senate Bill S1114

Relates to restoring the fuel cell tax credit

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Relates to restoring the fuel cell tax credit.

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Bill Details

See Assembly Version of this Bill:
A188
Versions:
S1114
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง187-n, 210, 606, 1456, 1511 & 20, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S5563, A8381

Sponsor Memo

BILL NUMBER: S1114

TITLE OF BILL :
An act to amend the tax law, in relation to restoring the fuel cell
tax credit


PURPOSE OR GENERAL IDEA OF BILL :
Restores a previously existing tax credit for certain qualified fuel
cell electric generating expenditures.

SUMMARY OF SPECIFIC PROVISIONS :
Section 1 amends subdivision 1 of section 187-n of the tax law, to
restore a business tax credit of up to $1,500 per unit for businesses
who purchase qualified fuel cell electric generating equipment.

Section 2 amends paragraph (a) of subdivision 37 of section 210 of the
tax law, to restore the same credit for the corporate franchise tax.

Section 3 amends paragraph 1 of subsection (g-2) of section 606 of the
tax law to restore a credit for purposes of personal income tax.

Section 4 amends paragraph 1 of subsection (t) of section 1456 of the
tax law to restore the fuel cell franchise tax credit for banking
institutions.

Section 5 amends paragraph 1 of subdivision x of section 1511 of the
tax law to restore the credit for purposes of insurance corporations.

Section 6 amends subdivision (a) of section 20 of the tax law to
restore the credit provided for by cross-reference in subdivision (d)
of such section.

Section 7 amends subparagraph (B) of paragraph 1 of subsection (i) of
section 606 of the tax law to make conforming changes.

Section 8 provides that the bill shall apply to tax years beginning
after January 1, 2009.

JUSTIFICATION :
This bill restores a fuel cell technology tax credit in effect since
2005 which was eliminated in the 2009-2010 budget process. The credit
was originally designed to encourage the use of alternate, more energy
efficient and environmentally friendly fuel cell based energy for
businesses. Since the introduction of the credit, fuel cell technology
has grown into a viable source of back-up power source for cell towers
and a variety of electric generating uses.

In its 2003 report to Congress, the federal Department of Energy (DOE)
stated the following about fuel cell technology:

* Fuel cell technologies offer unique opportunities for significant
reductions in both energy use and emissions for transportation and
stationary power applications.
* Efficiency improvements over conventional technologies that are
inherent to fuel cells could lead to considerable energy savings and
reduction in greenhouse gas emissions.
* The use of hydrogen in fuel cells, produced from diverse, domestic
resources, could result in reduced demand for foreign oil in
transportation applications.
* Widespread use of fuel cell technology could make a significant
improvement in air quality in the United States. (see, DOE Report,
ESECS EE-1973.)



Over the four years the fuel cell tax credit has been in existence,
New York has grown its use of fuel cells, and the State's domestic
producers of fuel cells have diversified their offerings.

Restoration of the fuel cell tax credit will continue New York's
public policy of promoting increased use of greenhouse gas reducing
power technologies. Increased usage of fuel cell technology will
enhance and diversify New York's available power sources, and decrease
the use of non-renewable resources and our reliance on traditional
forms of energy.

PRIOR LEGISLATIVE HISTORY :
S.5563/A.8381 (2010) - Reported and Committed to Finance
S.57B/A.157B (2009) - Signed as Chapter 57 of the Laws of 2009
S.2994B/A.5881B (2005) - Signed a Chapter 446 of the Laws of 2005

FISCAL IMPLICATIONS :
Initial fiscal impact will be minimal.

EFFECTIVE DATE :
This act shall take effect immediately, and shall be
deemed to have been in effect on and after January 1, 2011.
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1114

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 5, 2011
                               ___________

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 restoring the fuel cell  tax
  credit

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 1 of section 187-n of the tax law, as  amended
by  section  1 of part C-1 of chapter 57 of the laws of 2009, is amended
to read as follows:
  (1) Allowance of credit. [For taxable years beginning  before  January
first,  two  thousand nine, a] A taxpayer whose business is not substan-
tially engaged in the commercial generation, distribution, transmission,
or servicing of energy or energy products  shall  be  allowed  a  credit
against  the  taxes  imposed  by  sections one hundred eighty-three, one
hundred eighty-four and one hundred eighty-five of this  article,  equal
to  its  qualified fuel cell electric generating equipment expenditures.
Provided, however, that the amount of such credit allowable against  the
tax  imposed by section one hundred eighty-four of this article shall be
the excess of the amount of such credit over the amount  of  any  credit
allowed  by  this section against the tax imposed by section one hundred
eighty-three of this article. This credit shall not exceed one  thousand
five  hundred  dollars  per  generating unit with respect to any taxable
year. The credit provided for herein shall be allowed  with  respect  to
the taxable year in which the fuel cell electric generating equipment is
placed in service.
  S 2. Paragraph (a) of subdivision 37 of section 210 of the tax law, as
amended  by  section 2 of part C-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (a) Allowance of credit. [For taxable years beginning  before  January
first,  two  thousand  nine,  a]  A  taxpayer  shall be allowed a credit

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01031-01-1

S. 1114                             2

against the tax imposed by this article, equal  to  its  qualified  fuel
cell  electric  generating equipment expenditures. This credit shall not
exceed one thousand  five  hundred  dollars  per  generating  unit  with
respect  to  any  taxable  year. The credit provided for herein shall be
allowed with respect to the taxable year in which the fuel cell electric
generating equipment is placed in service.
  S 3. Paragraph 1 of subsection (g-2) of section 606 of the tax law, as
amended by section 3 of part C-1 of chapter 57 of the laws of  2009,  is
amended to read as follows:
  (1)  General.  [For  taxable years beginning before January first, two
thousand nine, an] AN individual taxpayer  shall  be  allowed  a  credit
against the tax imposed by this article equal to twenty percent of qual-
ified  fuel cell electric generating equipment expenditures. This credit
shall not exceed one thousand five hundred dollars per  generating  unit
with  respect  to any taxable year. The credit provided for herein shall
be allowed with respect to the taxable year in which the fuel cell elec-
tric generating equipment is placed in service.
  S 4. Paragraph 1 of subsection (t) of section 1456 of the tax law,  as
amended  by  section 4 of part C-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
  (1) Allowance of credit. [For taxable years beginning  before  January
first,  two  thousand  nine,  a]  A  taxpayer  shall be allowed a credit
against the tax imposed by this article, equal  to  its  qualified  fuel
cell  electric  generating equipment expenditures. This credit shall not
exceed one thousand  five  hundred  dollars  per  generating  unit  with
respect  to any taxable year. The credit provided for in this subsection
shall be allowed with respect to the taxable year in which the fuel cell
electric generating equipment is placed in service.
  S 5. Paragraph 1 of subdivision (x) of section 1511 of the tax law, as
amended by section 5 of part C-1 of chapter 57 of the laws of  2009,  is
amended to read as follows:
  (1)  Allowance  of credit. [For taxable years beginning before January
first, two thousand nine, a]  A  taxpayer  shall  be  allowed  a  credit
against  the  tax  imposed  by this article, equal to its qualified fuel
cell electric generating equipment expenditures. This credit  shall  not
exceed  one  thousand  five  hundred  dollars  per  generating unit with
respect to any taxable year. The credit provided for in this subdivision
shall be allowed with respect to the taxable year in which the fuel cell
electric generating equipment is placed in service.
  S 6. Subdivision (a) of section 20 of  the  tax  law,  as  amended  by
section  6  of part C-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  (a) Allowance of credit. [For taxable years beginning  before  January
first,  two  thousand  nine,  a] A taxpayer subject to tax under article
nine, nine-A, twenty-two, thirty-two or  thirty-three  of  this  chapter
shall  be  allowed a credit against such tax, pursuant to the provisions
referenced in subdivision (d) of  this  section.  The  credit  shall  be
allowed  where  a taxpayer has made a certified contribution of at least
ten million dollars to a qualified transportation improvement project in
a prior taxable year. The credit shall be equal to six  percent  of  the
taxpayer's increased qualified business facility payroll for the taxable
year. The aggregate of all credit amounts allowed to the taxpayer pursu-
ant  to  this section with respect to a certified contribution shall not
exceed the amount of such certified contribution.
  S 7. Clauses (xiv) and (xxv) of subparagraph (B)  of  paragraph  1  of
subsection (i) of section 606 of the tax law, as amended by section 7 of

S. 1114                             3

part  C-1  of  chapter  57  of  the laws of 2009, are amended to read as
follows:

(xiv) Credit for transportation      [For taxable years beginning
improvement contributions under      before January first, two thousand
subsection (z)                       nine, amount] AMOUNT
                                     of credit under subdivision
                                     thirty-two of section
                                     two hundred ten or subsection
                                     (n) of section fourteen
                                     hundred fifty-six

(xxv) Credit for qualified fuel      [For taxable years beginning before
cell electric generating             January first, two thousand nine,
equipment expenditures               amount] AMOUNT of credit
under subsection (g-2)               under subdivision thirty-seven of
                                     section two hundred ten or
                                     subsection (t) of section fourteen
                                     hundred fifty-six
  S  8.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2011.

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