Bill Text: NY S01529 | 2025-2026 | General Assembly | Introduced

---

Bill Title: Establishes a tax credit for farmers who maximize carbon sequestration potential through a "carbon farming" land management strategy; directs DEC to develop regulations related to certifying the amount of carbon sequestered or emissions reduced.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced) 2025-02-04 - REPORTED AND COMMITTED TO FINANCE [S01529 Detail]

Download: New_York-2025-S01529-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          1529

                               2025-2026 Regular Sessions

                    IN SENATE

                                    January 10, 2025
                                       ___________

        Introduced  by Sens. PARKER, FERNANDEZ, MAY, ROLISON, WEBB -- read twice
          and ordered printed, and when printed to be committed to the Committee
          on Agriculture

        AN ACT to amend the agriculture and markets law, the  tax  law  and  the
          environmental  conservation  law,  in  relation to enacting the carbon
          farming act

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  This  act  shall be known and may be cited as the "carbon
     2  farming act".
     3    § 2. Legislative intent. The legislature  hereby  finds  and  declares
     4  that  soil  and vegetation management can significantly enhance soil and
     5  carbon sequestration, resulting in a wide  range  of  environmental  and
     6  agricultural  benefits  to  New  York  farmers and residents, including:
     7  increased yields; soil health; improved water quality; and reductions in
     8  greenhouse gases. The legislature further declares that enhancing carbon
     9  sequestration, the long term storage of carbon in plants, soils, geolog-
    10  ic formations and the ocean, through farming is in the best interest  of
    11  New  Yorkers.  It  is  therefore  the  intent of the legislature and the
    12  purpose of this act to encourage farmers to further sequester and  miti-
    13  gate carbon in this state by establishing a carbon farming tax credit to
    14  reward  and incentivize farmers to maintain or adopt practices that help
    15  maximize New York's carbon sequestration potential.
    16    § 3. Section 150 of the agriculture and  markets  law  is  amended  by
    17  adding a new subdivision 5 to read as follows:
    18    5.  "Carbon  farming"  means  the  implementation of a land management
    19  strategy for the purposes  of  reducing,  sequestering,  and  mitigating
    20  greenhouse gas emissions on land used in support of a farm operation and
    21  quantifying  those  greenhouse  gas  benefits  using  the  United States
    22  Department of Agriculture's COMET-Planner, COMET-Farm, and other quanti-
    23  fication tools.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00292-01-5
        S. 1529                             2

     1    § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
     2  sion 61 to read as follows:
     3    61. Carbon farming credit. (a) Allowance of credit. A taxpayer that is
     4  an  agricultural business that produces farm products shall be allowed a
     5  credit against the tax imposed by  this  article  for  the  practice  of
     6  carbon farming.
     7    (b)  Definitions.  For  purposes  of  this section the following terms
     8  shall have the following meanings:
     9    (i) "carbon farming" shall have the  same  meaning  as  set  forth  in
    10  subdivision  five  of  section  one hundred fifty of the agriculture and
    11  markets law;
    12    (ii) "farm products" shall have the  same  meaning  as  set  forth  in
    13  subdivision five of section two of the agriculture and markets law; and
    14    (iii)  "carbon  sequestration"  shall  mean  the  long term storage of
    15  carbon in plants and soils.
    16    (c) Application of credit.  Such credit shall be calculated  based  on
    17  the  economic  value of carbon farming as determined by the commissioner
    18  of environmental conservation, in consultation with the commissioner  of
    19  agriculture  and  markets and the commissioner pursuant to paragraph ccc
    20  of subdivision two of section 3-0301 of the  environmental  conservation
    21  law.
    22    (d)  Certification  required.    The  taxpayer shall attach to its tax
    23  return its final certificate of eligibility issued by  the  commissioner
    24  of  environmental  conservation pursuant to section 19-0309 of the envi-
    25  ronmental conservation law. In no event shall the taxpayer be allowed  a
    26  credit greater than the amount of the credit listed on the final certif-
    27  icate verifying the emissions reductions to be credited to the taxpayer.
    28    (e)  Carryover of credit.  If the amount of the credit allowable under
    29  this subdivision shall exceed the taxpayer's tax for such year  and  the
    30  taxpayer's  New York adjusted gross income for such year does not exceed
    31  sixty thousand dollars, the excess shall be treated as an overpayment of
    32  tax to be credited or refunded in  accordance  with  the  provisions  of
    33  section  six hundred eighty-six of this chapter, provided, however, that
    34  no interest shall be paid thereon. If the taxpayer's New  York  adjusted
    35  gross  income  for  such year exceeds sixty thousand dollars, the excess
    36  credit may be carried over to the following year or  years  and  may  be
    37  deducted from the taxpayer's tax for such year or years.
    38    §  5. Section 606 of the tax law is amended by adding a new subsection
    39  (qqq) to read as follows:
    40    (qqq) Carbon farming credit. (1) Allowance of credit. A  taxpayer  who
    41  provides farm products and who practices carbon farming shall be allowed
    42  a credit against the tax imposed by this article.
    43    (2)  Definitions.  For  the purposes of this subsection, the following
    44  definitions shall apply:
    45    (A) "Farm products" shall have the same meaning as set forth in subdi-
    46  vision five of section two of the agriculture and markets law.
    47    (B) "Carbon farming" shall have the  same  meaning  as  set  forth  in
    48  subdivision  five  of  section  one hundred fifty of the agriculture and
    49  markets law.
    50    (3) Application of credit. Such credit shall be  calculated  based  on
    51  the  economic  value of carbon farming as determined by the commissioner
    52  of environmental conservation, in consultation with the commissioner  of
    53  agriculture  and markets pursuant to paragraph ccc of subdivision two of
    54  section 3-0301 of the environmental conservation law.
    55    (4) Certification required. The  taxpayer  shall  attach  to  its  tax
    56  return  its  final certificate of eligibility issued by the commissioner
        S. 1529                             3

     1  of environmental conservation pursuant to section 19-0309 of  the  envi-
     2  ronmental  conservation law. In no event shall the taxpayer be allowed a
     3  credit greater than the amount of the credit listed on the final certif-
     4  icate verifying the emissions reductions to be credited to the taxpayer.
     5    (5)  Carryover  of credit. If the amount of the credit allowable under
     6  this subsection shall exceed the taxpayer's tax for such  year  and  the
     7  taxpayer's  New York adjusted gross income for such year does not exceed
     8  sixty thousand dollars, the excess shall be treated as an overpayment of
     9  tax to be credited or refunded in  accordance  with the  provisions   of
    10  section  six   hundred  eighty-six  of this article, provided,  however,
    11  that  no interest  shall  be  paid thereon. If the taxpayer's  New  York
    12  adjusted  gross  income for such  year  exceeds  sixty thousand dollars,
    13  the excess credit may be carried over to the following year    or  years
    14  and may be deducted from the taxpayer's tax for such year or years.
    15    § 6. Subdivision 2 of section 3-0301 of the environmental conservation
    16  law is amended by adding a new paragraph ccc to read as follows:
    17    ccc.  Cooperate  with  the  department  of  agriculture and markets to
    18  develop educational materials to promote and encourage  carbon  farming.
    19  Such  materials  shall promote farming practices which reduce, sequester
    20  and mitigate greenhouse gas  emissions  through  the  implementation  of
    21  carbon  farming  strategies and on land used in support of a farm opera-
    22  tion; and develop and codify a metric to quantify the storage of  carbon
    23  using  the  United  States  Department  of  Agriculture's COMET-Planner,
    24  COMET-Farm, and other quantification tools. The department shall develop
    25  and distribute an application and certification procedure which verifies
    26  the carbon stored to be  credited  to  each  farm.  The  department  may
    27  promulgate rules and regulations necessary to implement this section.
    28    §  7.  Subdivision 1 of section 19-0309 of the environmental conserva-
    29  tion law, as amended by chapter 817 of the laws of 1987, is  amended  to
    30  read as follows:
    31    1.  For the purposes of sections 208, 210, 606 and 612 of the Tax Law,
    32  the commissioner or his designated representative is  hereby  authorized
    33  to  issue  certificates  of  compliance concerning air pollution control
    34  facilities [and], air pollution controlled process facilities and carbon
    35  farming as defined in such law. No  such  certificate  shall  be  issued
    36  unless  the  facility  to  which  it is applicable is in compliance with
    37  applicable provisions of titles 1 to 11,  inclusive,  and  title  19  of
    38  article  17,  article  19, and title 1 of article 27 of this chapter; of
    39  the Public Health Law; of the state sanitary code and of  codes,  rules,
    40  regulations, permits or orders issued pursuant thereto.
    41    §  8.  Section  16  of  the  agriculture and markets law is amended by
    42  adding a new subdivision 53 to read as follows:
    43    53. Cooperate with the department  of  environmental  conservation  to
    44  develop    educational  materials to encourage carbon farming and how to
    45  use the United States Department of Agriculture's COMET-Planner,  COMET-
    46  Farm,  and other carbon quantification tools.  The program shall promote
    47  farming practices which reduce, sequester and  mitigate  greenhouse  gas
    48  emissions  on  land used in support of a farm operation.  The department
    49  shall promote the carbon farming tax credit  provided  in  sections  two
    50  hundred ten-B and six hundred six of the tax law.
    51    §  9.  This  act shall take effect on the ninetieth day after it shall
    52  have become a  law.  Effective  immediately,  the  addition,  amendment,
    53  and/or repeal of any rule or regulation necessary for the implementation
    54  of  this  act  on  its  effective  date  are  authorized  to be made and
    55  completed on or before such effective date.