Senate Bill S2347

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2347
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2025
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to a small business grid renew-
   able energy tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  210-B  of the tax law is amended by adding a new
 subdivision 61 to read as follows:
   61. SMALL BUSINESS GRID RENEWABLE ENERGY TAX CREDIT.  (A)  A  TAXPAYER
 THAT  IS  ELIGIBLE  UNDER  THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF
 THIS SUBDIVISION SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY
 THIS ARTICLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY PERCENT
 OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY.
   (B)  AN  ELIGIBLE  TAXPAYER  SHALL (I) HAVE NO MORE THAN NINETEEN FULL
 TIME EQUIVALENT EMPLOYEES IN  NEW  YORK  STATE,  INCLUDING  ANY  RELATED
 MEMBERS  OR  AFFILIATES, (II) NOT BE A SOLE-PROPRIETORSHIP IF SUCH SOLE-
 PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH SOLE-
 PROPRIETOR'S PLACE OF RESIDENCE, (III)  NOT  BE  CERTIFIED  PURSUANT  TO
 ARTICLE  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW, (IV) NOT BE RECEIVING
 ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE
 SIX OF THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED  WITHIN  A
 CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES.
   (C) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER
 TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF
 THE  TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED
 FROM ANY SHARED RENEWABLE ENERGY  POWER  USAGE  COST.    (II)  THE  TERM
 "PRIMARY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER
 WITHIN  THE  STATE  OF  NEW  YORK  WHERE  THE MAJORITY OF THE TAXPAYER'S
 ECONOMIC ACTIVITY IS GENERATED OR COORDINATED THROUGH.   (III) THE  TERM
 "RELATED  MEMBERS"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN CLAUSES
 (A) AND (B) OF SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE  OF
 SECTION  TWO  HUNDRED  EIGHT  OF THIS ARTICLE, AND THE TERM "AFFILIATES"
 SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF  THE  SAME  AFFILIATED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD06171-01-5
 S. 2347                             2
 
 GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVEN-
 UE CODE) AS THE TAXPAYER.
   (D)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN  THE  HIGHER  OF
 THE  AMOUNTS  PRESCRIBED  IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION
 TWO HUNDRED TEN OF THIS  ARTICLE.  HOWEVER,  IF  THE  AMOUNT  OF  CREDIT
 ALLOWED  UNDER  THIS SUBDIVISION 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 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.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (bbb) to read as follows:
   (BBB) SMALL BUSINESS GRID RENEWABLE ENERGY TAX CREDIT. (1) A  TAXPAYER
 THAT  IS  ELIGIBLE  UNDER  THE LIMITATIONS SPECIFIED IN PARAGRAPH TWO OF
 THIS SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST  THE  TAX  IMPOSED  BY
 THIS  ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY PERCENT
 OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY.
   (2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO  MORE  THAN  NINETEEN  FULL
 TIME  EQUIVALENT  EMPLOYEES  IN  NEW  YORK  STATE, INCLUDING ANY RELATED
 MEMBERS OR AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP  IF  SUCH
 SOLE-PROPRIETOR'S  PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
 SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
 ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, (IV) NOT  BE  RECEIVING
 ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE
 SIX  OF  THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED WITHIN A
 CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES.
   (3) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER
 TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF
 THE TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY  DELIMITED
 FROM ANY SHARED RENEWABLE ENERGY POWER USAGE COST. (II) THE TERM "PRIMA-
 RY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITH-
 IN  THE  STATE OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC
 ACTIVITY IS GENERATED OR COORDINATED THROUGH. (III)  THE  TERM  "RELATED
 MEMBERS" SHALL HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND (B)
 OF  SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO
 HUNDRED EIGHT OF THIS CHAPTER, AND  THE  TERM  "AFFILIATES"  SHALL  MEAN
 THOSE  CORPORATIONS  THAT  ARE  MEMBERS OF THE SAME AFFILIATED GROUP (AS
 DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS
 THE TAXPAYER.
   (4) IF THE AMOUNT OF CREDIT ALLOWED  UNDER  THIS  SUBSECTION  FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, 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.
   §  3. 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) SMALL BUSINESS GRID RENEWABLE     QUALIFYING GRID RENEWABLE ENERGY
 ENERGY TAX CREDIT UNDER                 USAGE UNDER SUBDIVISION
 SUBSECTION (BBB)                        SIXTY-ONE OF SECTION TWO
                                         HUNDRED TEN-B
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.