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History
- Referred to investigations and government operations
Full text
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Sponsor's memo
Title of bill
An act to amend the tax law, in relation to biofuel production credit for production of cellulosic ethanol
Purpose or general idea of bill
To provide an additional tax credit for production of cellulosic ethanol in the amount of 25 cents per gallon after the production of the first 40,000 gallons.
Summary of specific provisions
Section 1 renumbers Section 28 of the tax law as Section 38 and amends the section to provide a tax credit of 25 cents per gallon for the production of cellulosic ethanol after the production of the first forty thousand gallons per year presented to market. The section further defines "cellulosic ethanol," and amends the definition of "biofuel plant" to include any commercial facility where cellulosic ethanol is one or more of the biofuels being produced at such facility, and, for purposes of applying the tax credit, the facility shall be considered a separate biofuel plant.
Read the full memo (602 words)
Justification
In Chapter 62 of the laws of 2006, New York State established a biofuel production credit equal to 15 cents per gallon after the production of the first forty thousand gallons of biofuels. This legislation demonstrated New York State's commitment to mass production of biofuels such as ethanol made from corn. The legislation was also intended to support commercialization of new technologies developed at SUNY ESF, Cornell and Clarkson universities for production of cellulosic ethanol using different feedstock, such as willow, northern hardwoods, and grasses.
Cellulosic ethanol has numerous benefits over ethanol produced from corn or sorghum. First, willows and northern hardwoods are well-suited to the climate of New York State. Therefore, New York State's existing natural resources are uniquely positioned to contribute to increased production of cellulosic ethanol. Second, the U.S. Department of Energy and U.S. Department of Agriculture reported in April 2005 that the United States has the capacity to sustainably produce 1.3 billion tons of biomass each year, which would displace at least 30 percent of current petroleum consumption in the United States. Furthermore, cellulosic ethanol produces fewer greenhouse gas emissions than other types of ethanol.
From an economic standpoint, the development of the biofuel industry in New York has the potential to create jobs, not only in biofuel refineries, but also in the areas of production, ore-processing, and transportation. A 2010 Renewable Fuels Roadmap developed by the New York State Energy and Development Authority (NYSERDA), determined that the biofuel industry offers potential for robust job growth.
Depending on the price paid for ethanol in the year 2020, NYSERDA estimates between 3,891 and 14,604 jobs can be created by direct and induced biofuel refinery growth, statewide. They further estimate that labor income, wages and salaries paid across the state, will fall between $172.6 million and $608.3 million. Overall, NYSERDA projects the gross domestic product of the industry to be between $0.46 billion and $1.7 billion.
Rural communities across New York, in particular, stand to benefit from the development of the biofuel industry as it provides an opportunity to diversify, add value to traditional products, and return abandoned farmland to the commercial sector.
In order to capitalize on both the environmental and economic opportunities afforded by the development of biofuels, New York State
should generate additional incentives for the production of cellulosic ethanol.
Legislative history
2015: S.1362 Referred to Energy and Telecommunications 2014: S.4335 Reported and Committed to Finance 2013: S.4335 Passed Senate 2012: S.7147/A.9997 Passed Senate 2011: S.3345 Referred to Investigations & Government Operations 2009,2010: S.3375/A.3840 Referred to Investigations & Government Operations 2007,2008: S.5389/A.7570 Passed Senate
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.