Extends the application of the clean heating fuel credit until January 1, 2017

BILL NUMBER:S6039

Title of bill

An act to amend the tax law, in relation to the clean heating fuel personal income tax credit; and to amend chapter 35 of the laws of 2006 amending the tax law relating to a clean heating fuel credit, in relation to extending the applicability of such credit until January 1, 2017

Purpose or general idea of bill

To extend the personal income tax clean heating fuel credit until Janu- ary 1, 2017 and to make conforming amendments to Chapter 35 of the Laws of 2006. Chapter 591 of the laws of 2011 already extends this provision until 2017 for corporate owners of residential developments. As refer- enced in the Bill Approval memo (No 11 Chapter 591) this bill represents a three-way agreement to a chapter amendment aimed at allowing individ- ual homeowners to also claim this credit for five more years.

Summary of specific provisions

Section 1 amends tax law section 606(mm)(1) to extend the effective date for the clean heating fuel credit. The credit will be affected for taxa- ble years beginning before January 1, 2017.

Section 2 amends Chapter 35 of the laws of 2006, as amended by section three of part AAA-1 of chapter 57 of the laws of 2008 by extending the taxable years for which this credit may be claimed. The date has been extended to include all taxable years beginning before January 1, 2017.

Justification

Governor Pataki first signed this tax credit into law in 2006, in order to promote the use of clean heating fuel, in order to improve air quali- ty, protect our environment and encourage domestic sources of fuel. This credit was extended in 2009, and thousands of New Yorkers took advantage of the credit by burning cleaner, more renewable and less carbon laden heating oil.

During the intervening period more and more consumers have become aware of biodiesel and its environmental and clean air benefits. As consumers replace their traditional heating oil with greener biodiesel blends, it is vitally important that this tax credit be extended.

This tax credit expired for taxable years beginning after December 31, 2011, which means that customers already taking advantage of it will lose this benefit and return to less environmentally friendly sources of fuel. In order to protect these consumers, and to promote clean air and a safer environment, the clean heating fuel tax credit must be extended.

Prior legislative history

2011: S.5349/A.7793 enacted as Chapter 591 of the laws of 2011 2008: S.6807C/A.9804C enacted as Part AAA-1 of Chapter 57 of

the Laws of 2008 2006: S.7909/A.11331 enacted as Chapter 35 of the Laws of 2006

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.