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

                                  5904

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              March 8, 2013
                               ___________

Introduced  by  M.  of  A.  GABRYSZAK  --  read once and referred to the
  Committee on Ways and Means

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
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.
                                                           LBD05917-03-3

              

A. 5904                             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  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
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.

A. 5904                             3

  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.