Bill Text: NY A08072 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to biofuel production credit for production of biomethane, a biodiesel fuel.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-01-06 - referred to ways and means [A08072 Detail]
Download: New_York-2015-A08072-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
8072
2015-2016 Regular Sessions
I N A S S E M B L Y
June 5, 2015
___________
Introduced by M. of A. WALKER -- read once and referred to the Committee
on Ways and Means
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 S 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 thousand gallons per year
16 presented to market. The credit under this section shall be capped at
17 two and one-half million dollars per taxpayer per taxable year for up to
18 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
24 pursuant to this section shall apply to taxable years beginning before
25 January first, two thousand twenty.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06529-01-5
A. 8072 2
1 (b) Definitions. For the purpose of this section, the following terms
2 shall have the following meanings:
3 (1) "Biofuel" means a fuel which includes biodiesel [and], ethanol OR
4 BIOMETHANE.
5 (2) The term "biodiesel" shall mean a fuel comprised exclusively of
6 mono-alkyl esters of long chain fatty acids derived from vegetable oils
7 or animal fats, designated B100, which meets the specifications of Amer-
8 ican Society of Testing and Materials designation D 6751-02.
9 (3) The term "ethanol" shall mean ethyl alcohol manufactured in the
10 United States and its territories and sold (i) for fuel use and which
11 has been rendered unfit for beverage use in a manner and which is
12 produced at a facility approved by the federal bureau of alcohol, tobac-
13 co and firearms for the production of ethanol for fuel, or (ii) as dena-
14 tured ethanol used by blenders and refiners which has been rendered
15 unfit for beverage use. The term "biofuel" may also include any other
16 standard approved by the New York state energy and research development
17 authority.
18 [(2)] (4) THE TERM "BIOMETHANE" SHALL MEAN BIOGASES THAT ARE EMITTED
19 AS ORGANIC WASTES THAT BREAK DOWN IN AIRLESS ENVIRONMENTS. BIOMETHANE IS
20 PRODUCED FROM A VARIETY OF BIOMASS AND/OR BIOGAS SOURCES, INCLUDING
21 LANDFILL GAS, SOLID WASTE, MUNICIPAL WASTEWATER AND AGRICULTURAL MANURE
22 VIA AIRLESS TANKS CALLED ANAEROBIC DIGESTERS. IT CAN ALSO BE PRODUCED
23 FROM OTHER SOURCES SUCH AS FORESTRY AND AGRICULTURAL WASTE THROUGH THE
24 PROCESS OF THERMAL GASIFICATION AND METHANATION, ALTHOUGH THESE TECHNOL-
25 OGIES ARE NOT YET WIDELY USED. BIOMETHANE IS A RENEWABLE FUEL, EASILY
26 DISTRIBUTED THROUGH EXISTING INFRASTRUCTURE AND IS SUITABLE FOR APPLICA-
27 TIONS FROM LIGHT-DUTY VEHICLES TO HEAVY-DUTY FREIGHT TRUCKS.
28 (5) "Biofuel plant" means a commercial facility located in New York
29 state at which one or more biofuels are produced. FOR THE PURPOSES OF
30 THIS SECTION, ANY COMMERCIAL FACILITY WHERE BIOMETHANE IS PRODUCED SHALL
31 BE CONSIDERED A SEPARATE BIOFUEL PLANT.
32 S 3. Section 187-c of the tax law, as amended by section 2 of part K
33 of chapter 59 of the laws of 2012, is amended to read as follows:
34 S 187-c. Biofuel production credit. A taxpayer shall be allowed a
35 credit to be computed as provided in section [twenty-eight]
36 THIRTY-EIGHT-A of this chapter, [as added by part X of chapter sixty-two
37 of the laws of two thousand six,] against the tax imposed by this arti-
38 cle. Provided, however, that the amount of such credit allowed against
39 the tax imposed by section one hundred eighty-four of this article shall
40 be the excess of the amount of such credit over the amount of any credit
41 allowed by this section against the tax imposed by section one hundred
42 eighty-three of this article. In no event shall the credit under this
43 section be allowed in an amount which will reduce the tax payable to
44 less than the applicable minimum tax fixed by section one hundred eight-
45 y-three or one hundred eighty-five of this article. If, however, the
46 amount of the credit allowed under this section for any taxable year
47 reduces the tax to such amount, the excess shall be treated as an over-
48 payment of tax to be credited or refunded in accordance with the
49 provisions of section six hundred eighty-six of this chapter. Provided,
50 however, the provisions of subsection (c) of section one thousand eight-
51 y-eight of this chapter notwithstanding, no interest shall be paid ther-
52 eon. The tax credit allowed pursuant to this section shall apply to
53 taxable years beginning before January first, two thousand twenty.
54 S 4. Section 187-c of the tax law, as amended by section 15 of part S
55 of chapter 59 of the laws of 2014, is amended to read as follows:
A. 8072 3
1 S 187-c. Biofuel production credit. A taxpayer shall be allowed a
2 credit to be computed as provided in section [twenty-eight]
3 THIRTY-EIGHT-A of this chapter, [as added by part X of chapter sixty-two
4 of the laws of two thousand six,] against the tax imposed by this arti-
5 cle. Provided, however, that the amount of such credit allowed against
6 the tax imposed by section one hundred eighty-four of this article shall
7 be the excess of the amount of such credit over the amount of any credit
8 allowed by this section against the tax imposed by section one hundred
9 eighty-three of this article. In no event shall the credit under this
10 section be allowed in an amount which will reduce the tax payable to
11 less than the applicable minimum tax fixed by section one hundred eight-
12 y-three of this article. If, however, the amount of the credit allowed
13 under this section for any taxable year reduces the tax to such amount,
14 the excess shall be treated as an overpayment of tax to be credited or
15 refunded in accordance with the provisions of section six hundred eight-
16 y-six of this chapter. Provided, however, the provisions of subsection
17 (c) of section one thousand eighty-eight of this chapter notwithstand-
18 ing, no interest shall be paid thereon. The tax credit allowed pursuant
19 to this section shall apply to taxable years beginning before January
20 first, two thousand twenty.
21 S 5. Subsection (jj) of section 606 of the tax law, as amended by
22 section 4 of part K of chapter 59 of the laws of 2012, is amended to
23 read as follows:
24 (jj) Biofuel production credit. A taxpayer shall be allowed a credit
25 to be computed as provided in section [twenty-eight] THIRTY-EIGHT-A of
26 this chapter, [as added by part X of chapter sixty-two of the laws of
27 two thousand six,] against the tax imposed by this article. If the
28 amount of the credit allowed under this subsection for any taxable year
29 shall exceed the taxpayer's tax for such year, the excess shall be
30 treated as an overpayment of tax to be credited or refunded in accord-
31 ance with the provisions of section six hundred eighty-six of this arti-
32 cle, provided, however, that no interest shall be paid thereon. The tax
33 credit allowed pursuant to this section shall apply to taxable years
34 beginning before January first, two thousand twenty.
35 S 6. Subdivision 24 of section 210-B of the tax law, as added by
36 section 17 of part A of chapter 59 of the laws of 2014, is amended to
37 read as follows:
38 24. Biofuel production credit. (a) General. A taxpayer shall be
39 allowed a credit, to be computed as provided in section [twenty-eight]
40 THIRTY-EIGHT-A of this chapter [added as part X of chapter sixty-two of
41 the laws of two thousand six,] against the tax imposed by this article.
42 The credit allowed under this subdivision for any taxable year shall not
43 reduce the tax due for such year to less than the fixed dollar minimum
44 amount prescribed in paragraph (d) of subdivision one of section two
45 hundred ten of this article. However, if the amount of credit allowed
46 under this subdivision for any taxable year reduces the tax to such
47 amount or if the taxpayer otherwise pays tax based on the fixed dollar
48 minimum amount, any amount of credit thus not deductible in such taxable
49 year shall be treated as an overpayment of tax to be credited or
50 refunded in accordance with the provisions of section one thousand
51 eighty-six of this chapter. Provided, however, the provisions of
52 subsection (c) of section one thousand eighty-eight of this chapter
53 notwithstanding, no interest shall be paid thereon. The tax credit
54 allowed pursuant to this section shall apply to taxable years beginning
55 before January first, two thousand twenty.
A. 8072 4
1 S 7. This act shall take effect immediately; provided however that the
2 amendments to section 187-c of the tax law made by section four of this
3 act shall take effect on the same date as section 15 of part S of chap-
4 ter 59 of the laws of 2014 takes effect; provided, further that the
5 amendment to subdivision 24 of section 210-B of the tax law made by
6 section six of this act shall take effect on the same date and same
7 manner as section 17 of part A of chapter 59 of the laws of 2014, takes
8 effect.
