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. LBD16140-01-4S. 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 aidS. 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.