S T A T E O F N E W Y O R K
________________________________________________________________________
3840
2009-2010 Regular Sessions
I N A S S E M B L Y
January 28, 2009
___________
Introduced by M. of A. MAGNARELLI, SCHIMMINGER, KOON, MILLMAN, LUPARDO
-- Multi-Sponsored by -- M. of A. CAHILL, DelMONTE, DESTITO, ESPAIL-
LAT, GLICK, GUNTHER, MAGEE, PHEFFER -- read once and referred to the
Committee on Ways and Means
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00543-01-9
A. 3840 2
territories and sold (i) for fuel use and which has been rendered unfit
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.