senate Bill S2520B

2013-2014 Legislative Session

Creates the clean fuel and job creation tax credit

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 09, 2014 print number 2520b
amend and recommit to energy and telecommunications
Jan 08, 2014 referred to energy and telecommunications
Feb 13, 2013 print number 2520a
amend (t) and recommit to finance
Feb 04, 2013 reported and committed to finance
Jan 18, 2013 referred to energy and telecommunications

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

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S2520 - Bill Details

Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §73, Pub Serv L; amd §§210 & 606, add §§41 & 187-t, Tax L

S2520 - Bill Texts

view summary

Creates the clean fuel and job creation tax credit of 2014 to incentivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies.

view sponsor memo
BILL NUMBER:S2520

TITLE OF BILL: An act to amend the public service law and the tax
law, in relation to creating the clean fuel and job creation tax
credit of 2013 to incentivize power plants to repower existing
facilities or construct new facilities which use cleaner burning fuels
or add significant pollution control technologies

PURPOSE: To create the clean fuel and job creation tax credit to
incentivize power plants to repower existing facilities or construct
new facilities which use cleaner burning fuels or add significant
pollution control technologies.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends the public service law to authorize the
department of public service to request information from the
department of taxation and finance in relation to electric generating
facilities that have received a clean fuel and job creation tax
credit.

Sections 2, 3, 4, 5 & 6 of the bill amend various sections of the tax
law to establish the clean fuel and job creation tax credit, and set
forth how it will be applied.

Section 7 is the effective date.

JUSTIFICATION: Many power plants in NYS are contemplating repowering
or making other investments in infrastructure in order to meet new
environmental standards and to remain competitive in the marketplace.
Some power plants are even considering the construction of new
electric generating units on the same or adjacent property in order to
remain competitive and improve their overall environmental
performance. Enhancing competition and improving environmental
compliance are worthy goals that should be encouraged and
incentivized.

Unfortunately, many of these power plants are prevented from taking
steps to repower or otherwise improve their infrastructure and
environmental profile because of the high costs associated with doing
so. By creating a meaningful tax credit based on beneficial
investments in electric generating facilities, these power plants will
be able to lower the cost of repowering and other infrastructure
upgrade projects. This tax credit, which ranges from 12.5% to 20%
based on the amount of the investment, will encourage power plants to
undertake important investment projects which will result in a
cleaner, stronger and more modem generating. fleet. It will also
allow the power plant to maintain job levels and pave the way for job
growth.

Further, these power plants often represent a significant portion of
the local tax base for the municipality where they are located. Loss
of such local tax base will be devastating for these communities. By
providing an appropriate tax credit for repowering and other
infrastructure projects, this legislation will allow power plants to
become more competitive and remain in operation for a longer period of


time. This is a significant benefit for our local communities due to
the local tax revenue that will be maintained and because of the jobs
it will create in the local economy.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the ninetieth day after
it shall become a law.

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

                                  2520

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens. MAZIARZ, LARKIN, MARCELLINO, RANZENHOFER, RITCHIE,
  YOUNG -- read twice and  ordered  printed,  and  when  printed  to  be
  committed to the Committee on Energy and Telecommunications

AN  ACT  to amend the public service law and the tax law, in relation to
  creating the clean fuel and job creation tax credit of 2013 to  incen-
  tivize  power  plants  to repower existing facilities or construct new
  facilities  which  use  cleaner  burning  fuels  or  add   significant
  pollution control technologies

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

  Section 1. The public service law is amended by adding a  new  section
73 to read as follows:
  S 73. COORDINATION WITH CERTAIN PROVISIONS OF THE TAX LAW. THE DEPART-
MENT  MAY  REQUEST FROM THE DEPARTMENT OF TAXATION AND FINANCE A LIST OF
ELECTRIC GENERATING FACILITIES THAT HAVE BEEN GRANTED A CLEAN  FUEL  AND
JOB  CREATION  TAX  CREDIT  AS  SUCH  CREDIT  IS  DESCRIBED  IN  SECTION
THIRTY-EIGHT OF THE TAX LAW. THE LIST SHALL INCLUDE THE LOCATION OF  THE
FACILITY RECEIVING THE CREDIT, A DESCRIPTION OF THE PROJECT TO WHICH THE
CREDIT RELATES, THE AMOUNT OF THE CREDIT, AND THE TAX YEAR FOR WHICH THE
CREDIT WAS GRANTED.
  S  2.  The  tax  law  is amended by adding a new section 38 to read as
follows:
  S 38. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT.
A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A  OR  TWENTY-TWO  OF
THIS CHAPTER, WHICH IS AN ELECTRIC GENERATING FACILITY, SHALL BE ALLOWED
A  CREDIT  AGAINST  SUCH  TAX,  PURSUANT TO THE PROVISIONS REFERENCED IN
SUBDIVISION (C) OF THIS SECTION.    THE  CREDIT  SHALL  BE  ALLOWED  FOR
CERTAIN  INVESTMENTS  MADE  BY ANY MAJOR ELECTRIC GENERATING FACILITY IN
THE STATE SUCH AS REPOWERING PROJECTS, QUALIFIED  ENERGY  INFRASTRUCTURE
INVESTMENTS,  AND  QUALIFIED  NEW  CONSTRUCTION PROJECTS AS DESCRIBED IN
THIS SECTION. THE CREDIT SHALL BE AS FOLLOWS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
S                                                          LBD05917-01-3

S. 2520                             2

  (1) TWELVE AND ONE-HALF PERCENT  OF  THE  FIRST  ONE  HUNDRED  MILLION
DOLLARS IN INVESTMENT;
  (2) FIFTEEN PERCENT OF THE NEXT ONE HUNDRED MILLION DOLLARS IN INVEST-
MENT OR PORTION THEREOF; AND
  (3)  TWENTY PERCENT OF THE TOTAL INVESTMENT OVER AND ABOVE TWO HUNDRED
MILLION DOLLARS.
  (B) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING MAJOR
ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT
OR UNITS AT THE FACILITY, OR THE COMBINATION OF THE NEW  UNIT  OR  UNITS
AND  THE FACILITY TO INCREASE ITS OVERALL EFFICIENCY, AS DEMONSTRATED BY
A REDUCTION IN HEAT RATE, AND TO MEET THE  FOLLOWING  RELEVANT  ENVIRON-
MENTAL REQUIREMENTS:
  (I) A DECREASE IN THE RATE OF EMISSION EXPRESSED AS A POUNDS PER MEGA-
WATT-HOUR REDUCTION OF EACH OF THE RELEVANT SITING AIR CONTAMINANTS; AND
  (II)  COOLING WATER WITHDRAWAL CONSISTENT WITH A RATE EQUAL TO OR LESS
THAN CLOSED-CYCLE COOLING.
  (2) "ENVIRONMENTAL REQUIREMENTS", EXCEPT  AS  OTHERWISE  SPECIFIED  IN
PARAGRAPH ONE OF THIS SUBDIVISION, SHALL MEAN:
  (I)  AN  INCREASE IN OVERALL EFFICIENCY AS DEMONSTRATED BY A REDUCTION
IN HEAT RATE;
  (II) A DECREASE IN THE RATE OF EMISSION  EXPRESSED  AS  A  POUNDS  PER
MEGAWATT-HOUR REDUCTION OF EACH OF THE RELEVANT SITING AIR CONTAMINANTS;
AND
  (III) COOLING WATER WITHDRAWAL CONSISTENT WITH A RATE EQUAL TO OR LESS
THAN CLOSED-CYCLE COOLING.
  (3)  "QUALIFIED  ENERGY  INFRASTRUCTURE  INVESTMENT"  SHALL  MEAN  ANY
INVESTMENT NEEDED TO DELIVER A NEW FUEL SOURCE TO AN  EXISTING  ELECTRIC
GENERATING  FACILITY,  REPLACE  OR RETROFIT A BURNER OR TURBINE, UTILIZE
ON-SITE RENEWABLE ENERGY GENERATION, OR ANY OTHER SUBSTANTIAL INVESTMENT
THAT WILL HAVE A DIRECT IMPACT ON THE FACILITY'S ABILITY TO  MEET  RELE-
VANT ENVIRONMENTAL REQUIREMENTS.
  (4) "QUALIFIED NEW CONSTRUCTION PROJECT" SHALL MEAN CONSTRUCTING A NEW
MAJOR  ELECTRIC  GENERATING FACILITY IN THE SAME LOCATION AS AN EXISTING
FACILITY OR ON PROPERTY DIRECTLY ADJACENT OR CONTIGUOUS TO SAID  PROPER-
TY, WHERE THE NEW FACILITY BY ITSELF OR IN COMBINATION WITH THE EXISTING
FACILITY  WILL  ALLOW THE SITE AS A WHOLE TO MEET RELEVANT ENVIRONMENTAL
REQUIREMENTS.
  (5) "MAJOR ELECTRIC GENERATING FACILITY" SHALL MEAN A  MAJOR  ELECTRIC
GENERATING  FACILITY  AS  DEFINED  IN  SECTION  ONE HUNDRED SIXTY OF THE
PUBLIC SERVICE LAW.
  (C) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A REPOWERING
PROJECT, A QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT, A  QUALIFIED  NEW
CONSTRUCTION PROJECT, OR OTHER INVESTMENT IN POLLUTION CONTROL EQUIPMENT
OR  ADDITIONAL  ENERGY  INFRASTRUCTURE WITH THE GOAL OF MEETING RELEVANT
ENVIRONMENTAL REQUIREMENTS SHALL BE ALLOWED TO CLAIM A CREDIT UNDER THIS
SECTION.
  S 3. The tax law is amended by adding a new section 187-s to  read  as
follows:
  S  187-S.  CLEAN  FUEL  AND  JOB CREATION TAX CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY-EIGHT OF THIS CHAPTER,  AGAINST  THE  TAX  IMPOSED  BY
SECTIONS  ONE  HUNDRED  EIGHTY-THREE AND ONE HUNDRED EIGHTY-FOUR OF THIS
ARTICLE.

S. 2520                             3

  (B) APPLICATION OF CREDIT. 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 EIGHT-
Y-THREE OR ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE.   IF,  HOWEVER,  THE
AMOUNT  OF  CREDIT  ALLOWABLE  UNDER  THIS  SECTION 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.
  S 4. Section 210 of the tax law is amended by adding a new subdivision
46 to read as follows:
  46. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX  IMPOSED  BY  THIS
ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED-
IT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREATED AS AN  OVER-
PAYMENT  OF  TAX  TO  BE  CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THERE-
ON.
  S 5. Section 606 of the tax law is amended by adding a new  subsection
(vv) to read as follows:
  (VV)  CLEAN FUEL AND JOB CREATION TAX CREDIT. (1) ALLOWANCE OF CREDIT.
A TAXPAYER SHALL BE ALLOWED A CREDIT, TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION  THIRTY-EIGHT  OF  THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL 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 WILL  BE
PAID THEREON.
  S  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
follows:
(XXXV) CLEAN FUEL AND JOB CREATION   AMOUNT OF CLEAN FUEL AND
CREDIT UNDER SUBSECTION (VV)         JOB CREATION CREDIT UNDER
                                     SUBDIVISION FORTY-SIX
                                     OF SECTION TWO HUNDRED TEN
  S  7.  This  act shall take effect on the ninetieth day after it shall
have become a law.

Co-Sponsors

view additional co-sponsors

S2520A - Bill Details

Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §73, Pub Serv L; amd §§210 & 606, add §§41 & 187-t, Tax L

S2520A - Bill Texts

view summary

Creates the clean fuel and job creation tax credit of 2014 to incentivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies.

view sponsor memo
BILL NUMBER:S2520A

TITLE OF BILL: An act to amend the public service law and the tax law,
in relation to creating the clean fuel and job creation tax credit to
incentivize power plants to repower existing facilities or construct new
facilities which use cleaner burning fuels or add significant pollution
control technologies

PURPOSE:

To create the clean fuel and job creation tax credit to incentivize
power plants to repower existing facilities or construct new facilities
which use cleaner burning fuels or add significant pollution control
technologies.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends the public service law to authorize the
department of public service to request information from the department
of taxation and finance in relation to electric generating facilities
that have received a clean fuel and job creation tax credit.

Sections 2, 3, 4, 5 & 6 of the bill amend various sections of the tax
law to establish the clean fuel and job creation tax credit, and set
forth how it will be applied.

Section 7 is the effective date.

JUSTIFICATION:

Many power plants in NYS are contemplating repowering or making other
investments in infrastructure in order to meet new environmental stand-
ards and to remain competitive in the marketplace_ Some power plants are
even considering the construction of new electric generating units on
the same or adjacent property in order to remain competitive and improve
their overall environmental performance. Enhancing competition and
improving environmental compliance are worthy goals that should he
encouraged and incentivized.

Unfortunately, many of these power plants are prevented from taking
steps to re-power or otherwise improve their infrastructure and environ-
mental profile because of the high costs associated with doing so. By
creating a meaningful tax credit based on beneficial investments in
electric generating facilities, these power plants will be able to lower
the cost of repowering and other infrastructure upgrade projects. This
tax credit, which ranges from 12.5% to 20% based on the amount of the
investment, will encourage power plants to undertake important invest-
ment projects which will result in a cleaner, stronger and more modem
generating fleet. It will also allow the power plant to maintain job
levels and pave the way for job growth.

Further, these power plants often represent a significant portion of the
local tax base for the municipality where they are located, Loss of such
local tax base will be devastating for these communities. By providing
an appropriate tax credit for repowering and other infrastructure
projects, this legislation will allow power plants to become more
competitive and remain in operation for a longer period of time. This is
a significant benefit for our local communities due to the local tax
revenue that will be maintained and because of the jobs it will create
in the local economy.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall become a
law.

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

                                 2520--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens.  MAZIARZ,  CARLUCCI,  DILAN,  LARKIN,  MARCELLINO,
  RANZENHOFER, RITCHIE, YOUNG -- read twice  and  ordered  printed,  and
  when printed to be committed to the Committee on Energy and Telecommu-
  nications  --  reported favorably from said committee and committed to
  the Committee  on  Finance  --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to amend the public service law and the tax law, in relation to
  creating the clean fuel and job creation  tax  credit  to  incentivize
  power  plants  to repower existing facilities or construct new facili-
  ties which use cleaner burning  fuels  or  add  significant  pollution
  control technologies

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

  Section 1. The public service law is amended by adding a  new  section
73 to read as follows:
  S 73. COORDINATION WITH CERTAIN PROVISIONS OF THE TAX LAW. THE DEPART-
MENT  MAY  REQUEST FROM THE DEPARTMENT OF TAXATION AND FINANCE A LIST OF
ELECTRIC GENERATING FACILITIES THAT HAVE BEEN GRANTED A CLEAN  FUEL  AND
JOB  CREATION  TAX  CREDIT  AS  SUCH  CREDIT  IS  DESCRIBED  IN  SECTION
THIRTY-EIGHT OF THE TAX LAW. THE LIST SHALL INCLUDE THE LOCATION OF  THE
FACILITY RECEIVING THE CREDIT, A DESCRIPTION OF THE PROJECT TO WHICH THE
CREDIT RELATES, THE AMOUNT OF THE CREDIT, AND THE TAX YEAR FOR WHICH THE
CREDIT WAS GRANTED.
  S  2.  The  tax  law  is amended by adding a new section 38 to read as
follows:
  S 38. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT.
A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A  OR  TWENTY-TWO  OF
THIS CHAPTER, WHICH IS AN ELECTRIC GENERATING FACILITY, SHALL BE ALLOWED
A  CREDIT  AGAINST  SUCH  TAX,  PURSUANT TO THE PROVISIONS REFERENCED IN
SUBDIVISION (C) OF THIS SECTION.    THE  CREDIT  SHALL  BE  ALLOWED  FOR
CERTAIN  INVESTMENTS  MADE  BY ANY MAJOR ELECTRIC GENERATING FACILITY IN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05917-02-3

S. 2520--A                          2

THE STATE SUCH AS REPOWERING PROJECTS, QUALIFIED  ENERGY  INFRASTRUCTURE
INVESTMENTS,  AND  QUALIFIED  NEW  CONSTRUCTION PROJECTS AS DESCRIBED IN
THIS SECTION. THE CREDIT SHALL BE AS FOLLOWS:
  (1)  TWELVE  AND  ONE-HALF  PERCENT  OF  THE FIRST ONE HUNDRED MILLION
DOLLARS IN INVESTMENT;
  (2) FIFTEEN PERCENT OF THE NEXT ONE HUNDRED MILLION DOLLARS IN INVEST-
MENT OR PORTION THEREOF; AND
  (3) TWENTY PERCENT OF THE TOTAL INVESTMENT OVER AND ABOVE TWO  HUNDRED
MILLION DOLLARS.
  (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING  MAJOR
ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT
OR  UNITS  AT  THE FACILITY, OR THE COMBINATION OF THE NEW UNIT OR UNITS
AND  THE  FACILITY  TO  MEET  THE  RELEVANT  ENVIRONMENTAL  REQUIREMENTS
CONTAINED IN SUBPARAGRAPHS (I), (II), (III) AND (IV) OF PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION ONE HUNDRED SIXTY-FIVE OF THE PUBLIC SERVICE
LAW.
  (2)  "QUALIFIED  ENERGY  INFRASTRUCTURE  INVESTMENT"  SHALL  MEAN  ANY
INVESTMENT NEEDED TO DELIVER A NEW FUEL SOURCE TO AN  EXISTING  ELECTRIC
GENERATING  FACILITY,  REPLACE  OR RETROFIT A BURNER OR TURBINE, UTILIZE
ON-SITE RENEWABLE ENERGY GENERATION, OR ANY OTHER SUBSTANTIAL INVESTMENT
THAT WILL HAVE A DIRECT IMPACT ON THE FACILITY'S  ABILITY  TO  MEET  THE
ENVIRONMENTAL  REQUIREMENTS  CONTAINED IN SUBPARAGRAPHS (I), (II), (III)
AND (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR  OF  SECTION  ONE  HUNDRED
SIXTY-FIVE OF THE PUBLIC SERVICE LAW.
  (3) "QUALIFIED NEW CONSTRUCTION PROJECT" SHALL MEAN CONSTRUCTING A NEW
MAJOR  ELECTRIC  GENERATING FACILITY IN THE SAME LOCATION AS AN EXISTING
FACILITY OR ON PROPERTY DIRECTLY ADJACENT OR CONTIGUOUS TO SAID  PROPER-
TY, WHERE THE NEW FACILITY BY ITSELF OR IN COMBINATION WITH THE EXISTING
FACILITY  WILL  ALLOW  THE  SITE  AS  A  WHOLE TO MEET THE ENVIRONMENTAL
REQUIREMENTS CONTAINED IN SUBPARAGRAPHS (I), (II),  (III)  AND  (IV)  OF
PARAGRAPH  (B)  OF SUBDIVISION FOUR OF SECTION ONE HUNDRED SIXTY-FIVE OF
THE PUBLIC SERVICE LAW.
  (4) "MAJOR ELECTRIC GENERATING FACILITY" SHALL MEAN A  MAJOR  ELECTRIC
GENERATING  FACILITY  AS  DEFINED  IN  SECTION  ONE HUNDRED SIXTY OF THE
PUBLIC SERVICE LAW.
  (C) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A REPOWERING
PROJECT, A QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT, A  QUALIFIED  NEW
CONSTRUCTION PROJECT, OR OTHER INVESTMENT IN POLLUTION CONTROL EQUIPMENT
OR  ADDITIONAL  ENERGY  INFRASTRUCTURE WITH THE GOAL OF MEETING RELEVANT
ENVIRONMENTAL REQUIREMENTS SHALL BE ALLOWED TO CLAIM A CREDIT UNDER THIS
SECTION.
  S 3. The tax law is amended by adding a new section 187-s to  read  as
follows:
  S  187-S.  CLEAN  FUEL  AND  JOB CREATION TAX CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY-EIGHT OF THIS CHAPTER,  AGAINST  THE  TAX  IMPOSED  BY
SECTIONS  ONE  HUNDRED  EIGHTY-THREE AND ONE HUNDRED EIGHTY-FOUR OF THIS
ARTICLE.
  (B) APPLICATION OF CREDIT. 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 EIGHT-
Y-THREE OR ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE.   IF,  HOWEVER,  THE
AMOUNT  OF  CREDIT  ALLOWABLE  UNDER  THIS  SECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT  DEDUCTIBLE  IN

S. 2520--A                          3

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.
  S 4. Section 210 of the tax law is amended by adding a new subdivision
46 to read as follows:
  46. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX  IMPOSED  BY  THIS
ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED-
IT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREATED AS AN  OVER-
PAYMENT  OF  TAX  TO  BE  CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THERE-
ON.
  S 5. Section 606 of the tax law is amended by adding a new  subsection
(vv) to read as follows:
  (VV)  CLEAN FUEL AND JOB CREATION TAX CREDIT. (1) ALLOWANCE OF CREDIT.
A TAXPAYER SHALL BE ALLOWED A CREDIT, TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION  THIRTY-EIGHT  OF  THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL 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 WILL  BE
PAID THEREON.
  S  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
follows:
(XXXV) CLEAN FUEL AND JOB CREATION   AMOUNT OF CLEAN FUEL AND
CREDIT UNDER SUBSECTION (VV)         JOB CREATION CREDIT UNDER
                                     SUBDIVISION FORTY-SIX
                                     OF SECTION TWO HUNDRED TEN
  S  7.  This  act shall take effect on the ninetieth day after it shall
have become a law.

Co-Sponsors

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S2520B (ACTIVE) - Bill Details

Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §73, Pub Serv L; amd §§210 & 606, add §§41 & 187-t, Tax L

S2520B (ACTIVE) - Bill Texts

view summary

Creates the clean fuel and job creation tax credit of 2014 to incentivize power plants to repower existing facilities or construct new facilities which use cleaner burning fuels or add significant pollution control technologies.

view sponsor memo
BILL NUMBER:S2520B

TITLE OF BILL: An act to amend the public service law and the tax
law, in relation to creating the clean fuel and job creation tax
credit to incentivize power plants to repower existing facilities or
construct new facilities which use cleaner burning fuels or add
significant pollution control technologies

PURPOSE: To create the clean fuel and job creation tax credit to
incentivize power plants to repower existing facilities or construct
new facilities which use cleaner burning fuels or add significant
pollution control technologies.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends the public service law to authorize the
department of public service to request information from the
department of taxation and finance in relation to electric generating
facilities that have received a clean fuel and job creation tax
credit.

Sections 2, 3, 4, 5 & 6 of the bill amend various sections of the tax
law to establish the clean fuel and job creation tax credit, and set
forth how it will be applied.

Section 7 is the effective date.

JUSTIFICATION: Many power plants in NYS are contemplating repowering
or making other investments in infrastructure in order to meet new
environmental standards and to remain competitive in the marketplace_
Some power plants are even considering the construction of new
electric generating units on the same or adjacent property in order to
remain competitive and improve their overall environmental
performance. Enhancing competition and improving environmental
compliance are worthy goals that should he encouraged and
incentivized.

Unfortunately, many of these bower plants are prevented from taking
steps to re-power or otherwise improve their infrastructure and
environmental profile because of the high costs associated with doing
so. By creating a meaningful tax credit based on beneficial
investments in electric generating facilities, these power plants will
be able to lower the cost of renowering and other infrastructure
upgrade projects. This tax credit, which ranges from 12.5% to 20%
based on the amount of the investment, will encourage power plants to
undertake important investment projects which will result in a
cleaner, stronger and more modem generating fleet. It will also allow
the power plant to maintain job levels and pave the way for job
growth.

Further, these power plants often represent a significant portion of
the local tax base for the municipality where they are located, Loss
of such local tax base will be devastating for these communities. By
providing an appropriate tax credit for repowering and other
infrastructure projects, this legislation will allow power plants to
become more competitive and remain in operation for a longer period of
time. This is a significant benefit for our local communities due to


the local tax revenue that will be maintained and because of the jobs
it will create in the local economy.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the ninetieth day after
it shall become a law.

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

                                 2520--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens.  MAZIARZ,  CARLUCCI,  DILAN,  LARKIN,  MARCELLINO,
  RANZENHOFER, RITCHIE, YOUNG -- read twice  and  ordered  printed,  and
  when printed to be committed to the Committee on Energy and Telecommu-
  nications  --  reported favorably from said committee and committed to
  the Committee  on  Finance  --  committee  discharged,  bill  amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  recommitted to the  Committee  on  Energy  and  Telecommunications  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to amend the public service law and the tax law, in relation to
  creating the clean fuel and job creation  tax  credit  to  incentivize
  power  plants  to repower existing facilities or construct new facili-
  ties which use cleaner burning  fuels  or  add  significant  pollution
  control technologies

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

  Section 1. The public service law is amended by adding a  new  section
73 to read as follows:
  S 73. COORDINATION WITH CERTAIN PROVISIONS OF THE TAX LAW. THE DEPART-
MENT  MAY  REQUEST FROM THE DEPARTMENT OF TAXATION AND FINANCE A LIST OF
ELECTRIC GENERATING FACILITIES THAT HAVE BEEN GRANTED A CLEAN  FUEL  AND
JOB CREATION TAX CREDIT AS SUCH CREDIT IS DESCRIBED IN SECTION FORTY-ONE
OF  THE TAX LAW. THE LIST SHALL INCLUDE THE STREET ADDRESS AND COUNTY OF
THE FACILITY RECEIVING THE CREDIT, A DESCRIPTION OF THE PROJECT TO WHICH
THE CREDIT RELATES, THE AMOUNT OF THE CREDIT, AND THE TAX YEAR FOR WHICH
THE CREDIT WAS GRANTED.
  S 2. The tax law is amended by adding a new  section  41  to  read  as
follows:
  S 41. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT.
A  TAXPAYER  SUBJECT  TO TAX UNDER ARTICLE NINE, NINE-A OR TWENTY-TWO OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05917-04-3

S. 2520--B                          2

THIS CHAPTER, WHICH IS AN ELECTRIC GENERATING FACILITY, SHALL BE ALLOWED
A CREDIT AGAINST SUCH TAX, PURSUANT  TO  THE  PROVISIONS  REFERENCED  IN
SUBDIVISION  (C)  OF  THIS  SECTION.    THE  CREDIT SHALL BE ALLOWED FOR
CERTAIN  INVESTMENTS  MADE  BY ANY MAJOR ELECTRIC GENERATING FACILITY IN
THE STATE SUCH AS REPOWERING PROJECTS, QUALIFIED  ENERGY  INFRASTRUCTURE
INVESTMENTS,  AND  QUALIFIED  NEW  CONSTRUCTION PROJECTS AS DESCRIBED IN
THIS SECTION. THE CREDIT SHALL BE AS FOLLOWS:
  (1) TWELVE AND ONE-HALF PERCENT  OF  THE  FIRST  ONE  HUNDRED  MILLION
DOLLARS IN INVESTMENT;
  (2) FIFTEEN PERCENT OF THE NEXT ONE HUNDRED MILLION DOLLARS IN INVEST-
MENT OR PORTION THEREOF; AND
  (3)  TWENTY PERCENT OF THE TOTAL INVESTMENT OVER AND ABOVE TWO HUNDRED
MILLION DOLLARS.
  (B) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING MAJOR
ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT
OR UNITS AT THE FACILITY, OR THE COMBINATION OF THE NEW  UNIT  OR  UNITS
AND  THE  FACILITY  TO  MEET  THE  RELEVANT  ENVIRONMENTAL  REQUIREMENTS
CONTAINED IN SUBPARAGRAPHS (I), (II), (III) AND (IV) OF PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION ONE HUNDRED SIXTY-FIVE OF THE PUBLIC SERVICE
LAW.
  (2)  "QUALIFIED  ENERGY  INFRASTRUCTURE  INVESTMENT"  SHALL  MEAN  ANY
INVESTMENT  NEEDED  TO DELIVER A NEW FUEL SOURCE TO AN EXISTING ELECTRIC
GENERATING FACILITY, REPLACE OR RETROFIT A BURNER  OR  TURBINE,  UTILIZE
ON-SITE RENEWABLE ENERGY GENERATION, OR ANY OTHER SUBSTANTIAL INVESTMENT
THAT  WILL  HAVE  A  DIRECT IMPACT ON THE FACILITY'S ABILITY TO MEET THE
ENVIRONMENTAL REQUIREMENTS CONTAINED IN SUBPARAGRAPHS (I),  (II),  (III)
AND  (IV)  OF  PARAGRAPH  (B) OF SUBDIVISION FOUR OF SECTION ONE HUNDRED
SIXTY-FIVE OF THE PUBLIC SERVICE LAW.
  (3) "QUALIFIED NEW CONSTRUCTION PROJECT" SHALL MEAN CONSTRUCTING A NEW
MAJOR ELECTRIC GENERATING FACILITY IN THE SAME LOCATION AS  AN  EXISTING
FACILITY  OR ON PROPERTY DIRECTLY ADJACENT OR CONTIGUOUS TO SAID PROPER-
TY, WHERE THE NEW FACILITY BY ITSELF OR IN COMBINATION WITH THE EXISTING
FACILITY WILL ALLOW THE SITE  AS  A  WHOLE  TO  MEET  THE  ENVIRONMENTAL
REQUIREMENTS  CONTAINED  IN  SUBPARAGRAPHS  (I), (II), (III) AND (IV) OF
PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION ONE HUNDRED  SIXTY-FIVE  OF
THE PUBLIC SERVICE LAW.
  (4)  "MAJOR  ELECTRIC GENERATING FACILITY" SHALL MEAN A MAJOR ELECTRIC
GENERATING FACILITY AS DEFINED IN  SECTION  ONE  HUNDRED  SIXTY  OF  THE
PUBLIC SERVICE LAW.
  (C) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A REPOWERING
PROJECT,  A  QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT, A QUALIFIED NEW
CONSTRUCTION PROJECT, OR OTHER INVESTMENT IN POLLUTION CONTROL EQUIPMENT
OR ADDITIONAL ENERGY INFRASTRUCTURE WITH THE GOAL  OF  MEETING  RELEVANT
ENVIRONMENTAL REQUIREMENTS SHALL BE ALLOWED TO CLAIM A CREDIT UNDER THIS
SECTION.
  S  3.  The tax law is amended by adding a new section 187-t to read as
follows:
  S 187-T. CLEAN FUEL AND JOB CREATION  TAX  CREDIT.  (A)  ALLOWANCE  OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN  SECTION  FORTY-ONE  OF  THIS  CHAPTER,  AGAINST  THE  TAX IMPOSED BY
SECTIONS ONE HUNDRED EIGHTY-THREE AND ONE HUNDRED  EIGHTY-FOUR  OF  THIS
ARTICLE.
  (B)  APPLICATION  OF  CREDIT.  IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE  THE  TAX  PAYABLE  TO

S. 2520--B                          3

LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE  OR  ONE  HUNDRED EIGHTY-FOUR OF THIS ARTICLE.  IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SECTION  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.
  S 4. Section 210 of the tax law is amended by adding a new subdivision
48 to read as follows:
  48. CLEAN FUEL AND JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION FORTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED-
IT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR WILL BE TREATED AS AN  OVER-
PAYMENT  OF  TAX  TO  BE  CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THERE-
ON.
  S 5. Subsections (yy) and (zz) of section  606  of  the  tax  law,  as
relettered  by section 5 of part H of chapter 1 of the laws of 2003, are
relettered subsections (yyy) and (zzz) and  a  new  subsection  (xx)  is
added to read as follows:
  (XX)  CLEAN FUEL AND JOB CREATION TAX CREDIT. (1) ALLOWANCE OF CREDIT.
A TAXPAYER SHALL BE ALLOWED A CREDIT, TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION FORTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL 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 WILL BE
PAID THEREON.
  S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is amended by adding a new clause (xxxvii) to read as
follows:
(XXXVII) CLEAN FUEL AND JOB CREATION AMOUNT OF CLEAN FUEL AND
CREDIT UNDER SUBSECTION (XX)         JOB CREATION CREDIT UNDER
                                     SUBDIVISION FORTY-EIGHT
                                     OF SECTION TWO HUNDRED TEN
  S 7. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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