Bill Text: NY S05760 | 2023-2024 | General Assembly | Introduced
Bill Title: Provides a tax credit for the purchase or conversion of an electric vessel or zero emission vessel; provides a tax credit for electric vessel recharging property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2024-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S05760 Detail]
Download: New_York-2023-S05760-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5760 2023-2024 Regular Sessions IN SENATE March 15, 2023 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to providing a tax credit for the purchase or conversion of an electric vessel or zero emission vessel; and to providing a tax credit for electric vessel recharging property The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 48 to read 2 as follows: 3 § 48. Electric and zero emission vessel tax credit. (a) Allowance of 4 credit. (1) A taxpayer that purchases a qualifying electric vessel or 5 zero emission vessel, that meets the eligibility requirements of subdi- 6 vision (b) of this section and that is subject to tax under article 7 nine-A or twenty-two of this chapter may claim an electric and zero 8 emission vessel tax credit against such tax in the taxable year in which 9 the purchase is made. A taxpayer that converts a vessel to a qualifying 10 electric vessel or zero emission vessel, that meets the eligibility 11 requirements of subdivision (b) of this section and that is subject to 12 tax under article nine-A or twenty-two of this chapter may claim an 13 electric and zero emission vessel tax credit against such tax in the 14 taxable year in which the conversion is made. 15 (2) The amount of the credit allowed under this section shall be 16 calculated as follows: 17 (i) in the case of a qualifying electric vessel or zero emission 18 vessel purchased after December thirty-first, two thousand twenty-three 19 and before January first, two thousand twenty-nine, thirty percent of 20 the tax imposed upon such purchase pursuant to article twenty-eight of 21 this chapter; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06170-01-3S. 5760 2 1 (ii) in the case of a qualifying electric vessel or zero emission 2 vessel purchased during a calendar year after December thirty-first, two 3 thousand twenty-nine and before January first, two thousand thirty-five, 4 thirty percent of the tax imposed upon such purchase pursuant to article 5 twenty-eight of this chapter determined under this paragraph for the 6 preceding calendar year, reduced by five percentage points for each year 7 after two thousand twenty-nine; and 8 (iii) in the case of a vessel converted to a qualifying vessel after 9 December thirty-first, two thousand twenty-three and before January 10 first, two thousand twenty-nine, thirty percent of the tax imposed upon 11 the cost of such conversion pursuant to article twenty-eight of this 12 chapter; and 13 (iv) in the case of a vessel converted to a qualifying vessel during a 14 calendar year after December thirty-first, two thousand twenty-nine and 15 before January first, two thousand thirty-five, thirty percent of the 16 tax imposed upon the cost of such conversion pursuant to article twen- 17 ty-eight of this chapter determined under this paragraph for the preced- 18 ing calendar year, reduced by five percentage points for each year after 19 two thousand twenty-nine. 20 (3) No credit shall be allowed for a qualifying vessel purchased or 21 converted after December thirty-first, two thousand thirty-five. 22 (4) A taxpayer that is a partner in a partnership, member of a limited 23 liability company or shareholder in a subchapter S corporation shall be 24 allowed its pro rata share of the credit earned by the partnership, 25 limited liability company or subchapter S corporation that meets the 26 eligibility criteria described in subdivision (b) of this section to 27 claim an electric and zero emission vessel tax credit. In no event may 28 the total amount of the credit earned by the partnership, limited 29 liability company or subchapter S corporation exceed forty thousand 30 dollars for all vessels in any tax year. 31 (5) No cost or expense paid or incurred by the taxpayer that is 32 included as part of the calculation of this credit shall be the basis of 33 any other tax credit allowed under this chapter. 34 (b) Eligibility criteria. To be eligible to claim an electric and zero 35 emission vessel tax credit, a taxpayer must: 36 (1) (i) purchase an electric vessel or zero emission vessel during the 37 calendar year for which the credit is claimed; or (ii) convert a vessel 38 to a qualifying vessel during the calendar year for which the credit is 39 claimed; 40 (2) pay taxes pursuant to article twenty-eight of this chapter on: (i) 41 the purchase of the electric vessel or zero emission vessel; or (ii) the 42 purchase of equipment and/or services to convert the vessel to a quali- 43 fying vessel; 44 (3) register the vessel in this state for at least six months of the 45 taxable year in which the credit is claimed; 46 (4) purchase the vessel for personal use or lease, not for re-sale; 47 and 48 (5) in the case of a conversion, submit an application to and obtain 49 approval of such application by the department describing the conversion 50 and approved costs to complete such conversion. 51 (c) Definitions. As used in this section the following terms shall 52 have the following meanings: 53 (1) "Vessel" means a vessel as defined in section twenty-two hundred 54 fifty of the vehicle and traffic law that is an electric vessel or a 55 zero emission vessel.S. 5760 3 1 (2) "Electric vessel" means a commercially available, mass-produced 2 vessel originally equipped by the manufacturer with an on board electric 3 propulsion system or a vessel retrofitted with an electric propulsion 4 system, provided the vehicle owner can provide supporting documentation 5 of such retrofit. "Electric vessel" includes: (i) an electric vessel 6 that has a battery that is recharged by connecting the vessel to an 7 external power source; and (ii) a plug-in hybrid electric vessel that 8 has a battery that be can be recharged by connecting the vessel to an 9 external power source or by an onboard internal-combustion engine and 10 generator. 11 (3) "Zero emission vessel" means a vessel powered by means of a 12 battery or fuel cell or a combination thereof, or another source of 13 power, that produces zero exhaust emissions of any greenhouse gas, 14 criteria pollutant or precursor pollutant under any and all possible 15 operational modes and conditions. 16 (4) "Qualifying vessel" means an electric vessel or zero emission 17 vessel as designated by the department or a vessel that has been 18 converted to an electric vessel or zero emission vessel as provided in 19 subdivision (d) of this section. 20 (d) Qualifying vessels. (1) The department, in consultation with the 21 department of environmental conservation, shall compile a list of elec- 22 tric vessels and zero emission vessels that qualify for an electric and 23 zero emission vessel tax credit. 24 (2) The department, in consultation with the department of environ- 25 mental conservation, shall develop guidelines for the conversion of a 26 vessel to a qualifying vessel and shall develop an application process 27 to certify the expenses necessary for the conversion. A taxpayer will 28 not be eligible to claim the credit unless he or she has completed the 29 application process and the application has been approved by the depart- 30 ment. 31 (e) Information sharing. The department and the department of environ- 32 mental conservation shall be allowed and are directed to share and 33 exchange information regarding the information contained on the credit 34 application for claiming the electric and zero emission vessel tax cred- 35 it and such information exchanged between the department and the depart- 36 ment of environmental conservation shall not be subject to disclosure or 37 inspection under the state's freedom of information law. 38 (f) Cross references. For application of the credit provided for in 39 this section, see the following provisions of this chapter: 40 (1) article 9-A: section 210-B, subdivision 59; and 41 (2) article 22: section 606, subsection (ooo). 42 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 43 sion 59 to read as follows: 44 59. Electric and zero emission vessel tax credit. (a) Allowance of 45 credit. A taxpayer will be allowed a credit, to be computed as provided 46 in section forty-eight of this chapter, against the taxes imposed by 47 this article. 48 (b) Application of credit. The credit allowed under this subdivision 49 for the taxable year will not reduce the tax due for such year to less 50 than the amount prescribed in paragraph (d) of subdivision one of 51 section two hundred ten of this article. However, if the amount of cred- 52 it allowed under this subdivision for the taxable year reduces the tax 53 to such amount or if the taxpayer otherwise pays tax based on the fixed 54 dollar minimum amount, any amount of credit not deductible in such taxa- 55 ble year will be treated as an overpayment of tax to be credited or 56 refunded in accordance with the provisions of section one thousandS. 5760 4 1 eighty-six of this chapter. Provided, however, the provisions of 2 subsection (c) of section one thousand eighty-eight of this chapter 3 notwithstanding, no interest will be paid thereon. 4 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 5 of the tax law is amended by adding a new clause (l) to read as follows: 6 (l) Electric and zero Amount of credit under 7 emission vessel tax credit subdivision fifty-nine of 8 under subsection (ooo) section two hundred ten-B 9 § 4. Section 606 of the tax law is amended by adding a new subsection 10 (ooo) to read as follows: 11 (ooo) Electric and zero emission vessel tax credit. (1) Allowance of 12 credit. A taxpayer shall be allowed a credit, to be computed as provided 13 in section forty-eight of this chapter, against the tax imposed by this 14 article. 15 (2) Application of credit. If the amount of the credit allowed under 16 this subsection for the taxable year exceeds the taxpayer's tax for such 17 year, the excess will be treated as an overpayment of tax to be credited 18 or refunded in accordance with the provisions of section six hundred 19 eighty-six of this article, provided, however, that no interest will be 20 paid thereon. 21 § 5. Subdivision 3 of section 187-b of the tax law is amended by 22 adding a new paragraph (c) to read as follows: 23 (c) The term "vehicle" includes a vessel as defined in section forty- 24 eight of this chapter. 25 § 6. Paragraph (c) of subdivision 30 of section 210-B of the tax law 26 is amended by adding a new subparagraph (iii) to read as follows: 27 (iii) The term "vehicle" includes a vessel as defined in section 28 forty-eight of this chapter. 29 § 7. Paragraph 3 of subsection (p) of section 606 of the tax law is 30 amended by adding a new subparagraph (c) to read as follows: 31 (c) The term "vehicle" includes a vessel as defined in section forty- 32 eight of this chapter. 33 § 8. Severability. If any provision of this act, or any application of 34 any provision of this act, is held to be invalid, that shall not affect 35 the validity or effectiveness of any other provision of this act, or of 36 any other application of any provision of this act, which can be given 37 effect without that provision or application; and to that end, the 38 provisions and applications of this act are severable. 39 § 9. This act shall take effect immediately and shall apply to taxable 40 years beginning on or after January 1, 2024.
