BILL NUMBER: S192

SPONSOR: GALLIVAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to providing a tax credit for a
portion of the cost of qualified densified biomass fuel expenditures;
and providing for the repeal of such provisions upon expiration thereof

 
PURPOSE:

This bill creates a tax credit for the purchase of biomass fuel for
residential use, typically wood pellets for use in a wood pellet boiler.

 
SUMMARY OF PROVISIONS:

Section 1. Amends the tax law to add a new subsection that permits a
resident owner of real property to claim a tax credit in an amount equal
to thirty percent of qualified biomass fuel expenditures; defines "qual-
ified biomass fuel expenditures" and "biomass fuel" accordingly.

Section 2. Sets forth the effective date and expiration of the aforemen-
              

tioned tax credit.

 
JUSTIFICATION:

Wood-fueled heating systems, also called biomass systems, burn wood
pellets, chips or logs to provide warmth in a single room or to power
central heating and hot water boilers. Heating a home with a wood pellet
boiler has a number of advantages over heating with traditional fossil
fuels. Wood pellets cost as much as 60% less than traditional heating
fuel sources, and are a sustainable, renewable, and carbon-neutral fuel
source. Wood pellets are produced in a number of locations throughout
North America, with multiple producers located within New York State.

Almost any home can be converted to utilize a wood pellet boiler, either
as a stand-alone heat source or as a primary heat source in conjunction
with a secondary backup boiler. NYSERDA currently offers a number of
incentives for residential homeowners to install wood pellet boilers to
heat their homes and convert from more traditional electric and/or gas
heat. However, such incentives are not applicable for the purchase of
fuel to use in these boilers once installed. This bill would create a
tax credit for resident owners of real property under the tax law for
fuel expenditures, incentivizing New Yorkers to install and use biomass
fuel to heat their homes, which in turn could continue to drive the
state toward record uses of renewable energy.

 
LEGISLATIVE HISTORY:

2021-22: S.1699/A.497 Referred to Investigations and Government
Operations/Referred to Ways and Means

2019-20: S.830/A.954 Referred to Investigations and Government
Operations/Referred to Ways and Means

2017-18: S.5439B/A.8047A Referred to Investigations and Government
Operations/Referred to Ways and Means

 
FISCAL IMPLICATIONS:
To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed five years after such effective date.