Bill Text: NY A07132 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides a tax credit for farmers who use qualified biodiesel fuel for the sole operation of their farm equipment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-05-30 - print number 7132c [A07132 Detail]

Download: New_York-2011-A07132-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        7132--C
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                    April 13, 2011
                                      ___________
       Introduced by M. of A. HEVESI -- read once and referred to the Committee
         on Ways and Means -- recommitted to the Committee on Ways and Means in
         accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
         amended, ordered reprinted as amended and recommitted to said  commit-
         tee  --  again  reported  from said committee with amendments, ordered
         reprinted as amended  and  recommitted  to  said  committee  --  again
         reported  from  said  committee  with amendments, ordered reprinted as
         amended and recommitted to said committee
       AN ACT to amend the tax law, in relation to providing a  tax  credit  to
         farmers  who  purchase  biodiesel fuel for the operation of their farm
         equipment
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  210  of  the  tax law is amended by adding a new
    2  subdivision 45 to read as follows:
    3    45. CREDIT FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT.   (A)  ALLOW-
    4  ANCE  OF  CREDIT.  A  TAXPAYER THAT IS A BUSINESS PRINCIPALLY ENGAGED IN
    5  FARMING, AS  SUCH TERM IS DEFINED IN PARAGRAPH NINETEEN  OF  SUBDIVISION
    6  (B)  OF  SECTION  ELEVEN  HUNDRED ONE OF THIS CHAPTER SHALL BE ALLOWED A
    7  CREDIT AGAINST THE TAX IMPOSED BY THIS   ARTICLE  FOR  THE  PURCHASE  OF
    8  QUALIFIED  BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT IN THIS STATE.
    9  SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL PER GALLON OF QUALI-
   10  FIED BIODIESEL FUEL, NOT TO EXCEED TWENTY CENTS PER GALLON, PURCHASED BY
   11  SUCH TAXPAYER DURING THE TAXABLE YEAR AND USED IN FARMING EQUIPMENT.
   12    (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS  SHALL
   13  APPLY:
   14    (1)  "BIODIESEL"  SHALL MEAN A FUEL COMPRISED EXCLUSIVELY OF MONOALKYL
   15  ESTERS OF LONG CHAIN FATTY ACIDS DERIVED FROM VEGETABLE OILS  OR  ANIMAL
   16  FATS, DESIGNATED B100, WHICH MEETS THE SPECIFICATIONS OF AMERICAN SOCIE-
   17  TY OF TESTING AND MATERIALS DESIGNATION D 6751.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08610-07-2
       A. 7132--C                          2
    1    (2) "QUALIFIED BIODIESEL" SHALL MEAN A FUEL THAT IS A MIXTURE OF BIOD-
    2  IESEL AND DIESEL MOTOR FUEL.
    3    (C)  APPLICATION  OF  CREDIT.    IN  NO  EVENT SHALL THE CREDIT HEREIN
    4  PROVIDED FOR BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE  TAX  PAYABLE
    5  TO  LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND
    6  (D) OF SUBDIVISION ONE OF THIS  SECTION.  HOWEVER, IF THE AMOUNT OF  THE
    7  CREDIT  ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL EXCEED
    8  THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS  SHALL  BE  TREATED  AS  AN
    9  OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
   10  PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
   11  HOWEVER, THAT NO INTEREST SHALL BE PAID ON SUCH REFUND,  NOTWITHSTANDING
   12  THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
   13  THIS CHAPTER.
   14    S  2. Section 606 of the tax law is amended by adding a new subsection
   15  (uu) to read as follows:
   16    (UU) CREDIT FOR BIODIESEL FUEL USED IN FARMING EQUIPMENT.  (1)  ALLOW-
   17  ANCE  OF  CREDIT. A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR
   18  THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL  GROSS  INCOME
   19  SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
   20  THE PURCHASE OF QUALIFIED BIODIESEL FUEL TO BE USED IN FARMING EQUIPMENT
   21  IN THIS STATE.  SUCH CREDIT SHALL BE $0.01 PER PERCENT OF BIODIESEL  PER
   22  GALLON  OF  QUALIFIED  BIODIESEL  FUEL,  NOT  TO EXCEED TWENTY CENTS PER
   23  GALLON, PURCHASED BY SUCH TAXPAYER DURING THE TAXABLE YEAR AND  USED  IN
   24  FARMING EQUIPMENT.
   25    (2)  DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING DEFI-
   26  NITIONS SHALL APPLY:
   27    (A) "EXCESS FEDERAL GROSS INCOME" MEANS THE AMOUNT  OF  FEDERAL  GROSS
   28  INCOME  FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO
   29  EXCEED THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS
   30  INCOME WHICH CONSIST  OF  (I)  EARNED  INCOME,  (II)  PENSION  PAYMENTS,
   31  INCLUDING  SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV) DIVIDENDS.
   32  FOR PURPOSES OF THIS PARAGRAPH, THE  TERM  "EARNED  INCOME"  SHALL  MEAN
   33  WAGES,  SALARIES,  TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS
   34  OF GROSS INCOME WHICH ARE INCLUDIBLE IN THE COMPUTATION OF NET  EARNINGS
   35  FROM  SELF-EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM
   36  THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE  DEPARTMENT
   37  OF  AGRICULTURE  AND  MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME
   38  FROM FARMING.
   39    (B) "BIODIESEL" MEANS A FUEL COMPRISED EXCLUSIVELY OF MONOALKYL ESTERS
   40  OF LONG CHAIN FATTY ACIDS DERIVED FROM VEGETABLE OILS  OR  ANIMAL  FATS,
   41  DESIGNATED  B100,  WHICH MEETS THE SPECIFICATIONS OF AMERICAN SOCIETY OF
   42  TESTING AND MATERIALS DESIGNATION D 6751.
   43    (C) "QUALIFIED BIODIESEL" MEANS A FUEL THAT IS A MIXTURE OF  BIODIESEL
   44  AND DIESEL MOTOR FUEL.
   45    (3)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
   46  THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
   47  SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
   48  CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
   49  HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
   50  SHALL BE PAID THEREON.
   51    S 3. This act shall take effect immediately and shall apply to taxable
   52  years beginning on and after January 1, 2013.