NY State Senate Bill 2025-S1229

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to energy and telecommunications

2025-S1229 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Energy Law
Laws Affected:: Add §5-129, Energy L; add §§50 & 187-s, amd §§210-B & 606, Tax L; amd §75-0103, En Con L

2025-S1229 (ACTIVE) - Summary

Establishes a sustainable aviation fuel tax credit at a rate of $1.25 per gallon, or $1.50 per gallon for sustainable aviation fuels made with domestically produced corn and/or soybeans; creates a certification process for aviation fuel as sustainable aviation fuel under NYSERDA; directs the NYS climate action council to incorporate the use of sustainable aviation fuel in its updated scoping plan.

2025-S1229 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1229

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the energy law and the tax law, in relation to estab-
lishing a sustainable aviation fuel tax credit; to amend the environ-
mental conservation law, in relation to directing the climate action
council to incorporate the use of sustainable aviation fuel in its
updated scoping plan; and providing for the repeal of such provisions
upon expiration thereof

 
PURPOSE:

The purpose of this bill is to ensure that the Federal Sustainable
Aviation Fuel (SAF) tax credit created by the Inflation Reduction Act,
and which expired on January 1, 2025, will be continued in New York
State as a state tax credit. Such continuation will encourage the
expanded production and use of SAF in New York. It will also signif-
icantly further our state's climate mitigation efforts by reducing
greenhouse gas emissions in the aviation sector.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. A new section 5-129 is added to the energy law to define
terms related to the creation of the Sustainable Aviation Credit (SAF).
Importantly, the bill defines "Qualifying SAF mixture" as one where the
biomass used as feedstock in the production of such SAF is derived from
domestically grown corn and/or soybean in a minimum amount as determined
by the authority (NYSERDA). **The qualifying feedstock does not have to
come from New York State grown crops.

"Sustainable Aviation Fuel" is defined as a liquid fuel, the portion of
which is not kerosene: meets certain international standards; is derived
with a feedstock which is biomass; and which must have a minimum
reduction in lifecycle greenhouse gas emissions of 50%.

"SAF Producer" is defined as an entity engaged in the business of
producing SAF and/or blending SAF with aviation gasoline or jet fuel.
The bill requires the commissioner of NYSERDA to develop a method by
which producers of SAF may apply to have certain SAFs and/or SAF
mixtures certified for the purpose of receiving the tax credit.

To be certified the SAF must be produced or blended in the State, sold
in New York State to a purchaser who certifies that the SAF is for use
as a fuel in an aircraft departing from an airport in New York State,
and certified by NYSERDA as having a lifecycle greenhouse gas emissions
reduction of at least 50%. The SAF producer seeking certification shall
submit an application within one month of the close of its taxable year.
NYSERDA shall, within 30 days of receipt of application, issue certif-
ication, request additional information from producer, or reject appli-
cation.

Section 2. The bill adds a new section 50 to the tax law to create the
Sustainable aviation fuel tax credit and outline its allowance per
gallon of SAF produced at an SAF plant on or after January 1, 2027 at a
rate equal to one dollar at twenty-five cents and for a certified quali-
fying SAF mixture a rate of one dollar and fifty cents. The credit under

this section shall be capped at two million four hundred thousand
dollars per taxpayer per taxable year.

Sections 3, 4, 5 and 6 of the bill add new sections to the tax law, to
allow a taxpayer a credit to be computed against the tax imposed by
other articles in the tax code.

Section 7 of the bill adds a new subdivision 18 to section 75-0103 of
the environmental conservation law to require the Climate Action Council
to incorporate in its updated carbon reduction plan the effects of the
increased production and use in the state of SAF and the impact that the
SAF credit, created herein, has had on such production and use.

 
JUSTIFICATION:

Aviation is one of the fastest-growing sources of the greenhouse gas
emissions driving global climate change. In fact, if the entire aviation
sector were a country, it would be one of the top 10 carbon-polluting
nations on the planet. Emissions from aviation are a significant
contributor to climate change because airplanes burn fossil fuel-based
jet fuels which release CO2 emissions when burned.  This burning in the
atmosphere also contributes to planetary warming due to nitrogen oxides
(NOx), vapor trails, and cloud formation triggered by the altitude at
which aircraft operate.

To address and mitigate the negative climate impacts of aviation, the
Inflation Reduction Act of 2022 (IRA) created a Sustainable Aviation
Fuel (SAF) tax credit, which provided a federal incentive to producers
of this biomass-based fuel. With the expiration of the credit program on
January 1, 2025 there is now the threat of a reversal of gains made in
the domestic commercial and private aircraft industry. Supplies in the
United States of SAF are low and by extending the program as a state tax
credit, SAF producers will be encouraged to continue to grow this busi-
ness in New York while not relying on the use of New York's valuable
farmland as the source of the feedstock for the fuel. Simply put, SAF is
a liquid fuel that is derived from biomass crops like corn or soybeans,
as defined, and reduces the life cycle of greenhouse gas emissions by at
least 50%.

Many airlines have already pledged to use sustainable aviation fuel to
reduce their carbon footprint, including United Airlines, Air
France-KLM, Norwegian, British Airways, Delta Airlines, Virgin Airlines,
Quantas, Japan Airlines, and Singapore Airlines, Alaska Airlines, Ameri-
can Airlines, Finnair, and Qatar.

Minnesota has also enacted its own SAF tax credit in response to the
expiration of the federal program, providing a state tax credit to qual-
ifying taxpayers for producing or blending SAF with aviation, gasoline,
or jet fuel in the state between July 2024 and June 30, 2030.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
Immediately and shall apply to tax years beginning on or after January
1, 2027 and before January 1, 2033 and shall expire and be deemed
repealed January 1, 2034.

2025-S1229 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1229
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to  amend the energy law and the tax law, in relation to estab-
   lishing a sustainable aviation fuel tax credit; to amend the  environ-
   mental  conservation  law, in relation to directing the climate action
   council to incorporate the use of sustainable  aviation  fuel  in  its
   updated  scoping plan; and providing for the repeal of such provisions
   upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The energy law is amended by adding a new section 5-129 to
 read as follows:
   § 5-129. SUSTAINABLE AVIATION FUEL CERTIFICATION. 1. FOR THE  PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "APPLICABLE MATERIAL" MEANS (I) MONOGLYCERIDES, DIGLYCERIDES, AND
 TRIGLYCERIDES; (II) FREE FATTY ACIDS; AND (III) FATTY ACID ESTERS.
   (B) "ASTM" MEANS THE AMERICAN SOCIETY FOR TESTING AND MATERIALS, WHICH
 IS A PRIVATE ORGANIZATION THAT UTILIZES COMMITTEES OF INDUSTRY REPRESEN-
 TATIVES AND REGULATORS TO DEVELOP PRODUCT  QUALITY  STANDARDS  AND  TEST
 METHODS  TO  BE  USED BY INDUSTRIES, REGULATORY AGENCIES, AND PURCHASING
 AGENTS.
   (C) "AUTHORITY" MEANS THE NEW YORK STATE ENERGY RESEARCH AND  DEVELOP-
 MENT AUTHORITY.
   (D)  "AVIATION GASOLINE" MEANS ANY GASOLINE THAT IS USED TO PRODUCE OR
 GENERATE POWER  FOR  PROPELLING  INTERNAL  COMBUSTION  ENGINE  AIRCRAFT,
 INCLUDING BUT NOT LIMITED TO, ANY GASOLINE THAT IS:
   (I) INVOICED AND BILLED BY A PRODUCER, MANUFACTURER, REFINER, OR BLEN-
 DER  TO A DISTRIBUTOR OR DEALER, BY A DISTRIBUTOR TO A DEALER OR CONSUM-
 ER, OR BY A DEALER TO CONSUMER, AS "AVIATION GASOLINE" THAT MEETS  SPEC-
 IFICATIONS IN ASTM SPECIFICATION D910-16 OR ANY OTHER ASTM SPECIFICATION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03212-01-5

 S. 1229                             2
 
 AS  GASOLINE  APPROPRIATE  FOR  USE IN PRODUCING OR GENERATING POWER FOR
 PROPELLING INTERNAL COMBUSTION ENGINE AIRCRAFT; OR
   (II)  SOLD  TO  A  DEALER OF AVIATION GASOLINE FOR DISPENSING DIRECTLY
 INTO THE FUEL TANK OF AN AIRCRAFT.
   (E) "BIOMASS" MEANS ANY ORGANIC MATERIAL OTHER THAN:
   (I) OIL OR NATURAL GAS, OR ANY PRODUCT THEREOF; OR
   (II) COAL (INCLUDING LIGNITE) OR ANY PRODUCT THEREOF.
   (F) "CERTIFIED SUSTAINABLE AVIATION FUEL" MEANS A SUSTAINABLE AVIATION
 FUEL CERTIFIED AS SUCH BY THE AUTHORITY PURSUANT TO  THE  PROVISIONS  OF
 THIS SECTION.
   (G)  "CERTIFIED QUALIFYING SAF MIXTURE" MEANS A QUALIFYING SAF MIXTURE
 CERTIFIED AS SUCH BY THE AUTHORITY PURSUANT TO THE  PROVISIONS  OF  THIS
 SECTION.
   (H)  "COMMISSIONER"  MEANS  THE PRESIDENT OF THE NEW YORK STATE ENERGY
 RESEARCH AND DEVELOPMENT AUTHORITY.
   (I) "DEALER" MEANS ANY ENTITY, EXCEPT A DISTRIBUTOR,  ENGAGED  IN  THE
 BUSINESS  OF BUYING AND SELLING GASOLINE AND/OR OTHER PETROLEUM PRODUCTS
 IN THIS STATE.
   (J)  "DISTRIBUTOR"  MEANS  ANY  ENTITY  THAT  (I)  RECEIVES  PETROLEUM
 PRODUCTS  IN  NEW  YORK STATE FOR STORAGE AND SUBSEQUENT DISTRIBUTION BY
 TANK CAR OR TANK TRUCK OR BOTH; (II) PRODUCES, MANUFACTURES, OR  REFINES
 PETROLEUM  PRODUCTS  IN  THIS STATE; OR (III) IMPORTS PETROLEUM PRODUCTS
 INTO THIS STATE VIA BOAT, BARGE, OR PIPELINE FOR STORAGE AND  SUBSEQUENT
 DELIVERY  AT  OR  FURTHER  TRANSPORTATION  FROM BOAT, BARGE, OR PIPELINE
 TERMINALS IN NEW YORK STATE.
   (K) "JET FUEL" MEANS BLENDS OF HYDROCARBONS DERIVED FROM CRUDE  PETRO-
 LEUM,  NATURAL GASOLINE, AND SYNTHETIC HYDROCARBONS, INTENDED FOR USE IN
 AVIATION TURBINE ENGINES, AND THAT MEET THE SPECIFICATIONS IN ASTM SPEC-
 IFICATION D1655-12.
   (L) "LIFECYCLE GREENHOUSE GAS EMISSIONS REDUCTION  PERCENTAGE"  MEANS,
 WITH  RESPECT TO ANY SUSTAINABLE AVIATION FUEL, THE PERCENTAGE REDUCTION
 IN LIFECYCLE GREENHOUSE GAS EMISSIONS ACHIEVED BY SUCH FUEL AS  COMPARED
 WITH PETROLEUM-BASED JET FUEL, AS DEFINED IN ACCORDANCE WITH:
   (I)  THE MOST RECENT CARBON OFFSETTING AND REDUCTION SCHEME FOR INTER-
 NATIONAL AVIATION WHICH HAS BEEN  ADOPTED  BY  THE  INTERNATIONAL  CIVIL
 AVIATION ORGANIZATION WITH THE AGREEMENT OF THE UNITED STATES; OR
   (II)  ANY  SIMILAR  METHODOLOGY  WHICH  SATISFIES  THE  CRITERIA UNDER
 SECTION 211(O)(1)(H) OF THE CLEAN AIR ACT (42 U.S.C. 7545(O)(1)(H)),  AS
 IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION.
   (M)  "QUALIFYING SAF MIXTURE" MEANS A SUSTAINABLE AVIATION FUEL, WHERE
 THE BIOMASS USED AS FEEDSTOCK IN  THE  PRODUCTION  OF  SUCH  SUSTAINABLE
 AVIATION  FUEL IS DERIVED FROM DOMESTICALLY GROWN CORN AND/OR SOYBEAN IN
 A MINIMUM AMOUNT AS DETERMINED BY THE AUTHORITY.
   (N) "SUSTAINABLE AVIATION  FUEL"  OR  "SAF"  MEANS  LIQUID  FUEL,  THE
 PORTION OF WHICH IS NOT KEROSENE, WHICH:
   (I) MEETS THE REQUIREMENTS OF:
   (A) ASTM INTERNATIONAL STANDARD D7566; OR
   (B)  THE  FISCHER  TROPSCH  PROVISIONS  OF ASTM INTERNATIONAL STANDARD
 D1655, ANNEX A1;
   (II) IS (1) NOT DERIVED FROM CO-PROCESSING AN APPLICABLE MATERIAL,  OR
 MATERIALS  DERIVED  FROM  AN APPLICABLE MATERIAL; AND (2) DERIVED WITH A
 FEEDSTOCK WHICH IS BIOMASS;
   (III) IS NOT DERIVED FROM PALM FATTY ACID  DISTILLATES  OR  PETROLEUM;
 AND
 S. 1229                             3
 
   (IV) HAS BEEN CERTIFIED AS HAVING A LIFECYCLE GREENHOUSE GAS EMISSIONS
 REDUCTION  PERCENTAGE  OF  AT LEAST FIFTY PERCENT UNDER PARAGRAPH (C) OF
 SUBDIVISION THREE OF THIS SECTION.
   (O)  "SAF PRODUCER" MEANS AN ENTITY ENGAGED IN THE BUSINESS OF PRODUC-
 ING SUSTAINABLE AVIATION FUEL AND/OR BLENDING SUSTAINABLE AVIATION  FUEL
 WITH AVIATION GASOLINE OR JET FUEL.
   2.  THE COMMISSIONER SHALL DEVELOP A METHOD BY WHICH SAF PRODUCERS MAY
 APPLY TO THE  AUTHORITY  TO  HAVE  CERTAIN  SUSTAINABLE  AVIATION  FUELS
 PRODUCED  BY  SUCH  SAF  PRODUCERS  CERTIFIED  AS  CERTIFIED SUSTAINABLE
 AVIATION FUEL AND/OR CERTIFIED QUALIFYING SAF MIXTURES FOR THE  PURPOSES
 OF RECEIVING THE SUSTAINABLE AVIATION FUEL CREDIT UNDER SECTION FIFTY OF
 THE TAX LAW. THE COMMISSIONER SHALL DETERMINE ANY EVIDENCE THAT SHALL BE
 REQUIRED  TO  BE  SUBMITTED TO THE AUTHORITY IN SUPPORT OF SUCH APPLICA-
 TIONS.
   3. TO BE CERTIFIED UNDER  THIS  SECTION  AS  A  CERTIFIED  SUSTAINABLE
 AVIATION FUEL, A SUSTAINABLE AVIATION FUEL SHALL BE:
   (A)  PRODUCED  IN  NEW YORK STATE OR BLENDED WITH AVIATION GASOLINE OR
 JET FUEL IN NEW YORK STATE;
   (B) SOLD IN NEW YORK STATE TO  A  PURCHASER  WHO  CERTIFIES  THAT  THE
 SUSTAINABLE  AVIATION  FUEL  IS FOR USE AS FUEL IN AN AIRCRAFT DEPARTING
 FROM AN AIRPORT IN NEW YORK STATE; AND
   (C) CERTIFIED BY THE AUTHORITY AS HAVING A  LIFECYCLE  GREENHOUSE  GAS
 EMISSIONS REDUCTION PERCENTAGE OF AT LEAST FIFTY PERCENT.
   4.  (A)  A  SAF PRODUCER SEEKING CERTIFICATION OF SUSTAINABLE AVIATION
 FUEL AND/OR A QUALIFYING SAF MIXTURE UNDER THIS SECTION SHALL SUBMIT  AN
 APPLICATION  UNDER  SUBDIVISION  TWO OF THIS SECTION WITHIN ONE MONTH OF
 THE CLOSE OF ITS TAXABLE YEAR FOR ALL  SUCH  SUSTAINABLE  AVIATION  FUEL
 AND/OR  QUALIFYING  SAF  MIXTURES FOR WHICH SUCH SAF PRODUCER IS SEEKING
 CERTIFICATION.
   (B) WITHIN THIRTY DAYS OF RECEIVING AN APPLICATION  FOR  CERTIFICATION
 OF  SUSTAINABLE  AVIATION FUEL AND/OR QUALIFYING SAF MIXTURES UNDER THIS
 SECTION, THE AUTHORITY SHALL:
   (I) ISSUE A CERTIFICATION FOR SUCH SUSTAINABLE  AVIATION  FUEL  AND/OR
 QUALIFYING SAF MIXTURE;
   (II) REQUEST ADDITIONAL INFORMATION FROM THE SAF PRODUCER; OR
   (III) REJECT SUCH APPLICATION FOR CERTIFICATION.
   (C)  WHERE  THE  AUTHORITY  REQUESTS ADDITIONAL INFORMATION FROM A SAF
 PRODUCER UNDER SUBPARAGRAPH (II) OF PARAGRAPH (B) OF  THIS  SUBDIVISION,
 THE AUTHORITY SHALL ISSUE CERTIFICATION OR REJECT THE APPLICATION WITHIN
 THIRTY  DAYS  OF  RECEIVING  SUCH ADDITIONAL INFORMATION. WHERE SUCH SAF
 PRODUCER FAILS TO SUBMIT SUCH ADDITIONAL INFORMATION WITHIN THIRTY  DAYS
 OF  SUCH  REQUEST,  SUCH  APPLICATION  FOR CERTIFICATION SHALL BE DEEMED
 REJECTED.
   5. (A) A CERTIFICATION ISSUED UNDER THIS SECTION SHALL INCLUDE (I) THE
 FISCAL YEAR FOR WHICH SUCH CERTIFICATION IS ISSUED; (II) THE  AMOUNT  OF
 CREDIT FOR WHICH THE SAF PRODUCER IS ELIGIBLE UNDER SECTION FIFTY OF THE
 TAX  LAW  PURSUANT TO SUCH CERTIFICATION; AND (III) THE TAXABLE YEAR FOR
 WHICH THE SAF PRODUCER MAY CLAIM THE TAX CREDIT UNDER SECTION  FIFTY  OF
 THE TAX LAW.
   (B)  A CERTIFICATION FOR A SUSTAINABLE AVIATION FUEL ISSUED UNDER THIS
 SECTION SHALL  BE  APPLICABLE  TO  EITHER  BLENDING  OR  PRODUCING  SUCH
 SUSTAINABLE  AVIATION  FUEL,  BUT  SHALL NOT ENTITLE THE SAF PRODUCER TO
 SEPARATE CREDITS UNDER SECTION FIFTY OF THE TAX LAW  FOR  BOTH  BLENDING
 AND PRODUCING THE SAME SUSTAINABLE AVIATION FUEL.
 S. 1229                             4

   6.  THE  COMMISSIONER  IS  HEREBY  AUTHORIZED  TO PROMULGATE ANY RULES
 AND/OR REGULATIONS  NECESSARY  TO  EFFECTUATE  THE  PROVISIONS  OF  THIS
 SECTION.
   §  2.  The  tax  law  is amended by adding a new section 50 to read as
 follows:
   § 50. SUSTAINABLE AVIATION FUEL CREDIT. (A)  ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SUBJECT  TO  TAX  UNDER ARTICLE NINE, NINE-A, OR TWENTY-TWO OF
 THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX PURSUANT TO  THE
 PROVISIONS REFERENCED IN SUBDIVISION (D) OF THIS SECTION. THE CREDIT (OR
 PRO  RATA  SHARE OF EARNED CREDIT IN THE CASE OF A PARTNERSHIP) FOR EACH
 GALLON OF CERTIFIED SUSTAINABLE AVIATION FUEL PRODUCED AT A  SUSTAINABLE
 AVIATION FUEL PLANT ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN
 SHALL  EQUAL  ONE  DOLLAR  AND TWENTY-FIVE CENTS PER GALLON OF CERTIFIED
 SUSTAINABLE AVIATION FUEL; PROVIDED, HOWEVER,  THAT  IF  SUCH  CERTIFIED
 SUSTAINABLE  AVIATION  FUEL  IS A CERTIFIED QUALIFYING SAF MIXTURE, SUCH
 CREDIT (OR PRO RATA SHARE OF EARNED CREDIT IN THE CASE OF A PARTNERSHIP)
 FOR EACH GALLON OF SUCH CERTIFIED SUSTAINABLE AVIATION FUEL PRODUCED  AT
 A  SUSTAINABLE  AVIATION FUEL PLANT ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-SEVEN SHALL EQUAL ONE DOLLAR AND  FIFTY  CENTS  PER  GALLON.
 THE  CREDIT  UNDER  THIS  SECTION  SHALL  BE  CAPPED AT TWO MILLION FOUR
 HUNDRED THOUSAND DOLLARS PER TAXPAYER PER TAXABLE YEAR. IF THE  TAXPAYER
 IS  A  PARTNER  IN  A  PARTNERSHIP OR SHAREHOLDER OF A NEW YORK S CORPO-
 RATION, THEN THE CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE  APPLIED
 AT  THE  ENTITY  LEVEL,  SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL THE
 PARTNERS OR SHAREHOLDERS OF EACH SUCH ENTITY IN THE  TAXABLE  YEAR  DOES
 NOT  EXCEED  TWO  MILLION  FOUR HUNDRED THOUSAND DOLLARS. THE TAX CREDIT
 ALLOWED PURSUANT TO THIS SECTION SHALL APPLY TO TAXABLE YEARS  BEGINNING
 JANUARY  FIRST,  TWO  THOUSAND  TWENTY-SEVEN  THROUGH JANUARY FIRST, TWO
 THOUSAND THIRTY-TWO, INCLUSIVE.
   (B) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "CERTIFIED SUSTAINABLE AVIATION FUEL"  SHALL  MEAN  A  SUSTAINABLE
 AVIATION FUEL CERTIFIED AS SUCH UNDER SECTION 5-129 OF THE ENERGY LAW.
   (2)  "CERTIFIED  QUALIFYING  SAF  MIXTURE" SHALL MEAN A QUALIFYING SAF
 MIXTURE CERTIFIED AS SUCH UNDER SECTION 5-129 OF THE ENERGY LAW.
   (3) "QUALIFYING SAF MIXTURE" SHALL HAVE THE SAME MEANING AS DEFINED BY
 SECTION 5-129 OF THE ENERGY LAW.
   (4) (I) "SUSTAINABLE AVIATION FUEL" OR "SAF" SHALL HAVE THE SAME MEAN-
 ING AS DEFINED BY SECTION 5-129 OF THE ENERGY LAW.
   (5) "SUSTAINABLE AVIATION FUEL  PLANT"  MEANS  A  COMMERCIAL  FACILITY
 LOCATED  IN  NEW  YORK  STATE  AT WHICH ONE OR MORE SUSTAINABLE AVIATION
 FUELS ARE PRODUCED.
   (C) REPORTING REQUIREMENTS. A TAXPAYER WISHING TO CLAIM A CREDIT UNDER
 THIS SECTION SHALL SUBMIT TO  THE  COMMISSIONER  (1)  THE  CERTIFICATION
 RECEIVED  FOR CERTIFIED SUSTAINABLE AVIATION FUEL UNDER SECTION 5-129 OF
 THE ENERGY LAW; AND (2) ANY OTHER INFORMATION DEEMED  NECESSARY  BY  THE
 COMMISSIONER.
   (D)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9: SECTION 187-S.
   (2) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 61.
   (3) ARTICLE 22: SECTION 606, SUBSECTION (WWW).
   § 3. The tax law is amended by adding a new section 187-s to  read  as
 follows:
   §  187-S.  SUSTAINABLE AVIATION FUEL CREDIT. 1. ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
 S. 1229                             5

 FIFTY OF THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE. PROVIDED,
 HOWEVER, THAT THE AMOUNT OF SUCH CREDIT ALLOWED AGAINST THE TAX  IMPOSED
 BY  SECTION  ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE SHALL BE THE EXCESS
 OF  THE  AMOUNT  OF SUCH CREDIT OVER THE AMOUNT OF ANY CREDIT ALLOWED BY
 THIS SECTION AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-THREE
 OF THIS ARTICLE.
   2. APPLICATION OF CREDIT. IN NO EVENT  SHALL  THE  CREDIT  UNDER  THIS
 SECTION  BE  ALLOWED  IN  AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO
 LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
 Y-THREE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF THE  CREDIT  ALLOWED
 UNDER  THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
 THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE  CREDITED  OR
 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHT-
 Y-SIX  OF  THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
 (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS  CHAPTER  NOTWITHSTAND-
 ING, NO INTEREST SHALL BE PAID THEREON.
   §  4. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 61 to read as follows:
   61. SUSTAINABLE AVIATION FUEL  CREDIT.  (A)  ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY  THIS  ARTI-
 CLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
 IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES  THE  TAX
 TO  SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
 DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN  SUCH
 TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 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) SUSTAINABLE AVIATION FUEL      AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (WWW)    SUBDIVISION SIXTY-ONE
                                      OF SECTION TWO HUNDRED TEN-B
   §  6. Section 606 of the tax law is amended by adding a new subsection
 (www) to read as follows:
   (WWW) SUSTAINABLE AVIATION FUEL CREDIT. (1)  ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED  OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED
 EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
 PAID THEREON.
   §  7. Section 75-0103 of the environmental conservation law is amended
 by adding a new subdivision 18 to read as follows:
   18. IN ITS UPDATED PLAN CREATED PURSUANT  TO  SUBDIVISION  FIFTEEN  OF
 THIS  SECTION  NEXT  OCCURRING AFTER THE EFFECTIVE DATE OF THIS SUBDIVI-
 SION, THE  COUNCIL  SHALL  INCORPORATE  THE  EFFECTS  OF  THE  INCREASED
 S. 1229                             6
 
 PRODUCTION  AND  USE  IN  THE  STATE  OF  SUSTAINABLE AVIATION FUELS, AS
 DEFINED BY SECTION 5-129 OF THE ENERGY LAW,  AND  THE  IMPACT  THAT  THE
 SUSTAINABLE  AVIATION FUEL CREDIT UNDER SECTION FIFTY OF THE TAX LAW HAS
 HAD ON SUCH PRODUCTION AND USE.
   §  8.  This  act  shall take effect immediately and shall apply to tax
 years beginning on or after January 1, 2027, and before January 1, 2033,
 and shall expire and be deemed repealed January 1, 2034.

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Senate Bill S1229

Sponsored By

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

2025-S1229 (ACTIVE) - Details

2025-S1229 (ACTIVE) - Summary

2025-S1229 (ACTIVE) - Sponsor Memo

2025-S1229 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1229

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Sponsored By

Rachel May

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

2025-S1229 (ACTIVE) - Details

2025-S1229 (ACTIVE) - Summary

2025-S1229 (ACTIVE) - Sponsor Memo

2025-S1229 (ACTIVE) - Bill Text download pdf

Comments