Establishes real property tax abatement for the value of land used for replanting or crop expansion of woody biomass used for the production of ethanol or biodiesel

BILL NUMBER:S844

Title of bill

An act to amend the agriculture and markets law, in relation to establishing a real property tax abatement for the owners of land used for replanting or crop expansion of woody biomass for the production of ethanol or biodiesel, including willow

Purpose

This bill establishes real property tax abatement for the value of land used for replanting or crop expansion of woody biomass used for the production of ethanol or biodiesel.

Summary of provisions

Agriculture and Markets Law is amended to establish a three-year real property tax exemption for replanting or crop expansion of woody biomass for the production of ethanol or biodiesel which reflects the maturation time needed in order for the plant material to be marketable.

Justification

This legislation will encourage crop transitions to cellulosic feedstock for ethanol production, such as willow and grasses, with a three year real property tax exemption which reflects the maturation time needed in order for such plant material to be marketable. During this three year maturation period, farmers receive no cost benefit for the crop being produced. This exemption will help farmers diversify their operation and assist them in getting into the new and growing market for cellulosic ethanol and biodiesel.

Legislative history

2009-2010: S.2421A Referred to Agriculture

Fiscal implications

Undetermined at this time.

Effective date

Effective immediately and applicable to assessment rolls prepared after January 1, 2012.