S T A T E O F N E W Y O R K
________________________________________________________________________
1529--A
2025-2026 Regular Sessions
I N S E N A T E
January 10, 2025
___________
Introduced by Sens. PARKER, FAHY, FERNANDEZ, MAY, ROLISON, WEBB -- read
twice and ordered printed, and when printed to be committed to the
Committee on Agriculture -- recommitted to the Committee on Agricul-
ture in accordance with Senate Rule 6, sec. 8 -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00292-07-5
S. 1529--A 2
FOR NEW YORK'S AGRICULTURAL SECTOR WHILE ADVANCING THE STATE'S CLIMATE
GOALS. BY INCENTIVIZING SOIL CARBON SEQUESTRATION, ENHANCING SOIL
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
S. 1529--A 3
SEQUESTRATION IMPACT OF CARBON FARMING PRACTICES THROUGH APPROVED METH-
ODOLOGIES, ENSURING COMPLIANCE AND TRANSPARENCY IN REPORTED OUTCOMES.
§ 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.
S. 1529--A 4
9. THE COMMITTEE SHALL MEET NO LESS THAN ANNUALLY TO REVIEW THE
CERTIFICATION FRAMEWORK AND CERTIFICATION STANDARDS AND MAY MODIFY SUCH
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,
S. 1529--A 5
AND ADJUSTED, WHERE APPLICABLE, BY A FACTOR REFLECTING THE EXPECTED
DURATION OF CARBON SEQUESTRATION;
(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:
S. 1529--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
S. 1529--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.
