NY State Senate Bill S4270

Current Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (13)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 22, 2023	referred to agriculture returned to assembly repassed senate
Mar 13, 2023	amended on third reading 4270a
Mar 13, 2023	vote reconsidered - restored to third reading returned to senate recalled from assembly
Feb 28, 2023	referred to agriculture delivered to assembly passed senate
Feb 14, 2023	ordered to third reading cal.355
Feb 13, 2023	reported and committed to rules
Feb 07, 2023	referred to agriculture

Votes

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

S4270 - Details

Current Committee:: Assembly Agriculture
Law Section:: Agriculture and Markets Law
Laws Affected:: Amd §§150 & 16, Ag & Mkts L; amd §§210-B & 606, Tax L; amd §§3-0301 & 19-0309, En Con L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4875
2021-2022: S4707

S4270 - Summary

Establishes a tax credit for farmers who maximize carbon sequestration potential through a "carbon farming" land management strategy; directs DEC to develop regulations related to certifying the amount of carbon sequestered or emissions reduced.

S4270 - Sponsor Memo

 
BILL NUMBER: S4270

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the agriculture and markets law, the tax law and the
environmental conservation law, in relation to enacting the carbon farm-
ing act

 
PURPOSE:

To create a new financial incentive for land management practices under-
taken by farmers which help improve soil health and reduce greenhouse
gas emissions, making New York a leader in promoting new agricultural
strategies that combat climate change.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill states, "This bill shall be known and cited as the
'carbon farming act'."

Section 2 establishes the legislative intent

Section 3 adds a new subdivision 5 is added to section 150 of the agri-
culture and markets law to define "carbon farming" as the implementation
of land management practices which reduce and mitigate greenhouse gas
emissions on land used in support of farm operations and the further
quantification of those benefits using existing state and federal tools
for measuring carbon storage in soil and the reduction of carbon dioxide
(CO2) emissions.

Section 4 adds a new subdivision 55 is added to section 210-B of the tax
law to create a carbon farming credit allowance to those tax paying
agricultural businesses, which produce farm products, for their practice
of carbon farming.

*The economic value of the carbon farming credit would be determined by
the commissioner of environmental conservation, in consultation with the
commissioner of agriculture and markets, using existing methods for
measuring air pollution, pursuant to paragraph ccc of subdivision two of
section 3-0301 of the environmental conservation law.

*The amount credited to the taxpayer for carbon sequestration and green-
house gas emissions reduction would be based upon a certificate of
eligibility issued by the commissioner of environmental conservation,
pursuant to section 19-0309 of the environmental conservation law.

*In the event a tax credit allowance exceeded the taxpayer's total tax
for a given year, the credit could be carried over to the following
three years.

Section 5 adds a new subsection kkk is added to section 606 of the tax
law to make conforming changes related to definitions of carbon farming
credit and its application and carryover.

Section 6 adds a new paragraph ccc is added to subdivision 2 of section
3-0301 of the environmental conservation law to create an educational
program to encourage and educate farmers about the benefits of carbon
farming practices, develop and promote the application and certification
procedure for verification of emission reductions credited to appli-
cants, and to codify a metric to quantify the storage of carbon using
the USDA's COMET Planner, COMET-Farm, and other quantification tools.
The department is given authority to make rules and regulations neces-
sary to complete this.

Section 7 adds a new subdivision 1 of section 19-0309 of the environ-
mental conservation law, as amended by chapter 817 of the laws of 1987,
is amended to grant the commissioner authority to issue certificates of
compliance for carbon farming among other air pollution facilities and
process facilities.

Section 8 adds a new subdivision 52 is added to section 16 of the agri-
culture and markets law to direct the commissioner to work with the
department of environmental conservation to develop educational and
promotional materials on carbon farming practices.

Section 9 establishes the effective date.

 
JUSTIFICATION:

Climate-smart land management practices improve soil resilience and
increase productivity for our state's farmers while simultaneously
addressing the state's climate change goals. The aim of a statewide
carbon farming initiative is two-fold: as a land stewardship program it
would improve soil health and productivity by holding nutrients in
place; as a climate-smart initiative it would mitigate the release of
carbon into the atmosphere as carbon dioxide (CO2). CO2 contributes to
climate change as a greenhouse gas by trapping heat in the atmosphere.

A tax credit for farmers who practice land management strategies which
store, or sequester, carbon in the soil is a new model for combating
climate change. Reductions in net CO2 emissions can be quantified by
existing methods for measuring air pollution, especially the USDA's
COMET-Planner software which was developed following the enactment of
the 2014 federal Farm Bill. New York would be the first state to offer
this type of tax credit, specifically for carbon farming, to all taxpay-
ers who make farm products and not only the largest agricultural busi-
nesses.

By using no-till systems, planting cover crops, trees and perennial
forages, and managing compost application, farmers can see improvements
in water holding capacity, nutrient storage, and reduced erosion. All of
these farming practices have the collateral benefit of sequestering
carbon in the soil, thereby reducing its release into the atmosphere as
CO2. The carbon farming program outlined would incentivize farmers who
are currently using these strategies to continue them and would encour-
age others to undertake the prescribed soil health methods now widely
accepted as beneficial not only to productivity but for the reduction in
greenhouse gases.

 
LEGISLATIVE HISTORY:

2022: S.4707- Passed Senate - Died in Assembly

2021: S.4707- Passed Senate - Died in Assembly

2020: S.4875- Referred to Agriculture
2019: S.4875- Referred to Agriculture

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Undetermined

 
EFFECTIVE,DATE:

This act shall take effect on the ninetieth day after it shall have
become a law; provided, however, that effective immediately, the addi-
tion, amendment, and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized and
directed to be made and completed on or before such effective date.

S4270 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4270
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Agriculture
 
 AN ACT to amend the agriculture and markets law, the  tax  law  and  the
   environmental  conservation  law,  in  relation to enacting the carbon
   farming act

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall be known and may be cited as the "carbon
 farming act".
   § 2. Legislative intent. The legislature  hereby  finds  and  declares
 that  soil  and vegetation management can significantly enhance soil and
 carbon sequestration, resulting in a wide  range  of  environmental  and
 agricultural  benefits  to  New  York  farmers and residents, including:
 increased yields; soil health; improved water quality; and reductions in
 greenhouse gases. The legislature further declares that enhancing carbon
 sequestration, the long term storage of carbon in plants, soils, geolog-
 ic formations and the ocean, through farming is in the best interest  of
 New  Yorkers.  It  is  therefore  the  intent of the legislature and the
 purpose of this act to encourage farmers to further sequester and  miti-
 gate carbon in this state by establishing a carbon farming tax credit to
 reward  and incentivize farmers to maintain or adopt practices that help
 maximize New York's carbon sequestration potential.
   § 3. Section 150 of the agriculture and  markets  law  is  amended  by
 adding a new subdivision 5 to read as follows:
   5.  "CARBON  FARMING"  MEANS  THE  IMPLEMENTATION OF A LAND MANAGEMENT
 STRATEGY FOR THE PURPOSES  OF  REDUCING,  SEQUESTERING,  AND  MITIGATING
 GREENHOUSE GAS EMISSIONS ON LAND USED IN SUPPORT OF A FARM OPERATION AND
 QUANTIFYING  THOSE  GREENHOUSE  GAS  BENEFITS  USING  THE  UNITED STATES
 DEPARTMENT OF AGRICULTURE'S COMET-PLANNER, COMET-FARM, AND OTHER QUANTI-
 FICATION TOOLS.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01378-01-3
 S. 4270                             2

 
   § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 59 to read as follows:
   59. CARBON FARMING CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
 AN  AGRICULTURAL BUSINESS THAT PRODUCES FARM PRODUCTS SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR  THE  PRACTICE  OF
 CARBON FARMING.
   (B)  DEFINITIONS.  FOR  PURPOSES  OF  THIS SECTION THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (I) "CARBON FARMING" SHALL HAVE THE  SAME  MEANING  AS  SET  FORTH  IN
 SUBDIVISION  FIVE  OF  SECTION  ONE HUNDRED FIFTY OF THE AGRICULTURE AND
 MARKETS LAW;
   (II) "FARM PRODUCTS" SHALL HAVE THE  SAME  MEANING  AS  SET  FORTH  IN
 SUBDIVISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW; AND
   (III)  "CARBON  SEQUESTRATION"  SHALL  MEAN  THE  LONG TERM STORAGE OF
 CARBON IN PLANTS AND SOILS.
   (C) SUCH CREDIT SHALL BE CALCULATED BASED ON  THE  ECONOMIC  VALUE  OF
 CARBON  FARMING  AS  DETERMINED  BY  THE  COMMISSIONER  OF ENVIRONMENTAL
 CONSERVATION, IN CONSULTATION WITH THE COMMISSIONER OF  AGRICULTURE  AND
 MARKETS  AND  THE  COMMISSIONER PURSUANT TO PARAGRAPH CCC OF SUBDIVISION
 TWO OF SECTION 3-0301 OF THE ENVIRONMENTAL CONSERVATION LAW.
   (D) THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS FINAL  CERTIFICATE
 OF  ELIGIBILITY ISSUED BY THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION
 PURSUANT TO SECTION 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW. IN NO
 EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT  OF
 THE  CREDIT  LISTED  ON  THE  FINAL  CERTIFICATE VERIFYING THE EMISSIONS
 REDUCTIONS TO BE CREDITED TO THE TAXPAYER.
   (E) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS  SUBDIVISION  FOR
 ANY  TAXABLE  YEAR  SHALL  EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, ANY
 AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
 TO THE FOLLOWING THREE YEARS, AND MAY BE DEDUCTED FOR THE  TAXPAYER  FOR
 SUCH YEAR.
   §  5. Section 606 of the tax law is amended by adding a new subsection
 (ooo) to read as follows:
   (OOO) CARBON FARMING CREDIT. (1) ALLOWANCE OF CREDIT. A  TAXPAYER  WHO
 PROVIDES FARM PRODUCTS AND WHO PRACTICES CARBON FARMING SHALL BE ALLOWED
 A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  DEFINITIONS.  FOR  THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
 DEFINITIONS SHALL APPLY:
   (A) "FARM PRODUCTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDI-
 VISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW.
   (B) "CARBON FARMING" SHALL HAVE THE  SAME  MEANING  AS  SET  FORTH  IN
 SUBDIVISION  FIVE  OF  SECTION  ONE HUNDRED FIFTY OF THE AGRICULTURE AND
 MARKETS LAW.
   (3) APPLICATION OF CREDIT. SUCH CREDIT SHALL BE  CALCULATED  BASED  ON
 THE  ECONOMIC  VALUE OF CARBON FARMING AS DETERMINED BY THE COMMISSIONER
 OF ENVIRONMENTAL CONSERVATION, IN CONSULTATION WITH THE COMMISSIONER  OF
 AGRICULTURE  AND MARKETS PURSUANT TO PARAGRAPH CCC OF SUBDIVISION TWO OF
 SECTION 3-0301 OF THE ENVIRONMENTAL CONSERVATION LAW.
   (4) CERTIFICATION REQUIRED. THE  TAXPAYER  SHALL  ATTACH  TO  ITS  TAX
 RETURN  ITS  FINAL CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER
 OF ENVIRONMENTAL CONSERVATION PURSUANT TO SECTION 19-0309 OF  THE  ENVI-
 RONMENTAL  CONSERVATION LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A
 CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON THE FINAL CERTIF-
 ICATE VERIFYING THE EMISSIONS REDUCTIONS TO BE CREDITED TO THE TAXPAYER.
   (5) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWABLE  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 S. 4270                             3
 
 SUCH  YEAR, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
 BE CARRIED OVER TO THE FOLLOWING THREE YEARS, AND MAY  BE  DEDUCTED  FOR
 THE TAXPAYER FOR SUCH YEAR.
   § 6. Subdivision 2 of section 3-0301 of the environmental conservation
 law is amended by adding a new paragraph ccc to read as follows:
   CCC.  COOPERATE  WITH  THE  DEPARTMENT  OF  AGRICULTURE AND MARKETS TO
 DEVELOP EDUCATIONAL MATERIALS TO PROMOTE AND ENCOURAGE  CARBON  FARMING.
 SUCH  MATERIALS  SHALL PROMOTE FARMING PRACTICES WHICH REDUCE, SEQUESTER
 AND MITIGATE GREENHOUSE GAS  EMISSIONS  THROUGH  THE  IMPLEMENTATION  OF
 CARBON  FARMING  STRATEGIES AND ON LAND USED IN SUPPORT OF A FARM OPERA-
 TION; AND DEVELOP AND CODIFY A METRIC TO QUANTIFY THE STORAGE OF  CARBON
 USING  THE  UNITED  STATES  DEPARTMENT  OF  AGRICULTURE'S COMET-PLANNER,
 COMET-FARM, AND OTHER QUANTIFICATION TOOLS. THE DEPARTMENT SHALL DEVELOP
 AND DISTRIBUTE AN APPLICATION AND CERTIFICATION PROCEDURE WHICH VERIFIES
 THE CARBON STORED TO BE  CREDITED  TO  EACH  FARM.  THE  DEPARTMENT  MAY
 PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION.
   §  7.  Subdivision 1 of section 19-0309 of the environmental conserva-
 tion law, as amended by chapter 817 of the laws of 1987, is  amended  to
 read as follows:
   1.  For the purposes of sections 208, 210, 606 and 612 of the Tax Law,
 the commissioner or his designated representative is  hereby  authorized
 to  issue  certificates  of  compliance concerning air pollution control
 facilities [and], air pollution controlled process facilities AND CARBON
 FARMING as defined in such law. No  such  certificate  shall  be  issued
 unless  the  facility  to  which  it is applicable is in compliance with
 applicable provisions of titles 1 to 11,  inclusive,  and  title  19  of
 article  17,  article  19, and title 1 of article 27 of this chapter; of
 the Public Health Law; of the state sanitary code and of  codes,  rules,
 regulations, permits or orders issued pursuant thereto.
   §  8.  Section  16  of  the  agriculture and markets law is amended by
 adding a new subdivision 53 to read as follow:
   53. COOPERATE WITH THE DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  TO
 DEVELOP    EDUCATIONAL  MATERIALS TO ENCOURAGE CARBON FARMING AND HOW TO
 USE THE UNITED STATES DEPARTMENT OF AGRICULTURE'S COMET-PLANNER,  COMET-
 FARM,  AND OTHER CARBON QUANTIFICATION TOOLS.  THE PROGRAM SHALL PROMOTE
 FARMING PRACTICES WHICH REDUCE, SEQUESTER AND  MITIGATE  GREENHOUSE  GAS
 EMISSIONS  ON  LAND USED IN SUPPORT OF A FARM OPERATION.  THE DEPARTMENT
 SHALL PROMOTE THE CARBON FARMING TAX CREDIT  PROVIDED  IN  SECTIONS  TWO
 HUNDRED TEN-B AND SIX HUNDRED SIX OF THE TAX LAW.
   §  9.  This  act shall take effect on the ninetieth day after it shall
 have become a  law.  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 effective date.

Co-Sponsors

S4270A (ACTIVE) - Details

Current Committee:: Assembly Agriculture
Law Section:: Agriculture and Markets Law
Laws Affected:: Amd §§150 & 16, Ag & Mkts L; amd §§210-B & 606, Tax L; amd §§3-0301 & 19-0309, En Con L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4875
2021-2022: S4707

S4270A (ACTIVE) - Summary

S4270A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S4270A

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the agriculture and markets law, the tax law and the
environmental conservation law, in relation to enacting the carbon farm-
ing act

 
PURPOSE OF THE BILL:

To create a new financial incentive for land management practices
under-taken by farmers which help improve soil health and reduce green-
house gas emissions, making New York a leader in promoting new agricul-
tural strategies that combat climate change.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill states, "This bill shall be known and cited as the
'carbon farming act'."

Section 2 establishes the legislative intent

Section 3 adds a new subdivision 5 to section 150 of the Agriculture and
Markets Law to define "carbon farming" as the implementation of land
management strategy for the purposes of reducing, sequestering, and
mitigating greenhouse gas emissions on land used in support of a farm
operation and quantifying those greenhouse gas benefits using the United
States Department of Agriculture's COMET-Planner, COMET-Farm, and other
quantification tools.

Section 4 adds a new subdivision 59 to section 210-B of the Tax Law to
create a carbon farming credit allowance to those tax paying agricul-
tural businesses, which produce farm products, for their practice of
carbon farming.

*The economic value of the carbon farming credit would be determined by
the Commissioner of Environmental Conservation, in consultation with the
Commissioner of Agriculture and Markets, using existing methods for
measuring air pollution, pursuant to paragraph ccc of subdivision two of
section 3-0301 of the Environmental Conservation Law.

*The amount credited to the taxpayer for carbon sequestration and green-
house gas emissions reduction would be based upon a certificate of
eligibility issued by the Commissioner of Environmental Conservation,
pursuant to section 19-0309 of the Environmental Conservation Law.

*In the event a tax credit allowance exceeded the taxpayer's total tax
for a given year and the taxpayer's New York adjusted gross income for
such year does not exceed $60,000, the excess shall be treated as an
overpayment of tax to be credited or refunded, provided that no interest
shall be paid. If the taxpayer's New York adjusted gross income for such
year exceeds $60,000, the excess credit may be carried over to the
following year or years.

Section 5 adds a new subsection 000 to section 606 of the Tax Law to
make conforming changes related to definitions of carbon farming credit
and its application and carryover.

Section 6 adds a new paragraph ccc to subdivision 2 of section 3-0301 of
the Environmental Conservation Law to create an educational program to
encourage and educate farmers about the benefits of carbon farming prac-
tices, develop and promote the application and certification procedure
for verification of emission reductions credited to applicants, and to
codify a metric to quantify the storage of carbon using the USDA's COMET
Planner, COMET-Farm, and other quantification tools. The department is
given authority to make rules and regulations necessary to complete
this.  HZU

Section 7 amends subdivision 1 of section 19-0309 of the Environmental
Conservation Law, as amended by Chapter 817 of the Laws of 1987, is
amended to grant the Commissioner authority to issue certificates of
compliance for carbon farming among other air pollution facilities and
process facilities.

Section 8 adds a new subdivision 53 is added to section 16 of the Agri-
culture and Markets Law to direct the Commissioner to work with the
Department of Environmental Conservation to develop educational and
promotional materials on carbon farming practices.

Section 9 establishes the effective date.

 
JUSTIFICATION:

Climate-smart land management practices improve soil resilience and
increase productivity for our state's farmers while simultaneously
addressing the state's climate change goals. The aim of a statewide
carbon farming initiative is twofold: as a land stewardship program it
would improve soil health and productivity by holding nutrients in
place; as a climate-smart initiative it would mitigate the release of
carbon into the atmosphere as carbon dioxide (CO2). CO2 contributes to
climate change as a greenhouse gas by trapping heat in the atmosphere.

A tax credit for farmers who practice land management strategies which
store, or sequester, carbon in the soil is a new model for combating
climate change. Reductions in net CO2 emissions can be quantified by
existing methods for measuring air pollution, especially the USDA's
COMET-Planner software which was developed following the enactment of
the 2014 federal Farm Bill. New York would be the first state to offer
this type of tax credit, specifically for carbon fanning, to all taxpay-
ers who make farm products and not only the largest agricultural busi-
nesses.

By using no-till systems, planting cover crops, trees and perennial
forages, and managing compost application, farmers can see improvements
in water holding capacity, nutrient storage, and reduced erosion. All of
these farming practices have the collateral benefit of sequestering
carbon in the soil, thereby reducing its release into the atmosphere as
CO2. The carbon farming program outlined would incentivize farmers who
are currently using these strategies to continue them and would encour-
age others to undertake the prescribed soil health methods now widely
accepted as beneficial not only to productivity but for the reduction in
greenhouse gases.

 
PRIOR LEGISLATIVE HISTORY:

2023: S.4270- Passed Senate
2022: S.4707- Passed Senate - Died in Assembly

2021: S.4707- Passed Senate - Died in Assembly

2020: S.4875- Referred to Agriculture

2019: S.4875- Referred to Agriculture

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law; provided, however, that effective immediately, the addi-
tion, amendment, and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized and
directed to be made and completed on or before such effective date.

S4270A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4270--A
     Cal. No. 355
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2023
                                ___________
 
 Introduced by Sens. PARKER, MAY, ROLISON, WEBB -- read twice and ordered
   printed, and when printed to be committed to the Committee on Agricul-
   ture  --  reported  favorably from said committee and committed to the
   Committee on Rules -- reported favorably from said committee,  ordered
   to  a  third  reading, passed by Senate and delivered to the Assembly,
   recalled, vote reconsidered, restored to third  reading,  amended  and
   ordered reprinted, retaining its place in the order of third reading
 
 AN  ACT  to  amend  the agriculture and markets law, the tax law and the
   environmental conservation law, in relation  to  enacting  the  carbon
   farming act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be  cited  as  the  "carbon
 farming act".
   §  2.  Legislative  intent.  The legislature hereby finds and declares
 that soil and vegetation management can significantly enhance  soil  and
 carbon  sequestration,  resulting  in  a wide range of environmental and
 agricultural benefits to New  York  farmers  and  residents,  including:
 increased yields; soil health; improved water quality; and reductions in
 greenhouse gases. The legislature further declares that enhancing carbon
 sequestration, the long term storage of carbon in plants, soils, geolog-
 ic  formations and the ocean, through farming is in the best interest of
 New Yorkers. It is therefore the  intent  of  the  legislature  and  the
 purpose  of this act to encourage farmers to further sequester and miti-
 gate carbon in this state by establishing a carbon farming tax credit to
 reward and incentivize farmers to maintain or adopt practices that  help
 maximize New York's carbon sequestration potential.
   §  3.  Section  150  of  the agriculture and markets law is amended by
 adding a new subdivision 5 to read as follows:
   5. "CARBON FARMING" MEANS THE  IMPLEMENTATION  OF  A  LAND  MANAGEMENT
 STRATEGY  FOR  THE  PURPOSES  OF  REDUCING, SEQUESTERING, AND MITIGATING
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01378-03-3
 S. 4270--A                          2
 
 GREENHOUSE GAS EMISSIONS ON LAND USED IN SUPPORT OF A FARM OPERATION AND
 QUANTIFYING THOSE  GREENHOUSE  GAS  BENEFITS  USING  THE  UNITED  STATES
 DEPARTMENT OF AGRICULTURE'S COMET-PLANNER, COMET-FARM, AND OTHER QUANTI-
 FICATION TOOLS.
   §  4. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 59 to read as follows:
   59. CARBON FARMING CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
 AN AGRICULTURAL BUSINESS THAT PRODUCES FARM PRODUCTS SHALL BE ALLOWED  A
 CREDIT  AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE FOR THE PRACTICE OF
 CARBON FARMING.
   (B) DEFINITIONS. FOR PURPOSES OF  THIS  SECTION  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (I)  "CARBON  FARMING"  SHALL  HAVE  THE  SAME MEANING AS SET FORTH IN
 SUBDIVISION FIVE OF SECTION ONE HUNDRED FIFTY  OF  THE  AGRICULTURE  AND
 MARKETS LAW;
   (II)  "FARM  PRODUCTS"  SHALL  HAVE  THE  SAME MEANING AS SET FORTH IN
 SUBDIVISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW; AND
   (III) "CARBON SEQUESTRATION" SHALL  MEAN  THE  LONG  TERM  STORAGE  OF
 CARBON IN PLANTS AND SOILS.
   (C)  SUCH  CREDIT  SHALL  BE CALCULATED BASED ON THE ECONOMIC VALUE OF
 CARBON FARMING  AS  DETERMINED  BY  THE  COMMISSIONER  OF  ENVIRONMENTAL
 CONSERVATION,  IN  CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE AND
 MARKETS AND THE COMMISSIONER PURSUANT TO PARAGRAPH  CCC  OF  SUBDIVISION
 TWO OF SECTION 3-0301 OF THE ENVIRONMENTAL CONSERVATION LAW.
   (D)  THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS FINAL CERTIFICATE
 OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF ENVIRONMENTAL  CONSERVATION
 PURSUANT TO SECTION 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW. IN NO
 EVENT  SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF
 THE CREDIT LISTED ON  THE  FINAL  CERTIFICATE  VERIFYING  THE  EMISSIONS
 REDUCTIONS TO BE CREDITED TO THE TAXPAYER.
   (E) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL
 EXCEED  THE  TAXPAYER'S  TAX  FOR  SUCH YEAR AND THE TAXPAYER'S NEW YORK
 ADJUSTED GROSS INCOME FOR SUCH  YEAR  DOES  NOT  EXCEED  SIXTY  THOUSAND
 DOLLARS,  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, THAT  NO INTEREST
 SHALL  BE PAID THEREON. IF THE TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME
 FOR SUCH YEAR EXCEEDS SIXTY THOUSAND DOLLARS, THE EXCESS CREDIT  MAY  BE
 CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE
 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   §  5. Section 606 of the tax law is amended by adding a new subsection
 (ooo) to read as follows:
   (OOO) CARBON FARMING CREDIT. (1) ALLOWANCE OF CREDIT. A  TAXPAYER  WHO
 PROVIDES FARM PRODUCTS AND WHO PRACTICES CARBON FARMING SHALL BE ALLOWED
 A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  DEFINITIONS.  FOR  THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
 DEFINITIONS SHALL APPLY:
   (A) "FARM PRODUCTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDI-
 VISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW.
   (B) "CARBON FARMING" SHALL HAVE THE  SAME  MEANING  AS  SET  FORTH  IN
 SUBDIVISION  FIVE  OF  SECTION  ONE HUNDRED FIFTY OF THE AGRICULTURE AND
 MARKETS LAW.
   (3) APPLICATION OF CREDIT. SUCH CREDIT SHALL BE  CALCULATED  BASED  ON
 THE  ECONOMIC  VALUE OF CARBON FARMING AS DETERMINED BY THE COMMISSIONER
 OF ENVIRONMENTAL CONSERVATION, IN CONSULTATION WITH THE COMMISSIONER  OF
 S. 4270--A                          3
 
 AGRICULTURE  AND MARKETS PURSUANT TO PARAGRAPH CCC OF SUBDIVISION TWO OF
 SECTION 3-0301 OF THE ENVIRONMENTAL CONSERVATION LAW.
   (4)  CERTIFICATION  REQUIRED.  THE  TAXPAYER  SHALL  ATTACH TO ITS TAX
 RETURN ITS FINAL CERTIFICATE OF ELIGIBILITY ISSUED BY  THE  COMMISSIONER
 OF  ENVIRONMENTAL  CONSERVATION PURSUANT TO SECTION 19-0309 OF THE ENVI-
 RONMENTAL CONSERVATION LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED  A
 CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON THE FINAL CERTIF-
 ICATE VERIFYING THE EMISSIONS REDUCTIONS TO BE CREDITED TO THE TAXPAYER.
   (5)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH  YEAR  AND  THE
 TAXPAYER'S  NEW YORK ADJUSTED GROSS INCOME FOR SUCH YEAR DOES NOT EXCEED
 SIXTY THOUSAND DOLLARS, 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. IF THE TAXPAYER'S  NEW  YORK
 ADJUSTED  GROSS  INCOME FOR SUCH  YEAR  EXCEEDS  SIXTY THOUSAND DOLLARS,
 THE EXCESS CREDIT MAY BE CARRIED OVER TO THE FOLLOWING YEAR    OR  YEARS
 AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   § 6. Subdivision 2 of section 3-0301 of the environmental conservation
 law is amended by adding a new paragraph ccc to read as follows:
   CCC.  COOPERATE  WITH  THE  DEPARTMENT  OF  AGRICULTURE AND MARKETS TO
 DEVELOP EDUCATIONAL MATERIALS TO PROMOTE AND ENCOURAGE  CARBON  FARMING.
 SUCH  MATERIALS  SHALL PROMOTE FARMING PRACTICES WHICH REDUCE, SEQUESTER
 AND MITIGATE GREENHOUSE GAS  EMISSIONS  THROUGH  THE  IMPLEMENTATION  OF
 CARBON  FARMING  STRATEGIES AND ON LAND USED IN SUPPORT OF A FARM OPERA-
 TION; AND DEVELOP AND CODIFY A METRIC TO QUANTIFY THE STORAGE OF  CARBON
 USING  THE  UNITED  STATES  DEPARTMENT  OF  AGRICULTURE'S COMET-PLANNER,
 COMET-FARM, AND OTHER QUANTIFICATION TOOLS. THE DEPARTMENT SHALL DEVELOP
 AND DISTRIBUTE AN APPLICATION AND CERTIFICATION PROCEDURE WHICH VERIFIES
 THE CARBON STORED TO BE  CREDITED  TO  EACH  FARM.  THE  DEPARTMENT  MAY
 PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION.
   §  7.  Subdivision 1 of section 19-0309 of the environmental conserva-
 tion law, as amended by chapter 817 of the laws of 1987, is  amended  to
 read as follows:
   1.  For the purposes of sections 208, 210, 606 and 612 of the Tax Law,
 the commissioner or his designated representative is  hereby  authorized
 to  issue  certificates  of  compliance concerning air pollution control
 facilities [and], air pollution controlled process facilities AND CARBON
 FARMING as defined in such law. No  such  certificate  shall  be  issued
 unless  the  facility  to  which  it is applicable is in compliance with
 applicable provisions of titles 1 to 11,  inclusive,  and  title  19  of
 article  17,  article  19, and title 1 of article 27 of this chapter; of
 the Public Health Law; of the state sanitary code and of  codes,  rules,
 regulations, permits or orders issued pursuant thereto.
   §  8.  Section  16  of  the  agriculture and markets law is amended by
 adding a new subdivision 53 to read as follows:
   53. COOPERATE WITH THE DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  TO
 DEVELOP    EDUCATIONAL  MATERIALS TO ENCOURAGE CARBON FARMING AND HOW TO
 USE THE UNITED STATES DEPARTMENT OF AGRICULTURE'S COMET-PLANNER,  COMET-
 FARM,  AND OTHER CARBON QUANTIFICATION TOOLS.  THE PROGRAM SHALL PROMOTE
 FARMING PRACTICES WHICH REDUCE, SEQUESTER AND  MITIGATE  GREENHOUSE  GAS
 EMISSIONS  ON  LAND USED IN SUPPORT OF A FARM OPERATION.  THE DEPARTMENT
 SHALL PROMOTE THE CARBON FARMING TAX CREDIT  PROVIDED  IN  SECTIONS  TWO
 HUNDRED TEN-B AND SIX HUNDRED SIX OF THE TAX LAW.
   §  9.  This  act shall take effect on the ninetieth day after it shall
 have become a  law.  Effective  immediately,  the  addition,  amendment,
 S. 4270--A                          4
 
 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 effective date.

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The New York State Senate

senate Bill S4270

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Current Bill Status - Passed Senate

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Votes

May 22, 2023 - floor Vote

Floor Vote: May 22, 2023

Feb 28, 2023 - floor Vote

Floor Vote: Feb 28, 2023

Feb 14, 2023 - Rules committee Vote

Rules Committee Vote: Feb 14, 2023

Feb 13, 2023 - Agriculture committee Vote

Agriculture Committee Vote: Feb 13, 2023

Bill Amendments

Co-Sponsors

S4270 - Details

S4270 - Summary

S4270 - Sponsor Memo

S4270 - Bill Text download pdf

Co-Sponsors

S4270A (ACTIVE) - Details

S4270A (ACTIVE) - Summary

S4270A (ACTIVE) - Sponsor Memo

S4270A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S4270

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Sponsored By

Current Bill Status - Passed Senate

Your Voice

Actions

Votes

May 22, 2023 - floor Vote

Floor Vote: May 22, 2023

Feb 28, 2023 - floor Vote

Floor Vote: Feb 28, 2023

Feb 14, 2023 - Rules committee Vote

Rules Committee Vote: Feb 14, 2023

Feb 13, 2023 - Agriculture committee Vote

Agriculture Committee Vote: Feb 13, 2023

Bill Amendments

Co-Sponsors

S4270 - Details

S4270 - Summary

S4270 - Sponsor Memo

S4270 - Bill Text download pdf

Co-Sponsors

S4270A (ACTIVE) - Details

S4270A (ACTIVE) - Summary

S4270A (ACTIVE) - Sponsor Memo

S4270A (ACTIVE) - Bill Text download pdf

Comments