Senate Bill S4438

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4438
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2025
                                ___________
 
 Introduced  by  Sen.  ASHBY  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to establishing a hydroelectric
   power tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The tax law is amended by adding a new section 50 to read
 as follows:
   § 50. HYDROELECTRIC POWER CREDIT. (A) ALLOWANCE OF CREDIT. A  TAXPAYER
 SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A, TWENTY-TWO OR THIRTY-THREE OF
 THIS  CHAPTER SHALL BE ALLOWED A HYDROELECTRIC POWER CREDIT AGAINST SUCH
 TAX, FOR FIFTY PERCENT OF THE COST OF ANY LICENSING OR RELICENSING  FEES
 ASSESSED BY ANY STATE OR FEDERAL AGENCY.
   (B)  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;
   (2) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 61;
   (3) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (BBB);
   (4) ARTICLE 33: SECTION 1511, SUBDIVISION (FF).
   § 2. The tax law is amended by adding a new section 187-s to  read  as
 follows:
   § 187-S. HYDROELECTRIC POWER CREDIT. 1. ALLOWANCE OF CREDIT. A TAXPAY-
 ER  SHALL  BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION
 FIFTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY SECTIONS ONE HUNDRED
 EIGHTY-THREE, ONE HUNDRED EIGHTY-FOUR AND  FORMER  SECTION  ONE  HUNDRED
 EIGHTY-SIX  OF  THIS ARTICLE. PROVIDED, HOWEVER, THAT THE AMOUNT OF SUCH
 CREDIT ALLOWABLE AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED  EIGHTY-
 FOUR  OF  THIS  ARTICLE SHALL BE THE EXCESS OF THE AMOUNT OF SUCH CREDIT
 OVER THE AMOUNT OF ANY CREDIT ALLOWED BY THIS SECTION  AGAINST  THE  TAX
 IMPOSED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08940-01-5
              

 S. 4438                             2
 
   2.  CARRYOVER.  IN  NO  EVENT  SHALL  THE CREDIT UNDER THIS SECTION BE
 ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN  THE
 APPLICABLE  MINIMUM  TAX  FIXED  BY  SECTION ONE HUNDRED EIGHTY-THREE OR
 FORMER SECTION ONE HUNDRED EIGHTY-SIX 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 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND
 MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 61 to read as follows:
   61. HYDROELECTRIC POWER 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) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
 BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE
 AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
 HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE
 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 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY  BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED
 FROM THE QUALIFIED EMPLOYER'S TAX FOR SUCH YEARS.
   § 4. 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) HYDROELECTRIC POWER            AMOUNT OF CREDIT UNDER
 CREDIT UNDER SUBSECTION (BBB)        SUBDIVISION SIXTY-ONE OF
                                      SECTION TWO HUNDRED TEN-B,
                                      OR SUBDIVISION (FF) OF SECTION
                                      FIFTEEN HUNDRED ELEVEN
 
   § 5. Section 606 of the tax law is amended by adding a new  subsection
 (bbb) to read as follows:
   (BBB)  HYDROELECTRIC POWER 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)  CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXA-
 BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE
 AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
 HUNDRED TEN OF THIS CHAPTER. HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE
 UNDER  THIS  SUBSECTION  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 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY  BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEARS.
   § 6. Section 1511 of the tax law is amended by adding a  new  subdivi-
 sion (ff) to read as follows:
   (FF)  HYDROELECTRIC  POWER 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) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
 BLE  YEAR  SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
 MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A)  OF  SECTION  FIFTEEN
 HUNDRED  TWO OF THIS ARTICLE OR BY SECTION FIFTEEN HUNDRED TWO-A OF THIS
 ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE AMOUNT OF  THE  CREDIT
 S. 4438                             3
 
 ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAXPAY-
 ER'S TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE  SHALL
 BE  TREATED  AS  AN OVERPAYMENT OF TAX TO BE CREDITED IN ACCORDANCE WITH
 THE  PROVISIONS  OF  SECTION  ONE  THOUSAND  EIGHTY-SIX OF THIS CHAPTER.
 PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
 SAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL  BE
 PAID THEREON.
   § 7. This act shall take effect immediately.