Bill Text: NY S04270 | 2023-2024 | General Assembly | Amended

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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: (Engrossed - Dead) 2024-03-05 - referred to agriculture [S04270 Detail]

Download: New_York-2023-S04270-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         4270--A
            Cal. No. 355

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 7, 2023
                                       ___________

        Introduced by Sens. PARKER, MAY, ROLISON, WEBB -- read twice and ordered
          printed, and when printed to be committed to the Committee on Agricul-
          ture  --  reported  favorably from said committee and committed to the
          Committee on Rules -- reported favorably from said committee,  ordered
          to  a  third  reading, passed by Senate and delivered to the Assembly,
          recalled, vote reconsidered, restored to third  reading,  amended  and
          ordered reprinted, retaining its place in the order of third reading

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01378-03-3
        S. 4270--A                          2

     1  greenhouse gas emissions on land used in support of a farm operation and
     2  quantifying those  greenhouse  gas  benefits  using  the  United  States
     3  Department of Agriculture's COMET-Planner, COMET-Farm, and other quanti-
     4  fication tools.
     5    §  4. Section 210-B of the tax law is amended by adding a new subdivi-
     6  sion 59 to read as follows:
     7    59. Carbon farming credit. (a) Allowance of credit. A taxpayer that is
     8  an agricultural business that produces farm products shall be allowed  a
     9  credit  against  the  tax  imposed  by  this article for the practice of
    10  carbon farming.
    11    (b) Definitions. For purposes of  this  section  the  following  terms
    12  shall have the following meanings:
    13    (i)  "carbon  farming"  shall  have  the  same meaning as set forth in
    14  subdivision five of section one hundred fifty  of  the  agriculture  and
    15  markets law;
    16    (ii)  "farm  products"  shall  have  the  same meaning as set forth in
    17  subdivision five of section two of the agriculture and markets law; and
    18    (iii) "carbon sequestration" shall  mean  the  long  term  storage  of
    19  carbon in plants and soils.
    20    (c)  Such  credit  shall  be calculated based on the economic value of
    21  carbon farming  as  determined  by  the  commissioner  of  environmental
    22  conservation,  in  consultation with the commissioner of agriculture and
    23  markets and the commissioner pursuant to paragraph  ccc  of  subdivision
    24  two of section 3-0301 of the environmental conservation law.
    25    (d)  The taxpayer shall attach to its tax return its final certificate
    26  of eligibility issued by the commissioner of environmental  conservation
    27  pursuant to section 19-0309 of the environmental conservation law. In no
    28  event  shall the taxpayer be allowed a credit greater than the amount of
    29  the credit listed on  the  final  certificate  verifying  the  emissions
    30  reductions to be credited to the taxpayer.
    31    (e) If the amount of the credit allowable under this subdivision shall
    32  exceed  the  taxpayer's  tax  for  such year and the taxpayer's New York
    33  adjusted gross income for such  year  does  not  exceed  sixty  thousand
    34  dollars,  the  excess  shall  be  treated as an overpayment of tax to be
    35  credited or refunded in accordance with the provisions  of  section  six
    36  hundred eighty-six of this chapter, provided, however, that  no interest
    37  shall  be paid thereon. If the taxpayer's New York adjusted gross income
    38  for such year exceeds sixty thousand dollars, the excess credit  may  be
    39  carried over to the following year or years and may be deducted from the
    40  taxpayer's tax for such year or years.
    41    §  5. Section 606 of the tax law is amended by adding a new subsection
    42  (ooo) to read as follows:
    43    (ooo) Carbon farming credit. (1) Allowance of credit. A  taxpayer  who
    44  provides farm products and who practices carbon farming shall be allowed
    45  a credit against the tax imposed by this article.
    46    (2)  Definitions.  For  the purposes of this subsection, the following
    47  definitions shall apply:
    48    (A) "Farm products" shall have the same meaning as set forth in subdi-
    49  vision five of section two of the agriculture and markets law.
    50    (B) "Carbon farming" shall have the  same  meaning  as  set  forth  in
    51  subdivision  five  of  section  one hundred fifty of the agriculture and
    52  markets law.
    53    (3) Application of credit. Such credit shall be  calculated  based  on
    54  the  economic  value of carbon farming as determined by the commissioner
    55  of environmental conservation, in consultation with the commissioner  of
        S. 4270--A                          3

     1  agriculture  and markets pursuant to paragraph ccc of subdivision two of
     2  section 3-0301 of the environmental conservation law.
     3    (4)  Certification  required.  The  taxpayer  shall  attach to its tax
     4  return its final certificate of eligibility issued by  the  commissioner
     5  of  environmental  conservation pursuant to section 19-0309 of the envi-
     6  ronmental conservation law. In no event shall the taxpayer be allowed  a
     7  credit greater than the amount of the credit listed on the final certif-
     8  icate verifying the emissions reductions to be credited to the taxpayer.
     9    (5)  Carryover  of credit. If the amount of the credit allowable under
    10  this subsection shall exceed the taxpayer's tax for such  year  and  the
    11  taxpayer's  New York adjusted gross income for such year does not exceed
    12  sixty thousand dollars, the excess shall be treated as an overpayment of
    13  tax to be credited or refunded in  accordance  with the  provisions   of
    14  section  six   hundred  eighty-six  of this article, provided,  however,
    15  that  no interest  shall  be  paid thereon. If the taxpayer's  New  York
    16  adjusted  gross  income for such  year  exceeds  sixty thousand dollars,
    17  the excess credit may be carried over to the following year    or  years
    18  and may be deducted from the taxpayer's tax for such year or years.
    19    § 6. Subdivision 2 of section 3-0301 of the environmental conservation
    20  law is amended by adding a new paragraph ccc to read as follows:
    21    ccc.  Cooperate  with  the  department  of  agriculture and markets to
    22  develop educational materials to promote and encourage  carbon  farming.
    23  Such  materials  shall promote farming practices which reduce, sequester
    24  and mitigate greenhouse gas  emissions  through  the  implementation  of
    25  carbon  farming  strategies and on land used in support of a farm opera-
    26  tion; and develop and codify a metric to quantify the storage of  carbon
    27  using  the  United  States  Department  of  Agriculture's COMET-Planner,
    28  COMET-Farm, and other quantification tools. The department shall develop
    29  and distribute an application and certification procedure which verifies
    30  the carbon stored to be  credited  to  each  farm.  The  department  may
    31  promulgate rules and regulations necessary to implement this section.
    32    §  7.  Subdivision 1 of section 19-0309 of the environmental conserva-
    33  tion law, as amended by chapter 817 of the laws of 1987, is  amended  to
    34  read as follows:
    35    1.  For the purposes of sections 208, 210, 606 and 612 of the Tax Law,
    36  the commissioner or his designated representative is  hereby  authorized
    37  to  issue  certificates  of  compliance concerning air pollution control
    38  facilities [and], air pollution controlled process facilities and carbon
    39  farming as defined in such law. No  such  certificate  shall  be  issued
    40  unless  the  facility  to  which  it is applicable is in compliance with
    41  applicable provisions of titles 1 to 11,  inclusive,  and  title  19  of
    42  article  17,  article  19, and title 1 of article 27 of this chapter; of
    43  the Public Health Law; of the state sanitary code and of  codes,  rules,
    44  regulations, permits or orders issued pursuant thereto.
    45    §  8.  Section  16  of  the  agriculture and markets law is amended by
    46  adding a new subdivision 53 to read as follows:
    47    53. Cooperate with the department  of  environmental  conservation  to
    48  develop    educational  materials to encourage carbon farming and how to
    49  use the United States Department of Agriculture's COMET-Planner,  COMET-
    50  Farm,  and other carbon quantification tools.  The program shall promote
    51  farming practices which reduce, sequester and  mitigate  greenhouse  gas
    52  emissions  on  land used in support of a farm operation.  The department
    53  shall promote the carbon farming tax credit  provided  in  sections  two
    54  hundred ten-B and six hundred six of the tax law.
    55    §  9.  This  act shall take effect on the ninetieth day after it shall
    56  have become a  law.  Effective  immediately,  the  addition,  amendment,
        S. 4270--A                          4

     1  and/or repeal of any rule or regulation necessary for the implementation
     2  of  this  act  on  its  effective  date  are  authorized  to be made and
     3  completed on or before such effective date.