State Senate Passes New Energy Plan That Caps Sales Tax On Gasoline
Senator Charles J. Fuschillo, Jr. (8th Senate District) announced that the New York State Senate passed a comprehensive energy plan that places a cap on gasoline sales taxes and provides new financial incentives for utilizing alternative energy sources. The plan was recently approved during a special legislative session in Albany.
"With the rapidly increasing price of both gasoline and home heating oil, government needs to provide consumers with some financial relief," said Senator Fuschillo, who voted in favor of the plan. "This plan provides a number of ways to help individuals save money, while at the same time creates incentives to use new technology that protects the environment and reduces our dependence on nonrenewable energy sources."
The plan would cap the State sales tax on gasoline at a taxable value of $2 per gallon, which would save New Yorkers an estimated $45 million in taxes through the rest of the year. There is an option for local governments to participate in the program as well.
In order to promote the use of alternative fuel sources, the Senate included in the plan an extension of the tax credit given to individuals who use vehicles with alternative fuels, such as electric, methanol, or ethanol. The plan also extends the sales tax exemption on refueling devices for these vehicles.
To encourage the use of more energy efficient technology, the plan includes a measure to eliminate state sales tax on insulation materials such as high efficiency windows, doors, weather-striping, pipe sheathing and alternative energy systems such as wind power or fuel cells.Additionally, four sales tax free weeks (one per season) would be created for a variety of energy star products, such as washers, dryers, refrigerators, dishwashers, furnaces and hot water heaters. Energy Star products meet strict energy efficiency standards set by the U.S. Environmental Protection Agency and the U.S. Department of Energy, and help consumers save money by reducing their power needs.
In addition, the Senate passed legislation earlier this year, sponsored by Senator Fuschillo, which would provide a tax credit for businesses that install alternative energy equipment such as wind, solar or fuels cells.
"By making these systems more affordable through tax credits, we will encourage more people to use alternative energy sources, which in the long run will save them money and help our environment," Senator Fuschillo added.
The plan is currently awaiting passage by the New York State Assembly.
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