Bill Text: NY S01526 | 2021-2022 | General Assembly | Introduced
Bill Title: Creates the alternative fuel incentive fund; provides that monies allocated from the fund will be used for certain purposes; makes an appropriation therefor; provides that thirty million dollars will be allocated for research and development, twenty seven million dollars for the thruway authority to create alternative fuel stations on the thruway, twenty million dollars for a cellulosic ethanol refinery and five million dollars for administrative costs.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO FINANCE [S01526 Detail]
Download: New_York-2021-S01526-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1526 2021-2022 Regular Sessions IN SENATE January 12, 2021 ___________ Introduced by Sen. TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, in relation to creating the alternative fuel incentive fund; to amend the tax law, in relation to creating the alternative fuels credit; to amend the public authorities law, in relation to alternative fuel grants; and making an appropri- ation therefor The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The state finance law is amended by adding a new section 2 99-ii to read as follows: 3 § 99-ii. Alternative fuel incentive fund. 1. There is hereby estab- 4 lished in the joint custody of the state comptroller and the commission- 5 er of taxation and finance a special revenue fund to be known as the 6 "alternative fuel incentive fund". 7 2. The fund shall consist of the amount of revenues from sales taxes 8 imposed on the receipts of the price of motor and diesel fuel more than 9 one dollar or equal to or less than two dollars. 10 3. Monies of the fund, when allocated, shall be disbursed for the 11 following purposes: 12 (a) credits against personal income tax and corporate franchise tax 13 for the installation or conversion of fueling stations for alternative 14 fuels; 15 (b) grants for research and development in regards to fuel diversifi- 16 cation and energy efficiency in the transportation sector; 17 (c) installation of alternative fueling stations at each of the twen- 18 ty-seven travel plazas on the New York state thruway; 19 (d) grants for a cellulosic ethanol refinery; and 20 (e) administrative costs borne by the department of taxation and 21 finance and the New York state energy research and development authori- 22 ty. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03879-01-1S. 1526 2 1 § 2. Subdivision (b) of section 1148 of the tax law, as amended by 2 section 6-a of part G of chapter 59 of the laws of 2019, is amended to 3 read as follows: 4 (b) Provided however, before the funds may be distributed pursuant to 5 subdivision (a) of this section, such funds shall be distributed as 6 otherwise provided in sections ninety-two-d, ninety-two-h, [and] nine- 7 ty-two-r and ninety-nine-ii of the state finance law and sections eleven 8 hundred two, eleven hundred four and eleven hundred nine of this arti- 9 cle. 10 § 3. Section 606 of the tax law is amended by adding two new 11 subsections (p-1) and (kkk) to read as follows: 12 (p-1) Alternative fuels credit. (1) General. A taxpayer shall be 13 allowed a credit, to be computed as hereinafter provided, against the 14 tax imposed by this article for fuel flexible vehicles and qualified 15 hybrid vehicles placed in service during the taxable year. Provided, 16 however, that the credit provided for by this subsection with respect to 17 fuel flexible vehicles shall not be allowed to a gas corporation or 18 electric corporation as defined in subdivisions eleven and thirteen of 19 section two of the public service law, or a gas and electric corporation 20 as described in section sixty-four of the public service law, where such 21 corporation is subject to the supervision of the department of public 22 service. 23 (2) Fuel flexible and hybrid vehicles. The credit under this 24 subsection for fuel flexible and qualified hybrid vehicles shall equal 25 five hundred dollars per vehicle registered in this state. 26 (3) Definitions. (A) The term "fuel flexible vehicle" means a vehicle 27 which is equipped to use alternative fuel as defined in subdivision 28 eleven of section three hundred fifty-one of the public authorities law. 29 (B) The term "qualified hybrid vehicle" means a motor vehicle, as 30 defined in section one hundred twenty-five of the vehicle and traffic 31 law, other than an electric vehicle, that: 32 (i) draws propulsion energy from both 33 (a) an internal combustion engine (or heat engine that uses combusti- 34 ble fuel); and 35 (b) an energy storage device; and 36 (ii) employs a regenerative vehicle braking system that recovers waste 37 energy to charge such energy storage device. 38 (4) Carryovers. If the amount of credit allowable under this 39 subsection shall exceed the taxpayer's tax of such year, the excess, may 40 be carried over to the following year or years and may be deducted from 41 the taxpayer's tax for such year or years. 42 (5) Credit recapture. (A) Vehicles. If, within three full years from 43 the date a qualified hybrid vehicle is placed in service such vehicles 44 cease to be qualified, a recapture amount must be added back in the tax 45 year in which such cessation occurs. 46 (B) Cessation of qualification. (i) A qualified hybrid ceases to be 47 qualified if 48 (a) it is modified by the taxpayer so that it no longer meets the 49 requirements of a qualified hybrid vehicle. 50 (b) the taxpayer receiving the credit under this subsection sells or 51 disposes of the vehicle and knows or has reason to know that the vehicle 52 will be so modified. 53 (ii) Recapture amount. The recapture amount is equal to the credit 54 allowable under this subsection.S. 1526 3 1 (6) Termination. This subsection shall not apply to property placed in 2 service in taxable years beginning after December thirty-first, two 3 thousand twenty-two. 4 (kkk) Alternative fuel credit for installation or conversion of fuel- 5 ing stations. (1) Allowance of credit. A taxpayer shall be allowed a 6 credit, to be computed hereinafter provided, against the tax imposed by 7 this article for the cost of installation construction, reconstruction 8 or acquisition of an alternative fuel refueling facility that is direct- 9 ly attributable to the storage, compression, charging or dispensing of 10 alternative fuels to motor vehicles. The income tax credit would be 11 thirty percent of the costs associated with such expenses. 12 (2) Application of credit. If the amount of the credit allowable under 13 this subsection for any taxable year exceeds the taxpayer's tax for such 14 year, fifty percent of the excess shall be treated as an overpayment of 15 tax to be credited or refunded as provided in section six hundred eight- 16 y-six of this article, provided, however, that no interest shall be paid 17 thereon. The balance of such credit not credited or refunded in such 18 taxable year may be carried over to the immediately succeeding taxable 19 year and may be deducted from the taxpayer's tax for such year. The 20 excess, if any, of the amount of the credit over the tax for such 21 succeeding year shall be treated as an overpayment of tax to be credited 22 or refunded as provided in section six hundred eighty-six of this arti- 23 cle, provided, however, that no interest shall be paid thereon. 24 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 25 of the tax law is amended by adding two new clauses (xlvi) and (xlvii) 26 to read as follows: 27 (xlvi) Alternative fuels Amount of credit 28 credit under subsection under subdivision 29 (p-1) fifty-five of 30 section two hundred ten-B 31 (xlvii) Alternative fuel credit Amount of credit 32 for installation or under subdivision 33 conservation of fueling fifty-six of section 34 stations under subsection two hundred ten-B 35 (kkk) 36 § 5. Section 210-B of the tax law is amended by adding two new subdi- 37 visions 55 and 56 to read as follows: 38 55. Alternative fuels credit. (a) General. A taxpayer shall be allowed 39 a credit, to be computed as hereinafter provided, against the tax 40 imposed by this article, for fuel flexible vehicles and qualified 41 hybrids. Provided, however, that the credit provided for by this 42 subsection with respect to fuel flexible vehicles shall not be allowed 43 to a gas corporation or electric corporation as defined in subdivisions 44 eleven and thirteen of section two of the public service law, or a gas 45 and electric corporation as described in section sixty-four of the 46 public service law, where such corporation is subject to the supervision 47 of the department of public service. 48 (b) Fuel flexible vehicles and qualified hybrid vehicles. The credit 49 under this subdivision for fuel flexible vehicles and qualified hybrid 50 vehicles shall equal five hundred dollars per vehicle registered in this 51 state. 52 (c) Definitions. (i) The term "fuel flexible vehicle" means a vehicle, 53 which is equipped to use alternative fuel as defined in subdivision 54 eleven of section three hundred fifty-one of the public authorities law.S. 1526 4 1 (ii) The term "qualified hybrid vehicle" shall have the same meaning 2 as provided for under subparagraph (B) of paragraph three of subsection 3 (p-1) of section six hundred six of this chapter. 4 (d) Carryovers. In no event shall the credit under this subdivision be 5 allowed in an amount which will reduce the tax payable to less than the 6 higher of the amounts prescribed in paragraph (d) of subdivision one of 7 section two hundred ten of this article. Provided, however, that if the 8 amount of credit allowable under this subdivision for any taxable year 9 reduces the tax to such amount, any amount of credit not deductible in 10 such taxable year may be carried over to the following year or years and 11 may be deducted from the taxpayer's tax for such year or years. 12 (e) Credit recapture. (i) If, within three full years from the date a 13 qualified hybrid vehicle is placed in service ceases to be qualified, a 14 recapture amount must be added back in the tax year in which such cessa- 15 tion occurs. 16 (ii) A qualified hybrid vehicle ceases to be qualified if: 17 (A) it is modified by the taxpayer so that it no longer meets the 18 requirements of a qualified hybrid vehicle as defined in subparagraph 19 (B) of paragraph three of subsection (p-1) of section six hundred six of 20 this chapter; or 21 (B) the taxpayer receiving the credit under this subsection sells or 22 disposes of the vehicle and knows or has reason to know that the vehicle 23 will be so modified. 24 (iii) Recapture amount. The recapture amount is equal to the credit 25 allowable under this subdivision multiplied by a fraction, the numerator 26 of which is the total recovery period for the property minus the number 27 of recovery years prior to, but not including, the recapture year, and 28 the denominator of which is the total recovery period. 29 (f) Termination. This subdivision shall not apply to property placed 30 in service in taxable years beginning after December thirty-first, two 31 thousand twenty-two. 32 56. Alternative fuel credit for installation or conversion of fueling 33 stations. (a) Allowance of credit. A taxpayer shall be allowed a credit, 34 to be computed as hereinafter provided, against the tax imposed by this 35 article for the cost of installation construction, reconstruction or 36 acquisition of an alternative fuel refueling facility that is directly 37 attributable to the storage, compression, charging or dispensing of 38 alternative fuels to motor vehicles. The income tax credit shall be 39 thirty percent of the costs associated with such expenses. 40 (b) Application of credit. The credit allowed under this subdivision 41 for any taxable year shall not reduce the tax due for such year to less 42 than the amount described in paragraph (d) of subdivision one of section 43 two hundred ten of this article. If the amount of the credit allowable 44 under this subdivision for any taxable year exceeds the taxpayer's tax 45 for such year, fifty percent of the excess shall be treated as an over- 46 payment of tax to be credited or refunded as provided in section six 47 hundred eighty-six of this chapter, provided, however, that no interest 48 shall be paid thereon. The balance of such credit not credited or 49 refunded in such taxable year may be carried over to the immediately 50 succeeding taxable year and may be deducted from the taxpayer's tax for 51 such year. The excess, if any, of the amount of the credit over the tax 52 for such succeeding year shall be treated as an overpayment of tax to be 53 credited or refunded as provided in section six hundred eighty-six of 54 this chapter, provided, however, that no interest shall be paid thereon. 55 § 6. The tax law is amended by adding two new sections 187-q and 187-r 56 to read as follows:S. 1526 5 1 § 187-q. Alternative fuels credit. 1. General. A taxpayer shall be 2 allowed a credit, to be credited against the taxes imposed under 3 sections one hundred eighty-three, and one hundred eighty-four of this 4 article. Such credit, to be computed as hereinafter provided, shall be 5 allowed for fuel flexible and hybrid vehicles placed in service during 6 the taxable year. Provided, however, that the amount of such credit 7 allowable against the tax imposed by section one hundred eighty-four of 8 this article shall be the excess of the credit allowed by this section 9 over the amount of such credit allowable against the tax imposed by 10 section one hundred eighty-three of this article. 11 2. Fuel flexible and hybrid vehicles. The credit under this subdivi- 12 sion for fuel flexible and qualified hybrid vehicles shall equal five 13 hundred dollars per vehicle registered in this state. 14 3. Definitions. (a) The term "fuel flexible vehicle" means a vehicle, 15 which is equipped to use alternative fuel as defined in subdivision 16 eleven of section three hundred fifty-one of the public authorities law. 17 (b) The term "qualified hybrid vehicle" shall have the same meaning as 18 provided for in subparagraph (B) of paragraph three of subsection (p-1) 19 of section six hundred six of this chapter. 20 4. Carryovers. In no event shall the credit under this section be 21 allowed in an amount which will reduce the tax payable to less than the 22 applicable minimum tax fixed by section one hundred eighty-three of this 23 article. If, however, the amount of credit allowable under this section 24 for any taxable year reduces the tax to such amount, any amount of cred- 25 it not deductible in such taxable year may be carried over to the 26 following year or years and may be deducted from the taxpayer's tax for 27 such year or years. 28 5. Credit recapture. (a) If, within three full years from the date a 29 qualified hybrid vehicle is placed in service ceases to be qualified, a 30 recapture amount must be added back in the tax year in which such cessa- 31 tion occurs. 32 (b) A qualified hybrid vehicle ceases to be qualified if: 33 (i) it is modified by the taxpayer so that it no longer meets the 34 requirements of a qualified hybrid vehicle as defined in subparagraph 35 (B) of paragraph three of subsection (p-1) of section six hundred six of 36 this chapter, or 37 (ii) the taxpayer receiving the credit under this section sells or 38 disposes of the vehicle and knows or has reason to know that the vehicle 39 will be so modified. 40 (c) The recapture amount is equal to the credit allowable under this 41 section. 42 6. Termination. This section shall not apply to property placed in 43 service in taxable years beginning after December thirty-first, two 44 thousand twenty-two. 45 § 187-r. Alternative fuel credit for installation or conversion of 46 fueling stations. (1) Allowance of credit. A taxpayer shall be allowed a 47 credit, to be computed as hereinafter provided, against the tax imposed 48 by this article for the cost of installation construction, recon- 49 struction or acquisition of an alternative fuel refueling facility that 50 is directly attributable to the storage, compression, charging or 51 dispensing of alternative fuels to motor vehicles. The income tax cred- 52 it shall be thirty percent of the costs associated with such expenses. 53 (2) Application of credit. If the amount of the credit allowable under 54 this section for any taxable year exceeds the taxpayer's tax for such 55 year, fifty percent of the excess shall be treated as an overpayment of 56 tax to be credited or refunded as provided in section six hundred eight-S. 1526 6 1 y-six of this chapter, provided, however, that no interest shall be paid 2 thereon. The balance of such credit not credited or refunded in such 3 taxable year may be carried over to the immediately succeeding taxable 4 year and may be deducted from the taxpayer's tax for such year. The 5 excess, if any, of the amount of the credit over the tax for such 6 succeeding year shall be treated as an overpayment of tax to be credited 7 or refunded as provided in section six hundred eighty-six of this chap- 8 ter, provided, however, that no interest shall be paid thereon. 9 § 7. The public authorities law is amended by adding a new section 10 1884 to read as follows: 11 § 1884. Alternative fuel grants. The New York state energy research 12 and development authority shall: 13 1. Oversee and promote research and development regarding fuel diver- 14 sification and energy efficiency in the transportation sector; and 15 2. Provide grants for the creation of a cellulosic ethanol refinery. 16 § 8. Subdivision 10 of section 354 of the public authorities law, as 17 amended by section 2 of part TT of chapter 54 of the laws of 2016, is 18 amended to read as follows: 19 10. To construct, reconstruct or improve on or along the thruway 20 system in the manner herein provided, suitable facilities for gas 21 stations, restaurants, and other facilities for the public, or to lease 22 the right to construct, reconstruct or improve and operate such facili- 23 ties; such facilities shall be publicly offered for leasing for opera- 24 tion, or the right to construct, reconstruct or improve and operate such 25 facilities shall be publicly offered under rules and regulations to be 26 established by the authority, provided, however, that lessees operating 27 such facilities at the time this act becomes effective, may reconstruct 28 or improve them or may construct additional like facilities, in the 29 manner and upon such terms and conditions as the board shall determine; 30 and provided further, however, that such facilities constructed, recon- 31 structed or improved on or along the canal system shall be consistent 32 with the canal recreationway plan approved pursuant to section one 33 hundred thirty-eight-c of the canal law and former section three hundred 34 eighty-two of this title; and provided further, that each such facility 35 which contains or consists of a gas station shall include a facility for 36 selling to the public alternative fuel, as defined in section three 37 hundred fifty-one of this article. 38 § 9. Section 351 of the public authorities law is amended by adding a 39 new subdivision 11 to read as follows: 40 11. The term "alternative fuel" shall mean ethanol, methanol, natural 41 gas, propane, electricity (including electricity from solar energy), 42 hydrogen, and any other fuel identified which is substantially not 43 petroleum-based, which is consistent with the goals of protecting the 44 safety and health of the public and minimizing emissions of air pollu- 45 tants, and which is consistent with any applicable federal alternative 46 fuel requirements. 47 § 10. The sum of eighty-two million dollars ($82,000,000), or so much 48 thereof as may be necessary, is hereby appropriated as follows: thirty 49 million dollars for research and development in regards to fuel diver- 50 sification and energy efficiency in the transportation sector; twenty- 51 seven million dollars for the installation of alternative fueling 52 stations at each of the twenty-seven travel plazas on the New York state 53 thruway; twenty million dollars for a cellulosic ethanol refinery; and 54 five million dollars for administrative costs borne by the department of 55 taxation and finance and the New York state energy research and develop- 56 ment authority to the department of taxation and finance; out of moneysS. 1526 7 1 in the state treasury in the general fund to the credit of the alterna- 2 tive fuel incentive fund, not otherwise appropriated, and made imme- 3 diately available, for the purpose of carrying out the provisions of 4 this act. Such moneys shall be payable on the audit and warrant of the 5 comptroller on vouchers certified or approved in the manner prescribed 6 by law. 7 § 11. This act shall take effect on the one hundred eightieth day 8 after it shall have become a law. Effective immediately, the addition, 9 amendment and/or repeal of any rule or regulation necessary for the 10 implementation of this act on its effective date are authorized to be 11 made and completed on or before such effective date.
