S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1153
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2019
                                ___________
 
 Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance  law,  in  relation  to  creating  the
   alternative  fuel incentive fund; to amend the tax law, in relation to
   creating the alternative fuels credit; to amend the public authorities
   law, in relation to alternative fuel grants; and making  an  appropri-
   ation therefor
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding  a  new  section
 99-ff to read as follows:
   §  99-FF.  ALTERNATIVE  FUEL INCENTIVE FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
 ER OF TAXATION AND FINANCE A SPECIAL REVENUE FUND TO  BE  KNOWN  AS  THE
 "ALTERNATIVE 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 ALTERNATIVE
 FUELS;
   (B) GRANTS FOR RESEARCH AND DEVELOPMENT IN REGARDS TO FUEL  DIVERSIFI-
 CATION AND ENERGY EFFICIENCY IN THE TRANSPORTATION SECTOR;
   (C)  INSTALLATION OF ALTERNATIVE FUELING STATIONS AT EACH OF THE TWEN-
 TY-SEVEN TRAVEL PLAZAS ON THE NEW YORK STATE THRUWAY;
   (D) GRANTS FOR A CELLULOSIC ETHANOL REFINERY; AND
   (E) ADMINISTRATIVE COSTS BORNE  BY  THE  DEPARTMENT  OF  TAXATION  AND
 FINANCE  AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
 TY.

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

                                                            LBD05234-01-9

 S. 1153                             2
 
   § 2. 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:
   §  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-NINE-FF of the state finance law and sections eleven hundred two,
 eleven hundred four and eleven hundred nine of this article.
   §  3.  Section  606  of  the  tax  law  is  amended  by adding two new
 subsections (p-1) and (jjj) to read as follows:
   (P-1) ALTERNATIVE FUELS CREDIT.  (1)  GENERAL.  A  TAXPAYER  SHALL  BE
 ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
 TAX IMPOSED BY THIS ARTICLE FOR FUEL  FLEXIBLE  VEHICLES  AND  QUALIFIED
 HYBRID  VEHICLES  PLACED  IN  SERVICE DURING THE TAXABLE YEAR. PROVIDED,
 HOWEVER, THAT THE CREDIT PROVIDED FOR BY THIS SUBSECTION WITH RESPECT TO
 FUEL FLEXIBLE VEHICLES SHALL NOT BE ALLOWED  TO  A  GAS  CORPORATION  OR
 ELECTRIC  CORPORATION  AS DEFINED IN SUBDIVISIONS ELEVEN AND THIRTEEN OF
 SECTION TWO OF THE PUBLIC SERVICE LAW, OR A GAS AND ELECTRIC CORPORATION
 AS DESCRIBED IN SECTION SIXTY-FOUR OF THE PUBLIC SERVICE LAW, WHERE SUCH
 CORPORATION IS SUBJECT TO THE SUPERVISION OF THE  DEPARTMENT  OF  PUBLIC
 SERVICE.
   (2)   FUEL  FLEXIBLE  AND  HYBRID  VEHICLES.  THE  CREDIT  UNDER  THIS
 SUBSECTION FOR FUEL FLEXIBLE AND QUALIFIED HYBRID VEHICLES  SHALL  EQUAL
 FIVE HUNDRED DOLLARS PER VEHICLE REGISTERED IN THIS STATE.
   (3)  DEFINITIONS. (A) THE TERM "FUEL FLEXIBLE VEHICLE" MEANS A VEHICLE
 WHICH IS EQUIPPED TO USE ALTERNATIVE  FUEL  AS  DEFINED  IN  SUBDIVISION
 ELEVEN OF SECTION THREE HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
   (B)  THE  TERM  "QUALIFIED  HYBRID  VEHICLE" MEANS A MOTOR VEHICLE, AS
 DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE  VEHICLE  AND  TRAFFIC
 LAW, OTHER THAN AN ELECTRIC VEHICLE, THAT:
   (I) DRAWS PROPULSION ENERGY FROM BOTH
   (A)  AN INTERNAL COMBUSTION ENGINE (OR HEAT ENGINE THAT USES COMBUSTI-
 BLE FUEL); AND
   (B) AN ENERGY STORAGE DEVICE; AND
   (II) EMPLOYS A REGENERATIVE VEHICLE BRAKING SYSTEM THAT RECOVERS WASTE
 ENERGY TO CHARGE SUCH ENERGY STORAGE DEVICE.
   (4)  CARRYOVERS.  IF  THE  AMOUNT  OF  CREDIT  ALLOWABLE  UNDER   THIS
 SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX OF SUCH YEAR, THE EXCESS, MAY
 BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (5) CREDIT RECAPTURE. (A) VEHICLES. IF, WITHIN THREE FULL  YEARS  FROM
 THE  DATE  A QUALIFIED HYBRID VEHICLE IS PLACED IN SERVICE SUCH VEHICLES
 CEASE TO BE QUALIFIED, A RECAPTURE AMOUNT MUST BE ADDED BACK IN THE  TAX
 YEAR IN WHICH SUCH CESSATION OCCURS.
   (B)  CESSATION  OF  QUALIFICATION. (I) A QUALIFIED HYBRID CEASES TO BE
 QUALIFIED IF
   (A) IT IS MODIFIED BY THE TAXPAYER SO THAT  IT  NO  LONGER  MEETS  THE
 REQUIREMENTS OF A QUALIFIED HYBRID VEHICLE.

 S. 1153                             3
 
   (B)  THE  TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION SELLS OR
 DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
 WILL BE SO MODIFIED.
   (II)  RECAPTURE  AMOUNT.  THE  RECAPTURE AMOUNT IS EQUAL TO THE CREDIT
 ALLOWABLE UNDER THIS SUBSECTION.
   (6) TERMINATION. THIS SUBSECTION SHALL NOT APPLY TO PROPERTY PLACED IN
 SERVICE IN TAXABLE YEARS  BEGINNING  AFTER  DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND TWENTY.
   (JJJ)  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 ALTERNATIVE FUEL REFUELING FACILITY THAT IS DIRECT-
 LY  ATTRIBUTABLE  TO THE STORAGE, COMPRESSION, CHARGING OR DISPENSING OF
 ALTERNATIVE 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
 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.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding two new clauses (xliv) and (xlv)  to
 read as follows:
 (XLIV) ALTERNATIVE FUELS                AMOUNT OF CREDIT
 CREDIT UNDER SUBSECTION                 UNDER SUBDIVISION
 (P-1)                                   FIFTY-THREE OF
                                         SECTION TWO HUNDRED TEN-B
 
 (XLV) ALTERNATIVE FUEL CREDIT           AMOUNT OF CREDIT
 FOR INSTALLATION OR                     UNDER SUBDIVISION
 CONSERVATION OF FUELING                 FIFTY-FOUR OF SECTION
 STATIONS UNDER SUBSECTION               TWO HUNDRED TEN-B
 (JJJ)
   §  5. Section 210-B of the tax law is amended by adding two new subdi-
 visions 53 and 54 to read as follows:
   53. ALTERNATIVE FUELS CREDIT. (A) GENERAL. A TAXPAYER SHALL BE ALLOWED
 A CREDIT, TO BE  COMPUTED  AS  HEREINAFTER  PROVIDED,  AGAINST  THE  TAX
 IMPOSED  BY  THIS  ARTICLE,  FOR  FUEL  FLEXIBLE  VEHICLES AND QUALIFIED
 HYBRIDS. PROVIDED,  HOWEVER,  THAT  THE  CREDIT  PROVIDED  FOR  BY  THIS
 SUBSECTION  WITH  RESPECT TO FUEL FLEXIBLE VEHICLES SHALL NOT BE ALLOWED
 TO A GAS CORPORATION OR ELECTRIC CORPORATION AS DEFINED IN  SUBDIVISIONS
 ELEVEN  AND  THIRTEEN OF SECTION TWO OF THE PUBLIC SERVICE LAW, OR A GAS
 AND ELECTRIC CORPORATION AS  DESCRIBED  IN  SECTION  SIXTY-FOUR  OF  THE
 PUBLIC SERVICE LAW, WHERE SUCH CORPORATION IS SUBJECT TO THE SUPERVISION
 OF THE DEPARTMENT OF PUBLIC SERVICE.
   (B)  FUEL  FLEXIBLE VEHICLES AND QUALIFIED HYBRID VEHICLES. THE CREDIT
 UNDER THIS SUBDIVISION FOR FUEL FLEXIBLE VEHICLES AND  QUALIFIED  HYBRID

 S. 1153                             4
 
 VEHICLES SHALL EQUAL FIVE HUNDRED DOLLARS PER VEHICLE REGISTERED IN THIS
 STATE.
   (C) DEFINITIONS. (I) THE TERM "FUEL FLEXIBLE VEHICLE" MEANS A VEHICLE,
 WHICH  IS  EQUIPPED  TO  USE  ALTERNATIVE FUEL AS DEFINED IN SUBDIVISION
 ELEVEN OF SECTION THREE HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
   (II) THE TERM "QUALIFIED HYBRID VEHICLE" SHALL HAVE THE  SAME  MEANING
 AS  PROVIDED FOR UNDER SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION
 (P-1) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
   (D) CARRYOVERS. IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION BE
 ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN  THE
 HIGHER  OF THE AMOUNTS PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
 AMOUNT  OF  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
 REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT  DEDUCTIBLE  IN
 SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND
 MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (E)  CREDIT RECAPTURE. (I) IF, WITHIN THREE FULL YEARS FROM THE DATE A
 QUALIFIED HYBRID VEHICLE IS PLACED IN SERVICE CEASES TO BE QUALIFIED,  A
 RECAPTURE AMOUNT MUST BE ADDED BACK IN THE TAX YEAR IN WHICH SUCH CESSA-
 TION OCCURS.
   (II) A QUALIFIED HYBRID VEHICLE CEASES TO BE QUALIFIED IF:
   (A)  IT  IS  MODIFIED  BY  THE TAXPAYER SO THAT IT NO LONGER MEETS THE
 REQUIREMENTS OF A QUALIFIED HYBRID VEHICLE AS  DEFINED  IN  SUBPARAGRAPH
 (B) OF PARAGRAPH THREE OF SUBSECTION (P-1) OF SECTION SIX HUNDRED SIX OF
 THIS CHAPTER; OR
   (B)  THE  TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION SELLS OR
 DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
 WILL BE SO MODIFIED.
   (III) RECAPTURE AMOUNT. THE RECAPTURE AMOUNT IS EQUAL  TO  THE  CREDIT
 ALLOWABLE UNDER THIS SUBDIVISION MULTIPLIED BY A FRACTION, THE NUMERATOR
 OF  WHICH IS THE TOTAL RECOVERY PERIOD FOR THE PROPERTY MINUS THE NUMBER
 OF RECOVERY YEARS PRIOR TO, BUT NOT INCLUDING, THE RECAPTURE  YEAR,  AND
 THE DENOMINATOR OF WHICH IS THE TOTAL RECOVERY PERIOD.
   (F)  TERMINATION.  THIS SUBDIVISION SHALL NOT APPLY TO PROPERTY PLACED
 IN SERVICE IN TAXABLE YEARS BEGINNING AFTER DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND TWENTY.
   54.  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 SECTION
 TWO  HUNDRED  TEN OF THIS ARTICLE. 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 OVER-
 PAYMENT 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

 S. 1153                             5
 
 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.
   § 6. The tax law is amended by adding two new sections 187-q and 187-r
 to read as follows:
   §  187-Q.  ALTERNATIVE  FUELS  CREDIT. 1. GENERAL. A TAXPAYER SHALL BE
 ALLOWED A CREDIT,  TO  BE  CREDITED  AGAINST  THE  TAXES  IMPOSED  UNDER
 SECTIONS  ONE  HUNDRED EIGHTY-THREE, AND ONE HUNDRED EIGHTY-FOUR OF THIS
 ARTICLE.  SUCH CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, SHALL  BE
 ALLOWED  FOR  FUEL FLEXIBLE AND HYBRID VEHICLES PLACED IN SERVICE DURING
 THE TAXABLE YEAR.  PROVIDED, HOWEVER, THAT THE  AMOUNT  OF  SUCH  CREDIT
 ALLOWABLE  AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-FOUR OF
 THIS ARTICLE SHALL BE THE EXCESS OF THE CREDIT ALLOWED BY  THIS  SECTION
 OVER  THE  AMOUNT  OF  SUCH  CREDIT ALLOWABLE AGAINST THE TAX IMPOSED BY
 SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.
   2. FUEL FLEXIBLE AND HYBRID VEHICLES. THE CREDIT UNDER  THIS  SUBDIVI-
 SION  FOR  FUEL  FLEXIBLE AND QUALIFIED HYBRID VEHICLES SHALL EQUAL FIVE
 HUNDRED DOLLARS PER VEHICLE REGISTERED IN THIS STATE.
   3. DEFINITIONS. (A) THE TERM "FUEL FLEXIBLE VEHICLE" MEANS A  VEHICLE,
 WHICH  IS  EQUIPPED  TO  USE  ALTERNATIVE FUEL AS DEFINED IN SUBDIVISION
 ELEVEN OF SECTION THREE HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
   (B) THE TERM "QUALIFIED HYBRID VEHICLE" SHALL HAVE THE SAME MEANING AS
 PROVIDED FOR IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION  (P-1)
 OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
   4.  CARRYOVERS.  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 CREDIT ALLOWABLE UNDER THIS SECTION
 FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED-
 IT NOT DEDUCTIBLE IN SUCH TAXABLE  YEAR  MAY  BE  CARRIED  OVER  TO  THE
 FOLLOWING  YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR
 SUCH YEAR OR YEARS.
   5. CREDIT RECAPTURE. (A) IF, WITHIN THREE FULL YEARS FROM THE  DATE  A
 QUALIFIED  HYBRID VEHICLE IS PLACED IN SERVICE CEASES TO BE QUALIFIED, A
 RECAPTURE AMOUNT MUST BE ADDED BACK IN THE TAX YEAR IN WHICH SUCH CESSA-
 TION OCCURS.
   (B) A QUALIFIED HYBRID VEHICLE CEASES TO BE QUALIFIED IF:
   (I) IT IS MODIFIED BY THE TAXPAYER SO THAT  IT  NO  LONGER  MEETS  THE
 REQUIREMENTS  OF  A  QUALIFIED HYBRID VEHICLE AS DEFINED IN SUBPARAGRAPH
 (B) OF PARAGRAPH THREE OF SUBSECTION (P-1) OF SECTION SIX HUNDRED SIX OF
 THIS CHAPTER, OR
   (II) THE TAXPAYER RECEIVING THE CREDIT UNDER  THIS  SECTION  SELLS  OR
 DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
 WILL BE SO MODIFIED.
   (C)  THE  RECAPTURE AMOUNT IS EQUAL TO THE CREDIT ALLOWABLE UNDER THIS
 SECTION.
   6. TERMINATION. THIS SECTION SHALL NOT APPLY  TO  PROPERTY  PLACED  IN
 SERVICE  IN  TAXABLE  YEARS  BEGINNING  AFTER DECEMBER THIRTY-FIRST, TWO
 THOUSAND TWENTY.
   § 187-R. 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

 S. 1153                             6
 
 DISPENSING OF ALTERNATIVE FUELS TO MOTOR VEHICLES.  THE INCOME TAX CRED-
 IT 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
 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.
   § 7. The public authorities law is amended by  adding  a  new  section
 1884 to read as follows:
   §  1884.  ALTERNATIVE  FUEL 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 THE CREATION OF A CELLULOSIC ETHANOL REFINERY.
   §  8.  Subdivision 10 of section 354 of the public authorities law, as
 amended by section 2 of part TT of chapter 54 of the laws  of  2016,  is
 amended to read as follows:
   10.  To  construct,  reconstruct  or  improve  on or along the thruway
 SYSTEM in the  manner  herein  provided,  suitable  facilities  for  gas
 stations,  restaurants, and other facilities for the public, or to lease
 the right to construct, reconstruct or improve and operate such  facili-
 ties;  such  facilities shall be publicly offered for leasing for opera-
 tion, or the right to construct, reconstruct or improve and operate such
 facilities shall be publicly offered under rules and regulations  to  be
 established  by the authority, provided, however, that lessees operating
 such facilities at the time this act becomes effective, may  reconstruct
 or  improve  them  or  may  construct additional like facilities, in the
 manner and upon such terms and conditions as the board shall  determine;
 AND  PROVIDED FURTHER, HOWEVER, THAT SUCH FACILITIES CONSTRUCTED, RECON-
 STRUCTED OR IMPROVED ON OR ALONG THE CANAL SYSTEM  SHALL  BE  CONSISTENT
 WITH  THE  CANAL  RECREATIONWAY  PLAN  APPROVED  PURSUANT TO SECTION ONE
 HUNDRED THIRTY-EIGHT-C OF THE CANAL LAW AND FORMER SECTION THREE HUNDRED
 EIGHTY-TWO OF THIS TITLE; AND PROVIDED FURTHER, THAT EACH SUCH  FACILITY
 WHICH CONTAINS OR CONSISTS OF A GAS STATION SHALL INCLUDE A FACILITY FOR
 SELLING  TO  THE  PUBLIC  ALTERNATIVE  FUEL, AS DEFINED IN SECTION THREE
 HUNDRED FIFTY-ONE OF THIS ARTICLE.
   § 9. Section 351 of the public authorities law is amended by adding  a
 new subdivision 11 to read as follows:
   11.  THE TERM "ALTERNATIVE FUEL" SHALL MEAN ETHANOL, METHANOL, NATURAL
 GAS, PROPANE, ELECTRICITY (INCLUDING  ELECTRICITY  FROM  SOLAR  ENERGY),
 HYDROGEN,  AND  ANY  OTHER  FUEL  IDENTIFIED  WHICH IS SUBSTANTIALLY NOT
 PETROLEUM-BASED, WHICH IS CONSISTENT WITH THE GOALS  OF  PROTECTING  THE
 SAFETY  AND  HEALTH OF THE PUBLIC AND MINIMIZING EMISSIONS OF AIR POLLU-
 TANTS, AND WHICH IS CONSISTENT WITH ANY APPLICABLE  FEDERAL  ALTERNATIVE
 FUEL REQUIREMENTS.
   §  10. The sum of eighty-two million dollars ($82,000,000), or so much
 thereof as may be necessary, is hereby appropriated as follows:   thirty
 million  dollars  for research and development in regards to fuel diver-
 sification and energy efficiency in the transportation  sector;  twenty-

 S. 1153                             7
 
 seven  million  dollars  for  the  installation  of  alternative fueling
 stations at each of the twenty-seven travel plazas on the New York state
 thruway; twenty million dollars for a cellulosic ethanol  refinery;  and
 five million dollars for administrative costs borne by the department of
 taxation and finance and the New York state energy research and develop-
 ment  authority to the department of taxation and finance; out of moneys
 in the state treasury in the general fund to the credit of the  alterna-
 tive  fuel  incentive  fund,  not otherwise appropriated, and made imme-
 diately 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.
   §  11.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law; provided, however,  that  the  commis-
 sioner of taxation and finance shall be authorized on and after the date
 this  act  shall have become a law to adopt and amend any rules or regu-
 lations and to take any steps necessary to implement the  provisions  of
 this act.