Bill Text: NY S09903 | 2023-2024 | General Assembly | Introduced

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Bill Title: Enacts the credit for rural energy infrastructure act of 2025, to provide tax credits for certain activities expanding energy infrastructure into unserved rural areas.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-09-06 - REFERRED TO RULES [S09903 Detail]

Download: New_York-2023-S09903-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9903

                    IN SENATE

                                    September 6, 2024
                                       ___________

        Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the public service law and the tax law, in  relation  to
          enacting the credit for rural energy infrastructure act of 2025

          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 "credit for rural energy infrastructure act of 2025".
     3    §  2.  Section  5 of the public service law is amended by adding a new
     4  subdivision 7 to read as follows:
     5    7. The commission, in consultation with New  York  independent  system
     6  operator,  is  hereby  authorized  and  directed to promulgate rules and
     7  regulations necessary for verifying an unserved area for the purposes of
     8  subdivision sixty-one of section two hundred ten-b and subsection  (qqq)
     9  of  section  six  hundred  six of the tax law, using gas service mapping
    10  data at the time a project is proposed.
    11    § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
    12  sion 61 to read as follows:
    13    61.  Credit  for rural energy infrastructure deployment. (a) Allowance
    14  of credit. A qualified taxpayer shall be allowed a  credit  against  the
    15  tax imposed by this article equal to any qualified customer contribution
    16  in  aid  of construction resulting from new gas pipeline construction to
    17  deliver gas service to the individual's residence or place  of  business
    18  located  in  an  unserved  area.  The credit allowed by this subdivision
    19  shall be claimed annually over a five-year period equal to one-fifth  of
    20  the  credit  amount.  If  the  credit  allowed under this subdivision is
    21  greater than the tax due in any taxable year, the amount by  which  such
    22  credit  exceeds  such  tax due is treated as an overpayment of tax to be
    23  refunded in accordance with  the  provisions  of  section  one  thousand
    24  eighty-six of this chapter.
    25    (b)  For purposes of this subdivision, the following definitions shall
    26  apply:
    27    (i)  "Qualified  construction  expenses"  equal  the  total  cost   of
    28  construction of new networks in the proposed unserved area, as certified

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16140-01-4
        S. 9903                             2

     1  by  the  gas service provider, but not to exceed a reasonable cost based
     2  upon the average cost per mile of gas pipeline  construction  as  deter-
     3  mined by the public service commission and gas service providers.
     4    (ii)  "Qualified  customer  contribution  in  aid  of construction" is
     5  determined in accordance with the following formula: (QCE/TC) - (ACM/35)
     6  = QC, where QCE equals the qualified construction expenses;  ACM  equals
     7  the average cost of construction per mile in the proposed unserved area,
     8  as certified by the gas service provider, but not to exceed a reasonable
     9  cost  based  upon the average cost per mile of gas pipeline construction
    10  as determined by the public service commission and gas  service  provid-
    11  ers;  TC  equals the number of residents and small business customers in
    12  the proposed unserved area making a qualified customer  contribution  in
    13  aid  to construction and contracting for services over the pipeline; and
    14  QC equals the qualified customer contribution in aid of construction.
    15    (iii) "Required provider contribution in aid  to  construction"  shall
    16  equal the qualified construction expenses, less the sum of all the qual-
    17  ified  customer  contributions  in  aid  to construction in the proposed
    18  unserved area.
    19    (iv) "Unserved area" means an area composed of one or more  contiguous
    20  census blocks where at least ninety percent of households lack access to
    21  gas service.
    22    (v)  "Qualified  taxpayer"  means a taxpayer which is a small business
    23  corporation as defined in paragraph three of subsection (c)  of  section
    24  twelve  hundred forty-four of the internal revenue code, notwithstanding
    25  the second sentence of subparagraph (A) thereof, as of the last  day  of
    26  the taxable year.
    27    §  4. Section 606 of the tax law is amended by adding a new subsection
    28  (qqq) to read as follows:
    29    (qqq) Credit for rural energy infrastructure. (1) Allowance of credit.
    30  A qualified taxpayer shall be allowed a credit against the  tax  imposed
    31  by  this  article equal to any qualified customer contribution in aid of
    32  construction resulting from new  network  construction  to  deliver  gas
    33  service to the individual's residence or place of business located in an
    34  unserved  area.  The  credit allowed by this subsection shall be claimed
    35  annually over a five-year  period  equal  to  one-fifth  of  the  credit
    36  amount.  If the credit allowed under this subsection is greater than the
    37  tax  due  in  any  taxable year, the amount by which such credit exceeds
    38  such tax due is treated as an overpayment  of  tax  to  be  refunded  in
    39  accordance  with  the  provisions  of section one thousand eighty-six of
    40  this chapter.
    41    (2) For purposes of this subsection, the following  definitions  shall
    42  apply:
    43    (A)   "Qualified  construction  expenses"  equal  the  total  cost  of
    44  construction of new pipelines in the proposed unserved area,  as  certi-
    45  fied  by  the  gas service provider, but not to exceed a reasonable cost
    46  based upon the average cost per mile of  gas  pipeline  construction  as
    47  determined by the public service commission and gas service providers.
    48    (B) "Qualified customer contribution in aid of construction" is deter-
    49  mined  in  accordance  with the following formula: (QCE/TC) - (ACM/35) =
    50  QC, where QCE equals the qualified construction expenses; ACM equals the
    51  average cost of construction per mile in the proposed unserved area,  as
    52  certified  by  gas service provider, but not to exceed a reasonable cost
    53  based upon the average cost per mile of  gas  pipeline  construction  as
    54  determined  by  the  public service commission gas service providers; TC
    55  equals the number of residents  and  small  business  customers  in  the
    56  proposed  unserved  area making a qualified customer contribution in aid
        S. 9903                             3

     1  to construction and contracting for services over the  network;  and  QC
     2  equals the qualified customer contribution in aid of construction.
     3    (C)  "Required  provider  contribution  in  aid to construction" shall
     4  equal the qualified construction expenses, less the sum of all the qual-
     5  ified customer contributions in aid  to  construction  in  the  proposed
     6  unserved area.
     7    (D)"Unserved  area"  means  an area composed of one or more contiguous
     8  census blocks where at least ninety percent of households lack access to
     9  gas service.
    10    (E)"Qualified taxpayer" means any individual with  an  adjusted  gross
    11  income of two hundred fifty thousand dollars or less.
    12    §  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    13  of the tax law is amended by adding  a  new  clause  (lii)  to  read  as
    14  follows:

    15  (lii) Credit for rural               Amount of credit under subdivision
    16  energy infrastructure                sixty-one of section two
    17  subsection (qqq)                     hundred ten-B
    18    § 6. This act shall take effect immediately and shall apply to taxable
    19  years beginning on or after January 1, 2025.