S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1700--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 12, 2017
                                ___________
 
 Introduced  by  M.  of A. HEVESI, BARRETT, SANTABARBARA -- read once and
   referred to the Committee on Ways and  Means  --  recommitted  to  the
   Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee

 AN ACT to amend the tax law, in relation to providing a  tax  credit  to
   farmers  who  purchase  biodiesel fuel for the operation of their farm
   equipment
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  210-B  of the tax law is amended by adding a new
 subdivision 53 to read as follows:
   53. CREDIT FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT.   (A)  ALLOW-
 ANCE  OF  CREDIT.  A  TAXPAYER THAT IS A BUSINESS PRINCIPALLY ENGAGED IN
 FARMING, AS  SUCH TERM IS DEFINED IN PARAGRAPH NINETEEN  OF  SUBDIVISION
 (B)  OF  SECTION  ELEVEN  HUNDRED ONE OF THIS CHAPTER SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS   ARTICLE  FOR  THE  PURCHASE  OF
 QUALIFIED  BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT IN THIS STATE.
 SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL PER GALLON OF QUALI-
 FIED BIODIESEL FUEL, NOT TO EXCEED TWENTY CENTS PER GALLON, PURCHASED BY
 SUCH TAXPAYER DURING THE TAXABLE YEAR AND USED IN FARMING EQUIPMENT.
   (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS  SHALL
 APPLY:
   (1)  "BIODIESEL"  SHALL MEAN A FUEL COMPRISED EXCLUSIVELY OF MONOALKYL
 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.
   (2) "QUALIFIED BIODIESEL" SHALL MEAN A FUEL THAT IS A MIXTURE OF BIOD-
 IESEL AND DIESEL MOTOR FUEL.
   (C)  APPLICATION  OF  CREDIT.  IN  NO  EVENT  SHALL  THE CREDIT HEREIN
 PROVIDED FOR BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE  TAX  PAYABLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02457-03-8

 A. 1700--A                          2
 
 TO  LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND
 (D) OF SUBDIVISION ONE OF SECTION  TWO  HUNDRED  TEN  OF  THIS  ARTICLE.
 HOWEVER,  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION 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 ONE THOUSAND
 EIGHTY-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE
 PAID ON SUCH REFUND, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (C) OF
 SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  CREDIT FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT. (1) ALLOW-
 ANCE OF CREDIT. A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM  FARMING  FOR
 THE  TAXABLE  YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME
 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
 THE PURCHASE OF QUALIFIED BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT
 IN  THIS STATE.  SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL PER
 GALLON OF QUALIFIED BIODIESEL FUEL,  NOT  TO  EXCEED  TWENTY  CENTS  PER
 GALLON,  PURCHASED  BY SUCH TAXPAYER DURING THE TAXABLE YEAR AND USED IN
 FARMING EQUIPMENT.
   (2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  DEFI-
 NITIONS SHALL APPLY:
   (A)  "EXCESS  FEDERAL  GROSS INCOME" MEANS THE AMOUNT OF FEDERAL GROSS
 INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT  TO
 EXCEED THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
 INCOME  WHICH  CONSIST  OF  (I)  EARNED  INCOME,  (II) PENSION PAYMENTS,
 INCLUDING SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV)  DIVIDENDS.
 FOR  PURPOSES  OF  THIS  PARAGRAPH,  THE TERM "EARNED INCOME" SHALL MEAN
 WAGES, SALARIES, TIPS AND OTHER EMPLOYEE COMPENSATION, AND  THOSE  ITEMS
 OF  GROSS INCOME WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET EARNINGS
 FROM SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS  FROM
 THE  STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT
 OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS  FEDERAL  GROSS  INCOME
 FROM FARMING.
   (B) "BIODIESEL" MEANS A FUEL COMPRISED EXCLUSIVELY OF MONOALKYL ESTERS
 OF  LONG  CHAIN  FATTY ACIDS DERIVED FROM VEGETABLE OILS OR ANIMAL FATS,
 DESIGNATED B100, WHICH MEETS THE SPECIFICATIONS OF AMERICAN  SOCIETY  OF
 TESTING AND MATERIALS DESIGNATION D 6751.
   (C)  "QUALIFIED BIODIESEL" MEANS A FUEL THAT IS A MIXTURE OF BIODIESEL
 AND DIESEL MOTOR FUEL.
   (3) APPLICATION OF CREDIT. 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.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.