Senate Bill S3375

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3375

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 17, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- 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  biofuel  production  credit
  for production of cellulosic ethanol

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

  Section 1. Section 28 of the tax law, as added by section 1 of part  X
of  chapter 62 of the laws of 2006, is renumbered section 30 and amended
to read as follows:
  S 30. Biofuel production credit. (a) General. A  taxpayer  subject  to
tax  under  article  nine, nine-A or twenty-two of this chapter shall be
allowed a credit against such tax pursuant to the provisions  referenced
in  subdivision  (d)  of  this section. The credit (or pro rata share of
earned credit in the case of a partnership) for each gallon  of  biofuel
produced  at a biofuel plant on or after January first, two thousand six
shall equal fifteen cents per gallon, OR TWENTY-FIVE  CENTS  PER  GALLON
FOR  THE  PRODUCTION  OF CELLULOSIC ETHANOL, after the production of the
first forty thousand gallons per year presented to  market.  The  credit
under  this  section shall be capped at two and one-half million dollars
per taxpayer per taxable year for up to no more  than  four  consecutive
taxable years per biofuel plant.
  (b)  Definitions. For the purpose of this section, the following terms
shall have the following meanings:
  (1) "Biofuel" means a fuel which includes biodiesel and  ethanol.  The
term  "biodiesel"  shall mean a fuel comprised exclusively of mono-alkyl
esters of long chain fatty acids derived from vegetable oils  or  animal
fats, designated B100, which meets the specifications of American Socie-
ty  of  Testing  and Materials designation D 6751-02. The term "ethanol"
shall mean ethyl alcohol manufactured  in  the  United  States  and  its
territories  and sold (i) for fuel use and which has been rendered unfit

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00543-01-9
              

S. 3375                             2

for beverage use in a  manner  and  which  is  produced  at  a  facility
approved  by the federal bureau of alcohol, tobacco and firearms for the
production of ethanol for fuel, or (ii) as  denatured  ethanol  used  by
blenders  and  refiners  which has been rendered unfit for beverage use.
The term "biofuel" may also include any other standard approved  by  the
New York state energy and research development authority.
  (2)  "CELLULOSIC  ETHANOL" MEANS THE PRODUCTION OF ETHANOL FROM LIGNO-
CELLULOSIC BIOMASS FEEDSTOCKS NOT USED  FOR  FOOD  PRODUCTION  THAT  ARE
ALTERED  THROUGH ACTIVITIES REFERENCED IN SUBPARAGRAPH FIVE OF PARAGRAPH
(B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC
AUTHORITIES LAW. SUCH LIGNOCELLULOSIC BIOMASS  FEEDSTOCKS  MAY  INCLUDE,
BUT  ARE  NOT NECESSARILY LIMITED TO, SWITCHGRASSES OR WILLOWS, AGRICUL-
TURAL AND FORESTRY RESIDUES, CLEAN WOOD AND WOOD WASTES, PULP AND  PAPER
MILL  WASTES  OR  EXTRACTS, AND NON-RECYCLABLE PAPER. ANY QUESTION AS TO
WHETHER ANY FEEDSTOCK QUALIFIES UNDER THIS PARAGRAPH SHALL BE DETERMINED
BY THE PRESIDENT OF THE NEW YORK STATE ENERGY AND  RESEARCH  DEVELOPMENT
AUTHORITY IN CONSULTATION WITH THE COMMISSIONER OF ENVIRONMENTAL CONSER-
VATION AND THE COMMISSIONER OF AGRICULTURE AND MARKETS.
  (3)  "Biofuel  plant"  means a commercial facility located in New York
state at which one or more biofuels are produced.  FOR THE  PURPOSES  OF
THIS  SECTION,  ANY  COMMERCIAL  FACILITY  WHERE  CELLULOSIC  ETHANOL IS
PRODUCED SHALL BE CONSIDERED A SEPARATE BIOFUEL PLANT.
  (c) Reporting requirements. A taxpayer wishing to claim a credit under
this section shall annually certify to the commissioner (i) that biofuel
produced at the eligible biofuel plant meets all existing standards  for
biofuel  and (ii) the amount of biofuel produced at the eligible biofuel
plant during a taxable year.
  (d) Cross-references. For application of the credit  provided  for  in
this section, see the following provisions of this chapter:
  (1) Article 9: Section 187-c.
  (2) Article 9-A: Section 210, subdivision 38.
  (3) Article 22: Section 606, subsections (i) and (jj).
  S  2.  Subsection  (jj)  of  section  606  of the tax law, as added by
section 5 of part X of chapter 62 of the laws of  2006,  is  amended  to
read as follows:
  (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
to be computed as provided in  section  [twenty-eight]  THIRTY  of  this
chapter,  against  the tax imposed by this article. If the amount of the
credit allowed under this subsection for any taxable year  shall  exceed
the  taxpayer's  tax  for  such  year, the excess shall be treated as an
overpayment of tax to be credited or refunded  in  accordance  with  the
provisions  of section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
  S 3. This act shall take effect immediately.