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

                                  8420

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 19, 2009
                               ___________

Introduced  by M. of A. TEDISCO -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the state finance  law,  in  relation  to  creating  the
  alternative  fuel incentive fund; to amend the tax law, in relation to
  creating the alternative fuels credit; to amend the public authorities
  law, in relation to alternative fuel grants; and making  an  appropri-
  ation therefor

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

  Section 1. The state finance law is amended by adding  a  new  section
99-t to read as follows:
  S  99-T.  ALTERNATIVE  FUEL  INCENTIVE FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
ER OF TAXATION AND FINANCE A SPECIAL REVENUE FUND TO  BE  KNOWN  AS  THE
"ALTERNATIVE FUEL INCENTIVE FUND".
  2.  THE  FUND SHALL CONSIST OF THE AMOUNT OF REVENUES FROM SALES TAXES
IMPOSED ON THE RECEIPTS OF THE PRICE OF MOTOR AND DIESEL FUEL MORE  THAN
ONE DOLLAR OR EQUAL TO OR LESS THAN TWO DOLLARS.
  3.  MONIES  OF  THE  FUND,  WHEN ALLOCATED, SHALL BE DISBURSED FOR THE
FOLLOWING PURPOSES:
  (A) CREDITS AGAINST PERSONAL INCOME TAX AND  CORPORATE  FRANCHISE  TAX
FOR  THE  INSTALLATION OR CONVERSION OF FUELING STATIONS FOR ALTERNATIVE
FUELS;
  (B) GRANTS FOR RESEARCH AND DEVELOPMENT IN REGARDS TO FUEL  DIVERSIFI-
CATION AND ENERGY EFFICIENCY IN THE TRANSPORTATION SECTOR;
  (C)  INSTALLATION OF ALTERNATIVE FUELING STATIONS AT EACH OF THE TWEN-
TY-SEVEN TRAVEL PLAZAS ON THE NEW YORK STATE THRUWAY;
  (D) GRANTS FOR A CELLULOSIC ETHANOL REFINERY; AND
  (E) ADMINISTRATIVE COSTS BORNE  BY  THE  DEPARTMENT  OF  TAXATION  AND
FINANCE  AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
TY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11814-01-9
              

A. 8420                             2

  S 2. Section 1148 of the tax law, as amended by chapter 3 of the  laws
of 2004, is amended to read as follows:
  S  1148.  Deposit  and disposition of revenue. All taxes, interest and
penalties collected or received by the commissioner under  this  article
shall be deposited and disposed of pursuant to the provisions of section
one  hundred  seventy-one-a of this chapter; provided however, the comp-
troller shall on or before the twelfth day of each month, pay  all  such
taxes, interest and penalties collected under this article and remaining
to  the  comptroller's  credit  in  such  banks, banking houses or trust
companies at the close of business on the  last  day  of  the  preceding
month,  into the general fund of the state treasury, except as otherwise
provided in sections ninety-two-d [and], ninety-two-r AND  NINETY-NINE-T
of the state finance law and sections eleven hundred two, eleven hundred
four and eleven hundred nine of this article.
  S  3.  Section  606  of  the  tax  law  is  amended  by adding two new
subsections (p-1) and (qq) to read as follows:
  (P-1) ALTERNATIVE FUELS CREDIT.  (1)  GENERAL.  A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE FOR FUEL  FLEXIBLE  VEHICLES  AND  QUALIFIED
HYBRID  VEHICLES  PLACED  IN SERVICE DURING THE TAXABLE YEAR.  PROVIDED,
HOWEVER, THAT THE CREDIT PROVIDED FOR BY THIS SUBSECTION WITH RESPECT TO
FUEL FLEXIBLE VEHICLES SHALL NOT BE ALLOWED  TO  A  GAS  CORPORATION  OR
ELECTRIC  CORPORATION  AS DEFINED IN SUBDIVISIONS ELEVEN AND THIRTEEN OF
SECTION TWO OF THE PUBLIC SERVICE LAW, OR A GAS AND ELECTRIC CORPORATION
AS DESCRIBED IN SECTION SIXTY-FOUR OF THE PUBLIC SERVICE LAW, WHERE SUCH
CORPORATION IS SUBJECT TO THE SUPERVISION OF THE  DEPARTMENT  OF  PUBLIC
SERVICE.
  (2)   FUEL  FLEXIBLE  AND  HYBRID  VEHICLES.  THE  CREDIT  UNDER  THIS
SUBSECTION FOR FUEL FLEXIBLE AND QUALIFIED HYBRID VEHICLES  SHALL  EQUAL
FIVE HUNDRED DOLLARS PER VEHICLE REGISTERED IN THIS STATE.
  (3)  DEFINITIONS. (A) THE TERM "FUEL FLEXIBLE VEHICLE" MEANS A VEHICLE
WHICH IS EQUIPPED TO USE ALTERNATIVE  FUEL  AS  DEFINED  IN  SUBDIVISION
FOURTEEN  OF  SECTION  THREE HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES
LAW.
  (B) THE TERM "QUALIFIED HYBRID VEHICLE"  MEANS  A  MOTOR  VEHICLE,  AS
DEFINED  IN  SECTION  ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC
LAW, OTHER THAN AN ELECTRIC VEHICLE, THAT:
  (I) DRAWS PROPULSION ENERGY FROM BOTH
  (A) AN INTERNAL COMBUSTION ENGINE (OR HEAT ENGINE THAT USES  COMBUSTI-
BLE FUEL); AND
  (B) AN ENERGY STORAGE DEVICE; AND
  (II) EMPLOYS A REGENERATIVE VEHICLE BRAKING SYSTEM THAT RECOVERS WASTE
ENERGY TO CHARGE SUCH ENERGY STORAGE DEVICE.
  (4)   CARRYOVERS.  IF  THE  AMOUNT  OF  CREDIT  ALLOWABLE  UNDER  THIS
SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX OF SUCH YEAR, THE EXCESS, MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED  FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (5)  CREDIT  RECAPTURE. (A) VEHICLES. IF, WITHIN THREE FULL YEARS FROM
THE DATE A QUALIFIED HYBRID VEHICLE IS PLACED IN SERVICE  SUCH  VEHICLES
CEASE  TO BE QUALIFIED, A RECAPTURE AMOUNT MUST BE ADDED BACK IN THE TAX
YEAR IN WHICH SUCH CESSATION OCCURS.
  (B) CESSATION OF QUALIFICATION. (I) A QUALIFIED HYBRID  CEASES  TO  BE
QUALIFIED IF
  (A)  IT  IS  MODIFIED  BY  THE TAXPAYER SO THAT IT NO LONGER MEETS THE
REQUIREMENTS OF A QUALIFIED HYBRID VEHICLE.

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  (B) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION  SELLS  OR
DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
WILL BE SO MODIFIED.
  (II)  RECAPTURE  AMOUNT.  THE  RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
ALLOWABLE UNDER THIS SUBSECTION.
  (6) TERMINATION. THIS SUBSECTION SHALL NOT APPLY TO PROPERTY PLACED IN
SERVICE IN TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND TEN.
  (QQ) ALTERNATIVE FUEL CREDIT FOR INSTALLATION OR CONVERSION OF FUELING
STATIONS. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT,
TO  BE  COMPUTED  HEREINAFTER  PROVIDED, AGAINST THE TAX IMPOSED BY THIS
ARTICLE FOR THE COST OF  INSTALLATION  CONSTRUCTION,  RECONSTRUCTION  OR
ACQUISITION  OF  AN ALTERNATIVE FUEL REFUELING FACILITY THAT IS DIRECTLY
ATTRIBUTABLE TO THE STORAGE,  COMPRESSION,  CHARGING  OR  DISPENSING  OF
ALTERNATIVE  FUELS  TO  MOTOR  VEHICLES.  THE INCOME TAX CREDIT WOULD BE
THIRTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH EXPENSES.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF
TAX TO BE CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON.  THE  BALANCE  OF  SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH
TAXABLE YEAR MAY BE CARRIED OVER TO THE IMMEDIATELY  SUCCEEDING  TAXABLE
YEAR  AND  MAY  BE  DEDUCTED  FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE
EXCESS, IF ANY, OF THE AMOUNT OF  THE  CREDIT  OVER  THE  TAX  FOR  SUCH
SUCCEEDING YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR  REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax law is amended by adding two new clauses (xxxi) and (xxxii)
to read as follows:
(XXXI) ALTERNATIVE FUELS                AMOUNT OF CREDIT
CREDIT UNDER SUBSECTION                 UNDER SUBDIVISION
(P-1)                                   TWENTY-FOUR-A OF
                                        SECTION TWO HUNDRED TEN

(XXXII) ALTERNATIVE FUEL CREDIT         AMOUNT OF CREDIT
FOR INSTALLATION OR                     UNDER SUBDIVISION
CONSERVATION OF FUELING                 FORTY-ONE OF SECTION
STATIONS UNDER SUBSECTION               TWO HUNDRED TEN
(QQ)
  S 5. Section 210 of the tax law is amended by adding a new subdivision
24-a to read as follows:
  24-A. ALTERNATIVE FUELS CREDIT.  (A)  GENERAL.  A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE, FOR FUEL FLEXIBLE  VEHICLES  AND  QUALIFIED
HYBRIDS.  PROVIDED,  HOWEVER,  THAT  THE  CREDIT  PROVIDED  FOR  BY THIS
SUBSECTION WITH RESPECT TO FUEL FLEXIBLE VEHICLES SHALL NOT  BE  ALLOWED
TO  A GAS CORPORATION OR ELECTRIC CORPORATION AS DEFINED IN SUBDIVISIONS
ELEVEN AND THIRTEEN OF SECTION TWO OF THE PUBLIC SERVICE LAW, OR  A  GAS
AND  ELECTRIC  CORPORATION  AS  DESCRIBED  IN  SECTION SIXTY-FOUR OF THE
PUBLIC SERVICE LAW, WHERE SUCH CORPORATION IS SUBJECT TO THE SUPERVISION
OF THE DEPARTMENT OF PUBLIC SERVICE.
  (B) FUEL FLEXIBLE VEHICLES AND QUALIFIED HYBRID VEHICLES.  THE  CREDIT
UNDER  THIS  SUBDIVISION FOR FUEL FLEXIBLE VEHICLES AND QUALIFIED HYBRID

A. 8420                             4

VEHICLES SHALL EQUAL FIVE HUNDRED DOLLARS PER VEHICLE REGISTERED IN THIS
STATE.
  (C) DEFINITIONS. (I) THE TERM "FUEL FLEXIBLE VEHICLE" MEANS A VEHICLE,
WHICH  IS  EQUIPPED  TO  USE  ALTERNATIVE FUEL AS DEFINED IN SUBDIVISION
FOURTEEN OF SECTION THREE HUNDRED FIFTY-ONE OF  THE  PUBLIC  AUTHORITIES
LAW.
  (II)  THE  TERM "QUALIFIED HYBRID VEHICLE" SHALL HAVE THE SAME MEANING
AS PROVIDED FOR UNDER SUBPARAGRAPH (B) OF PARAGRAPH THREE OF  SUBSECTION
(P-1) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
  (D) CARRYOVERS. IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION BE
ALLOWED  IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)  OF  SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CRED-
IT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (E) CREDIT RECAPTURE. (I) IF, WITHIN THREE FULL YEARS FROM THE DATE  A
QUALIFIED  HYBRID VEHICLE IS PLACED IN SERVICE CEASES TO BE QUALIFIED, A
RECAPTURE AMOUNT MUST BE ADDED BACK IN THE TAX YEAR IN WHICH SUCH CESSA-
TION OCCURS.
  (II) A QUALIFIED HYBRID VEHICLE CEASES TO BE QUALIFIED IF:
  (A) IT IS MODIFIED BY THE TAXPAYER SO THAT  IT  NO  LONGER  MEETS  THE
REQUIREMENTS  OF  A  QUALIFIED HYBRID VEHICLE AS DEFINED IN SUBPARAGRAPH
(B) OF PARAGRAPH THREE OF SUBSECTION (P-1) OF SECTION SIX HUNDRED SIX OF
THIS CHAPTER; OR
  (B) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION  SELLS  OR
DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
WILL BE SO MODIFIED.
  (III)  RECAPTURE  AMOUNT.  THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
ALLOWABLE UNDER THIS SUBDIVISION MULTIPLIED BY A FRACTION, THE NUMERATOR
OF WHICH IS THE TOTAL RECOVERY PERIOD FOR THE PROPERTY MINUS THE  NUMBER
OF  RECOVERY  YEARS PRIOR TO, BUT NOT INCLUDING, THE RECAPTURE YEAR, AND
THE DENOMINATOR OF WHICH IS THE TOTAL RECOVERY PERIOD.
  (F) TERMINATION. THIS SUBDIVISION SHALL NOT APPLY TO  PROPERTY  PLACED
IN  SERVICE  IN TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TEN.
  S 6. The tax law is amended by adding a new section 187-o to  read  as
follows:
  S  187-O.  ALTERNATIVE  FUELS  CREDIT. 1. GENERAL. A TAXPAYER SHALL BE
ALLOWED A CREDIT,  TO  BE  CREDITED  AGAINST  THE  TAXES  IMPOSED  UNDER
SECTIONS  ONE  HUNDRED  EIGHTY-THREE,  ONE  HUNDRED EIGHTY-FOUR, AND ONE
HUNDRED EIGHTY-FIVE OF THIS ARTICLE.   SUCH CREDIT, TO  BE  COMPUTED  AS
HEREINAFTER  PROVIDED,  SHALL  BE  ALLOWED  FOR FUEL FLEXIBLE AND HYBRID
VEHICLES PLACED IN SERVICE DURING THE TAXABLE YEAR.  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 CREDIT ALLOWED BY THIS SECTION OVER THE AMOUNT OF SUCH CREDIT ALLOW-
ABLE AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS
ARTICLE.
  2.  FUEL  FLEXIBLE AND HYBRID VEHICLES. THE CREDIT UNDER THIS SUBDIVI-
SION FOR FUEL FLEXIBLE AND QUALIFIED HYBRID VEHICLES  SHALL  EQUAL  FIVE
HUNDRED DOLLARS PER VEHICLE REGISTERED IN THIS STATE.
  3.  DEFINITIONS. (A) THE TERM "FUEL FLEXIBLE VEHICLE" MEANS A VEHICLE,
WHICH IS EQUIPPED TO USE ALTERNATIVE  FUEL  AS  DEFINED  IN  SUBDIVISION

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FOURTEEN  OF  SECTION  THREE HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES
LAW.
  (B) THE TERM "QUALIFIED HYBRID VEHICLE" SHALL HAVE THE SAME MEANING AS
PROVIDED  FOR IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (P-1)
OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
  4. CARRYOVERS. IN NO EVENT SHALL THE  CREDIT  UNDER  THIS  SECTION  BE
ALLOWED  IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE
APPLICABLE MINIMUM TAX FIXED BY SECTION ONE  HUNDRED  EIGHTY-THREE,  ONE
HUNDRED  EIGHTY-FIVE  OR  ONE  HUNDRED  EIGHTY-SIX  OF THIS ARTICLE. IF,
HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXA-
BLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUC-
TIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR  OR
YEARS  AND  MAY  BE  DEDUCTED  FROM  THE TAXPAYER'S TAX FOR SUCH YEAR OR
YEARS.
  5. CREDIT RECAPTURE. (A) IF, WITHIN THREE FULL YEARS FROM THE  DATE  A
QUALIFIED  HYBRID VEHICLE IS PLACED IN SERVICE CEASES TO BE QUALIFIED, A
RECAPTURE AMOUNT MUST BE ADDED BACK IN THE TAX YEAR IN WHICH SUCH CESSA-
TION OCCURS.
  (B) A QUALIFIED HYBRID VEHICLE CEASES TO BE QUALIFIED IF:
  (I) IT IS MODIFIED BY THE TAXPAYER SO THAT  IT  NO  LONGER  MEETS  THE
REQUIREMENTS  OF  A  QUALIFIED HYBRID VEHICLE AS DEFINED IN SUBPARAGRAPH
(B) OF PARAGRAPH THREE OF SUBSECTION (P-1) OF SECTION SIX HUNDRED SIX OF
THIS CHAPTER, OR
  (II) THE TAXPAYER RECEIVING THE CREDIT UNDER  THIS  SECTION  SELLS  OR
DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
WILL BE SO MODIFIED.
  (C)  THE  RECAPTURE AMOUNT IS EQUAL TO THE CREDIT ALLOWABLE UNDER THIS
SECTION.
  6. TERMINATION. THIS SECTION SHALL NOT APPLY  TO  PROPERTY  PLACED  IN
SERVICE  IN  TAXABLE  YEARS  BEGINNING  AFTER DECEMBER THIRTY-FIRST, TWO
THOUSAND TEN.
  S 7. The public authorities law is amended by  adding  a  new  section
1884 to read as follows:
  S  1884.  ALTERNATIVE  FUEL GRANTS. THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY SHALL:
  1. OVERSEE AND PROMOTE RESEARCH AND DEVELOPMENT REGARDING FUEL  DIVER-
SIFICATION AND ENERGY EFFICIENCY IN THE TRANSPORTATION SECTOR; AND
  2. PROVIDE GRANTS FOR THE CREATION OF A CELLULOSIC ETHANOL REFINERY.
  S  8.  Subdivision 10 of section 354 of the public authorities law, as
amended by chapter 766 of the laws  of  1992,  is  amended  to  read  as
follows:
  10.  To  construct,  reconstruct  or  improve  on or along the thruway
system in the  manner  herein  provided,  suitable  facilities  for  gas
stations,  restaurants, and other facilities for the public, or to lease
the right to construct, reconstruct or improve and operate such  facili-
ties;  such  facilities shall be publicly offered for leasing for opera-
tion, or the right to construct, reconstruct or improve and operate such
facilities shall be publicly offered under rules and regulations  to  be
established  by the authority, provided, however, that lessees operating
such facilities at the time this act becomes effective, may  reconstruct
or  improve  them  or  may  construct additional like facilities, in the
manner and upon such terms and conditions as the board shall  determine;
and  provided further, however, that such facilities constructed, recon-
structed or improved on or along the canal system  shall  be  consistent
with  the  canal  recreationway  plan  approved  pursuant to section one
hundred thirty-eight-c of the canal law and section three hundred eight-

A. 8420                             6

y-two of this title; AND PROVIDED FURTHER, THAT EACH SUCH FACILITY WHICH
CONTAINS OR CONSISTS OF A GAS STATION SHALL INCLUDE A FACILITY FOR SELL-
ING TO THE PUBLIC ALTERNATIVE FUEL, AS DEFINED IN SECTION THREE  HUNDRED
FIFTY-ONE OF THIS ARTICLE.
  S  9. Section 351 of the public authorities law is amended by adding a
new subdivision 14 to read as follows:
  14. "ALTERNATIVE FUEL" SHALL  MEAN  ETHANOL,  METHANOL,  NATURAL  GAS,
PROPANE,  ELECTRICITY  (INCLUDING ELECTRICITY FROM SOLAR ENERGY), HYDRO-
GEN, AND ANY OTHER FUEL IDENTIFIED WHICH IS SUBSTANTIALLY  NOT  PETROLE-
UM-BASED,  WHICH  IS  CONSISTENT WITH THE GOALS OF PROTECTING THE SAFETY
AND HEALTH OF THE PUBLIC AND MINIMIZING EMISSIONS OF AIR POLLUTANTS, AND
WHICH  IS  CONSISTENT  WITH  ANY  APPLICABLE  FEDERAL  ALTERNATIVE  FUEL
REQUIREMENTS.
  S  10.  Section 210 of the tax law is amended by adding a new subdivi-
sion 41 to read as follows:
  41. ALTERNATIVE FUEL CREDIT FOR INSTALLATION OR CONVERSION OF  FUELING
STATIONS. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT,
TO  BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS
ARTICLE FOR THE COST OF  INSTALLATION  CONSTRUCTION,  RECONSTRUCTION  OR
ACQUISITION  OF  AN ALTERNATIVE FUEL REFUELING FACILITY THAT IS DIRECTLY
ATTRIBUTABLE TO THE STORAGE,  COMPRESSION,  CHARGING  OR  DISPENSING  OF
ALTERNATIVE  FUELS  TO  MOTOR  VEHICLES.  THE INCOME TAX CREDIT SHALL BE
THIRTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH EXPENSES.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT DESCRIBED IN PARAGRAPH (D) OF SUBDIVISION  ONE  OF  THIS
SECTION.  IF  THE  AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX  FOR  SUCH  YEAR,  FIFTY
PERCENT  OF  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF
THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
THE BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR
MAY  BE  CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS,  IF  ANY,
OF  THE AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL
BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE  CREDITED  OR  REFUNDED  AS
PROVIDED  IN  SECTION  SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 11. The tax law is amended by adding a new section 187-p to read  as
follows:
  S  187-P.  ALTERNATIVE  FUEL  CREDIT FOR INSTALLATION OR CONVERSION OF
FUELING STATIONS. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX  IMPOSED
BY  THIS  ARTICLE  FOR  THE  COST  OF  INSTALLATION CONSTRUCTION, RECON-
STRUCTION OR ACQUISITION OF AN ALTERNATIVE FUEL REFUELING FACILITY  THAT
IS  DIRECTLY  ATTRIBUTABLE  TO  THE  STORAGE,  COMPRESSION,  CHARGING OR
DISPENSING OF ALTERNATIVE FUELS TO MOTOR VEHICLES.  THE INCOME TAX CRED-
IT SHALL BE THIRTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH EXPENSES.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S  TAX  FOR  SUCH
YEAR,  FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF
TAX TO BE CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON. THE BALANCE OF SUCH CREDIT NOT CREDITED  OR  REFUNDED  IN  SUCH
TAXABLE  YEAR  MAY BE CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE
YEAR AND MAY BE DEDUCTED FROM THE TAXPAYER'S  TAX  FOR  SUCH  YEAR.  THE

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EXCESS,  IF  ANY,  OF  THE  AMOUNT  OF  THE CREDIT OVER THE TAX FOR SUCH
SUCCEEDING YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS  CHAP-
TER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  12. The sum of eighty-two million dollars ($82,000,000), or so much
thereof as may be necessary, is hereby appropriated as follows:   thirty
million  dollars  for research and development in regards to fuel diver-
sification and energy efficiency in the transportation  sector;  twenty-
seven  million  dollars  for  the  installation  of  alternative fueling
stations at each of the twenty-seven travel plazas on the New York state
thruway; twenty million dollars for a cellulosic ethanol  refinery;  and
five million dollars for administrative costs borne by the department of
taxation and finance and the New York state energy research and develop-
ment  authority to the department of taxation and finance; out of moneys
in the state treasury in the general fund to the credit of the  alterna-
tive  fuel  incentive  fund,  not otherwise appropriated, and made imme-
diately available, for the purpose of carrying  out  the  provisions  of
this  act.  Such moneys shall be payable on the audit and warrant of the
comptroller on vouchers certified or approved in the  manner  prescribed
by law.
  S  13.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law; provided, however,  that  the  commis-
sioner of taxation and finance shall be authorized on and after the date
this  act  shall have become a law to adopt and amend any rules or regu-
lations and to take any steps necessary to implement the  provisions  of
this act.