NY State Senate Bill 2015-S1362

Archive: Last Bill Status - Stricken

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 20, 2016	recommit, enacting clause stricken
Jan 06, 2016	referred to energy and telecommunications
Jan 12, 2015	referred to energy and telecommunications

co-Sponsors

2015-S1362 (ACTIVE) - Details

Law Section:: Tax Law
Laws Affected:: Ren §28 to be §38, amd §§38, 187-c, 210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7147
2013-2014: S4335

2015-S1362 (ACTIVE) - Summary

Includes the production of cellulosic ethanol within the biofuel production tax credit.

2015-S1362 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1362

TITLE OF BILL:  An act to amend the tax law, in relation to biofuel
production credit for production of cellulosic ethanol

PURPOSE OR GENERAL IDEA OF BILL:

To provide an additional tax credit for production of cellulosic
ethanol in the amount of 25 cents per gallon after the production of
the first 40,000 gallons.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 renumbers Section 28 of the tax law as Section 38 and amends
the section to provide a tax credit of 25 cents per gallon for the
production of cellulosic ethanol after the production of the first
forty thousand gallons per year presented to market. The section
further defines "cellulosic ethanol," and amends the definition of
"biofuel plant" to include any commercial facility where cellulosic
ethanol is one or more of the biofuels being produced at such
facility, and, for purposes of applying the tax credit, the facility
shall be considered a separate biofuel plant.

JUSTIFICATION:

In Chapter 62 of the laws of 2006, New York State established a

biofuel production credit equal to 15 cents per gallon after the
production of the first forty thousand gallons of biofuels.  This
legislation demonstrated New York State's commitment to mass
production of biofuels such as ethanol made from corn. The legislation
was also intended to support commercialization of new technologies
developed at SUNY ESF, Cornell and Clarkson universities for
production of cellulosic ethanol using different feedstock, such as
willow, northern hardwoods, and grasses.

Cellulosic ethanol has numerous benefits over ethanol produced from
corn or sorghum. First, willows and northern hardwoods are well-suited
to the climate of New York State. Therefore, New York State's existing
natural resources are uniquely positioned to contribute to increased
production of cellulosic ethanol. Second, the U.S. Department of
Energy and U.S. Department of Agriculture reported in April 2005 that
the United States has the capacity to sustainably produce 1.3 billion
tons of biomass each year, which would displace at least 30 percent of
current petroleum consumption in the United States. Furthermore,
cellulosic ethanol produces fewer greenhouse gas emissions than other
types of ethanol.

From an economic standpoint, the development of the biofuel industry
in New York has the potential to create jobs, not only in biofuel
refineries, but also in the areas of production, ore-processing, and
transportation. A 2010 Renewable Fuels Roadmap developed by the New
York State Energy and Development Authority (NYSERDA), determined that
the biofuel industry offers potential for robust job growth.

Depending on the price paid for ethanol in the year 2020, NYSERDA
estimates between 3,891 and 14,604 jobs can be created by direct and
induced biofuel refinery growth, statewide. They further estimate that


labor income, wages and salaries paid across the state, will fall
between $172.6 million and $608.3 million. Overall, NYSERDA projects
the gross domestic product of the industry to be between $0.46 billion
and $1.7 billion.

Rural communities across New York, in particular, stand to benefit
from the development of the biofuel industry as it provides an
opportunity to diversify, add value to traditional products, and
return abandoned farmland to the commercial sector.

In order to capitalize on both the environmental and economic
opportunities afforded by the development of biofuels, New York State
should generate additional incentives for the production of cellulosic
ethanol.

LEGISLATIVE HISTORY:

2014: S.4335Reported and Committed to Finance
2013: S.4335Passed Senate
2012: S.7147/A.9997Passed Senate
2011: S.3345Referred to Investigations & Government Operations
2009,2010: S.3375/A.3840Referred to Investigations & Government
Operations
2007,2008: S.5389/A.7570Passed Senate

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

Immediately.

2015-S1362 (ACTIVE) - Bill Text download pdf

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

                                  1362

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 12, 2015
                               ___________

Introduced by Sen. YOUNG -- (at request of the Legislative Commission on
  Rural  Resources)  -- read twice and ordered printed, and when printed
  to be committed to the Committee on Energy and Telecommunications

AN ACT to amend the tax law, in relation to  biofuel  production  credit
  for production of cellulosic ethanol

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

  Section 1. 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, subdivision (d) as
amended by section 46 of part A of chapter 59 of the laws  of  2014,  is
renumbered section 38 and amended to read as follows:
  S  38.  Biofuel production credit.  (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
shall equal fifteen cents per gallon OR TWENTY-FIVE CENTS PER GALLON FOR
PRODUCTION OF CELLULOSIC ETHANOL after the production of the first forty
thousand  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
shareholder of a New York S corporation, then the  cap  imposed  by  the
preceding  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04527-03-5

S. 1362                             2

  (b) Definitions. For the purpose of this section, the following  terms
shall have the following meanings:
  (1)  "Biofuel"  means a fuel which includes biodiesel and ethanol. 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 Socie-
ty of Testing and 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.
The  term  "biofuel" may also include any other standard approved by the
New York state energy and research development authority.
  (2) "CELLULOSIC ETHANOL" MEANS THE PRODUCTION OF ETHANOL  FROM  LIGNO-
CELLULOSIC  BIOMASS  FEEDSTOCKS  NOT  USED  FOR FOOD PRODUCTION THAT ARE
ALTERED THROUGH ACTIVITIES REFERENCED IN SUBPARAGRAPH FIVE OF  PARAGRAPH
(B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC
AUTHORITIES  LAW.  SUCH  LIGNOCELLULOSIC BIOMASS FEEDSTOCKS MAY INCLUDE,
BUT ARE NOT NECESSARILY LIMITED TO, SWITCHGRASSES OR  WILLOWS,  AGRICUL-
TURAL  AND FORESTRY RESIDUES, CLEAN WOOD AND WOOD WASTES, PULP AND PAPER
MILL WASTES OR EXTRACTS, AND NON-RECYCLABLE PAPER. ANY  QUESTION  AS  TO
WHETHER ANY FEEDSTOCK QUALIFIES UNDER THIS PARAGRAPH SHALL BE DETERMINED
BY  THE  PRESIDENT OF THE NEW YORK STATE ENERGY AND RESEARCH DEVELOPMENT
AUTHORITY IN CONSULTATION WITH THE COMMISSIONER OF ENVIRONMENTAL CONSER-
VATION AND THE COMMISSIONER OF AGRICULTURE AND MARKETS.
  (3) "Biofuel plant" means a commercial facility located  in  New  York
state  at  which one or more biofuels are produced.  FOR THE PURPOSES OF
THIS SECTION,  ANY  COMMERCIAL  FACILITY  WHERE  CELLULOSIC  ETHANOL  IS
PRODUCED SHALL BE CONSIDERED A SEPARATE BIOFUEL PLANT.
  (c) Reporting requirements. A taxpayer wishing to claim a credit under
this section shall annually certify to the commissioner (i) that biofuel
produced  at the eligible biofuel plant meets all existing standards for
biofuel and (ii) the amount of biofuel produced at the eligible  biofuel
plant during a taxable year.
  (d)  Cross-references.  For  application of the credit provided for in
this section, see the following provisions of this chapter:
  (1) Article 9: Section 187-c.
  (2) Article 9-A: Section 210-B, subdivision 24.
  (3) Article 22: Section 606, subsections (i) and (jj).
  S 2. Section 187-c of the tax law, as amended by section 2 of  part  K
of chapter 59 of the laws of 2012, is amended to read as follows:
  S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
credit to be computed as provided in section [twenty-eight] THIRTY-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.  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 or  one
hundred  eighty-five  of  this  article.  If, however, the amount of the
credit allowed under this section for any taxable year reduces  the  tax

S. 1362                             3

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  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.
  S 3. 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:
  S  187-c.  Biofuel  production  credit.  A taxpayer shall be allowed a
credit to be computed as provided in section [twenty-eight] THIRTY-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.  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 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  thou-
sand twenty.
  S  4.  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]
THIRTY-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  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.
  S 5. 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] THIRTY-EIGHT of
this chapter, [as added by part X of chapter sixty-two of  the  laws  of

S. 1362                             4

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 overpayment of tax to be credited or refunded in accord-
ance with the provisions of section six hundred eighty-six of this arti-
cle, 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.
  S 6. This act shall take effect immediately, except that section three
of this act shall take effect on the same date and in the same manner as
section 15 of part S of chapter 59 of the laws of 2014 takes effect.

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Senate Bill S1362

Sponsored By

Archive: Last Bill Status - Stricken

co-Sponsors

2015-S1362 (ACTIVE) - Details

2015-S1362 (ACTIVE) - Summary

2015-S1362 (ACTIVE) - Sponsor Memo

2015-S1362 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1362

Share this bill

Sponsored By

Catharine Young

Archive: Last Bill Status - Stricken

co-Sponsors

Thomas F. O'Mara

Patty Ritchie

2015-S1362 (ACTIVE) - Details

2015-S1362 (ACTIVE) - Summary

2015-S1362 (ACTIVE) - Sponsor Memo

2015-S1362 (ACTIVE) - Bill Text download pdf

Comments