S T A T E   O F   N E W   Y O R K
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                                  4856

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2009
                               ___________

Introduced by M. of A. ALESSI -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to  amend the tax law, in relation to providing a tax credit to
  farmers who purchase biodiesel fuel for the operation  of  their  farm
  equipment

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
subdivision 41 to read as follows:
  41.  CREDIT  FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT.  (A) ALLOW-
ANCE OF CREDIT. A TAXPAYER THAT IS A  BUSINESS  PRINCIPALLY  ENGAGED  IN
FARMING,  AS   SUCH TERM IS DEFINED IN PARAGRAPH NINETEEN OF SUBDIVISION
(B) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER  SHALL  BE  ALLOWED  A
CREDIT  AGAINST  THE  TAX  IMPOSED BY THIS   ARTICLE FOR THE PURCHASE OF
BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT.  SUCH  CREDIT  SHALL  BE
$0.01  PER  PERCENT  OF  BIODIESEL  PER GALLON OF BIOHEAT, NOT TO EXCEED
TWENTY CENTS PER GALLON, PURCHASED BY SUCH TAXPAYER.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "BIODIESEL" SHALL  MEAN
A  FUEL  COMPRISED  EXCLUSIVELY  OF MONOALKYL 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  MATERIALS
DESIGNATION D 6751.
  (C)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBDIVISION 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 ONE
THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL  BE  PAID  ON  SUCH  REFUND,  NOTWITHSTANDING  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08086-01-9
              

A. 4856                             2

  (QQ) CREDIT FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT.  (1)  ALLOW-
ANCE  OF  CREDIT. A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR
THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL  GROSS  INCOME
SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
THE  PURCHASE  OF  BIODIESEL  FUEL TO BE USED IN FARMING EQUIPMENT. SUCH
CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL PER  GALLON  OF  BIOHEAT,
NOT TO EXCEED TWENTY CENTS PER GALLON, PURCHASED BY SUCH TAXPAYER.
  (2)  APPLICATION  OF CREDIT. 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 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.
  S 3. This act shall take effect immediately.