NY State Senate Bill 2017-S7255A

Senate Bill S7255A

2017-2018 Legislative Session

Relates to biofuel production credit for production of cellulosic ethanol, densified biofuel and renewable fuel oil

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 07, 2018	reported and committed to rules
May 30, 2018	print number 7255a
May 30, 2018	amend (t) and recommit to energy and telecommunications
Jan 05, 2018	referred to energy and telecommunications

Votes

- Jun 6, 2018 - Energy And Telecommunications Committee Vote
  S7255A
  
  6
  
  Aye
  
  3
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Jun 6, 2018
      
      aye (6)
      
      Griffo
      
      Little
      
      O'Mara
      
      Ortt
      
      Peralta
      
      Ritchie
      
      nay (3)
      
      Dilan
      
      Kennedy
      
      Parker
      
      aye wr (1)
      
      Comrie
      
      excused (1)
      
      Croci

Bill Amendments

Original

A (Active)

co-Sponsors

2017-S7255 - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Ren §28 to be §44, amd §§44, 187-c, 210-B & 606, Tax L

2017-S7255 - Summary

Includes the production of cellulosic ethanol, densified biofuel and renewable fuel oil within the biofuel production tax credit.

2017-S7255 - Sponsor Memo

                                
 
BILL NUMBER: S7255

SPONSOR: RITCHIE
 
TITLE OF BILL:

An act to amend the tax law, in relation to biofuel production credit
for production of cellulosic ethanol

 
PURPOSE:

To provide an additional tax credit for production of cellulosic ethanol
in the amount of 25 cents per gallon after the production of the first
40,000 gallons.

 
SUMMARY OF PROVISIONS:

Section one amends section 28 of the tax law, which is renumbered to
section 28-a, to provide a tax credit of 25 cents per gallon for the
production of cellulosic ethanol after the production of the first forty
thousand gallons per year presented to market. The section further
defines cellulosic ethanol," and amends the definition of "biofuel

plant" to include any commercial facility where cellulosic ethanol is
one or more of the biofuels being produced at such facility, and, for
purposes of applying the tax credit, the facility shall be considered a
separate biofuel plant.

Section two though four of the bill amend sections 187-c, 210-B and 606
of the tax law to make provisions for the biofuel production credit.

Section five provides for the effective date.

 
JUSTIFICATION:

Chapter 62 of the laws of 2006 established a biofuel production credit
in New York State, equal to 15 cents per gallon after the production of
the first forty thousand gallons of biofuels. This legislation demon-
strated New York State's commitment to mass production of biofuels such
as ethanol made from corn. The legislation was intended to support
commercialization of new technologies developed at universities includ-
ing SUNY ESF, Cornell and Clarkson, for production of cellulosic ethanol
using different feedstocks, such as willow, northern hardwoods, and
grasses.

Cellulosic ethanol has numerous benefits that ethanol produced from corn
or sorghum lack. First, willows and northern hardwoods are better suited
to the climate of New York State. New York State's existing natural
resources are uniquely positioned to contribute to increased production
of cellulosic ethanol. In addition, the U.S.  Department of Energy and
U.S. Department of Agriculture reported in April 2005 that the United
States has the capacity to sustainably produce 1.3 billion tons of biom-
ass each year, which would displace at least 30 percent of current
petroleum consumption in the United States. Also, cellulosic ethanol
produces fewer greenhouse gas emissions than other types of ethanol.

From an economic standpoint, the development of the biofuel industry in
New York has the potential to create jobs in biofuel refineries, as well
as in the areas of production, ore-processing, and transportation. A
2010 Renewable Fuels Roadmap developed by the New York State Energy and
Development Authority (NYSERDA), determined that the biofuel industry
has the potential for robust job growth.  Depending on the price paid
for ethanol in the year 2020, NYSERDA estimates between 3,891 and 14,604
jobs can be created by direct and induced biofuel refinery growth,
statewide, and that labor income, wages and salaries paid across the
state, will fall between $172.6 million and $608.3 million. Overall,
NYSERDA projects the gross domestic product of the industry to be
between $0.46 billion and $1.7 billion.

Rural communities across New York stand to benefit from the development
of the biofuel industry as it provides an opportunity to diversify, add
value to traditional products, and return abandoned farmland to the
commercial sector.

In order to capitalize on both the environmental and economic opportu-
nities afforded by the development of biofuels, it is imperative that
New York State generate additional incentives for the production of
cellulosic ethanol.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2017-S7255 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7255
 
                             I N  S E N A T E
 
                              January 5, 2018
                                ___________
 
 Introduced by Sens. RITCHIE, ORTT -- read twice and ordered printed, and
   when printed to be committed to the Committee on Energy and Telecommu-
   nications
 
 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, subdivision (a) as amended by section
 1 of part K of chapter 59 of  the  laws  of  2012,  subdivision  (d)  as
 amended  by  section  46 of part A of chapter 59 of the laws of 2014, is
 renumbered section 28-a and amended to read as follows:
   § 28-a. 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
 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.  If  the  taxpayer is a partner in a partnership or
 shareholder of a New York S corporation, then the  cap  imposed  by  the
 preceding  sentence  shall  be  applied at the entity level, so that the
 aggregate credit allowed to all the partners  or  shareholders  of  each
 such entity in the taxable year does not exceed two and one-half million
 dollars.  The tax credit allowed pursuant to this section shall apply to
 taxable years beginning before January first, two thousand twenty.
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD06053-03-8

 S. 7255                             2
 
 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
 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-B, subdivision 24.
   (3) Article 22: Section 606, subsections (i) and (jj).
   § 2. Section 187-c of the tax law, as amended by section 15 of part  S
 of chapter 59 of the laws of 2014, is amended to read as follows:
   §  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
 credit to be computed as  provided  in  section  [twenty-eight]  TWENTY-
 EIGHT-A of this chapter, [as added by part X of chapter sixty-two of the
 laws  of  two  thousand  six,]  against the tax imposed by this article.
 Provided, however, that the amount of such credit  allowed  against  the
 tax  imposed by section one hundred eighty-four of this article shall be
 the excess of the amount of such credit over the amount  of  any  credit
 allowed  by  this section against the tax imposed by section one hundred
 eighty-three of this article. 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 of this article. If, however, the amount of the  credit  allowed
 under  this section for any taxable year reduces the tax to such amount,
 the excess shall be treated as an overpayment of tax to be  credited  or
 refunded in accordance with the provisions of section six hundred eight-
 y-six  of  this chapter. Provided, however, the provisions of subsection
 (c) of section one thousand eighty-eight of this  chapter  notwithstand-

 S. 7255                             3
 
 ing,  no interest shall be paid thereon. The tax credit allowed pursuant
 to this section shall apply to taxable years  beginning  before  January
 first, two thousand twenty.
   §  3.  Subdivision  24  of  section  210-B of the tax law, as added by
 section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
 read as follows:
   24.  Biofuel  production  credit.  (a)  General.  A  taxpayer shall be
 allowed a credit, to be computed as provided in  section  [twenty-eight]
 TWENTY-EIGHT-A  of this chapter [added as part X of chapter sixty-two of
 the laws of two thousand six], against the tax imposed by this  article.
 The credit allowed under this subdivision for any taxable year shall not
 reduce  the  tax due for such year to less than the fixed dollar minimum
 amount prescribed in paragraph (d) of subdivision  one  of  section  two
 hundred  ten  of this article.  However, if the amount of credit allowed
 under this subdivision for any taxable year  reduces  the  tax  to  such
 amount  or  if the taxpayer otherwise pays tax based on the fixed dollar
 minimum amount, any amount of credit thus not deductible in such taxable
 year 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,  the  provisions  of
 subsection  (c)  of  section  one  thousand eighty-eight of this chapter
 notwithstanding, no interest shall  be  paid  thereon.  The  tax  credit
 allowed  pursuant to this section shall apply to taxable years beginning
 before January first, two thousand twenty.
   § 4. Subsection (jj) of section 606 of the  tax  law,  as  amended  by
 section  4  of  part  K of chapter 59 of the laws of 2012, 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] TWENTY-EIGHT-A of
 this chapter, [as added by part X of chapter sixty-two of  the  laws  of
 two  thousand  six,]  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  accord-
 ance with the provisions of section six hundred eighty-six of this arti-
 cle,  provided, however, that no interest shall be paid thereon. The tax
 credit allowed pursuant to this section shall  apply  to  taxable  years
 beginning before January first, two thousand twenty.
   § 5. This act shall take effect immediately.

co-Sponsors

2017-S7255A (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Ren §28 to be §44, amd §§44, 187-c, 210-B & 606, Tax L

2017-S7255A (ACTIVE) - Summary

Includes the production of cellulosic ethanol, densified biofuel and renewable fuel oil within the biofuel production tax credit.

2017-S7255A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7255A

SPONSOR: RITCHIE
 
TITLE OF BILL:

An act to amend the tax law, in relation to the biofuel production cred-
it for the production of cellulosic ethanol, densified biofuel and
renewable fuel oil

 
PURPOSE:

To provide an additional tax credit for production of cellulosic etha-
nol, renewable fuel oil, and densified biofuel.

 
SUMMARY OF PROVISIONS:

Section one amends section 28 of the tax law, which is renumbered as
section 44.

Section two amends subdivisions (a) and (b) of section 44 of the tax
law, as renumbered by section one of this act, to provide a tax credit

of 25 cents per gallon for the production of cellulosic ethanol or
renewable fuel oil after the production of the first forty thousand
gallons per year presented to market. The section provides a tax credit
of 15 dollars for each bone dry ton produced after the first ten thou-
sand tons each year presented to the market. The section also raises the
cap on tax credit, not to exceed ten million dollars per taxable year
for a maximum of ten consecutive taxable years per biofuel plant. The
section further defines "cellulosic ethanol," "renewable fuel oil," and
"densified biofuel," and amends the definition of "biofuel plant" to
include any commercial facility where cellulosic ethanol, renewable fuel
oil, or densified biofuel is one or more of the biofuels being produced
at such facility, and, for purposes of applying the tax credit, the
facility shall be considered a separate biofuel plant.

Section three though five of the bill amend sections I87-c, 210-B and
606 of the tax law to make provisions for the biofuel production credit.

Section six provides for the effective date.

 
JUSTIFICATION:

Chapter 62 of the laws of 2006 established a biofuel production credit
in New York State, equal to 15 cents per gallon after the production of
the first forty thousand gallons of biofuels. This legislation demon-
strated New York State's commitment to mass production of biofuels such
as ethanol made from corn. New York has experienced commercialization of
new technologies developed at SUNY ESF, Cornell, and Clarkson, for
production of cellulosic ethanol using different feedstocks, such as
willow, northern hardwoods, and grasses. This act expands upon existing
incentives for biofuel made from corn by extending incentives to produc-
ers of cellulosic ethanol, densified biofuels, and renewable fuel oil
generated from biomass.

Cellulosic ethanol, densified biofuels, and renewable fuel oil have
numerous benefits. First, willows and northern hardwoods are better
suited than corn or sorghum to the climate of New York State. New York
State's existing natural resources are uniquely positioned to contribute
to increased production of cellulosic ethanol, densified biofuels, and
renewable fuel oil. In addition, the U.S. Department of Energy and U.S.
Department of Agriculture reported in April 2005 that the United States
has the capacity to sustainably produce 1.3 billion tons of biomass each
year, which would displace at least 30 percent of current petroleum
consumption in the United States. Also, cellulosic ethanol produces
fewer greenhouse gas emissions than other types of ethanol.

From an economic standpoint, the development of the biofuel industry in
New York has the potential to create jobs in biofuel refineries, as well
as in the areas of production, ore-processing, and transportation. A
2010 Renewable Fuels Roadmap developed by the New York State Energy and
Development Authority (NYSERDA), determined that the biofuel industry
has the potential for robust job growth.

Depending on the price paid for ethanol in the year 2020, NYSERDA esti-
mates between 3,891 and 14,604 jobs can be created by direct and induced
biofuel refinery growth, statewide, and that labor income, wages and
salaries paid across the state, will fall between $172.6 million and
$608.3 million. Overall, NYSERDA projects the gross domestic product of
the industry to be between $0.46 billion and $1.7 billion.

Rural communities across New York stand to benefit from the development
of the biofuel industry as it provides an opportunity to diversify, add
value to traditional products, and return abandoned farmland to the
commercial sector.

In order to capitalize on both the environmental and economic opportu-
nities afforded by the development of biofuels, it is imperative that
New York State generate additional incentives for the production of
cellulosic ethanol, densified biofuel, and renewable fuel oil.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.

2017-S7255A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7255--A
 
                             I N  S E N A T E
 
                              January 5, 2018
                                ___________
 
 Introduced by Sens. RITCHIE, ORTT -- read twice and ordered printed, and
   when printed to be committed to the Committee on Energy and Telecommu-
   nications  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to the biofuel production cred-
   it for the production of cellulosic  ethanol,  densified  biofuel  and
   renewable fuel oil
 
   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 44.
   §  2.  Subdivisions (a) and (b) of section 44 of the tax law, subdivi-
 sion (a) as amended by section 1 of part K of chapter 59 of the laws  of
 2012  and  subdivision (b) as added by section 1 of part X of chapter 62
 of the laws of 2006, such section as renumbered by section one  of  this
 act, are amended to read as follows:
   (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 LIQUID 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  PRODUCTION  OF
 CELLULOSIC  ETHANOL  OR  RENEWABLE  FUEL OIL after the production of the
 first forty thousand gallons per year presented to  market.  THE  CREDIT
 FOR  EACH  BONE DRY TON OF DENSIFIED BIOFUEL PRODUCED AT A BIOFUEL PLANT
 ON OR AFTER JANUARY FIRST, TWO THOUSAND SIX SHALL EQUAL FIFTEEN  DOLLARS
 PER BONE DRY TON AFTER THE PRODUCTION OF THE FIRST TEN THOUSAND TONS PER
 YEAR  PRESENTED TO MARKET. The credit under this section shall be capped
 at [two and one-half] TEN million dollars per taxpayer per taxable  year
 for  up to no more than [four] TEN consecutive taxable years per biofuel
 plant. If the taxpayer is a partner in a partnership or shareholder of a
 New York S corporation, then the cap imposed by the  preceding  sentence
 shall  be  applied  at  the  entity  level, so that the aggregate credit
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD06053-04-8

 S. 7255--A                          2
 
 allowed to all the partners or shareholders of each such entity  in  the
 taxable year does not exceed [two and one-half] TEN million dollars. The
 tax credit allowed pursuant to this section shall apply to taxable years
 beginning before January first, two thousand twenty.
   (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,
 DENSIFIED  BIOFUEL  AND  RENEWABLE  FUEL OIL. 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 Society of Testing and Mate-
 rials designation D 6751-02. The term "ethanol" shall mean ethyl alcohol
 manufactured in the United States and its 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.  THE TERM "RENEWABLE FUEL OIL" SHALL MEAN A  FUEL
 COMPRISED  OF ANY NON-FOOD BIOMASS BASED FEEDSTOCK THAT CAN BE USED AS A
 FULL OR PARTIAL SUBSTITUTE FOR TRADITIONAL PETROLEUM FUELS.
   (2) "CELLULOSIC ETHANOL" MEANS THE PRODUCTION OF ETHANOL  FROM  LIGNO-
 CELLULOSIC  BIOMASS FEEDSTOCKS, INCLUDING CELLULOSIC COMPONENTS OF SEPA-
 RATED FOOD WASTE AS DEFINED IN TABLE 1 OF C.F.R. § 80.1426  AND  BY-PRO-
 DUCTS  FROM  AGRICULTURAL  WASTE,  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, AGRICULTURAL AND FORESTRY RESIDUES
 AS  DEFINED IN TABLE 1 OF C.F.R.  § 80.1426, 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 SECTION SHALL
 BE DETERMINED BY THE PRESIDENT OF THE NEW YORK STATE ENERGY AND RESEARCH
 DEVELOPMENT AUTHORITY.
   (3) "DENSIFIED BIOFUEL" MEANS A SOLID FUEL DERIVED BY  THE  MECHANICAL
 DENSIFICATION AND REFINING OF BIOMASS SOURCED FROM WOODY OR AGRICULTURAL
 FEEDSTOCKS.
   (4)  "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, RENEWA-
 BLE FUEL OIL OR DENSIFIED BIOFUEL IS  PRODUCED  SHALL  BE  CONSIDERED  A
 SEPARATE BIOFUEL PLANT.
   §  3. Section 187-c of the tax law, as amended by section 15 of part S
 of chapter 59 of the laws of 2014, is amended to read as follows:
   § 187-c. Biofuel production credit. A  taxpayer  shall  be  allowed  a
 credit  to  be computed as provided in section [twenty-eight] FORTY-FOUR
 of this chapter, [as added by part X of chapter sixty-two of the laws of
 two thousand six,] against the tax imposed by  this  article.  Provided,
 however,  that the amount of such credit allowed against the tax imposed
 by section one hundred eighty-four of this article shall be  the  excess
 of  the  amount  of such credit over the amount of any credit allowed by
 this section against the tax imposed by section one hundred eighty-three
 of this article. 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 of this

 S. 7255--A                          3
 
 article. If, however, the  amount  of  the  credit  allowed  under  this
 section  for any taxable year reduces the tax to such amount, 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
 chapter.  Provided, however, the provisions of subsection (c) of section
 one thousand eighty-eight of this chapter notwithstanding,  no  interest
 shall  be  paid thereon. The tax credit allowed pursuant to this section
 shall apply to taxable years beginning before January first,  two  thou-
 sand twenty.
   §  4.  Subdivision  24  of  section  210-B of the tax law, as added by
 section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
 read as follows:
   24.  Biofuel  production  credit.  [(a)  General.] A taxpayer shall be
 allowed a credit, to be computed as provided in  section  [twenty-eight]
 FORTY-FOUR  of this chapter [added as part X of chapter sixty-two of the
 laws of two thousand six], against the tax imposed by this article.  The
 credit  allowed  under  this  subdivision for any taxable year shall not
 reduce the tax due for such year to less than the fixed  dollar  minimum
 amount  prescribed  in  paragraph  (d) of subdivision one of section two
 hundred ten of this article.  However, if the amount of  credit  allowed
 under  this  subdivision  for  any  taxable year reduces the tax to such
 amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
 minimum amount, any amount of credit thus not deductible in such taxable
 year  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,  the  provisions  of
 subsection (c) of section one  thousand  eighty-eight  of  this  chapter
 notwithstanding,  no  interest  shall  be  paid  thereon. The tax credit
 allowed pursuant to this section shall apply to taxable years  beginning
 before January first, two thousand twenty.
   §  5.  Subsection  (jj)  of  section 606 of the tax law, as amended by
 section 4 of part K of chapter 59 of the laws of  2012,  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] FORTY-FOUR of  this
 chapter,  [as  added  by  part X of chapter sixty-two of the laws of two
 thousand six,] 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. The tax credit  allowed
 pursuant  to  this section shall apply to taxable years beginning before
 January first, two thousand twenty.
   § 6. This act shall take effect immediately.

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Senate Bill S7255A

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Sponsored By

Patty Ritchie

Archive: Last Bill Status - In Senate Committee Rules Committee

Bill Amendments

co-Sponsors

Robert G. Ortt

2017-S7255 - Details

2017-S7255 - Summary

2017-S7255 - Sponsor Memo

2017-S7255 - Bill Text download pdf

co-Sponsors

Robert G. Ortt

2017-S7255A (ACTIVE) - Details

2017-S7255A (ACTIVE) - Summary

2017-S7255A (ACTIVE) - Sponsor Memo

2017-S7255A (ACTIVE) - Bill Text download pdf

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