S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3498
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 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 55 to read as follows:
   55. 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
 TO  LESS  THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE
 OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF THE  AMOUNT  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07476-01-1

 S. 3498                             2
 
 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
 (kkk) to read as follows:
   (KKK)  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, 2022.