NY State Senate Bill 2025-S9544

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 23, 2026	referred to investigations and government operations

2025-S9544 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§28, 187-c, 210-B & 606, Tax L

2025-S9544 (ACTIVE) - Summary

Modifies the biofuel production credit from ethanol to renewable diesel and renewable hydrocarbon diesel.

2025-S9544 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9544

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to the biofuel production cred-
it

 
PURPOSE OR GENERAL IDEA OF BILL:

To update and extend the Biofuel Production Tax Credit in New York's Tax
Law.

 
SUMMARY OF PROVISIONS:

Section one amends section 28 of the tax law to state that taxpayers
subject to tax under article nine, nine-A or twenty-two of this chapter
are allowed a tax credit (or pro rata share of earned credit in the case
of a 9 partnership) for each gallon of biofuel produced at a biofuel
plant produced on or after January first, two thousand twenty-two. The
credit is for fifteen cents per gallon after the production of the first
forty thousand gallons per year. The credit under this section will be

capped at two and one-half million dollars per taxpayer per taxable year
for up to no more than four consecutive taxable years per biofuel plant.
If the taxpayer is a partner in a partnership or shareholder of a New
York S corporation, then the cap imposed will be applied at the entity
level, so that the aggregate credit does not exceed two and one-half
million dollars. The tax credit will all apply to taxable years begin-
ning before January first, two thousand twenty-seven.

Section one also amends the definition of biofuel to include renewable
diesel and renewable hydrocarbon diesel.

Section two amends section Section 187-c of the tax law to state that
the credit under this section will not allow an amount which will reduce
the tax payable to less than the applicable minimum tax fixed by section
one hundred eighty-three of this article. If the amount of the credit
for any taxable year reduces the tax to such an amount, the excess will
be treated as an overpayment of tax to be credited or refunded. The tax
credit will apply to taxable years beginning before January first, two
thousand twenty-seven.

Section three amends section 210-B of the tax law to state that the tax
credit of any taxable year cannot reduce the tax due for that year to
less than the fixed dollar minimum. If the credit reduces the tax to
under the fixed dollar minimum, or if the taxpayer otherwise pays tax
based on the fixed dollar minimum amount, any amount of credit not
deductible will be treated as an overpayment of tax to be credited or
refunded without interest.

Section four amends section 606 of the tax law to state that if the
amount of the credit exceeds the taxpayer's tax in a given year, the
excess shall be treated as an overpayment of tax to be credited or
refunded without interest.

Section five states the effective date.

 
JUSTIFICATION:

The original biofuel production tax credit suffered from a lack of
subscription due to low production of biofuel in New York State at the
time it was enacted. At the time, the legislative and regulatory envi-
ronment was ineffective at supporting biofuel production in the state.
When the statue was up for renewal in 2020, the executive chose to let
the credit expire. Now, however, with more climate policies like the
CLCPA encouraging instate production of biofuels, there is a need to
incentivise producers in the state. Biofuels are the current alternative
as the state moves toward complete electrification and works to upgrade
the electrical grid infrastructure in order to fully support the needs
of the state.  Biofuels support the state's emission reduction goals as
biofuels produce 74% less greenhouse gasses than petroleum-diesel. By
reinstating the old statute, this bill supports instate biofuel
production and New York's ongoing emission reduction efforts.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATION:Z:

None.

 
EFFECTIVE DATE:
This act shall take effect the first of January next succeeding the date
on which it shall have become a law and shall apply to 20 taxable years
beginning on and after such date.

2025-S9544 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9544
 
                             I N  S E N A T E
 
                              March 23, 2026
                                ___________
 
 Introduced  by Sen. HARCKHAM -- 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 the biofuel production cred-
   it
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision  (a)  and  paragraph  1 of subdivision (b) of
 section 28 of the tax law, as added by section 1 of part X of chapter 62
 of the laws of 2006, subdivision (a) as amended by section 1 of  part  K
 of chapter 59 of the laws of 2012, are amended to read as follows:
   (a)  General.  A taxpayer subject to tax under article nine, nine-A or
 twenty-two of this chapter shall be allowed a credit  against  such  tax
 pursuant  to  the  provisions  referenced  in  subdivision  (d)  of this
 section. The credit (or pro rata share of earned credit in the case of a
 partnership) for each gallon of biofuel produced at a biofuel  plant  on
 or  after  January  first,  two  thousand  [six]  TWENTY-TWO shall equal
 fifteen cents per gallon after the production of the first  forty  thou-
 sand gallons per year presented to market. The credit under this section
 shall  be  capped  at  two and one-half million dollars per taxpayer per
 taxable year for up to no more than four consecutive taxable  years  per
 biofuel  plant.  If the taxpayer is a partner in a partnership or share-
 holder of a New York S corporation, then the cap imposed by the  preced-
 ing sentence shall be applied at the entity level, so that the aggregate
 credit  allowed  to all the partners or shareholders of each such entity
 in the taxable year does not exceed two and  one-half  million  dollars.
 The  tax  credit allowed pursuant to this section shall apply to taxable
 years  beginning   before   January   first,   two   thousand   [twenty]
 TWENTY-SEVEN.
   (1)  "Biofuel"  means  a  fuel which includes biodiesel [and ethanol],
 RENEWABLE DIESEL AND RENEWABLE HYDROCARBON DIESEL.  The term "biodiesel"
 shall mean a fuel comprised exclusively of  mono-alkyl  esters  of  long
 chain fatty acids derived from vegetable oils or animal fats, designated
 B100,  which meets the specifications of American Society of Testing and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15297-01-6
 S. 9544                             2
 
 Materials designation D 6751-02. The [term "ethanol"  shall  mean  ethyl
 alcohol  manufactured  in the United States and its territories and sold
 (i) for fuel use and which has been rendered unfit for beverage use in a
 manner  and  which  is  produced  at  a facility approved by the federal
 bureau of alcohol, tobacco and firearms for the  production  of  ethanol
 for  fuel,  or  (ii)  as denatured ethanol used by blenders and refiners
 which has been rendered unfit for beverage use] TERMS "RENEWABLE DIESEL"
 AND  "RENEWABLE  HYDROCARBON  DIESEL"  MEAN  A  DIESEL  FUEL  SUBSTITUTE
 PRODUCED  FROM  NONPETROLEUM RENEWABLE SOURCES, INCLUDING VEGETABLE OILS
 AND ANIMAL FATS, THAT MEETS THE REGISTRATION REQUIREMENTS FOR FUELS  AND
 FUEL ADDITIVES ESTABLISHED BY THE FEDERAL ENVIRONMENTAL PROTECTION AGEN-
 CY  IN  40  C.F.R.  PART 79 (2008) AND CONFORMS TO THE SPECIFICATIONS OF
 ASTM D975. RENEWABLE DIESEL AND RENEWABLE HYDROCARBON DIESEL  SHALL  NOT
 INCLUDE  ANY FUEL FROM CO-PROCESSED BIOMASS WITH A FEEDSTOCK THAT IS NOT
 BIOMASS.   The term  "biofuel"  may  also  include  any  other  standard
 approved  by the New York state energy and research development authori-
 ty.
   § 2. Section 187-c of the tax law, as amended by section 15 of part  S
 of chapter 59 of the laws of 2014, is amended to read as follows:
   §  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
 credit to be computed as provided in section twenty-eight of this  chap-
 ter, as added by part X of chapter sixty-two of the laws of two thousand
 six,  against  the  tax imposed by this article. Provided, however, that
 the amount of such credit allowed 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. 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 of  this  article.
 If, however, the amount of the credit allowed under this section for any
 taxable year reduces the tax to such amount, 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, the provisions of subsection (c) of section one thou-
 sand  eighty-eight of this chapter notwithstanding, no interest shall be
 paid thereon. The tax credit allowed  pursuant  to  this  section  shall
 apply  to  taxable  years  beginning  before January first, two thousand
 [twenty] TWENTY-SEVEN.
   § 3. Subdivision 24 of section 210-B of  the  tax  law,  as  added  by
 section  17  of  part A of chapter 59 of the laws of 2014, is amended to
 read as follows:
   24. Biofuel production credit. [(a)  General.]  A  taxpayer  shall  be
 allowed  a credit, to be computed as provided in section twenty-eight of
 this chapter added as part X of chapter sixty-two of  the  laws  of  two
 thousand  six,  against  the  tax  imposed  by  this article. 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 credit 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
 S. 9544                             3
 
 section one thousand eighty-eight of this  chapter  notwithstanding,  no
 interest  shall be paid thereon. The tax credit allowed pursuant to this
 section shall apply to taxable years beginning before January first, two
 thousand [twenty] TWENTY-SEVEN.
   §  4.  Subsection  (jj)  of  section 606 of the tax law, as amended by
 section 4 of part K of chapter 59 of the laws of  2012,  is  amended  to
 read as follows:
   (jj)  Biofuel  production credit. A taxpayer shall be allowed a credit
 to be computed as provided in section twenty-eight of this  chapter,  as
 added  by  part  X of chapter sixty-two of the laws of two thousand six,
 against the tax imposed by this article. If the  amount  of  the  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 overpay-
 ment 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. The tax credit allowed pursuant
 to this section shall apply to taxable years  beginning  before  January
 first, two thousand [twenty] TWENTY-SEVEN.
   §  5. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a  law  and  shall  apply  to
 taxable years beginning on and after such date.

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Senate Bill S9544

Sponsored By

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2025-S9544 (ACTIVE) - Details

2025-S9544 (ACTIVE) - Summary

2025-S9544 (ACTIVE) - Sponsor Memo

2025-S9544 (ACTIVE) - Bill Text download pdf

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Sponsored By

Pete Harckham

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

2025-S9544 (ACTIVE) - Details

2025-S9544 (ACTIVE) - Summary

2025-S9544 (ACTIVE) - Sponsor Memo

2025-S9544 (ACTIVE) - Bill Text download pdf

Comments