Relates to restoring the fuel cell tax credit

1 Co-sponsor

• John L. Sampson

Title of bill

An act to amend the tax law, in relation to restoring the fuel cell tax credit

Purpose or general idea of bill

Restores a previously existing tax credit for certain qualified fuel cell electric generating expenditures.

Summary of specific provisions

Section 1 amends subdivision 1 of section 187-n of the tax law, to restore a business tax credit of up to $1,500 per unit for businesses who purchase qualified fuel cell electric generating equipment.

Section 2 amends paragraph (a) of subdivision 37 of section 210 of the tax law, to restore the same credit for the corporate franchise tax.

Section 3 amends paragraph 1 of subsection (g-2) of section 606 of the tax law to restore a credit for purposes of personal income tax.

Section 4 amends paragraph 1 of subsection (t) of section 1456 of the tax law to restore the fuel cell franchise tax credit for banking institutions.

Section 5 amends paragraph 1 of subdivision x of section 1511 of the tax law to restore the credit for purposes of insurance corporations.

Section 6 amends subdivision (a) of section 20 of the tax law to restore the credit provided for by cross-reference in subdivision (d) of such section.

Section 7 amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law to make conforming changes.

Section 8 provides that the bill shall apply to tax years beginning after January 1,2009.

Justification

This bill restores a fuel cell technology tax credit in effect since 2005 which was eliminated in the 2009-2010 budget process. The credit was originally designed to encourage the use of alternate, more energy efficient and environmentally friendly fuel cell based energy for businesses. Since the introduction of the credit, fuel cell technology has grown into a viable source of back-up power source for cell towers and a variety of electric generating uses.

In its 2003 report to Congress, the federal Department of Energy (DOE) stated the following about fuel cell technology:

* Fuel cell technologies offer unique opportunities for significant reductions in both energy use and emissions for transportation and stationary power applications. * Efficiency improvements over conventional technologies that are inherent to fuel cells could lead to considerable energy savings and reduction in greenhouse gas emissions. * The use of hydrogen in fuel cells, produced from diverse, domestic resources, could result in reduced demand for foreign oil in transportation applications. * Widespread use of fuel cell technology could make a significant improvement in air quality in the United States. (see, DOE Report, ESECS EE-1973.)

Over the four years the fuel cell tax credit has been in existence, New York has grown its use of fuel cells, and the State's domestic producers of fuel cells have diversified their offerings.

Restoration of the fuel cell tax credit will continue New York's public policy of promoting increased use of greenhouse gas reducing power technologies. Increased usage of fuel cell technology will enhance and diversify New York's available power sources, and decrease the use of non-renewable resources and our reliance on traditional forms of energy.

Prior legislative history

S.57B/A.157B (2009) - Signed as Chapter 57 of the Laws of 2009. S.2994B/ A.5881B (2005) - Signed as Chapter 446 of the Laws of 2005.

Fiscal implications

Initial fiscal impact will be minimal.

Effective date

This act shall take effect immediately, and shall be deemed to have been in effect on and after January 1, 2009.