S T A T E   O F   N E W   Y O R K
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     S. 5171                                                  A. 5807
 
                        2021-2022 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 25, 2021
                                ___________
 
 IN SENATE -- Introduced by Sen. PALUMBO -- read twice and ordered print-
   ed,  and  when  printed to be committed to the Committee on Budget and
   Revenue
 
 IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once  and  referred
   to the Committee on Ways and Means

 AN  ACT  to amend the tax law, in relation to establishing a residential
   fuel oil storage tank credit and to direct the office of temporary and
   disability assistance to establish a program to assist eligible house-
   holds in the replacement of residential fuel oil storage tanks
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (p-1) to read as follows:
   (P-1) RESIDENTIAL FUEL OIL STORAGE TANK CREDIT. (1) ALLOWANCE OF CRED-
 IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS  HEREINAFTER
 PROVIDED,  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE FOR THE REMOVAL OR
 PERMANENT CLOSURE AND INSTALLATION OF  A  BELOW-GROUND  OR  ABOVE-GROUND
 RESIDENTIAL  FUEL  OIL  STORAGE  TANK  USED  TO PROVIDE HEATING FUEL FOR
 SINGLE FAMILY, TWO FAMILY,  THREE  FAMILY  AND  FOUR  FAMILY  RESIDENCES
 LOCATED IN THIS STATE.
   (2)  AMOUNT  OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE
 COSTS OF REMOVAL OR PERMANENT CLOSURE OF  AN  EXISTING  BELOW-GROUND  OR
 ABOVE-GROUND RESIDENTIAL FUEL OIL TANK AND THE PURCHASE AND INSTALLATION
 COSTS OF A NEW BELOW-GROUND OR ABOVE-GROUND RESIDENTIAL FUEL OIL STORAGE
 TANK  WHICH  IS INSTALLED DURING THE TAXABLE YEAR WHERE SUCH NEW TANK IS
 USED IN PLACE OF SUCH FORMERLY USED BELOW-GROUND OR  ABOVE-GROUND  RESI-
 DENTIAL FUEL OIL TANK WHICH WAS REMOVED OR PERMANENTLY CLOSED DURING THE
 TAXABLE YEAR, NOT TO EXCEED FIVE HUNDRED DOLLARS.
   (3)  LIMITATION. A CREDIT ALLOWED UNDER THIS SUBSECTION MAY BE ALLOWED
 ONLY ONCE WITH RESPECT TO A PARTICULAR RESIDENCE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05779-01-1

 S. 5171                             2                            A. 5807
 
   (4) CARRYOVER. IF THE  AMOUNT  OF  THE  CREDIT  ALLOWABLE  UNDER  THIS
 SUBSECTION  EXCEEDS  THE TAXPAYER'S TAX FOR ANY TAXABLE 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)  TO  QUALIFY  FOR  THE  CREDIT  ESTABLISHED  BY THIS SUBSECTION, A
 REPLACEMENT FUEL OIL STORAGE TANK MUST BE INSTALLED AND SHALL  BE  OF  A
 DESIGN APPROVED BY UNDERWRITERS LABORATORIES (U.L.), AS FOLLOWS:
   (A) U.L. 80: A STEEL TANK WITH A POLYURETHANE EXTERIOR COATING;
   (B) U.L. 80: A STEEL TANK WITH A DOUBLE-BOTTOM LEAK PROTECTION SYSTEM,
 WITH OR WITHOUT A POLYURETHANE EXTERIOR COATING;
   (C)  U.L.  80  STEEL  TANK,  WITHOUT  A POLYURETHANE EXTERIOR COATING,
 PROVIDED THAT SUCH TANK IS LOCATED INSIDE A SEALED, LEAK-PROOF SECONDARY
 CONTAINMENT STRUCTURE LISTED TO U.L.  2258  (NON-METALLIC  TUB  FOR  OIL
 TANKS),  WHEREIN SUCH STRUCTURE HAS A VOLUMETRIC CAPACITY OF 110% OF THE
 INSIDE TANK;
   (D) U.L. 2558: A DOUBLE WALL TANK CONSISTING OF AN INTERIOR  POLYETHY-
 LENE TANK PLACED INSIDE A SECONDARY LIQUID-TIGHT METALLIC TANK;
   (E) U.L. 2558: A SINGLE WALL OR DOUBLE WALL FIBERGLASS TANK; OR
   (F) U.L. 58 AND U.L. 1746-PART 1: A STEEL TANK INSTITUTE P-3 TANK WITH
 CATHODIC PROTECTION.
 A STANDARD UNPROTECTED SINGLE WALL OIL STORAGE TANK LISTED TO U.L. 80 IS
 NOT PERMITTED AS A REPLACEMENT TANK AND WILL NOT BE ELIGIBLE FOR THE TAX
 CREDIT PROVIDED HEREIN.
   § 2. The office of temporary and disability assistance shall develop a
 program utilizing the heating energy assistance program (HEAP) to assist
 eligible  households  to  remove/permanently  close and replace existing
 fuel oil storage tanks and to promulgate such regulations and apply  for
 such permissions and waivers from the United States government as may be
 necessary  to  do  so. To qualify for assistance, a replacement fuel oil
 storage tank must be installed and shall be of a design as specified  in
 paragraph (5) of subsection (p-1) of section 606 of the tax law.
   § 3. This act shall take effect immediately.