S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2290
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2021
                                ___________
 
 Introduced  by  Sen.  JORDAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to providing a tax  credit  for
   the  purchase  of  on-farm  anaerobic  digesters or other farm-related
   equipment that is used in the process of turning farm waste into meth-
   ane for commercial use
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The tax law is amended by adding two new sections 28-a and
 187-q to read as follows:
   § 28-A. METHANE PRODUCTION EQUIPMENT CREDIT. (A) GENERAL.  A  TAXPAYER
 SUBJECT  TO TAX UNDER ARTICLE NINE, NINE-A OR TWENTY-TWO OF THIS CHAPTER
 SHALL BE ALLOWED A ONE-TIME CREDIT AGAINST  SUCH  TAX  PURSUANT  TO  THE
 PROVISIONS REFERENCED IN SUBDIVISION (B) OF THIS SECTION. THE CREDIT (OR
 PRO  RATA  SHARE  OF  THE  CREDIT  IN THE CASE OF A PARTNERSHIP) FOR THE
 PURCHASE AND IMPLEMENTATION AT A FARM  LOCATED  IN  NEW  YORK  STATE  OF
 ON-FARM ANAEROBIC DIGESTERS OR OTHER FARM-RELATED EQUIPMENT THAT IS USED
 IN THE PROCESS OF TURNING FARM WASTE INTO METHANE FOR USE BY THE TAXPAY-
 ER  OR  OTHER COMMERCIAL USE SHALL BE THE FULL-VALUE OF THE EQUIPMENT AT
 THE TIME OF PURCHASE. THE TAX CREDIT ALLOWED PURSUANT  TO  THIS  SECTION
 SHALL  APPLY  TO TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO
 THOUSAND TWENTY-TWO.
   (B) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9: SECTION 187-Q.
   (2) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 28.
   (3) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (KKK).
   §  187-Q.  METHANE  PRODUCTION  EQUIPMENT  CREDIT. A TAXPAYER SHALL BE
 ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-EIGHT-A OF
 THIS CHAPTER 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
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01612-01-1

 S. 2290                             2
 
 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 APPLICA-
 BLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS  ARTI-
 CLE.  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  ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAP-
 TER.  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 ON AND AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-TWO.
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 28 to read as follows:
   28. METHANE PRODUCTION EQUIPMENT CREDIT. A TAXPAYER SHALL BE ALLOWED A
 CREDIT,  TO  BE  COMPUTED  AS PROVIDED IN SECTION TWENTY-EIGHT-A OF THIS
 CHAPTER 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 THOU-
 SAND  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 ON AND AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-TWO.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xlvi) to read as
 follows:
 
 (XLVI) METHANE PRODUCTION EQUIPMENT  AMOUNT OF CREDIT UNDER
 CREDIT UNDER SUBSECTION (KKK)        SUBDIVISION TWENTY-EIGHT OF
                                      SECTION TWO HUNDRED TEN-B
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (kkk) to read as follows:
   (KKK) METHANE PRODUCTION EQUIPMENT CREDIT. A TAXPAYER SHALL BE ALLOWED
 A  CREDIT  TO  BE COMPUTED AS PROVIDED IN SECTION TWENTY-EIGHT-A OF THIS
 CHAPTER 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  ON  AND
 AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO.
   §  5.  This  act  shall take effect immediately and shall apply to tax
 years commencing on and after January 1, 2022. Effective immediately the
 addition, amendment and/or repeal of any rule  or  regulation  necessary
 for  the implementation of this act on its effective date are authorized
 to be made and completed on or before such date.