S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3860
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced  by  M. of A. THIELE, WALKER -- 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.
   (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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03792-01-3
              

 A. 3860                             2
 
   (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.