S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9903
 
                             I N  S E N A T E
 
                             September 6, 2024
                                ___________
 
 Introduced  by  Sen. MATTERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public service law and the tax law, in  relation  to
   enacting the credit for rural energy infrastructure act of 2025
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "credit for rural energy infrastructure act of 2025".
   §  2.  Section  5 of the public service law is amended by adding a new
 subdivision 7 to read as follows:
   7. THE COMMISSION, IN CONSULTATION WITH NEW  YORK  INDEPENDENT  SYSTEM
 OPERATOR,  IS  HEREBY  AUTHORIZED  AND  DIRECTED TO PROMULGATE RULES AND
 REGULATIONS NECESSARY FOR VERIFYING AN UNSERVED AREA FOR THE PURPOSES OF
 SUBDIVISION SIXTY-ONE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION  (QQQ)
 OF  SECTION  SIX  HUNDRED  SIX OF THE TAX LAW, USING GAS SERVICE MAPPING
 DATA AT THE TIME A PROJECT IS PROPOSED.
   § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 61 to read as follows:
   61.  CREDIT  FOR RURAL ENERGY INFRASTRUCTURE DEPLOYMENT. (A) ALLOWANCE
 OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A  CREDIT  AGAINST  THE
 TAX IMPOSED BY THIS ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION
 IN  AID  OF CONSTRUCTION RESULTING FROM NEW GAS PIPELINE CONSTRUCTION TO
 DELIVER GAS SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE  OF  BUSINESS
 LOCATED  IN  AN  UNSERVED  AREA.  THE CREDIT ALLOWED BY THIS SUBDIVISION
 SHALL BE CLAIMED ANNUALLY OVER A FIVE-YEAR PERIOD EQUAL TO ONE-FIFTH  OF
 THE  CREDIT  AMOUNT.  IF  THE  CREDIT  ALLOWED UNDER THIS SUBDIVISION IS
 GREATER THAN THE TAX DUE IN ANY TAXABLE YEAR, THE AMOUNT BY  WHICH  SUCH
 CREDIT  EXCEEDS  SUCH  TAX DUE IS TREATED AS AN OVERPAYMENT OF TAX TO BE
 REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
 EIGHTY-SIX OF THIS CHAPTER.
   (B)  FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (I)  "QUALIFIED  CONSTRUCTION  EXPENSES"  EQUAL  THE  TOTAL  COST   OF
 CONSTRUCTION OF NEW NETWORKS IN THE PROPOSED UNSERVED AREA, AS CERTIFIED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16140-01-4
 S. 9903                             2
 
 BY  THE  GAS SERVICE PROVIDER, BUT NOT TO EXCEED A REASONABLE COST BASED
 UPON THE AVERAGE COST PER MILE OF GAS PIPELINE  CONSTRUCTION  AS  DETER-
 MINED BY THE PUBLIC SERVICE COMMISSION AND GAS SERVICE PROVIDERS.
   (II)  "QUALIFIED  CUSTOMER  CONTRIBUTION  IN  AID  OF CONSTRUCTION" IS
 DETERMINED IN ACCORDANCE WITH THE FOLLOWING FORMULA: (QCE/TC) - (ACM/35)
 = QC, WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES;  ACM  EQUALS
 THE AVERAGE COST OF CONSTRUCTION PER MILE IN THE PROPOSED UNSERVED AREA,
 AS CERTIFIED BY THE GAS SERVICE PROVIDER, BUT NOT TO EXCEED A REASONABLE
 COST  BASED  UPON THE AVERAGE COST PER MILE OF GAS PIPELINE CONSTRUCTION
 AS DETERMINED BY THE PUBLIC SERVICE COMMISSION AND GAS  SERVICE  PROVID-
 ERS;  TC  EQUALS THE NUMBER OF RESIDENTS AND SMALL BUSINESS CUSTOMERS IN
 THE PROPOSED UNSERVED AREA MAKING A QUALIFIED CUSTOMER  CONTRIBUTION  IN
 AID  TO CONSTRUCTION AND CONTRACTING FOR SERVICES OVER THE PIPELINE; AND
 QC EQUALS THE QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION.
   (III) "REQUIRED PROVIDER CONTRIBUTION IN AID  TO  CONSTRUCTION"  SHALL
 EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
 IFIED  CUSTOMER  CONTRIBUTIONS  IN  AID  TO CONSTRUCTION IN THE PROPOSED
 UNSERVED AREA.
   (IV) "UNSERVED AREA" MEANS AN AREA COMPOSED OF ONE OR MORE  CONTIGUOUS
 CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
 GAS SERVICE.
   (V)  "QUALIFIED  TAXPAYER"  MEANS A TAXPAYER WHICH IS A SMALL BUSINESS
 CORPORATION AS DEFINED IN PARAGRAPH THREE OF SUBSECTION (C)  OF  SECTION
 TWELVE  HUNDRED FORTY-FOUR OF THE INTERNAL REVENUE CODE, NOTWITHSTANDING
 THE SECOND SENTENCE OF SUBPARAGRAPH (A) THEREOF, AS OF THE LAST  DAY  OF
 THE TAXABLE YEAR.
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (qqq) to read as follows:
   (QQQ) CREDIT FOR RURAL ENERGY INFRASTRUCTURE. (1) ALLOWANCE OF CREDIT.
 A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED
 BY  THIS  ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION IN AID OF
 CONSTRUCTION RESULTING FROM NEW  NETWORK  CONSTRUCTION  TO  DELIVER  GAS
 SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE OF BUSINESS LOCATED IN AN
 UNSERVED  AREA.  THE  CREDIT ALLOWED BY THIS SUBSECTION SHALL BE CLAIMED
 ANNUALLY OVER A FIVE-YEAR  PERIOD  EQUAL  TO  ONE-FIFTH  OF  THE  CREDIT
 AMOUNT.  IF THE CREDIT ALLOWED UNDER THIS SUBSECTION IS GREATER THAN THE
 TAX  DUE  IN  ANY  TAXABLE YEAR, THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS
 SUCH TAX DUE IS TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE  REFUNDED  IN
 ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND EIGHTY-SIX OF
 THIS CHAPTER.
   (2) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  DEFINITIONS  SHALL
 APPLY:
   (A)   "QUALIFIED  CONSTRUCTION  EXPENSES"  EQUAL  THE  TOTAL  COST  OF
 CONSTRUCTION OF NEW PIPELINES IN THE PROPOSED UNSERVED AREA,  AS  CERTI-
 FIED  BY  THE  GAS SERVICE PROVIDER, BUT NOT TO EXCEED A REASONABLE COST
 BASED UPON THE AVERAGE COST PER MILE OF  GAS  PIPELINE  CONSTRUCTION  AS
 DETERMINED BY THE PUBLIC SERVICE COMMISSION AND GAS SERVICE PROVIDERS.
   (B) "QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION" IS DETER-
 MINED  IN  ACCORDANCE  WITH THE FOLLOWING FORMULA: (QCE/TC) - (ACM/35) =
 QC, WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES; ACM EQUALS THE
 AVERAGE COST OF CONSTRUCTION PER MILE IN THE PROPOSED UNSERVED AREA,  AS
 CERTIFIED  BY  GAS SERVICE PROVIDER, BUT NOT TO EXCEED A REASONABLE COST
 BASED UPON THE AVERAGE COST PER MILE OF  GAS  PIPELINE  CONSTRUCTION  AS
 DETERMINED  BY  THE  PUBLIC SERVICE COMMISSION GAS SERVICE PROVIDERS; TC
 EQUALS THE NUMBER OF RESIDENTS  AND  SMALL  BUSINESS  CUSTOMERS  IN  THE
 PROPOSED  UNSERVED  AREA MAKING A QUALIFIED CUSTOMER CONTRIBUTION IN AID
 S. 9903                             3
 
 TO CONSTRUCTION AND CONTRACTING FOR SERVICES OVER THE  NETWORK;  AND  QC
 EQUALS THE QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION.
   (C)  "REQUIRED  PROVIDER  CONTRIBUTION  IN  AID TO CONSTRUCTION" SHALL
 EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
 IFIED CUSTOMER CONTRIBUTIONS IN AID  TO  CONSTRUCTION  IN  THE  PROPOSED
 UNSERVED AREA.
   (D)"UNSERVED  AREA"  MEANS  AN AREA COMPOSED OF ONE OR MORE CONTIGUOUS
 CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
 GAS SERVICE.
   (E)"QUALIFIED TAXPAYER" MEANS ANY INDIVIDUAL WITH  AN  ADJUSTED  GROSS
 INCOME OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS.
   §  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding  a  new  clause  (lii)  to  read  as
 follows:
 
 (LII) CREDIT FOR RURAL               AMOUNT OF CREDIT UNDER SUBDIVISION
 ENERGY INFRASTRUCTURE                SIXTY-ONE OF SECTION TWO
 SUBSECTION (QQQ)                     HUNDRED TEN-B
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2025.