Establishes the retail gas station electric generator tax credit

1 Co-sponsor

• George D. Maziarz

BILL NUMBER:S2515

Title of bill

An act to amend the tax law, in relation to establishing the retail gas station electric generator tax credit

Purpose

This bill would provide taxpayers that own retail motor fuel and diesel motor fuel filling stations in the state with a refundable tax credit for the purchase and installation of an emergency electric generator that is capable of providing emergency power to the fuel pumps at the filling station.

Summary of provisions

Section 1 of the bill amends section 210 of the Tax law to provide a refundable credit to business corporation taxpayers that own motor fuel and diesel motor fuel filling stations that sell motor fuel and diesel motor fuel at retail for purchasing and installing an emergency electric generator at a filling station. The emergency electric generator must be capable of providing emergency power to the fuel pumps.

Section 2 of the bill amends section 606 of the Tax law to provide a refundable credit to S Corporation taxpayers that own motor fuel and diesel motor fuel filling stations that sell motor fuel and diesel motor fuel at retail for purchasing and installing an emergency electric generator at a filling station. The emergency electric generator must be capable of providing emergency power to the fuel pumps.

Section 3 of the bill amends section 606 of the Tax law to provide a refundable credit to individual taxpayers that own motor fuel and diesel motor fuel filling stations that sell motor fuel and diesel motor fuel at retail for purchasing and installing an emergency electric generator at a filling station. The emergency electric generator must be capable of providing emergency power to the fuel pumps.

Section 4 of the bill provides that the act shall take effect immediately and apply to taxable years beginning on and after January 1, 2013.

Existing law

Currently, the Tax Law does not provide for such a credit.

Justification

As New Yorkers began to recover from Hurricane Sandy, many found that they were unable to obtain motor fuel locally because there was no electricity at the service stations to operate the fuel pumps. These New Yorkers were forced to either drive upstate or to another State to obtain motor fuel. At the few service stations that did have power to operate the fuel pumps, the lines to obtain motor fuel stretched for blocks. In Manhattan, three police officers were sent to a service station to keep the peace after fights broke out in the waiting line.

This bill addresses the underlying cause of the inability for New Yorkers to purchase motor fuel after Hurricane Sandy by providing

service station owners with a refundable tax credit when the owner purchases a generator that is able to power the fuel pumps is purchased and installed at a service station in New York. This tax credit will provide service station owners, many of whom are struggling with repairs in the wake of Hurricane Sandy, with the security that if they make the investment that they need to purchase and install a generator, they will receive some financial relief.

We need to help to ensure that New Yorkers do not face the same situation in the future. This bill is a good step toward achieving that goal.

Legislative history

New Bill

Fiscal implications

To be determined

Effective date

This act shall take effect immediately and shall apply to all taxable years beginning on and after January 1, 2013.