S T A T E O F N E W Y O R K
________________________________________________________________________
7517
I N S E N A T E
May 15, 2014
___________
Introduced by Sen. GIPSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the public authorities law, the state finance law and
the tax law, in relation to development of biomethane as a fuel alter-
native and creating the biomethane fuel incentive fund; and making an
appropriation therefor
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 1884 to read as follows:
S 1884. BIOMETHANE GRANTS. THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY SHALL:
1. OVERSEE AND PROMOTE RESEARCH AND DEVELOPMENT REGARDING FUEL DIVER-
SIFICATION AND ENERGY EFFICIENCY IN THE TRANSPORTATION SECTOR; AND
2. PROVIDE GRANTS FOR:
(A) THE COMPONENTS OF THE BIOMETHANE FUEL PATHWAY, INCLUDING THE
COMPONENTS REQUIRED TO PRODUCE BIOMETHANE, INCLUDING LAND, BIOGAS
COLLECTION SYSTEMS, ANEROBIC DIGESTERS, AND BIOGAS REFINERY;
(B) MUNICIPAL PURCHASES OF LIGHT-DUTY VEHICLES TO HEAVY-DUTY FREIGHT
TRUCKS THAT USE BIOMETHANE; AND
(C) INSTALLATION OF BIOMETHANE FUELING EQUIPMENT.
S 2. Section 1851 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
19. "BIOMETHANE" SHALL MEAN BIOGASES THAT ARE EMITTED AS ORGANIC
WASTES BREAK DOWN IN AIRLESS ENVIRONMENTS. BIOMETHANE IS PRODUCED FROM A
VARIETY OF BIOMASS AND/OR BIOGAS SOURCES INCLUDING LANDFILL GAS, SOLID
WASTE, MUNICIPAL WASTEWATER AND AGRICULTURAL MANURE VIA AIRLESS TANKS
CALLED ANAEROBIC DIGESTERS. IT CAN ALSO BE PRODUCED FROM OTHER SOURCES
SUCH AS FORESTRY AND AGRICULTURAL WASTE THROUGH THE PROCESS OF THERMAL
GASIFICATION AND METHANATION, ALTHOUGH THESE TECHNOLOGIES ARE NOT YET
WIDELY USED. BIOMETHANE IS A RENEWABLE FUEL, EASILY DISTRIBUTED THROUGH
EXISTING INFRASTRUCTURE AND IS SUITABLE FOR APPLICATIONS FROM LIGHT-DUTY
VEHICLES TO HEAVY-DUTY FREIGHT TRUCKS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15219-01-4
S. 7517 2
S 3. The state finance law is amended by adding a new section 99-w to
read as follows:
S 99-W. BIOMETHANE FUEL INCENTIVE FUND. 1. THERE IS HEREBY ESTABLISHED
IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF
TAXATION AND FINANCE A SPECIAL REVENUE FUND TO BE KNOWN AS THE "BIOMETH-
ANE FUEL INCENTIVE FUND".
2. THE FUND SHALL CONSIST OF THE AMOUNT OF REVENUES FROM SALES TAXES
IMPOSED ON THE RECEIPTS OF THE PRICE OF MOTOR AND DIESEL FUEL MORE THAN
ONE DOLLAR OR EQUAL TO OR LESS THAN TWO DOLLARS.
3. MONIES OF THE FUND, WHEN ALLOCATED, SHALL BE DISBURSED FOR THE
FOLLOWING PURPOSES:
(A) CREDITS AGAINST PERSONAL INCOME TAX AND CORPORATE FRANCHISE TAX
FOR THE INSTALLATION OR CONVERSION OF FUELING STATIONS FOR BIOMETHANE
FUELS;
(B) GRANTS FOR RESEARCH AND DEVELOPMENT IN REGARDS TO BIOMETHANE FUEL
PRODUCTION AND USE IN THE TRANSPORTATION SECTOR;
(C) GRANTS FOR THE COMPONENTS OF THE BIOMETHANE FUEL PATHWAY, INCLUD-
ING THE COMPONENTS REQUIRED TO PRODUCE BIOMETHANE, INCLUDING LAND,
BIOGAS COLLECTION SYSTEMS, ANEROBIC DIGESTERS, AND BIOGAS REFINERY;
(D) GRANTS FOR MUNICIPAL PURCHASES OF LIGHT-DUTY VEHICLES TO HEAVY
DUTY FREIGHT TRUCKS THAT USE BIOMETHANE FUEL;
(E) GRANTS FOR THE INSTALLATION OF BIOMETHANE FUELING EQUIPMENT; AND
(F) ADMINISTRATIVE COSTS BORNE BY THE DEPARTMENT OF TAXATION AND
FINANCE AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
TY.
S 4. Section 1148 of the tax law, as amended by section 57 of part HH
of chapter 57 of the laws of 2013, is amended to read as follows:
S 1148. Deposit and disposition of revenue. All taxes, interest and
penalties collected or received by the commissioner under this article
shall be deposited and disposed of pursuant to the provisions of section
one hundred seventy-one-a of this chapter; provided however, the comp-
troller shall on or before the twelfth day of each month, pay all such
taxes, interest and penalties collected under this article and remaining
to the comptroller's credit in such banks, banking houses or trust
companies at the close of business on the last day of the preceding
month, into the general fund of the state treasury, except as otherwise
provided in sections ninety-two-d, ninety-two-h, [and], ninety-two-r AND
NINETY-TWO-W of the state finance law and sections eleven hundred two,
eleven hundred four and eleven hundred nine of this article.
S 5. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) ALTERNATIVE FUEL CREDIT FOR INSTALLATION OR CONVERSION OF FUEL-
ING STATIONS. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY
THIS ARTICLE FOR THE COST OF INSTALLATION CONSTRUCTION, RECONSTRUCTION
OR ACQUISITION OF AN BIOMETHANE FUEL REFUELING FACILITY THAT IS DIRECTLY
ATTRIBUTABLE TO THE STORAGE, OR DISPENSING OF BIOMETHANE FUELS TO MOTOR
VEHICLES. THE INCOME TAX CREDIT WOULD BE THIRTY PERCENT OF THE COSTS
ASSOCIATED WITH SUCH EXPENSES.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF
TAX TO BE CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON. THE BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH
TAXABLE YEAR MAY BE CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE
S. 7517 3
YEAR AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE
EXCESS, IF ANY, OF THE AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH
SUCCEEDING YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xli) to read as
follows:
(XLI) ALTERNATIVE FUEL CREDIT AMOUNT OF CREDIT
FOR INSTALLATION OR UNDER SUBDIVISION
CONSERVATION OF FUELING FIFTY OF SECTION
STATIONS UNDER SUBSECTION TWO HUNDRED TEN
(CCC)
S 7. Section 210 of the tax law is amended by adding a new subdivision
50 to read as follows:
50. ALTERNATIVE FUEL CREDIT FOR INSTALLATION OR CONVERSION OF FUELING
STATIONS. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT,
TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS
ARTICLE FOR THE COST OF INSTALLATION CONSTRUCTION, RECONSTRUCTION OR
ACQUISITION OF AN ALTERNATIVE FUEL REFUELING FACILITY THAT IS DIRECTLY
ATTRIBUTABLE TO THE STORAGE, COMPRESSION, CHARGING OR DISPENSING OF
ALTERNATIVE FUELS TO MOTOR VEHICLES. THE INCOME TAX CREDIT SHALL BE
THIRTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH EXPENSES.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT DESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, FIFTY
PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF
THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
THE BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF ANY,
OF THE AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL
BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED AS
PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
S 8. The tax law is amended by adding a new section 187-t to read as
follows:
S 187-T. ALTERNATIVE FUEL CREDIT FOR INSTALLATION OR CONVERSION OF
FUELING STATIONS. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
BY THIS ARTICLE FOR THE COST OF INSTALLATION CONSTRUCTION, RECON-
STRUCTION OR ACQUISITION OF AN ALTERNATIVE FUEL REFUELING FACILITY THAT
IS DIRECTLY ATTRIBUTABLE TO THE STORAGE, COMPRESSION, CHARGING OR
DISPENSING OF ALTERNATIVE FUELS TO MOTOR VEHICLES. THE INCOME TAX CREDIT
SHALL BE THIRTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH EXPENSES.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF
TAX TO BE CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON. THE BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH
TAXABLE YEAR MAY BE CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE
YEAR AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE
S. 7517 4
EXCESS, IF ANY, OF THE AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH
SUCCEEDING YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAP-
TER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
S 9. The sum of eighty million dollars ($80,000,000), or so much ther-
eof as may be necessary, is hereby appropriated as follows: twenty
million dollars for research and development in regards to biomethane
fuel production and biomethane use in the transportation sector; thirty
million dollars for grants for the components of the biomethane fuel
pathway, including the components required to produce biomethane,
including land, biogas collection systems, anerobic digesters, and
biogas refinery; twenty million in grants for municipal purchases of
light-duty vehicles to heavy-duty freight trucks that use biomethane
fuel; five million for grants for the installation of biomethane fueling
equipment; and five million for administrative costs borne by the
department of taxation and finance and the New York state energy
research and development authority to the department of taxation and
finance; out of moneys in the state treasury in the general fund to the
credit of the biomethane fuel incentive fund, not otherwise appropri-
ated, and made immediately available, for the purpose of carrying out
the provisions of this act. Such moneys shall be payable on the audit
and warrant of the comptroller on vouchers certified or approved in the
manner prescribed by law.
S 10. This act shall take effect on the one hundred eightieth day
after it shall have become a law; provided, however, that effective
immediately, the commissioner of taxation and finance shall be author-
ized to adopt and amend any rules or regulations and to take any steps
necessary to implement the provisions of this act.