Assembly Bill A5660A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5660--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 19, 2025
                                ___________
 
 Introduced  by  M.  of  A.  BARRETT,  LUPARDO,  KELLES  -- read once and
   referred to the Committee on Agriculture -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend  the  agriculture and markets law and the tax 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. 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 LAND MANAGEMENT STRAT-
 EGIES  FOR  THE  PURPOSES  OF SEQUESTERING GREENHOUSE GAS EMISSIONS INTO
 AGRICULTURAL SOILS, MINERALS AND BIOMASS ON LAND USED IN  SUPPORT  OF  A
 FARM  OPERATION,  OR  IN  CARBONATE  MINERALS  OR  BICARBONATES, THROUGH
 APPROVED CARBON  FARMING  PRACTICES  PURSUANT  TO  SECTION  ONE  HUNDRED
 FIFTY-ONE-S OF THIS CHAPTER.
   §  3. The agriculture and markets law is amended by adding a new arti-
 cle 11-C to read as follows:
                                ARTICLE 11-C
                            CARBON FARMING ACT
 SECTION 151-P. LEGISLATIVE FINDINGS AND INTENT.
         151-Q. DEFINITIONS.
         151-R. CARBON FARMING CERTIFICATION COMMITTEE.
         151-S. APPROVAL OF CARBON FARMING CERTIFICATION.
         151-T. CARBON FARMING EDUCATION.
   § 151-P. LEGISLATIVE FINDINGS AND INTENT. THE  LEGISLATURE  FINDS  AND
 DECLARES THAT CARBON FARMING PRESENTS A SIGNIFICANT ECONOMIC OPPORTUNITY
 FOR  NEW  YORK'S AGRICULTURAL SECTOR WHILE ADVANCING THE STATE'S CLIMATE
 GOALS.  BY  INCENTIVIZING  SOIL  CARBON  SEQUESTRATION,  ENHANCING  SOIL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00292-06-5
              

 A. 5660--A                          2
 
 HEALTH,  AND  REDUCING  GREENHOUSE  GAS EMISSIONS, THIS LEGISLATION WILL
 PROVIDE DIRECT ECONOMIC BENEFITS TO FARMERS, IMPROVE LONG-TERM  AGRICUL-
 TURAL  PRODUCTIVITY, AND CONTRIBUTE TO THE EXPANSION OF A CARBON FARMING
 INDUSTRY  WITHIN  THE  STATE.  ESTABLISHING NEW YORK AS A LEADER IN THIS
 FIELD WILL PROMOTE INVESTMENT, JOB CREATION, AND RURAL ECONOMIC DEVELOP-
 MENT, WHILE ALSO POSITIONING  THE  STATE  AS  A  MODEL  FOR  INTEGRATING
 CLIMATE-SMART  AGRICULTURAL  PRACTICES  INTO  A  BROADER DECARBONIZATION
 STRATEGY.
   § 151-Q. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "COMMITTEE" MEANS THE CARBON FARMING CERTIFICATION COMMITTEE ESTAB-
 LISHED PURSUANT TO SECTION ONE HUNDRED FIFTY-ONE-R OF THIS ARTICLE.
   2. "CARBON FARMING CERTIFICATION FRAMEWORK" OR  "CERTIFICATION  FRAME-
 WORK"  MEANS THE SET OF TECHNICAL CRITERIA AND PROCEDURES USED TO DETER-
 MINE ELIGIBILITY FOR THE CARBON FARMING TAX  CREDIT.  THE  CERTIFICATION
 FRAMEWORK  SHALL BE USED TO: (A) IDENTIFY QUALIFIED CARBON FARMING PRAC-
 TICES THAT ARE APPROPRIATE AND EFFECTIVE WITHIN THE CONTEXT OF NEW  YORK
 STATE  FARMING  SYSTEMS, BASED ON CREDIBLE RESEARCH AND REGIONALLY RELE-
 VANT DATA; (B) DEFINE THE FACTORS TO BE CONSIDERED IN EVALUATING  CARBON
 SEQUESTRATION  POTENTIAL,  INCLUDING EXPECTED DURATION OF STORAGE, MONI-
 TORING AND VERIFICATION REQUIREMENTS,  APPROPRIATE  APPLICATION  RANGES,
 AND  IMPLEMENTATION CONDITIONS; AND (C) PROVIDE THE BASIS FOR DEVELOPING
 PRACTICE-SPECIFIC CERTIFICATION STANDARDS FOR EACH QUALIFIED PRACTICE.
   3. "CARBON FARMING PRACTICE STANDARD" OR "PRACTICE STANDARD" MEANS THE
 SET OF PRACTICE-SPECIFIC REQUIREMENTS THAT SHALL BE MET FOR A  QUALIFIED
 PRACTICE TO BE ELIGIBLE FOR THE CARBON FARMING TAX CREDIT. EACH PRACTICE
 STANDARD  SHALL:  (A) ESTABLISH THE PARAMETERS FOR MONITORING, REPORTING
 AND VERIFICATION, CONSISTENT  WITH  ACCEPTED  SCIENTIFIC  AND  TECHNICAL
 METHODOLOGIES; (B) DEFINE APPROPRIATE APPLICATION RANGES AND IMPLEMENTA-
 TION THRESHOLDS TO ENSURE AGRONOMIC SUITABILITY AND TO PREVENT EXCESSIVE
 USE OF A PRACTICE SOLELY FOR THE PURPOSE OF INCREASING THE CREDIT VALUE;
 AND  (C) SPECIFY THE CONDITIONS UNDER WHICH THE PRACTICE SHALL BE IMPLE-
 MENTED TO ENSURE THAT THE INTENDED  CARBON  SEQUESTRATION  OUTCOMES  ARE
 ACHIEVED.
   4.  "CARBON FARMING CREDIT VALUE" OR "CREDIT VALUE" MEANS THE MONETARY
 VALUE ASSIGNED PER METRIC  TON  OF  CARBON  DIOXIDE  EQUIVALENT  REMOVED
 THROUGH  QUALIFIED  PRACTICES,  BASED  ON  THE  SOCIAL COST OF CARBON AS
 ADOPTED BY THE DEPARTMENT PURSUANT TO SECTION 75-0113  OF  THE  ENVIRON-
 MENTAL  CONSERVATION  LAW,  AND  ADJUSTED, WHERE APPLICABLE, BY A FACTOR
 REFLECTING THE EXPECTED DURATION OF CARBON SEQUESTRATION.
   5. "CARBON FARMING TAX CREDIT" MEANS THE CARBON FARMING CREDIT  ESTAB-
 LISHED  PURSUANT  TO SECTION TWO HUNDRED TEN-B OR SIX HUNDRED SIX OF THE
 TAX LAW.
   6. "DURABILITY RATING" MEANS AN ASSESSMENT OF THE EXPECTED  LENGTH  OF
 TIME  THAT  CARBON  DIOXIDE  REMOVED  THROUGH  A QUALIFIED PRACTICE WILL
 REMAIN SEQUESTERED. PRACTICES THAT ARE DETERMINED TO  STORE  CARBON  FOR
 ONE  HUNDRED YEARS OR LONGER SHALL RECEIVE THE HIGHEST RATING. PRACTICES
 WITH  SHORTER  STORAGE  DURATIONS  SHALL  RECEIVE  PROPORTIONALLY  LOWER
 RATINGS, TO ENSURE THAT THE VALUE OF THE TAX CREDIT REFLECTS THE LONGEV-
 ITY  OF  THE CARBON BENEFITS, AS DETERMINED USING METHODOLOGIES APPROVED
 BY THE DEPARTMENT.
   7. "FARM PRODUCT" HAS THE SAME MEANING AS  SET  FORTH  IN  SUBDIVISION
 FIVE OF SECTION TWO OF THIS CHAPTER.
   8.  "MONITORING,  REPORTING,  AND  VERIFICATION"  OR  "MRV"  MEANS THE
 SYSTEMATIC PROCESS OF TRACKING, DOCUMENTING, AND CONFIRMING  THE  CARBON
 SEQUESTRATION  IMPACT OF CARBON FARMING PRACTICES THROUGH APPROVED METH-
 ODOLOGIES, ENSURING COMPLIANCE AND TRANSPARENCY IN REPORTED OUTCOMES.
 A. 5660--A                          3
 
   § 151-R. CARBON FARMING CERTIFICATION COMMITTEE. 1.  THERE  IS  HEREBY
 CREATED  WITHIN  THE DEPARTMENT A CARBON FARMING CERTIFICATION COMMITTEE
 FOR THE PURPOSE OF DEVELOPING  A  CERTIFICATION  FRAMEWORK,  DETERMINING
 QUALIFIED  CARBON  REMOVAL PRACTICES ELIGIBLE FOR THE CARBON FARMING TAX
 CREDIT,  AND  PROMULGATING  CERTIFICATION STANDARDS FOR QUALIFIED CARBON
 REMOVAL PRACTICES.
   2. THE CARBON FARMING CERTIFICATION COMMITTEE SHALL  CONSIST  OF:  THE
 COMMISSIONER OR THEIR CHOSEN DESIGNEE; THE COMMISSIONER OF ENVIRONMENTAL
 CONSERVATION  OR THEIR CHOSEN DESIGNEE; TWO REPRESENTATIVES APPOINTED BY
 THE GOVERNOR; TWO REPRESENTATIVES APPOINTED BY THE  TEMPORARY  PRESIDENT
 OF  THE  SENATE;  TWO  REPRESENTATIVES  APPOINTED  BY THE SPEAKER OF THE
 ASSEMBLY; ONE REPRESENTATIVE APPOINTED BY THE  MINORITY  LEADER  OF  THE
 SENATE;  AND  ONE REPRESENTATIVE APPOINTED BY THE MINORITY LEADER OF THE
 ASSEMBLY.   SUCH MEMBERS SHALL  BE  APPOINTED  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF SUBDIVISION THREE OF THIS SECTION.
   3.  THE  CARBON  FARMING CERTIFICATION COMMITTEE SHALL INCLUDE MEMBERS
 FROM REGIONS THROUGHOUT THE STATE AND SHALL INCLUDE AT LEAST ONE  REPRE-
 SENTATIVE  PRACTICING  FARMING  IN THE STATE. SUCH REPRESENTATIVES SHALL
 HAVE EXPERIENCE IN ONE OR MORE OF THE FOLLOWING  FIELDS:  SOIL  SCIENCE,
 AGRONOMY,  CARBON  QUANTIFICATION,  CLIMATE  SCIENCE,  OR NEW YORK STATE
 FARMING SYSTEMS.
   4. THE MEMBERS OF THE COMMITTEE SHALL SERVE WITHOUT  COMPENSATION  BUT
 SHALL  BE  ENTITLED TO REIMBURSEMENT FOR ALL NECESSARY EXPENSES INCURRED
 IN THE PERFORMANCE OF THEIR DUTIES.
   5. THE COMMITTEE SHALL ESTABLISH A  FRAMEWORK  FOR  EVALUATING  CARBON
 FARMING  PRACTICES THAT WILL BE USED TO QUALIFY CARBON FARMING PRACTICES
 FOR THE CARBON FARMING TAX CREDIT AND DEVELOP PRACTICE SPECIFIC  CERTIF-
 ICATION STANDARDS FOR EACH QUALIFIED PRACTICE. PURSUANT TO QUALIFYING OR
 DISQUALIFYING A PRACTICE, THE COMMITTEE SHALL ASSESS, CONSIDER, AND MAKE
 DETERMINATIONS IN REFERENCE TO THE FOLLOWING:
   (A)  SCIENTIFIC  EVIDENCE  OF  CARBON SEQUESTRATION BENEFITS OF CARBON
 FARMING PRACTICES UNDER NEW YORK STATE CONDITIONS;
   (B) PARAMETERS REQUIRED FOR MONITORING, REPORTING AND VERIFICATION  OF
 EACH PRACTICE, CONSISTENT WITH ACCEPTED SCIENTIFIC AND TECHNICAL METHOD-
 OLOGIES;
   (C)  APPROPRIATE  APPLICATION RANGES AND IMPLEMENTATION THRESHOLDS FOR
 EACH QUALIFIED PRACTICE TO  ENSURE  AGRONOMIC  SUITABILITY  AND  PREVENT
 EXCESSIVE APPLICATION; AND
   (D)  OTHER CONDITIONS UNDER WHICH EACH PRACTICE MUST BE IMPLEMENTED TO
 ENSURE THE INTENDED CARBON SEQUESTRATION OUTCOMES ARE ACHIEVED.
   6. BEFORE FINALIZING THE CERTIFICATION FRAMEWORK,  DETERMINING  QUALI-
 FIED CARBON REMOVAL PRACTICES ELIGIBLE FOR THE CARBON FARMING TAX CREDIT
 AND  PROMULGATING  CERTIFICATION  STANDARDS  FOR  THE  QUALIFIED  CARBON
 REMOVAL PRACTICES PURSUANT TO  SUBDIVISION  ONE  OF  THIS  SECTION,  THE
 COMMITTEE  SHALL  PROVIDE  A  DRAFT  FRAMEWORK TO THE DEPARTMENT AND THE
 DEPARTMENT SHALL MAKE SUCH INFORMATION AVAILABLE ON ITS WEBSITE.
   7. THE COMMITTEE SHALL HOLD AT LEAST  THREE  PUBLIC  HEARINGS  ON  THE
 DRAFT  FRAMEWORK  AND SHALL ALLOW AT LEAST SIXTY DAYS FOR THE SUBMISSION
 OF PUBLIC COMMENT.
   8. THE COMMITTEE SHALL CONVENE WITHIN SIXTY DAYS OF THE EFFECTIVE DATE
 OF THIS SECTION AND SHALL DELIVER THE CERTIFICATION FRAMEWORK, DETERMINE
 QUALIFIED PRACTICES, AND DELIVER  ASSOCIATED  PRACTICE-SPECIFIC  CERTIF-
 ICATION  STANDARDS  TO THE DEPARTMENT NO LATER THAN EIGHTEEN MONTHS FROM
 THE DATE OF ITS FIRST MEETING.
   9. THE COMMITTEE SHALL MEET  NO  LESS  THAN  ANNUALLY  TO  REVIEW  THE
 CERTIFICATION  FRAMEWORK AND CERTIFICATION STANDARDS AND MAY MODIFY SUCH
 A. 5660--A                          4
 
 FRAMEWORK AND STANDARDS TO INCORPORATE NEW DATA AND SCIENTIFIC FINDINGS.
 THE COMMITTEE SHALL REVIEW QUALIFIED CARBON REMOVAL PRACTICES AND MODIFY
 SUCH PRACTICES AS NEEDED.
   § 151-S. APPROVAL OF CARBON FARMING CERTIFICATION. 1. UPON DELIVERY OF
 THE CERTIFICATION FRAMEWORK, QUALIFIED CARBON REMOVAL PRACTICES ELIGIBLE
 FOR  THE CARBON FARMING TAX CREDIT, AND CERTIFICATION STANDARDS FROM THE
 CARBON FARMING CERTIFICATION COMMITTEE PURSUANT TO SECTION  ONE  HUNDRED
 FIFTY-ONE-R  OF  THIS  ARTICLE,  THE  DEPARTMENT SHALL REVIEW, AMEND AND
 APPROVE SUCH CERTIFICATION  FRAMEWORK  AND  CERTIFICATION  STANDARDS  NO
 LATER THAN SIX MONTHS AFTER DELIVERY TO THE DEPARTMENT BY THE COMMITTEE.
 THE  DEPARTMENT,  IN  CONSULTATION  WITH THE DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION, SHALL:
   (A) ESTABLISH PROCEDURES FOR VERIFYING COMPLIANCE WITH EACH  PRACTICE-
 SPECIFIC CERTIFICATION STANDARD; AND
   (B)  PROMULGATE  RULES  AND  REGULATIONS  NECESSARY  TO  IMPLEMENT THE
 PROVISIONS OF THIS SUBDIVISION.
   2. UPON APPROVAL OF THE CERTIFICATION  FRAMEWORK,  LIST  OF  QUALIFIED
 PRACTICES, AND ASSOCIATED PRACTICE-SPECIFIC CERTIFICATION STANDARDS, THE
 DEPARTMENT  SHALL  TRANSMIT SUCH MATERIALS TO THE DEPARTMENT OF TAXATION
 AND FINANCE FOR THE PURPOSE OF  ADMINISTERING  THE  CARBON  FARMING  TAX
 CREDIT AUTHORIZED PURSUANT TO THE TAX LAW.
   3. THE DEPARTMENT SHALL PROVIDE ONGOING TECHNICAL GUIDANCE AND SUPPORT
 TO  THE  DEPARTMENT OF TAXATION AND FINANCE AS NEEDED TO ENSURE THAT TAX
 CREDIT CLAIMS ARE CONSISTENT WITH THE APPROVED  CERTIFICATION  FRAMEWORK
 AND CERTIFICATION STANDARDS.
   4.  THE  DEPARTMENT  OF  TAXATION  AND  FINANCE SHALL CONSULT WITH THE
 DEPARTMENT AS NEEDED TO VERIFY COMPLIANCE, RESOLVE DISPUTES, AND SUPPORT
 IMPLEMENTATION OF THE CREDIT.
   § 151-T. CARBON FARMING EDUCATION. 1. THE DEPARTMENT,  IN  COOPERATION
 WITH  THE  DEPARTMENT  OF ENVIRONMENTAL CONSERVATION, THE STATE SOIL AND
 WATER CONSERVATION COMMITTEE, AND THE NEW YORK STATE COLLEGE OF AGRICUL-
 TURE AND LIFE SCIENCES SHALL DEVELOP EDUCATIONAL MATERIALS TO  ENCOURAGE
 CARBON  FARMING.  SUCH EDUCATIONAL MATERIALS SHALL PROMOTE FARMING PRAC-
 TICES WHICH REDUCE, SEQUESTER AND MITIGATE GREENHOUSE GAS  EMISSIONS  ON
 LAND USED IN SUPPORT OF A FARM OPERATION.
   2.  THE  DEPARTMENT SHALL PROMOTE THE CARBON FARMING TAX CREDIT ESTAB-
 LISHED PURSUANT TO SECTIONS TWO HUNDRED TEN-B AND SIX HUNDRED SIX OF THE
 TAX LAW.
   § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 63 to read as follows:
   63. 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) "CARBON FARMING CREDIT  VALUE"  SHALL  MEAN  THE  MONETARY  VALUE
 ASSIGNED  PER  METRIC  TON  OF CARBON DIOXIDE EQUIVALENT REMOVED THROUGH
 QUALIFIED CARBON FARMING PRACTICES, BASED ON THE SOCIAL COST  OF  CARBON
 AS  SET  FORTH IN SECTION 75-0113 OF THE ENVIRONMENTAL CONSERVATION LAW,
 AND ADJUSTED, WHERE APPLICABLE, BY  A  FACTOR  REFLECTING  THE  EXPECTED
 DURATION OF CARBON SEQUESTRATION;
 A. 5660--A                          5
 
   (III)  "CARBON  SEQUESTRATION"  SHALL  MEAN  THE  STORAGE OF CARBON IN
 TREES, SOIL, MINERALS, AND WATER;
   (IV)  "DURABILITY  RATING"  SHALL  MEAN  AN ASSESSMENT OF THE EXPECTED
 LENGTH OF TIME THAT CARBON DIOXIDE REMOVED THROUGH A QUALIFIED  PRACTICE
 WILL  REMAIN  SEQUESTERED.  PRACTICES  THAT  ARE DETERMINED TO RESULT IN
 CARBON SEQUESTRATION OF ONE HUNDRED YEARS OR MORE SHALL  BE  ASSIGNED  A
 DURABILITY RATING EQUAL TO ONE;
   (V) "FARM PRODUCTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDI-
 VISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW;
   (VI)  "QUALIFIED CARBON FARMING PRACTICE" SHALL MEAN A PRACTICE LISTED
 AS ELIGIBLE UNDER THE CARBON FARMING CERTIFICATION FRAMEWORK ESTABLISHED
 PURSUANT TO SECTION ONE  HUNDRED  FIFTY-ONE-R  OF  THE  AGRICULTURE  AND
 MARKETS LAW; AND
   (VII) "SOCIAL COST OF CARBON" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN SECTION 75-0113 OF THE ENVIRONMENTAL CONSERVATION LAW.
   (C)  VALUATION OF CREDIT. THE MONETARY VALUE OF THE CREDIT, PER METRIC
 TON, SHALL VARY ACCORDING TO THE DURABILITY RATING OF EACH CARBON  FARM-
 ING PRACTICE. VALUES SHALL BE DERIVED FROM THE SOCIAL COST OF CARBON AND
 ADJUSTED  BASED ON THE DURABILITY RATING OF EACH PRACTICE TO ENSURE THAT
 THE VALUE OF THE TAX CREDIT REFLECTS THE LONGEVITY OF THE  CARBON  BENE-
 FITS.  PRACTICES  THAT  ARE  DETERMINED  TO STORE CARBON FOR ONE HUNDRED
 YEARS OR LONGER SHALL BE ASSIGNED CREDIT VALUES EQUAL TO THE SOCIAL COST
 OF CARBON PER METRIC TON. PRACTICES WITH SHORTER STORAGE DURATIONS SHALL
 BE ASSIGNED PROPORTIONALLY LOWER CREDIT VALUES ADJUSTED FOR THEIR  DURA-
 BILITY RATING.
   (D)  APPLICATION  OF  CREDIT.  SUCH CREDIT SHALL BE EQUAL TO THE TOTAL
 NUMBER OF METRIC TONS OF CARBON DIOXIDE REMOVED AND  SEQUESTERED  DURING
 THE  TAXABLE  YEAR,  AS CERTIFIED PURSUANT TO SECTION ONE HUNDRED FIFTY-
 ONE-S OF THE AGRICULTURE AND MARKETS LAW, MULTIPLIED BY THE CARBON FARM-
 ING CREDIT VALUE.
   (E) CERTIFICATION REQUIRED.   THE TAXPAYER SHALL  ATTACH  TO  ITS  TAX
 RETURN  ITS  FINAL CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER
 OF AGRICULTURE AND MARKETS PURSUANT TO SECTION ONE  HUNDRED  FIFTY-ONE-S
 OF  THE  AGRICULTURE  AND MARKETS 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.
   (F) CARRYOVER OF CREDIT.  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
 (uuu) to read as follows:
   (UUU)  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. 5660--A                          6
 
   (A)  "CARBON  FARMING"  SHALL  HAVE  THE  SAME MEANING AS SET FORTH IN
 SUBDIVISION FIVE OF SECTION ONE HUNDRED FIFTY  OF  THE  AGRICULTURE  AND
 MARKETS LAW.
   (B)  "CARBON  FARMING  CREDIT  VALUE"  SHALL  MEAN  THE MONETARY VALUE
 ASSIGNED PER METRIC TON OF CARBON  DIOXIDE  EQUIVALENT  REMOVED  THROUGH
 QUALIFIED  CARBON  FARMING PRACTICES, BASED ON THE SOCIAL COST OF CARBON
 AS SET FORTH IN SECTION 75-0113 OF THE ENVIRONMENTAL  CONSERVATION  LAW,
 AND  ADJUSTED,  WHERE  APPLICABLE,  BY  A FACTOR REFLECTING THE EXPECTED
 DURATION OF CARBON SEQUESTRATION.
   (C) "CARBON SEQUESTRATION" SHALL MEAN THE STORAGE OF CARBON IN  TREES,
 SOIL, MINERALS, AND WATER.
   (D)  "DURABILITY  RATING"  SHALL  MEAN  AN  ASSESSMENT OF THE EXPECTED
 LENGTH OF TIME THAT CARBON DIOXIDE REMOVED THROUGH A QUALIFIED  PRACTICE
 WILL  REMAIN  SEQUESTERED.  PRACTICES  THAT  ARE DETERMINED TO RESULT IN
 CARBON SEQUESTRATION OF ONE HUNDRED YEARS OR MORE SHALL  BE  ASSIGNED  A
 DURABILITY RATING EQUAL TO ONE.
   (E) "FARM PRODUCTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDI-
 VISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW.
   (F)  "QUALIFIED  CARBON FARMING PRACTICE" SHALL MEAN A PRACTICE LISTED
 AS ELIGIBLE UNDER THE CARBON FARMING CERTIFICATION FRAMEWORK ESTABLISHED
 PURSUANT TO SECTION ONE  HUNDRED  FIFTY-ONE-R  OF  THE  AGRICULTURE  AND
 MARKETS LAW.
   (G)  "SOCIAL  COST OF CARBON" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN SECTION 75-0113 OF THE ENVIRONMENTAL CONSERVATION LAW.
   (3) APPLICATION OF CREDIT. SUCH CREDIT SHALL BE  EQUAL  TO  THE  TOTAL
 NUMBER  OF  METRIC TONS OF CARBON DIOXIDE REMOVED AND SEQUESTERED DURING
 THE TAXABLE YEAR, AS CERTIFIED PURSUANT TO SECTION  ONE  HUNDRED  FIFTY-
 ONE-S OF THE AGRICULTURE AND MARKETS LAW, MULTIPLIED BY THE CARBON FARM-
 ING CREDIT VALUE.
   (4)  CERTIFICATION  REQUIRED.  THE  TAXPAYER  SHALL  ATTACH TO ITS TAX
 RETURN ITS FINAL CERTIFICATE OF ELIGIBILITY ISSUED BY  THE  COMMISSIONER
 OF  AGRICULTURE  AND MARKETS PURSUANT TO SECTION ONE HUNDRED FIFTY-ONE-S
 OF THE AGRICULTURE AND MARKETS 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.
   (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. Paragraph (a-1) of subdivision 1 of section 210-B of the tax law,
 as added by section one of subpart A of part B of chapter 59 of the laws
 of 2022, is amended to read as follows:
   (a-1)  For a taxpayer that is an eligible farmer, as defined in subdi-
 vision eleven of this section, the percentage to be used to compute  the
 credit  allowed under this subdivision shall be twenty percent for prop-
 erty described in subparagraph (i) of paragraph (b) of this  subdivision
 that  is  principally used by the taxpayer in the production of goods by
 farming, agriculture, horticulture, floriculture or viticulture. FOR ANY
 SUCH PROPERTY DESCRIBED IN SUBPARAGRAPH (I) OF  PARAGRAPH  (B)  OF  THIS
 A. 5660--A                          7
 
 SUBDIVISION  THAT  IS  PRINCIPALLY USED BY THE ELIGIBLE TAXPAYER FOR THE
 PURPOSES OF CARBON FARMING, AS DEFINED IN SUBDIVISION  FIVE  OF  SECTION
 ONE  HUNDRED FIFTY OF THE AGRICULTURE AND MARKETS LAW, THE PERCENTAGE TO
 BE USED TO COMPUTE THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL BE AN
 ADDITIONAL TEN PERCENT.
   § 7. Paragraph 1-a of subsection (a) of section 606 of the tax law, as
 added  by  section 2 of subpart A of part B of chapter 59 of the laws of
 2022, is amended to read as follows:
   (1-a) For a taxpayer  that  is  an  eligible  farmer,  as  defined  in
 subsection (n) of this section, the percentage to be used to compute the
 credit allowed under this subsection shall be twenty percent for proper-
 ty  described  in  subparagraph  (A) of paragraph two of this subsection
 that is principally used by the taxpayer in the production of  goods  by
 farming, agriculture, horticulture, floriculture or viticulture. FOR ANY
 SUCH  PROPERTY  DESCRIBED  IN  SUBPARAGRAPH (A) OF PARAGRAPH TWO OF THIS
 SUBSECTION THAT IS PRINCIPALLY USED BY THE  ELIGIBLE  TAXPAYER  FOR  THE
 PURPOSES  OF  CARBON  FARMING, AS DEFINED IN SUBDIVISION FIVE OF SECTION
 ONE HUNDRED FIFTY OF THE AGRICULTURE AND MARKETS LAW, THE PERCENTAGE  TO
 BE  USED TO COMPUTE THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL BE AN
 ADDITIONAL TEN PERCENT.
   § 8. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.