S T A T E O F N E W Y O R K
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4270--A
Cal. No. 355
2023-2024 Regular Sessions
I N S E N A T E
February 7, 2023
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Introduced by Sens. PARKER, MAY, ROLISON, WEBB -- read twice and ordered
printed, and when printed to be committed to the Committee on Agricul-
ture -- reported favorably from said committee and committed to the
Committee on Rules -- reported favorably from said committee, ordered
to a third reading, passed by Senate and delivered to the Assembly,
recalled, vote reconsidered, restored to third reading, amended and
ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the agriculture and markets law, the tax law and the
environmental conservation law, in relation to enacting the carbon
farming act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "carbon
farming act".
§ 2. Legislative intent. The legislature hereby finds and declares
that soil and vegetation management can significantly enhance soil and
carbon sequestration, resulting in a wide range of environmental and
agricultural benefits to New York farmers and residents, including:
increased yields; soil health; improved water quality; and reductions in
greenhouse gases. The legislature further declares that enhancing carbon
sequestration, the long term storage of carbon in plants, soils, geolog-
ic formations and the ocean, through farming is in the best interest of
New Yorkers. It is therefore the intent of the legislature and the
purpose of this act to encourage farmers to further sequester and miti-
gate carbon in this state by establishing a carbon farming tax credit to
reward and incentivize farmers to maintain or adopt practices that help
maximize New York's carbon sequestration potential.
§ 3. Section 150 of the agriculture and markets law is amended by
adding a new subdivision 5 to read as follows:
5. "CARBON FARMING" MEANS THE IMPLEMENTATION OF A LAND MANAGEMENT
STRATEGY FOR THE PURPOSES OF REDUCING, SEQUESTERING, AND MITIGATING
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01378-03-3
S. 4270--A 2
GREENHOUSE GAS EMISSIONS ON LAND USED IN SUPPORT OF A FARM OPERATION AND
QUANTIFYING THOSE GREENHOUSE GAS BENEFITS USING THE UNITED STATES
DEPARTMENT OF AGRICULTURE'S COMET-PLANNER, COMET-FARM, AND OTHER QUANTI-
FICATION TOOLS.
§ 4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 59 to read as follows:
59. CARBON FARMING CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
AN AGRICULTURAL BUSINESS THAT PRODUCES FARM PRODUCTS SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE PRACTICE OF
CARBON FARMING.
(B) DEFINITIONS. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(I) "CARBON FARMING" SHALL HAVE THE SAME MEANING AS SET FORTH IN
SUBDIVISION FIVE OF SECTION ONE HUNDRED FIFTY OF THE AGRICULTURE AND
MARKETS LAW;
(II) "FARM PRODUCTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN
SUBDIVISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW; AND
(III) "CARBON SEQUESTRATION" SHALL MEAN THE LONG TERM STORAGE OF
CARBON IN PLANTS AND SOILS.
(C) SUCH CREDIT SHALL BE CALCULATED BASED ON THE ECONOMIC VALUE OF
CARBON FARMING AS DETERMINED BY THE COMMISSIONER OF ENVIRONMENTAL
CONSERVATION, IN CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE AND
MARKETS AND THE COMMISSIONER PURSUANT TO PARAGRAPH CCC OF SUBDIVISION
TWO OF SECTION 3-0301 OF THE ENVIRONMENTAL CONSERVATION LAW.
(D) THE TAXPAYER SHALL ATTACH TO ITS TAX RETURN ITS FINAL CERTIFICATE
OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION
PURSUANT TO SECTION 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW. IN NO
EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF
THE CREDIT LISTED ON THE FINAL CERTIFICATE VERIFYING THE EMISSIONS
REDUCTIONS TO BE CREDITED TO THE TAXPAYER.
(E) IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL
EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR AND THE TAXPAYER'S NEW YORK
ADJUSTED GROSS INCOME FOR SUCH YEAR DOES NOT EXCEED SIXTY THOUSAND
DOLLARS, 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 CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON. IF THE TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME
FOR SUCH YEAR EXCEEDS SIXTY THOUSAND DOLLARS, THE EXCESS CREDIT 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. Section 606 of the tax law is amended by adding a new subsection
(ooo) to read as follows:
(OOO) CARBON FARMING CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER WHO
PROVIDES FARM PRODUCTS AND WHO PRACTICES CARBON FARMING SHALL BE ALLOWED
A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
DEFINITIONS SHALL APPLY:
(A) "FARM PRODUCTS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDI-
VISION FIVE OF SECTION TWO OF THE AGRICULTURE AND MARKETS LAW.
(B) "CARBON FARMING" SHALL HAVE THE SAME MEANING AS SET FORTH IN
SUBDIVISION FIVE OF SECTION ONE HUNDRED FIFTY OF THE AGRICULTURE AND
MARKETS LAW.
(3) APPLICATION OF CREDIT. SUCH CREDIT SHALL BE CALCULATED BASED ON
THE ECONOMIC VALUE OF CARBON FARMING AS DETERMINED BY THE COMMISSIONER
OF ENVIRONMENTAL CONSERVATION, IN CONSULTATION WITH THE COMMISSIONER OF
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AGRICULTURE AND MARKETS PURSUANT TO PARAGRAPH CCC OF SUBDIVISION TWO OF
SECTION 3-0301 OF THE ENVIRONMENTAL CONSERVATION LAW.
(4) CERTIFICATION REQUIRED. THE TAXPAYER SHALL ATTACH TO ITS TAX
RETURN ITS FINAL CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER
OF ENVIRONMENTAL CONSERVATION PURSUANT TO SECTION 19-0309 OF THE ENVI-
RONMENTAL CONSERVATION LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A
CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON THE FINAL CERTIF-
ICATE VERIFYING THE EMISSIONS REDUCTIONS TO BE CREDITED TO THE TAXPAYER.
(5) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR AND THE
TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME FOR SUCH YEAR DOES NOT EXCEED
SIXTY THOUSAND DOLLARS, 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. IF THE TAXPAYER'S NEW YORK
ADJUSTED GROSS INCOME FOR SUCH YEAR EXCEEDS SIXTY THOUSAND DOLLARS,
THE EXCESS CREDIT MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS
AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
§ 6. Subdivision 2 of section 3-0301 of the environmental conservation
law is amended by adding a new paragraph ccc to read as follows:
CCC. COOPERATE WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS TO
DEVELOP EDUCATIONAL MATERIALS TO PROMOTE AND ENCOURAGE CARBON FARMING.
SUCH MATERIALS SHALL PROMOTE FARMING PRACTICES WHICH REDUCE, SEQUESTER
AND MITIGATE GREENHOUSE GAS EMISSIONS THROUGH THE IMPLEMENTATION OF
CARBON FARMING STRATEGIES AND ON LAND USED IN SUPPORT OF A FARM OPERA-
TION; AND DEVELOP AND CODIFY A METRIC TO QUANTIFY THE STORAGE OF CARBON
USING THE UNITED STATES DEPARTMENT OF AGRICULTURE'S COMET-PLANNER,
COMET-FARM, AND OTHER QUANTIFICATION TOOLS. THE DEPARTMENT SHALL DEVELOP
AND DISTRIBUTE AN APPLICATION AND CERTIFICATION PROCEDURE WHICH VERIFIES
THE CARBON STORED TO BE CREDITED TO EACH FARM. THE DEPARTMENT MAY
PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION.
§ 7. Subdivision 1 of section 19-0309 of the environmental conserva-
tion law, as amended by chapter 817 of the laws of 1987, is amended to
read as follows:
1. For the purposes of sections 208, 210, 606 and 612 of the Tax Law,
the commissioner or his designated representative is hereby authorized
to issue certificates of compliance concerning air pollution control
facilities [and], air pollution controlled process facilities AND CARBON
FARMING as defined in such law. No such certificate shall be issued
unless the facility to which it is applicable is in compliance with
applicable provisions of titles 1 to 11, inclusive, and title 19 of
article 17, article 19, and title 1 of article 27 of this chapter; of
the Public Health Law; of the state sanitary code and of codes, rules,
regulations, permits or orders issued pursuant thereto.
§ 8. Section 16 of the agriculture and markets law is amended by
adding a new subdivision 53 to read as follows:
53. COOPERATE WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO
DEVELOP EDUCATIONAL MATERIALS TO ENCOURAGE CARBON FARMING AND HOW TO
USE THE UNITED STATES DEPARTMENT OF AGRICULTURE'S COMET-PLANNER, COMET-
FARM, AND OTHER CARBON QUANTIFICATION TOOLS. THE PROGRAM SHALL PROMOTE
FARMING PRACTICES WHICH REDUCE, SEQUESTER AND MITIGATE GREENHOUSE GAS
EMISSIONS ON LAND USED IN SUPPORT OF A FARM OPERATION. THE DEPARTMENT
SHALL PROMOTE THE CARBON FARMING TAX CREDIT PROVIDED IN SECTIONS TWO
HUNDRED TEN-B AND SIX HUNDRED SIX OF THE TAX LAW.
§ 9. This act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the addition, amendment,
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and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.
