Senate Bill S1178

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1178
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to amend the public service law and the tax law, in relation to
   enacting the credit for rural energy infrastructure act of 2025

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "credit for rural energy infrastructure act of 2025".
   § 2. Section 5 of the public service law is amended by  adding  a  new
 subdivision 7 to read as follows:
   7.  THE  COMMISSION,  IN CONSULTATION WITH NEW YORK INDEPENDENT SYSTEM
 OPERATOR, IS HEREBY AUTHORIZED AND  DIRECTED  TO  PROMULGATE  RULES  AND
 REGULATIONS NECESSARY FOR VERIFYING AN UNSERVED AREA FOR THE PURPOSES OF
 SUBDIVISION  SIXTY-ONE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (QQQ)
 OF SECTION SIX HUNDRED SIX OF THE TAX LAW,  USING  GAS  SERVICE  MAPPING
 DATA AT THE TIME A PROJECT IS PROPOSED.
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 61 to read as follows:
   61. CREDIT FOR RURAL ENERGY INFRASTRUCTURE DEPLOYMENT.  (A)  ALLOWANCE
 OF  CREDIT.  A  QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
 TAX IMPOSED BY THIS ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION
 IN AID OF CONSTRUCTION RESULTING FROM NEW GAS PIPELINE  CONSTRUCTION  TO
 DELIVER  GAS  SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE OF BUSINESS
 LOCATED IN AN UNSERVED AREA. THE  CREDIT  ALLOWED  BY  THIS  SUBDIVISION
 SHALL  BE CLAIMED ANNUALLY OVER A FIVE-YEAR PERIOD EQUAL TO ONE-FIFTH OF
 THE CREDIT AMOUNT. IF THE  CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  IS
 GREATER  THAN  THE TAX DUE IN ANY TAXABLE YEAR, THE AMOUNT BY WHICH SUCH
 CREDIT EXCEEDS SUCH TAX DUE IS TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX OF THIS CHAPTER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03680-01-5
              

 S. 1178                             2
 
   (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS  SHALL
 APPLY:
   (I)   "QUALIFIED  CONSTRUCTION  EXPENSES"  EQUAL  THE  TOTAL  COST  OF
 CONSTRUCTION OF NEW NETWORKS IN THE PROPOSED UNSERVED AREA, AS CERTIFIED
 BY THE GAS SERVICE PROVIDER, BUT NOT TO EXCEED A REASONABLE  COST  BASED
 UPON  THE  AVERAGE  COST PER MILE OF GAS PIPELINE CONSTRUCTION AS DETER-
 MINED BY THE PUBLIC SERVICE COMMISSION AND GAS SERVICE PROVIDERS.
   (II) "QUALIFIED CUSTOMER  CONTRIBUTION  IN  AID  OF  CONSTRUCTION"  IS
 DETERMINED IN ACCORDANCE WITH THE FOLLOWING FORMULA: (QCE/TC) - (ACM/35)
 =  QC,  WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES; ACM EQUALS
 THE AVERAGE COST OF CONSTRUCTION PER MILE IN THE PROPOSED UNSERVED AREA,
 AS CERTIFIED BY THE GAS SERVICE PROVIDER, BUT NOT TO EXCEED A REASONABLE
 COST BASED UPON THE AVERAGE COST PER MILE OF GAS  PIPELINE  CONSTRUCTION
 AS  DETERMINED  BY THE PUBLIC SERVICE COMMISSION AND GAS SERVICE PROVID-
 ERS; TC EQUALS THE NUMBER OF RESIDENTS AND SMALL BUSINESS  CUSTOMERS  IN
 THE  PROPOSED  UNSERVED AREA MAKING A QUALIFIED CUSTOMER CONTRIBUTION IN
 AID TO CONSTRUCTION AND CONTRACTING FOR SERVICES OVER THE PIPELINE;  AND
 QC EQUALS THE QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION.
   (III)  "REQUIRED  PROVIDER  CONTRIBUTION IN AID TO CONSTRUCTION" SHALL
 EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
 IFIED CUSTOMER CONTRIBUTIONS IN AID  TO  CONSTRUCTION  IN  THE  PROPOSED
 UNSERVED AREA.
   (IV)  "UNSERVED AREA" MEANS AN AREA COMPOSED OF ONE OR MORE CONTIGUOUS
 CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
 GAS SERVICE.
   (V) "QUALIFIED TAXPAYER" MEANS A TAXPAYER WHICH IS  A  SMALL  BUSINESS
 CORPORATION  AS  DEFINED IN PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
 TWELVE HUNDRED FORTY-FOUR OF THE INTERNAL REVENUE CODE,  NOTWITHSTANDING
 THE  SECOND  SENTENCE OF SUBPARAGRAPH (A) THEREOF, AS OF THE LAST DAY OF
 THE TAXABLE YEAR.
   § 4. Section 606 of the tax law is amended by adding a new  subsection
 (qqq) to read as follows:
   (QQQ) CREDIT FOR RURAL ENERGY INFRASTRUCTURE. (1) ALLOWANCE OF CREDIT.
 A  QUALIFIED  TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
 BY THIS ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION IN  AID  OF
 CONSTRUCTION  RESULTING  FROM  NEW  NETWORK  CONSTRUCTION TO DELIVER GAS
 SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE OF BUSINESS LOCATED IN AN
 UNSERVED AREA. THE CREDIT ALLOWED BY THIS SUBSECTION  SHALL  BE  CLAIMED
 ANNUALLY  OVER  A  FIVE-YEAR  PERIOD  EQUAL  TO  ONE-FIFTH OF THE CREDIT
 AMOUNT.  IF THE CREDIT ALLOWED UNDER THIS SUBSECTION IS GREATER THAN THE
 TAX DUE IN ANY TAXABLE YEAR, THE AMOUNT BY  WHICH  SUCH  CREDIT  EXCEEDS
 SUCH  TAX  DUE  IS  TREATED  AS  AN OVERPAYMENT OF TAX TO BE REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION  ONE  THOUSAND  EIGHTY-SIX  OF
 THIS CHAPTER.
   (2)  FOR  PURPOSES OF THIS SUBSECTION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (A)  "QUALIFIED  CONSTRUCTION  EXPENSES"  EQUAL  THE  TOTAL  COST   OF
 CONSTRUCTION  OF  NEW PIPELINES IN THE PROPOSED UNSERVED AREA, AS CERTI-
 FIED BY THE GAS SERVICE PROVIDER, BUT NOT TO EXCEED  A  REASONABLE  COST
 BASED  UPON  THE  AVERAGE  COST PER MILE OF GAS PIPELINE CONSTRUCTION AS
 DETERMINED BY THE PUBLIC SERVICE COMMISSION AND GAS SERVICE PROVIDERS.
   (B) "QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION" IS DETER-
 MINED IN ACCORDANCE WITH THE FOLLOWING FORMULA: (QCE/TC)  -  (ACM/35)  =
 QC, WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES; ACM EQUALS THE
 AVERAGE  COST OF CONSTRUCTION PER MILE IN THE PROPOSED UNSERVED AREA, AS
 CERTIFIED BY GAS SERVICE PROVIDER, BUT NOT TO EXCEED A  REASONABLE  COST
 S. 1178                             3
 
 BASED  UPON  THE  AVERAGE  COST PER MILE OF GAS PIPELINE CONSTRUCTION AS
 DETERMINED BY THE PUBLIC SERVICE COMMISSION GAS  SERVICE  PROVIDERS;  TC
 EQUALS  THE  NUMBER  OF  RESIDENTS  AND  SMALL BUSINESS CUSTOMERS IN THE
 PROPOSED  UNSERVED  AREA MAKING A QUALIFIED CUSTOMER CONTRIBUTION IN AID
 TO CONSTRUCTION AND CONTRACTING FOR SERVICES OVER THE  NETWORK;  AND  QC
 EQUALS THE QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION.
   (C)  "REQUIRED  PROVIDER  CONTRIBUTION  IN  AID TO CONSTRUCTION" SHALL
 EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
 IFIED CUSTOMER CONTRIBUTIONS IN AID  TO  CONSTRUCTION  IN  THE  PROPOSED
 UNSERVED AREA.
   (D)"UNSERVED  AREA"  MEANS  AN AREA COMPOSED OF ONE OR MORE CONTIGUOUS
 CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
 GAS SERVICE.
   (E)"QUALIFIED TAXPAYER" MEANS ANY INDIVIDUAL WITH  AN  ADJUSTED  GROSS
 INCOME OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS.
   §  5. 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) CREDIT FOR RURAL               AMOUNT OF CREDIT UNDER SUBDIVISION
 ENERGY INFRASTRUCTURE                SIXTY-ONE OF SECTION TWO
 SUBSECTION (QQQ)                     HUNDRED TEN-B
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2026.