transports, or stores fossil fuels as 2 defined in section 1-103 of the energy law, or directly utilizes fossil 3 fuels for the production of on-site energy, including thermal energy, 4 for any purpose. 5 § 18. Paragraph 3 of subdivision (b) of section 21 of the tax law, as 6 amended by chapter 420 of the laws of 2006, clause (i) of subparagraph 7 (B) as amended by section 22 of part BB of chapter 56 of the laws of 8 2015, is amended to read as follows: 9 (3) Qualified tangible property. "Qualified tangible property" is 10 property described in either subparagraph (A) or (B) and subparagraph 11 (C) of this paragraph which: 12 (A) (i) is depreciable pursuant to section one hundred sixty-seven of 13 the internal revenue code, 14 (ii) has a useful life of four years or more, 15 (iii) has been acquired by purchase as defined in section one hundred 16 seventy-nine (d) of the internal revenue code, 17 (iv) has a situs on a qualified site in this state, and 18 (v) is principally used by the taxpayer for industrial, commercial, 19 recreational or environmental conservation purposes (including the 20 commercial development of residential housing); or 21 (B) (i) is, or when occupied becomes, part of a dwelling whose primary 22 ownership structure is covered under either article nine-B of the real 23 property law or meets the requirements of section 216 (b)(1) of the 24 Internal Revenue Code or is part of an affordable housing project as 25 defined in subdivision twenty-nine of section 27-1405 of the environ- 26 mental conservation law, where units are sold as single family homes or 27 multiple family dwellings; 28 (ii) has been acquired by purchase (as defined in section one hundred 29 seventy-nine (d) of the Internal Revenue Code); 30 (iii) has a situs on a qualified site in this state; and 31 (iv) for purposes of this subparagraph only, and notwithstanding any 32 other section of law to the contrary, property qualifying under this 33 subparagraph shall be deemed to be qualified tangible property for the 34 purposes of paragraph one of subdivision (d) of this section; and in 35 addition, for the purposes of this subdivision only, property qualifying 36 under this subparagraph shall be deemed to have been placed in service 37 for the purposes of paragraph three of subdivision (a) of this section 38 when a certificate of occupancy is issued for such property; and 39 (C) does not directly produce, transmit, distribute, transport, or 40 store fossil fuels as defined in section 1-103 of the energy law, or 41 directly utilize fossil fuels for the production of on-site energy, 42 including thermal energy, for any purpose. 43 § 19. Subdivision 26 of section 210-B of the tax law is amended by 44 adding a new paragraph (g) to read as follows: 45 (g) For purposes of this subdivision, "qualified rehabilitation 46 expenditures" does not include expenditures for property that directly 47 produces, transmits, distributes, transports, or stores fossil fuels as 48 defined in section 1-103 of the energy law, or directly utilizes fossil 49 fuels for the production of on-site energy, including thermal energy, 50 for any purpose. 51 § 20. Subparagraphs (ix) and (x) of paragraph 3 and paragraph 5 of 52 subdivision (c) of section 1105 of the tax law, subparagraph (ix) of 53 paragraph 3 as added by chapter 395 of the laws of 1998, subparagraph 54 (x) of paragraph 3 as added by section 1 of part FF of chapter 407 of 55 the laws of 1999, and paragraph 5 as amended by chapter 321 of the laws 56 of 2005, are amended to read as follows:A. 7949 13 1 (ix) [such services rendered with respect to tangible property used or2consumed directly and predominantly in the production for sale of gas or3oil by manufacturing, processing, generating, assembling, refining,4mining, or extracting.5(x)] such services rendered with respect to property described in 6 paragraph twelve-a of subdivision (a) of section eleven hundred fifteen 7 of this article. 8 (5) Maintaining, servicing or repairing real property, property or 9 land, as such terms are defined in the real property tax law, whether 10 the services are performed in or outside of a building, as distinguished 11 from adding to or improving such real property, property or land, by a 12 capital improvement as such term capital improvement is defined in para- 13 graph nine of subdivision (b) of section eleven hundred one of this 14 article, but excluding (i) services rendered by an individual who is not 15 in a regular trade or business offering his services to the public, (ii) 16 [services rendered directly with respect to real property, property or17land used or consumed directly and predominantly in the production for18sale of gas or oil by manufacturing, processing, generating, assembling,19refining, mining, or extracting, (iii)] services rendered with respect 20 to real property, property or land used or consumed predominantly either 21 in the production of tangible personal property, for sale, by farming or 22 in a commercial horse boarding operation, or in both and [(iv)] (iii) 23 services of removal of waste material from a facility regulated as a 24 transfer station or construction and demolition debris processing facil- 25 ity by the department of environmental conservation, provided that the 26 waste material to be removed was not generated by the facility. 27 § 21. Subparagraph (xi) of paragraph 3 of subdivision (c) of section 28 1105 of the tax law is REPEALED. 29 § 22. Paragraph 9 of subdivision (a) of section 1115 of the tax law is 30 REPEALED. 31 § 23. Paragraph (ii) of subdivision (b) of section 1115 of the tax 32 law, as amended by section 30 of part Y of chapter 63 of the laws of 33 2000, is amended to read as follows: 34 (ii) [Gas, electricity] Electricity, refrigeration and steam, and 35 [gas,] electric, refrigeration and steam service of whatever nature for 36 use or consumption directly and exclusively in research and development 37 in the experimental or laboratory sense shall be exempt from the tax 38 imposed under subdivision (b) of section eleven hundred five and the 39 compensating use tax imposed under section eleven hundred ten of this 40 article. Such research and development shall not be deemed to include 41 the ordinary testing or inspection of materials or products for quality 42 control, efficiency surveys, management studies, consumer surveys, 43 advertising, promotions or research in connection with literary, histor- 44 ical or similar projects. 45 § 24. Paragraph 1 of subdivision (c) of section 1115 of the tax law, 46 as amended by section 7 of part B of chapter 63 of the laws of 2000, is 47 amended to read as follows: 48 (1) [Fuel, gas, electricity] Electricity, refrigeration and steam, and 49 [gas,] electric, refrigeration and steam service of whatever nature for 50 use or consumption directly and exclusively in the production of tangi- 51 ble personal property, [gas,] electricity, refrigeration or steam, for 52 sale, by manufacturing, processing, assembling, generating, refining, 53 mining or extracting shall be exempt from the taxes imposed under subdi- 54 visions (a) and (b) of section eleven hundred five and the compensating 55 use tax imposed under section eleven hundred ten of this article.A. 7949 14 1 § 25. Subdivision (j) of section 1115 of the tax law, as amended by 2 section 41 of part K of chapter 61 of the laws of 2011, is amended to 3 read as follows: 4 (j) The exemptions provided in this section shall not apply to the tax 5 required to be prepaid pursuant to the provisions of section eleven 6 hundred two of this article nor to the taxes imposed by sections eleven 7 hundred five and eleven hundred ten of this article with respect to 8 receipts from sales and uses of motor fuel or diesel motor fuel,[except9that the exemptions provided in paragraphs nine and forty-two of subdi-10vision (a) of this section shall apply to the tax required to be prepaid11pursuant to the provisions of section eleven hundred two of this article12and to the taxes imposed by sections eleven hundred five and eleven13hundred ten of this article with respect to sales and uses of kero-jet14fuel,] CNG, hydrogen and E85, provided, however, the exemption allowed 15 for E85 shall be subject to the additional requirements provided in 16 section eleven hundred two of this article with respect to E85. The 17 exemption provided in subdivision (c) of this section shall apply to 18 sales and uses of non-highway diesel motor fuel but only if all of such 19 fuel is consumed other than on the public highways of this state. The 20 exemption provided in subdivision (c) of this section shall apply to 21 sales and uses of non-highway diesel motor fuel for use or consumption 22 either in the production for sale of tangible personal property by farm- 23 ing or in a commercial horse boarding operation, or in both but only if 24 all of such fuel is consumed other than on the public highways of this 25 state (except for the use of the public highways to reach adjacent farm- 26 lands or adjacent lands used in a commercial horse boarding operation, 27 or both). 28 § 25-a. Subdivision (j) of section 1115 of the tax law, as amended by 29 section 41-a of part K of chapter 61 of the laws of 2011, is amended to 30 read as follows: 31 (j) The exemptions provided in this section shall not apply to the tax 32 required to be prepaid pursuant to the provisions of section eleven 33 hundred two of this article nor to the taxes imposed by sections eleven 34 hundred five and eleven hundred ten of this article with respect to 35 receipts from sales and uses of motor fuel or diesel motor fuel[, except36that the exemption provided in paragraph nine of subdivision (a) of this37section shall apply to the tax required to be prepaid pursuant to the38provisions of section eleven hundred two of this article and to the39taxes imposed by sections eleven hundred five and eleven hundred ten of40this article with respect to sales and uses of kero-jet fuel]. The 41 exemption provided in subdivision (c) of this section shall apply to 42 sales and uses of non-highway diesel motor fuel but only if all of such 43 fuel is consumed other than on the public highways of this state. The 44 exemption provided in subdivision (c) of this section shall apply to 45 sales and uses of non-highway diesel motor fuel for use or consumption 46 either in the production for sale of tangible personal property by farm- 47 ing or in a commercial horse boarding operation, or in both but only if 48 all of such fuel is consumed other than on the public highways of this 49 state (except for the use of the public highways to reach adjacent farm- 50 lands or adjacent lands used in a commercial horse boarding operation, 51 or both). 52 § 26. Subdivision (s) of section 1115 of the tax law, as added by 53 chapter 201 of the laws of 1995, is relettered subdivision (p). 54 § 27. Subdivision (w) of section 1115 of the tax law, as added by 55 section 32 of part Y of chapter 63 of the laws of 2000, is amended to 56 read as follows:A. 7949 15 1 (w) Receipts from the sale of [gas or] electricity or [gas or] elec- 2 tric service of whatever nature and consideration given or contracted to 3 be given for, or for the use of, [gas or] electricity or [gas or] elec- 4 tric service of whatever nature purchased for use or consumption direct- 5 ly and exclusively to provide [gas or] electric service of whatever 6 nature consisting of operating [a gas pipeline or gas distribution line7or] an electric transmission or distribution line [and ensuring the8necessary working pressure in an underground gas storage facility] shall 9 be exempt from sales and compensating use taxes imposed by this article. 10 Such exempt [gas or] electricity or [gas or] electric service of whatev- 11 er nature shall include, but shall not be limited to, such [gas or] 12 electricity or [gas or] electric service of whatever nature used or 13 consumed directly and exclusively to (1) [ensure necessary working pres-14sure in a gas pipeline used to transport, transmit or distribute gas,15(2) operate compressors used to transport, transmit or distribute gas16through such a gas pipeline or distribution line or used to ensure17necessary working pressure in such a storage facility, (3) operate heat-18ers to prevent gas in such a pipeline or distribution line from freez-19ing, (4) operate equipment which removes impurities and moisture from20gas in such a pipeline or distribution line, (5)] operate substations 21 and equipment related to electric transmission and distribution lines 22 such as transformers, capacitors, meters, switches, communication 23 devices and heating and cooling equipment, and [(6)] (2) ensure the 24 reliability of electricity or electric service transmitted or distrib- 25 uted through such lines, for example, by operating reserve capacity 26 machinery and equipment. 27 § 28. Subdivision (k) of section 300 of the tax law, as amended by 28 section 17 of part K of chapter 61 of the laws of 2011, is amended to 29 read as follows: 30 (k) "Commercial gallonage" means gallonage (1) which is non-highway 31 diesel motor fuel or residual petroleum product, (2) [which is included32in the full measure of the non-highway diesel motor fuel component or33the residual petroleum product component of the tax imposed under34section three hundred one-a of this article, (3)] which does not (and 35 will not) qualify (A) [for the utility credit or reimbursement provided36for in section three hundred one-d of this article, (B)] as "manufactur- 37 ing gallonage", as such term is defined in subdivision (m) of this 38 section, [(C)] or (B) for the not-for-profit organization exemption 39 provided for in subdivision (h) of section three hundred one-b of this 40 article, [or (D) for the heating exemption provided for in paragraph two41of subdivision (d) of section three hundred one-b of this article or the42heating reimbursement provided for in paragraph two of subdivision (a)43of section three hundred one-c of this article,] and [(4)] (3) which 44 will not be used nor has been used in the fuel tank connecting with the 45 engine of a vessel. No gallonage shall qualify as "commercial gallonage" 46 where such gallonage is eligible for the [(i) utility credit or47reimbursement under such section three hundred one-d of this article,48(ii) "manufacturing exemption" under paragraph three of subdivision (f)49of section three hundred one-a of this article, (iii)] not-for-profit 50 organization exemption under subdivision (h) of section three hundred 51 one-b of this article[, or (iv) heating exemption provided for in para-52graph two of subdivision (d) of section three hundred one-b of this53article or the heating reimbursement provided for in paragraph two of54subdivision (a) of section three hundred one-c of this article]. The 55 commissioner shall require such documentary proof to substantiate theA. 7949 16 1 classification of product as "commercial gallonage" as the commissioner 2 deems appropriate. 3 § 29. Paragraph 1 of subdivision (f) of section 301-b of the tax law, 4 as amended by section 21 of part K of chapter 61 of the laws of 2011, is 5 amended to read as follows: 6 (1) Residual petroleum product and non-highway diesel motor fuel sold 7 to an electric corporation, [as described in subdivision (a) of section8three hundred one-d of this article,] as defined in subdivision thirteen 9 of section two of the public service law, subject to the supervision of 10 the department of public service, which is registered with the depart- 11 ment as a petroleum business tax direct pay permittee, and used by such 12 electric corporation to fuel generators for the purpose of manufacturing 13 or producing electricity where such electric corporation provides a copy 14 of a direct pay permit authorized and issued by the commissioner, to the 15 petroleum business making such sale. If so registered, such corporation 16 shall be a taxpayer under this article and (i) such electric corporation 17 shall file a return monthly and pay the applicable tax under this arti- 18 cle, after the application of allowable credits, on all such purchases 19 directly to the commissioner, (ii) such electric corporation shall be 20 subject to all of the provisions of this article relating to the respon- 21 sibilities and liabilities of taxpayers under this article with respect 22 to such residual petroleum product and non-highway diesel motor fuel. 23 § 30. Subdivision (y) of section 1511 of the tax law, as added by 24 chapter 472 of the laws of 2010, is amended by adding a new paragraph 7 25 to read as follows: 26 (7) For purposes of this subdivision, "qualified rehabilitation 27 expenditures" does not include expenditures for property that directly 28 produces, transmits, distributes, transports, or stores fossil fuels as 29 defined in section 1-103 of the energy law, or directly utilizes fossil 30 fuels for the production of on-site energy, including thermal energy, 31 for any purpose. 32 § 31. Paragraph (c) of subdivision 1 of section 3102-e of the public 33 authorities law, as added by section 31 of part A of chapter 56 of the 34 laws of 1998, is amended to read as follows: 35 (c) "Qualified emerging technology company" shall mean a company 36 located in New York state: (1) whose primary products or services are 37 classified as emerging technologies and whose total annual product sales 38 are ten million dollars or less; or (2) a company which has research and 39 development activities in New York state and whose ratio of research and 40 development funds to net sales equals or exceeds the average ratio for 41 all surveyed companies classified as determined by the National Science 42 Foundation in the most recent published results from its Survey of 43 Industry Research and Development, or any comparable successor survey as 44 determined by the department, and whose total annual product sales are 45 ten million dollars or less. Qualified emerging technology company shall 46 not include a company engaged in the production, transmission, distrib- 47 ution, transportation, or storage of fossil fuels as defined in section 48 1-103 of the energy law. 49 The definition of "research and development funds" shall be the same 50 as that used by the National Science Foundation in the aforementioned 51 survey. 52 § 32. Subparagraph (vi) of paragraph (a) of subdivision 1 of section 53 210 of the tax law, as amended by section 1 of part D of chapter 59 of 54 the laws of 2019, is amended to read as follows: 55 (vi) for taxable years beginning on or after January first, two thou- 56 sand fourteen, the amount prescribed by this paragraph for a taxpayerA. 7949 17 1 that is a qualified New York manufacturer, shall be computed at the rate 2 of zero percent of the taxpayer's business income base. The term 3 "manufacturer" shall mean a taxpayer that during the taxable year is 4 principally engaged in the production of goods by manufacturing, proc- 5 essing, assembling, refining, mining, extracting, farming, agriculture, 6 horticulture, floriculture, viticulture or commercial fishing. However, 7 the generation and distribution of electricity, the distribution of 8 natural gas, [and] the production of steam associated with the gener- 9 ation of electricity, and the production, transmission, distribution, 10 transportation, or storage of fossil fuels as defined in section 1-103 11 of the energy law shall not be qualifying activities for a manufacturer 12 under this subparagraph. Moreover, in the case of a combined report, the 13 combined group shall be considered a "manufacturer" for purposes of this 14 subparagraph only if the combined group during the taxable year is prin- 15 cipally engaged in the activities set forth in this paragraph, or any 16 combination thereof. A taxpayer or, in the case of a combined report, a 17 combined group shall be "principally engaged" in activities described 18 above if, during the taxable year, more than fifty percent of the gross 19 receipts of the taxpayer or combined group, respectively, are derived 20 from receipts from the sale of goods produced by such activities. In 21 computing a combined group's gross receipts, intercorporate receipts 22 shall be eliminated. A "qualified New York manufacturer" is a manufac- 23 turer that has property in New York that is described in clause (A) of 24 subparagraph (i) of paragraph (b) of subdivision one of section two 25 hundred ten-B of this article and either (I) the adjusted basis of such 26 property for New York state tax purposes at the close of the taxable 27 year is at least one million dollars or (II) all of its real and 28 personal property is located in New York. A taxpayer or, in the case of 29 a combined report, a combined group, that does not satisfy the princi- 30 pally engaged test may be a qualified New York manufacturer if the 31 taxpayer or the combined group employs during the taxable year at least 32 two thousand five hundred employees in manufacturing in New York and the 33 taxpayer or the combined group has property in the state used in manu- 34 facturing, the adjusted basis of which for New York state tax purposes 35 at the close of the taxable year is at least one hundred million 36 dollars. 37 § 33. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 38 of the tax law, as amended by section 2 of part D of chapter 59 of the 39 laws of 2019, is amended to read as follows: 40 (2) For purposes of subparagraph one of this paragraph, the term 41 "manufacturer" shall mean a taxpayer that during the taxable year is 42 principally engaged in the production of goods by manufacturing, proc- 43 essing, assembling, refining, mining, extracting, farming, agriculture, 44 horticulture, floriculture, viticulture or commercial fishing; provided, 45 however, the production, transmission, distribution, transportation, or 46 storage of fossil fuels as defined in section 1-103 of the energy law 47 shall not be qualifying activities for a manufacturer under this subpar- 48 agraph. Moreover, for purposes of computing the capital base in a 49 combined report, the combined group shall be considered a "manufacturer" 50 for purposes of this subparagraph only if the combined group during the 51 taxable year is principally engaged in the activities set forth in this 52 subparagraph, or any combination thereof. A taxpayer or, in the case of 53 a combined report, a combined group shall be "principally engaged" in 54 activities described above if, during the taxable year, more than fifty 55 percent of the gross receipts of the taxpayer or combined group, respec- 56 tively, are derived from receipts from the sale of goods produced byA. 7949 18 1 such activities. In computing a combined group's gross receipts, inter- 2 corporate receipts shall be eliminated. A "qualified New York manufac- 3 turer" is a manufacturer that has property in New York that is described 4 in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of 5 section two hundred ten-B of this article and either (i) the adjusted 6 basis of that property for New York state tax purposes at the close of 7 the taxable year is at least one million dollars or (ii) all of its real 8 and personal property is located in New York. In addition, a "qualified 9 New York manufacturer" means a taxpayer that is defined as a qualified 10 emerging technology company under paragraph (c) of subdivision one of 11 section thirty-one hundred two-e of the public authorities law regard- 12 less of the ten million dollar limitation expressed in subparagraph one 13 of such paragraph. A taxpayer or, in the case of a combined report, a 14 combined group, that does not satisfy the principally engaged test may 15 be a qualified New York manufacturer if the taxpayer or the combined 16 group employs during the taxable year at least two thousand five hundred 17 employees in manufacturing in New York and the taxpayer or the combined 18 group has property in the state used in manufacturing, the adjusted 19 basis of which for New York state tax purposes at the close of the taxa- 20 ble year is at least one hundred million dollars. 21 § 34. This act shall take effect immediately and shall apply to taxa- 22 ble years commencing on or after the first of January next succeeding 23 the date on which it shall have become a law; provided, however, that: 24 (a) the amendments to paragraphs 6, 7 and 8 of subdivision (a) of 25 section 301-b made by section nine of this act shall not affect the 26 repeal of such paragraphs and shall be deemed repealed therewith; 27 (b) the amendments to the opening paragraph of section 301-c of the 28 tax law made by section eleven of this act shall be subject to the expi- 29 ration and reversion of such paragraph pursuant to section 19 of part 30 W-1 of chapter 109 of the laws of 2006, as amended, when upon such date 31 the provisions of section eleven-a of this act shall take effect; 32 (c) the amendments to subdivisions (k) and (l) of section 301-c of the 33 tax law made by section thirteen of this act shall not affect the repeal 34 of such subdivisions and shall be deemed repealed therewith; and 35 (d) the amendments to subdivision (j) of section 1115 of the tax law 36 made by section twenty-five of this act shall be subject to the expira- 37 tion and reversion of such subdivision pursuant to section 19 of part 38 W-1 of chapter 109 of the laws of 2006, as amended, when upon such date 39 the provisions of section twenty-five-a of this act shall take effect.
