S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7308--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 25, 2025
                                ___________
 
 Introduced  by  M.  of  A.  BARRETT,  HYNDMAN,  BURDICK, LUPARDO, TAPIA,
   MAGNARELLI, BURROUGHS, STERN, LUCAS, KASSAY,  SHIMSKY,  MEEKS,  LEVEN-
   BERG,  CRUZ, HEVESI -- read once and referred to the Committee on Ways
   and Means -- committee discharged, bill amended, ordered reprinted  as
   amended and recommitted to said committee

 AN  ACT  to  amend the energy law and the tax law, in relation to estab-
   lishing a sustainable aviation fuel tax credit in New York state
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The energy law is amended by adding a new section 5-112 to
 read as follows:
   § 5-112. SUSTAINABLE AVIATION FUEL TAX CREDIT. 1. EXCEPT AS  OTHERWISE
 PROVIDED  UNDER  THIS  SECTION, A SUSTAINABLE AVIATION FUEL PRODUCER MAY
 CLAIM A CREDIT AGAINST THE TAX IMPOSED BY SECTION THREE HUNDRED ONE-E OF
 THE TAX LAW IN AN AMOUNT EQUAL TO ONE DOLLAR PER GALLON  OF  SUSTAINABLE
 AVIATION  FUEL PURCHASED IN THIS STATE DURING THE TAX YEAR BY A BUSINESS
 FOR USE AS FUEL FOR FLIGHTS DEPARTING IN THIS STATE. THE AMOUNT OF CRED-
 IT PER GALLON ALLOWED UNDER THIS SECTION INCREASES BY TWO CENTS FOR EACH
 ADDITIONAL ONE PERCENT REDUCTION IN CARBON DIOXIDE EQUIVALENT  EMISSIONS
 ABOVE FIFTY PERCENT BUT SHALL NOT EXCEED TWO DOLLARS PER GALLON.
   2.  A  TAXPAYER SHALL NOT CLAIM A CREDIT UNDER THIS SECTION UNLESS THE
 OFFICE ISSUED A CERTIFICATE TO THE TAXPAYER. THE TAXPAYER  SHALL  ATTACH
 THE  CERTIFICATE  TO  THEIR  ANNUAL  RETURN ON WHICH A CREDIT UNDER THIS
 SECTION IS CLAIMED. THE  CERTIFICATE  REQUIRED  UNDER  THIS  SUBDIVISION
 SHALL STATE ALL OF THE FOLLOWING:
   A.  THE  NAME,  BUSINESS ADDRESS, AND TAX IDENTIFICATION NUMBER OF THE
 TAXPAYER.
   B. THE TOTAL AMOUNT OF GALLONS OF SUSTAINABLE AVIATION  FUEL  THAT  IS
 PURCHASED  IN THIS STATE DURING THE TAX YEAR FROM THE TAXPAYER AND TO BE
 USED AS FUEL IN AN AIRCRAFT DEPARTING FROM AN AIRPORT IN THIS STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08509-06-5
 A. 7308--A                          2
              

 
   C. THE NUMBER OF GALLONS OF SUSTAINABLE AVIATION FUEL  FOR  WHICH  THE
 PERCENTAGE  REDUCTION  IN  CARBON  DIOXIDE EQUIVALENT EMISSIONS IS ABOVE
 FIFTY PERCENT AND THAT PERCENTAGE AMOUNT.
   3.  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE
 TAXPAYER'S TAX LIABILITY FOR THE TAX YEAR, THAT PORTION THAT EXCEEDS THE
 TAX LIABILITY FOR THE TAX YEAR SHALL BE REFUNDED.
   4. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   A. "AVIATION FUEL" MEANS KERO-JET FUEL AND GASOLINE AS  THAT  TERM  IS
 DESCRIBED  IN  SUBDIVISION (A) OF SECTION THREE HUNDRED ONE-B OF THE TAX
 LAW.
   B. "BIOMASS" MEANS ANY ORGANIC MATTER THAT IS AVAILABLE ON A RENEWABLE
 OR RECURRING BASIS, INCLUDING AGRICULTURAL CROPS, WOOD  AND  WOOD  WASTE
 AND  RESIDUES,  PLANTS  INCLUDING  AQUATIC  PLANTS,  GRASSES,  RESIDUES,
 FIBERS, ANIMAL WASTE, AND THE ORGANIC PORTION OF SOLID WASTES.
   C. "CARBON DIOXIDE EQUIVALENT" SHALL HAVE THE SAME MEANING AS SUBDIVI-
 SION TWO OF SECTION 75-0101 OF THE ENVIRONMENTAL CONSERVATION LAW.
   D. "CARBON INTENSITY" MEANS THE QUANTITY OF LIFE-CYCLE GREENHOUSE  GAS
 EMISSION,  PER UNIT OF FUEL ENERGY, EXPRESSED IN GRAMS OF CARBON DIOXIDE
 EQUIVALENT PER MEGAJOULE.
   E. "OFFICE" MEANS THE NEW YORK STATE ENERGY RESEARCH  AND  DEVELOPMENT
 AUTHORITY  ESTABLISHED  PURSUANT TO ARTICLE EIGHT OF THE PUBLIC AUTHORI-
 TIES LAW.
   F. "COMMISSIONER" MEANS THE PRESIDENT OF THE  NEW  YORK  STATE  ENERGY
 RESEARCH AND DEVELOPMENT AUTHORITY.
   G. "SUSTAINABLE AVIATION FUEL" MEANS LIQUID FUEL THAT:
   (I)  CONSISTS  OF  SYNTHESIZED HYDROCARBONS AND MEETS THE REQUIREMENTS
 OF:
   (A) THE AMERICAN SOCIETY FOR TESTING AND MATERIALS INTERNATIONAL STAN-
 DARD D7566; OR
   (B) STANDARD D1655;
   (II) IS DERIVED FROM BIOMASS RESOURCES, WASTE  STREAMS,  RENEWABLE  OR
 ZERO-CARBON ENERGY SOURCES, OR GASEOUS CARBON OXIDES;
   (III) IS NOT DERIVED FROM ANY PALM OR PETROLEUM DERIVATIVES; AND
   (IV)  THE  FUEL  PRODUCTION  PATHWAY FOR THE SUSTAINABLE AVIATION FUEL
 ACHIEVES AT LEAST A FIFTY PERCENT  LIFECYCLE  GREENHOUSE  GAS  EMISSIONS
 REDUCTION  IN COMPARISON WITH PETROLEUM-BASED JET FUEL, AS DETERMINED BY
 A TEST THAT SHOWS EITHER:
   (A) THAT THE FUEL PRODUCTION PATHWAY ACHIEVES AT LEAST A FIFTY PERCENT
 REDUCTION OF THE AGGREGATE ATTRIBUTIONAL CORE  LIFECYCLE  EMISSIONS  AND
 THE  POSITIVE INDUCED LAND USE CHANGE VALUES UNDER THE LIFECYCLE METHOD-
 OLOGY FOR SUSTAINABLE AVIATION FUELS ADOPTED BY THE INTERNATIONAL  CIVIL
 AVIATION ORGANIZATION WITH THE AGREEMENT OF THE UNITED STATES; OR
   (B) THAT THE FUEL PRODUCTION PATHWAY ACHIEVES AT LEAST A FIFTY PERCENT
 REDUCTION  OF  THE AGGREGATE ATTRIBUTIONAL CORE LIFECYCLE GREENHOUSE GAS
 EMISSIONS VALUES UTILIZING THE MOST RECENT VERSION OF  ARGONNE  NATIONAL
 LABORATORY'S  GREET MODEL, INCLUSIVE OF BUT NOT LIMITED TO CLIMATE SMART
 AGRICULTURAL  PRACTICES,  ON-SITE  RENEWABLES  AND  CARBON  CAPTURE  AND
 SEQUESTRATION.
   5. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON CERTIFICATES OF TAX CRED-
 IT  ISSUED  BY  THE COMMISSIONER PURSUANT TO THIS ARTICLE MAY NOT EXCEED
 THIRTY MILLION DOLLARS FOR EACH YEAR THE CREDIT IS AVAILABLE.
   6. EACH AVIATION FUEL PRODUCER CLAIMING SUCH CREDIT  SHALL  REPORT  TO
 THE  COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE ON A MONTHLY
 BASIS THE AMOUNT OF SUSTAINABLE AVIATION FUEL  TO  BE  SOLD  WITHIN  THE
 A. 7308--A                          3
 
 STATE.  THE COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE SHALL
 MAKE ALL SUCH REPORTS PUBLICLY AVAILABLE ON SUCH DEPARTMENT'S WEBSITE.
   7.  THE  DEPARTMENT OF TAXATION AND FINANCE SHALL DETERMINE A FAIR AND
 EQUITABLE MAXIMUM DISTRIBUTION OF SUCH CREDIT PER ELIGIBLE ENTITY.
   § 2. The tax law is amended by adding a new  section  50  to  read  as
 follows:
   §  50.  SUSTAINABLE AVIATION FUEL TAX CREDIT. (A) ALLOWANCE OF CREDIT.
 FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-FIVE,  A  TAXPAYER  SUBJECT  TO  TAX  PURSUANT  TO ARTICLES NINE,
 NINE-A, THIRTEEN-A, OR TWENTY-TWO OF THIS CHAPTER  SHALL  BE  ALLOWED  A
 CREDIT  AGAINST SUCH TAX PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
 VISION (F) OF THIS SECTION.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL  TO
 THE  AMOUNT  DETERMINED PURSUANT TO SECTION 5-112 OF THE ENERGY LAW.  NO
 COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER  THAT  IS  INCLUDED  AS
 PART  OF  THE CALCULATION OF SUCH CREDIT SHALL BE THE BASIS OF ANY OTHER
 TAX CREDIT ALLOWED UNDER THIS CHAPTER.
   (B) ELIGIBILITY CRITERIA. TO BE ELIGIBLE FOR  THE  AVIATION  FUEL  TAX
 CREDIT,  THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX CREDIT
 BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY PURSUANT
 TO SECTION 5-112 OF THE ENERGY LAW, WHICH CERTIFICATE  SHALL  SET  FORTH
 THE  AMOUNT  OF THE CREDIT THAT MAY BE CLAIMED FOR THE TAXABLE YEAR. THE
 TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIF-
 ICATE OF TAX CREDIT FOR THE TAXABLE YEAR. A TAXPAYER THAT IS  A  PARTNER
 IN  A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY, OR SHAREHOLDER
 IN A SUBCHAPTER S CORPORATION THAT HAS RECEIVED  A  CERTIFICATE  OF  TAX
 CREDIT  SHALL  BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE
 PARTNERSHIP, LIMITED LIABILITY COMPANY, OR SUBCHAPTER S CORPORATION.
   (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED  TO  ATTACH
 TO  ITS TAX RETURN, IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF
 RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE  NEW  YORK  STATE
 ENERGY RESEARCH AND DEVELOPMENT AUTHORITY.
   (D)  INFORMATION  SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP-
 TER, EMPLOYEES OF THE DIVISION OF  CRIMINAL  JUSTICE  SERVICES  AND  THE
 DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE:
   (1)  INFORMATION  DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT
 TO A TAXPAYER'S ELIGIBILITY TO PARTICIPATE IN THE  SUSTAINABLE  AVIATION
 FUEL TAX CREDIT PROGRAM;
   (2)  INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED, OR CLAIMED
 PURSUANT TO THIS SECTION AND TAXPAYERS THAT ARE APPLYING FOR THE  CREDIT
 OR THAT ARE CLAIMING SUCH CREDIT; AND
   (3)  INFORMATION  CONTAINED  IN  OR  DERIVED  FROM  CREDIT CLAIM FORMS
 SUBMITTED TO THE DEPARTMENT AND  APPLICATIONS  FOR  ADMISSION  INTO  THE
 SUSTAINABLE  AVIATION FUEL TAX CREDIT PROGRAM. ALL INFORMATION EXCHANGED
 BETWEEN THE DEPARTMENT, THE NEW YORK STATE ENERGY RESEARCH AND  DEVELOP-
 MENT  AUTHORITY  AND  THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL
 NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM  OF
 INFORMATION LAW.
   (E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE NEW
 YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY IS REVOKED BY SUCH
 DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION  AND  CLAIMED
 BY  THE  TAXPAYER PRIOR TO SUCH REVOCATION SHALL BE ADDED BACK TO TAX IN
 THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL. POST CREDIT
 ISSUANCE REVOCATION SHALL ONLY APPLY TO THE PREVIOUS TAXABLE YEAR.
   (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9: SECTION 187-S;
 A. 7308--A                          4
 
   (2) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 61;
   (3) ARTICLE 22: SECTION 606, SUBSECTION (WWW).
   §  3.  The tax law is amended by adding a new section 187-s to read as
 follows:
   § 187-S. SUSTAINABLE AVIATION FUEL TAX CREDIT.  (A) ALLOWANCE OF CRED-
 IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED  IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF  CREDIT.  IN NO EVENT SHALL THE CREDIT UNDER THIS
 SECTION BE ALLOWED IN AN AMOUNT THAT WILL REDUCE THE TAX PAYABLE TO LESS
 THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED  EIGHTY-TWO
 OF  THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS
 SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY  AMOUNT
 OF  CREDIT  NOT  DEDUCTIBLE  IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN
 OVERPAYMENT OF TAX TO BE 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.
   § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 61 to read as follows:
   61.  SUSTAINABLE AVIATION FUEL TAX CREDIT.  (A) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. 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  CREDITS  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.
   § 5. Section 606 of the tax law is amended by adding a new  subsection
 (www) to read as follows:
   (WWW) SUSTAINABLE AVIATION FUEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED  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.
   § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by  adding a new clause (lii) to read as
 follows:
 
 (LII) SUSTAINABLE AVIATION FUEL       AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION           SUBDIVISION SIXTY-ONE OF
 (WWW)                                 SECTION TWO HUNDRED TEN-B
 
   § 7. This act shall take effect immediately.