S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  374--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations -- recommitted to the Committee on Investigations  and
   Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 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-B of the tax law is amended  by  adding  a  new
 subdivision 53 to read as follows:
   53.  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
 QUALIFIED BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT IN THIS  STATE.
 SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL PER GALLON OF QUALI-
 FIED BIODIESEL FUEL, NOT TO EXCEED TWENTY CENTS PER GALLON, PURCHASED BY
 SUCH TAXPAYER DURING THE TAXABLE YEAR AND USED IN FARMING EQUIPMENT.
   (B)  FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (1) "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 SOCIE-
 TY OF TESTING AND MATERIALS DESIGNATION D 6751.
   (2) "QUALIFIED BIODIESEL" SHALL MEAN A FUEL THAT IS A MIXTURE OF BIOD-
 IESEL AND DIESEL MOTOR FUEL.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD02457-02-8

 S. 374--A                           2
 
   (C) APPLICATION OF  CREDIT.  IN  NO  EVENT  SHALL  THE  CREDIT  HEREIN
 PROVIDED  FOR  BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE
 TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C)  AND
 (D)  OF  SUBDIVISION  ONE  OF  SECTION  TWO HUNDRED TEN OF THIS ARTICLE.
 HOWEVER,  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.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) 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 QUALIFIED BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT
 IN THIS STATE.  SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL  PER
 GALLON  OF  QUALIFIED  BIODIESEL  FUEL,  NOT  TO EXCEED TWENTY CENTS PER
 GALLON, PURCHASED BY SUCH TAXPAYER DURING THE TAXABLE YEAR AND  USED  IN
 FARMING EQUIPMENT.
   (2)  DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING DEFI-
 NITIONS SHALL APPLY:
   (A) "EXCESS FEDERAL GROSS INCOME" MEANS THE AMOUNT  OF  FEDERAL  GROSS
 INCOME  FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO
 EXCEED THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
 INCOME WHICH CONSIST  OF  (I)  EARNED  INCOME,  (II)  PENSION  PAYMENTS,
 INCLUDING  SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV) DIVIDENDS.
 FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "EARNED  INCOME"  SHALL  MEAN
 WAGES,  SALARIES,  TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS
 OF GROSS INCOME WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET  EARNINGS
 FROM  SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM
 THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE  DEPARTMENT
 OF  AGRICULTURE  AND  MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME
 FROM FARMING.
   (B) "BIODIESEL" MEANS 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) "QUALIFIED BIODIESEL" MEANS A FUEL THAT IS A MIXTURE OF  BIODIESEL
 AND DIESEL MOTOR FUEL.
   (3)  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.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.